Bai Bithaman Ajil/Murabahah

Bai Bithman Ajil (sometime spelt as Bay' Bithaman Ajil) or

BBA, is an Islamic financing product involving sale of
goods where the sale price is payable on instalment basis.
This type of transaction is best referred to as "deferred
payment sale". However, in layman term, it's just a
purchase of good on credit.
• The keywords of surah Al-Baqarah 275 is that "Trade
is like usury but Allah had permitted trade and
forbidden usury"

• BBA is a Murabahah product but the product name of

BBA was given by BBMB to differentiate between a
short term (below 12 months) and long-term (above 12
months) tenor financing products.

• the Islamic financing product of Murabahah was

introduced to meet the above Quranic verse
interpretation
Murabahah
• Murabahah or murabaha (Arabic ‫ مرابحة‬, more accurately
transliterated as murābahah) involves a sale where the seller
indicate his original cost of purchasing the good/s (in banking
perspective - the original financing amount offered by the Bank)
and the mark-up amount (agreed profit rate (%) x financing
tenor) as the selling price. In most cases, the buyer would have
pay certain amount as deposit (normally 5 - 10% of purchase
price) while the balance is payable on instalment basis over the
agreed deferred payment period (financing tenor) using the
bank financing facility.
QARDHUL HASAN
• Qardhul Hasan is a type of benevolent loan in which the borrower is
only entitled to repay the principal amount borrowed without any
increment.
Eg : a customer approaches the Islamic bank and decides to loan an amount of
money says RM 1000 and the period for repayment is 2 months. The customer
has to repay the principal amount within the time agreed and in the same
amount of principal borrowed.