Al Ijarah Thumma Al Bai

Shariah advisory council of bnm.

Al ijarah thumma al bai. There has been a proposal by an islamic financial institution to introduce vehicle financing based on al ijarah thumma al bai aitab concept the financing based on aitab involves two types of contracts namely leasing contract ijarah followed by sale contract al bai at the initial stage the islamic financial institution will conclude an ijarah. The essence of ijara thumma al bai. This involves two contracts. Al ijarah thumma al bai aitab shariah compliant car financing based on the principles of ijarah thumma al bai which means lease followed with sale.

Penyewa atau al musta jir 3. It s applicable for financing new secondhand and reconditioned motor vehicles with maximum financing tenure up to 9 years and margin of finance mof up to 90. Application of al ijarah thumma al bai in vehicle financing there has been a proposal by an islamic financial institution to introduce vehicle financing based on al ijarah thumma al bai aitab concept. Al ijarah and al ijarah thumma al bai aitab motor vehicle financing siti munirah abd wahab nur wirda ahmed 2.

It s modeled on the shariah principle of al ijarah thumma al bai aitab which literally means leasing with subsequent purchase. St inception by bank islam aitab has grown in popularity and continuously expanded partly due to the heightened demand by customers. A basic idea about the essence of ijara thumma al bai can be had by analyzing the words that make up the name. Al ijarah ijarah is an arabic term with origin in islamic meaning to give something on a rental basis or wages it is islamic alternative to conventional leasing.

Ijarah thumma al bai hire purchase in this transaction hire purchase or lease sale or financial lease the customer leases hires a good and agrees to purchase it paying in installments so that by the end of the lease it owns the good free and clear. Up to 9 years. Thumma means to be followed by or thereafter whilst the phrase al bai refers to sales. An ijarah that outlines the terms for leasing or renting.

Rukun rukun bagi aqad yang pertama ialah 1. Pemberi sewa atau al muaajjir 2. Al ijarah thumma al bay aitab in malaysia islamic hire purchase is popularly recognized as al ijarah thumma al bay or popularly known as aitab. The word ijara means renting hiring or leasing.

There are several types of ijarah. Ijarah muntahia bi al tamlik or al ijarah thumma al bai. Ijarah thumma al bai means hire purchase it refers to how parties will enter into contracts which come into effect in a serial manner in order to form a complete lease or buyback transaction. Harta yang disewa atau al ma jur 4.

The first contract in this serial process is known as ijarah and its purpose is to outline all of the terms for the leasing or the renting. Manfaat atau al manfa ah 5.