APPLICATION

IBRA IN ISLAMIC
BANK
PRESENT BY GROUP 6
 Our Team

NUR ASYIQIN ABDUL MOIN

ATIKAH NABILAH YUSRI

NUR HUDA SYAZANA SABRI

AMIRAH ELYANA SHAMSUDDIN

 DEFINITION OF IBRA’
Literally, Ibra is represented as an
“elimination, release, acquittal, and
removal of something”
A technical definition of it is: “any act by
a person to withdraw his rights (to
collect payment) from a person who has
the obligation to repay the amount
borrowed from him”

In Islamic banking and finance

Refer to the granting of rebates by
Islamic banks, at their discretion, to their
clients who pay off debt obligations
arising from sale-based contracts before
the stipulated settlement period
 LEGALITY OF IBRA’
AL-QURAN HADITH
“And if the debtor is in a hard time (has no money), then
The Prophet Muhammad S.A.W said to the Jews of
grant him time till it is easy for him to repay; but if you remit it
Bani Nadir when instructing them to leave Medina:
by way of charity, that is better for you if you did but know”
“Reduce the debts and expedite its settlements”
(Qur’an, 2:280)

Muslim Scholars view

 Forbid this act because the practice is based on usury

Abd al-Rahman Salih al-Atram

 Denied the claim because the nature of "reducing and
accelerating" is different from the nature of "increasing and
extending".
 Conditions Of Ibra
The grantor

 He must be mature and possess legal capacity.

 He must have the authority to execute the ibra on his own or to assign it to an agent.
 The consent must be obtained willingly and not be coercion.

The recipient

 He must be known and identified.

Subject Matter

 It must be known specifically.

 1 2
At the beginning of Islamic banking, the almost all banks that offer Islamic
financial products practice the
practice of giving rebates or discounts
principle of Ibra', especially in
by Islamic banks to their customers products that create an element of
debt
began where the rebate was given as a
reward to good customers who had a
APPLICATION
good credit rating based on customer AL IBRA IN
3
financing data.
ISLAMIC
FINANCE The practice of ibra in Islamic banking can be

4
categorized in two situations, namely when the
customer makes an early payment and when
the importance of ibra' in there is a default in repaying the customer's
contemporary Islamic finance that
can be seen debt to the bank
 GHARAR

Not include an ibra' clause in the agreement

ISSUES Customer will wonder if qualified to receive ibra’ or not

IBRA’ IN
ISLAMIC
FINANCE Injustice and persecution

DEFAULT PAYMENT

Customers fail to complete their payments within the time

Case of default has been brought to court many times

Eg: In the case of Affin Bank Berhad vs Zulkifli bin Abdullah
 CONCLUSION
 we conclude that ibra is a form of flexibility given by Islamic banking institutions to

customers and is a very important concept in products and services to realize the purpose of

making products competitive and viable.

 Through this study, we can find out what is meant by ibra, which is the abortion of rights by

one party to another party that needs to be implemented against him.

 We also know the concept, terms and conditions, the opinions of scholars about ibra, the

application of ibra in Islamic finance and also issues related to ibra.

THANK
YOU