BAT-MURABAHA BAI-MUAIJAL The term “ Bai-Murabaha” have been deri ved from Arabic words “Bai” and “ Ribhun” . The word “Bai” means ‘purchase & sale’ & the werd ‘Ribhun’ means agreed upon profit The term “ Bai-Muajjal” have been derived from Arabic words “Bai” and “ Sjal” . The word “Bai” means ‘purchase & sale’ & the word ‘Ajal’ means fixed time wr a fixed period Ba-Murabaha means sales on agreed upon profit. Ba -Muajjal means sale for which paymentis made at afixedtime or within a fixed periodic. sale on credit or deferred payment Bai-Murahaba may be defined asa contract between buyer and seller under which seller sells certain specific goods permissible under Islamic Shariah and the law of the land tothe buyer ata cost plus agreed profit payable in cash or any fixed future date in hamp-sum or by installments. Bai-Muuajjal may be defined as a contract between the bank and the client (seller and buyer) under which bank sells to the client certain specified goods (permissible under Islamic Sharaiah and the law of the country) purchased as per order and specifi cation of the client at an agreed ptice payable within a fixed future date in lum p-sum or by fixed installments The Bank cells the goods at a price above the cost to obtain profit. The bank may sell goods with out profit of same as purchase price of even less than purchase price Th cash of Bal Murabaha, purchase price of goods and profit mark-up shall separately and clearly be mentioned in the agreement. Th case of Bai-Muajjal Bank is not bound to declare cost of goods and profit mark-up separately to the client. Payment is made at today or on some date in the future in lump-sum or by installments Paym entis made at a future fixed date in lump-sum or in fixed installments Th cash of Bai-Murabaha, ownership of the goods can be transferred to the client by completing delivery order and trust receipt or it can bein the scle control of the bank. Th case of Bai Muajjal ownership of goods must be transferredto the clients on trust receipt Tn Bai-Murabaha agreement there is option for payment either in cash or credit. Tn Bai-Muaja sale must be in credit Le paymentis deferred