Misk Islamic Bank offers a variety of banking services that comply with the provisions of Islamic Sharia to meet the needs of companies. These services aim to provide innovative and safe financial solutions that help customers manage their money and achieve their financial goals.
Letters of Guarantee
Important financial tools that contribute to facilitating business and ensuring obligations between different parties while adhering to the principles of Islamic Sharia. Here we review the basic details related to these letters.
1 - Customer request: The company submits a request to our bank to obtain a letter of guarantee, including the type, amount, and purpose of the letter.
2 - Study the application: Our bank studies the application with a focus on the Sharia and financial aspects, such as the company’s ability to fulfill its obligations in accordance with Islamic Sharia.
3- Issuing the letter Misk Islamic Bank issues the letter of guarantee using an acceptable legal form, such as a guarantee or Islamic guarantee, and provides a copy of it to the beneficiary, the other party to the agreement).
Types of letters of guarantee at Misk Islamic Bank
Primary guarantee letter (primary guarantee)
Ensures the company's seriousness in submitting a bid in tenders and auctions.
Final letter of guarantee (implementation guarantee)
Ensures that the company carries out the agreed upon work or project.
Letter of guarantee for advance payment
It guarantees the return of the advance payment if the company does not carry out the work as agreed.
Labor guarantee letter
Ensures payment of workers' entitlements in large projects.
Features of letters of guarantee in Islamic banks
Commitment to Islamic Sharia law It ensures that transactions are compatible with Sharia principles, which enhances trust between customers and the bank.
Protection from risks It provides protection for the beneficiary in the event that the customer does not fulfill his obligations.
Project and business support It helps facilitate the implementation of major projects and ensures the smooth running of business operations.
Release mechanism
1- Request a letter of guarantee: The company submits an official request to the bank.
2- Bank evaluation: The bank evaluates the request from the financial and legal aspects.
3- Concluding the contract: A contract is signed stating the details of the guarantee and conditions.
4- Issuing the letter: The letter of guarantee is issued and delivered to the beneficiary.
General conditions for the letter of guarantee
1- The guarantee amount: determines the amount that the bank is obligated to pay.
2- Warranty period: The warranty period is determined.
3- Withdrawal conditions explain the circumstances in which the beneficiary can withdraw the guaranteed amount.
Seamless Banking
Misk Islamic Bank offers a variety of banking services that comply with the provisions of Islamic Sharia
