Al Bai Bithaman Ajil Concept

A deferred payment sale where the payment is made in a single installment is called bai bithaman ajil.

Al bai bithaman ajil concept. Bai bithaman ajil means a deferred payment sale. The sale of goods on a deferred payment basis. This type of transaction is best referred to as deferred payment sale. Property land motor vehicle consumer goods shares overdraft facility education financing evidences package etc.

Home financing is the most popular facility granted under the concept of bai bithaman ajil bba either to purchase existing completed houses build or construct new house on customers land even as a refinancing facility. Bai bithaman ajil ijarah istisna dan lain lain. Home financing is the most popular facility granted pillars under the concept of bai bithaman ajil bba either to purchase existing completed houses build or construct new house on customer s land even as a refinancing pricing facility. Equipment or goods requested by the client are bought by the bank which subsequently sells the goods to the client for an agreed price including a mark up profit for the bank.

However in layman term it s just a purchase of good on credit. 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. The deferred payment sale contract would include all the terms and conditions present in bai al mu ajjal. Bai al dayn refers to a contract of debt trading created from shariah compliant business activities.

This particular contract has become exceedingly popular in the islamic banking context as will be explored later. A contract that refers to the sale and purchase transaction for the financing of assets on a deferred and an installment basis with a pre agreed payment period. The underlying transactions of the bba is said to be based on the concept murabaha cost plus whereby the sales. Property land motor vehicle consumer goods shares overdraft facility education financing package etc.

In the context of islamic finance bai dayn is a method of sale of debt created under exchange contracts such as murabahah bai bithaman ajil ijarah istisna and others. In some countries bai bithaman ajil is also known as bay al muajjal e g. Islamic bank in malaysia is bai bithaman ajil.