Murabaha Payment agreement

With Akafay Halal, you can defer payments through a Shariah-compliant Murabaha no interest, no hidden fees, no compromise on your faith. By choosing this option, you agree to the terms and conditions below, ensuring your purchases remain ethical, transparent, and fully aligned with Islamic principles.

Introduction
1. Terms and Conditions (“Terms”) govern the Deferred (Installment) Payment Option offered by your bank of choice (referred to throughout these Terms as “the Bank”), facilitated through the technology provider Akafay Halal. Akafay Halal acts as the agent of the Bank from whom you will receive Halal payment (also referred to throughout these Terms as “we,” “us,” or “our”). These Terms enable your purchase of commodities through a Shariah-compliant Murabaha structure (“Murabaha Agreement”), allowing you to structure the agreed repayment term for your Buy Now, Pay Later (BNPL) debt under your agreement with us (“Akafay Halal Agreement”).
2. Please read these Terms carefully before using this option. If you do not agree to these Terms, you should refrain from using the Deferred Payment Option Instead use the pay now option.
Deferred Payment Option
1. You may request to structure the term of your Akafay Halal debts under the terms of the BNPL Agreement through our Installment Payment Option, subject to Akafay’s approval.
2. Upon approval, Akafay will notify you and provide details of the Murabaha Agreement and the transaction details.
3. By agreeing to the Installment Payment Option, you acknowledge and agree to adhere to the terms and conditions outlined in the Murabaha Agreement.
Murabaha Transaction
1. Principal Purchase
  1. The bank of your choice acts as the principal in the Murhaba transaction.
  2. The Bank will purchase specific commodities from a selling broker at the prevailing market price through the Wakil Akafay Halal
  3. The purchase of commodities will be executed in accordance with the terms and prices agreed upon with the merchant through the Akafay Halal platform, with the Bank acting as the principal buyer and Akafay Halal enabling merchant onboarding, customer verification, transaction orchestration, and embedded Shariah governance across the financing workflow.
2. Murabaha Agreement
  1. The Bank will sell the purchased commodities to you under the agreed Murabaha Agreement, with Akafay Halal facilitating the transaction, ensuring customer authentication, and managing the Shariah-compliant BNPL workflow.
  2. The sale to you will be at an agreed-upon price, which includes the cost of the commodities and a profit margin determined by the Bank, as the principal buyer. Akafay Halal facilitates the transaction workflow and ensures Shariah compliance but does not set the profit margin.
  3. The terms of the Murabaha Agreement, including the payment schedule and any other relevant conditions, will be clearly outlined and agreed upon by both AKafay Halal and you.
3. Agency Appointment.
  1. You hereby authorize the Bank as your agent (the Agent), acting as the seller under the Murabaha Agreement, to sell the commodities to you and allocate the proceeds from the sale. Akafay Halal will facilitate the transaction by enabling merchant onboarding, customer verification, transaction orchestration, and embedded Shariah governance across the BNPL workflow.
  2. The Agent, as the seller under the Murabaha Agreement, is hereby authorized to manage the sale of the commodities and allocate the proceeds. This includes, but is not limited to, determining the timing, manner, and terms of such sale and allocation. Akafay Halal will provide the digital platform to manage the transaction, verify customer information, and ensure the process remains Shariah-compliant.
  3. The Bank, as the seller under the Murabaha Agreement, has full authority to carry out all actions necessary for selling the commodities and managing the proceeds. This includes entering into contracts, executing agreements, and taking any other actions required to complete the sale. Akafay Halal will support the process by providing the digital platform to manage the transaction, verify customer information, and ensure the process remains Shariah-compliant.
  4. Akafay Halal will track your repayments and provide a report showing the original price of the product and the pre-agreed profit markup, ensuring transparency throughout the repayment period.
General Provisions:
1. You acknowledge and agree that after the sale of the commodities to you under the Murabaha Agreement, Akafay Halal acts solely as a facilitator, handling customer authentication, transaction processing, and Shariah-compliant workflow, and does not assume any ownership or financial interest in the commodities. The Bank remains the principal seller and owner of the goods throughout the transaction.
2. Before the sale of the commodities to you, the Bank bears full ownership and risk of the goods from the moment they are purchased from the selling broker until they are sold to you under the Murabaha Agreement.
3. You agree to comply with all applicable laws, regulations, and Shariah principles governing Murabaha transactions and Buy Now, Pay Later (BNPL) agreements, as well as the specific terms outlined in your Akafay Halal BNPL Agreement.
4. Akafay Halal reserves the right to amend or modify these Terms and Conditions at any time, provided that prior notice is given to the Customer before such changes take effect.
Communication:
1. By using the Installment Payment Option, you agree to receive communications from Akafay Halal regarding the status of your request, payment schedule, and any applicable fees or updates related to your Murabaha Agreement.
Impact on Repayment Schedule:
1. If you are unable to make your payment on time due to circumstances beyond your control, you may request an extension up to 24 hours before your payment is due.
2. A delay in making your payment on time may result in a late fee imposed in accordance with Shariah principles, specifically under the concepts of Gharamah (penalty) and Ta’widh (compensation for actual loss). These fees are fully Shariah-compliant, transparent, and fair. They are not considered interest (riba), and the amounts will be clearly communicated to you in advance.
  1. Ta’widh: compensation for any actual costs or losses incurred by the service providers due to the late payment.
  2. Garamah: designed to encourage timely repayment. It is not interest (riba), and all fees collected are donated to charity, ensuring fairness, transparency, and adherence to Islamic principles while maintaining the ethical and sustainable operation of the BNPL system.
3. You acknowledge it is your responsibility to review and understand the implications on your repayment plan as presented to you by Akafay Halal.
Right to Cancel:
1. Akafay Halal or the Agent reserves the right to cancel or modify the Installment Payment Option at any time without prior notice.
Applicable Law:
1. These Terms and the installment Payment Option are governed by the principles of Shariah (Islamic Law) and the National Bank of Ethiopia’s Directive No. SBB/72/2019, which regulates interest-free and Shariah-compliant financial services.
2. You irrevocably agree that any dispute or claim arising out of or in connection with these Terms shall fall under the exclusive jurisdiction of the competent courts of the Federal Democratic Republic of Ethiopia, in accordance with Shariah principles and the National Bank of Ethiopia’s Directive No. SBB/72/2019.
Contact Information:
1. For any inquiries or assistance related to the Deferred Payment Option, please contact Akifa’s customer support team

By using the Installment Payment Option, you acknowledge that you have read, understood, and agreed to these Terms and Conditions.

Akafay reserves the right to update these Terms at its discretion, When we are due to update the App and/or our Website to incorporate any changes to the Terms, you will be notified via your registered email account/ phone number with us, informing you of the updates / changes at least 30 business days in advance of such change being enforced (provided such change is not otherwise required by applicable law).