What is Bai Bithaman Ajil home financing?
What is Bai Bithaman Ajil home financing?
Bai’ Bithaman Ajil means a “deferred payment sale”. It is a mode of Islamic financing used for property, vehicle, as well as financing of other consumer goods. The underlying transactions of the BBA is said to be based on the concept Murabaha (cost plus) whereby the sales price is added up with the profit.
What is Bai Salam in Islamic banking?
Investment Modes ‘Bai-Salam’ means advance purchase and sale. In other words, Bai-Salam is a sale whereby the seller undertakes to supply some specific Commodity (ies) /Product(s) to the buyer at a future time in exchange of an advanced price fully paid on the spot.
What is Bay Al Tawarruq?
As a financial term, bay’ al-tawarruq refers to muamalah business transactions which involve two stages of business. In its first stage, business is conducted where a purchase on credit is made between the buyer and the original seller of an asset.
How Bai Bithaman Ajil works?
Bai’ Bithaman Ajil (BBA) refers to a sale and purchase transaction of an asset to be paid on later date (deferred payment) based on a price, which include a profit margin agreed to by both contracting parties.
What is Al Ijarah Thumma Al Bai?
Al-Ijarah Thumma Al-Bai’ (AITAB) is a Syariah-compliant car financing based on the principles to lease (Ijarah) followed by sale (Al-Bai’). Customer during the leasing contract should pay at an agreed rental payment over a specific period.
What is Bai istisna?
Bai’ Al-Istisna refers to a sale by order of good / property, which is to be constructed / manufactured, and delivered at a specified future date. The payment of the Bank’s selling price may be paid in full or by way of progressive payment as the case may be.
What are Rabawi goods?
The six substances (items) that are sold by weight and measure, literally: gold, silver, dates, wheat, salt and barley.
What are the major differences between Bai Tawarruq and Bai Inah?
The transaction using Bai’Al-Inah and Tawarruq has several differences. The Bai’Al-Inah involves two (2) parties in completing each transaction whereas the Tawarruq involves three (3) parties. The purpose of Bai’ Al-Inah and Tawarruq are the same but the way the Hilah is practices is different.
What is Commodity Murabahah?
Commodity Murabahah is the purchase of certain specified commodities on a cost plus profit basis (Murabahah) agreed upon by both parties (buyer & seller) and subsequently, the commodity is sold to another commodity trader (third party) with the objective of obtaining cash.