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Erudite AfricaCenter of Excellence
← Interest Free Banking Financing: Foundation

Key terms and documents

Module 05 / 6 · 50 min

Learn the standard Murabaha forms in the order they are signed, and the terms every IFB staff member uses, from rebate and damage to days past due, large exposure and related party.

In this module you will learn to

  • Name the standard Murabaha documents and the order in which they are signed
  • Explain the purpose of the Master Murabaha Financing Agreement and the Wakalah agreement
  • Read a Schedule of Payment showing purchase cost, profit and sale price
  • Define rebate and damage and how each is treated
  • Define past due, days past due, non-performing finance, related party, large exposure and influential shareholder

Built on

  • Erudite Africa Investments course outline: Interest Free Banking Financing, Three-Level Course, Level 1 Foundation (October 2026)
  • A typical Ethiopian bank's interest free banking financing business procedure (May 2025), unnamed: definitions, governance, roles and team approach
  • NBE Directive No. SBB/72/2019, Licensing and Authorization of Interest Free Banking Business
  • NBE Bank Corporate Governance Directive No. SBB/91/2024 (influential shareholder at 2%)
  • AAOIFI Sharia'h Standards, including No. 8 Murabaha, No. 9 Ijarah, No. 10 Salam and No. 11 Istisna'; the host bank's Sharia'h Advisory Committee rulings take precedence

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.