2. USES OF FUNDS
The Features Of Other Types Of Islamic Financing
Qardhul Hasan
Rahnu financing
The Features of Securities For Investment
Islamic Repos (sale and buy back agreements)
Islamic Negotiable Instruments of Debt Certificate
Islamic Acceptance Bills
Government Investment Issues
Bank Negara Negotiable Notes

3. The Features Of
Other Types Of
Islamic Financing
Qardhul Hasan
Rahnu financing

4. 1. QARDUL HASAN
Refers to an interest free loan.
The borrower is only required to repay
the principal amount borrowed
May pay an extra amount at his absolute
discretion, as a token of appreciation
Islamic banks lend qardh well, also
provide loans in the form Qardul Hasan

5. In General, The Use Of Funds In
Islamic Banking Qardul Hasan,
For Venture Capital (Funding)
Qardul Hasan channel funds through the Economic
Empowerment program as a social concern exists
shariah banking to the community and aims to help
people who need help to grow our businesses better.
To Finance School (Contribution)
The higher expenses of education funding have
resulted in a society that does not go to school.
Therefore, Islamic banking trough contract Qardul
Hasan help those who feel a lack of funds for
school fees or education.

6. 2. AR-RAHNU
Mortgage or collateral, is defined in the Islamic
jurisprudence as ‘possesions offered as security for a debt
so that the debt will be taken from it in case the debtor
failed to pay back the due money”
Ar–Rahn is a permissible contract in Shari’ah.
Ar-rahnu is sources of funding for those who need loan
with immediate effect for a period of time.
The scheme is very approriate, as it provides the financial
product to the small businesses that may sometimes have
difficulty getting a loan facility from the conventional
financial system.

7. The Features Of
SECURITIES FOR
INVESTMENT

8. 1.ISLAMIC REPOS
(SALE AND BUY BACK AGREEMENTS)
“islamic securities” refer to securities
issued based on Islamic principles as
approved by BNM or SC (securities
comission)
SBBA is an Islamic financial instrument
introduced for the purpose of enhancing
liquidity in the Islamic InterbankMoney
Market(IIMM) and providing additional
avenue for the IIMM participants to source
their funding requirements.

9. SBBA is an Islamic repurchase agreement (Repo-
i) transaction where by a party(SBBA Seller) sell
Islamic securuties at an agreed price to the
other party.
(SBBA Buyer) and subsequently the SBBA buyer
and SBBA seller enter into another agreement
thereon whereby the former promises to sell
and the letter to buy back the securities on a
specified future date and at an agreed price
“SBBA seller” refer to the party who initiates to
sell Islamic securities for cash consideration
“SBBA buyer” refers to the party or investor who
purchases the Islamic securities and pays cash.

10. 2.ISLAMIC NEGOTIABLE
INSTRUMENTS
OF DEBT CERTIFICATE(NIDC)
It is offered under the Shariah contract of
BBA(deferred pay. sale) which is the sale of
goods on a deferred payment basis
The refers to a method of sale with deferred
payment basis at a price which includes a
profit margin agreed by both the Bank and
the customer
The underlying sale is facilitated with an
identifiable asset owned by Bank Islam

11. 3. ISLAMIC ACCEPTANCE
BILL(IAB)
Was introduced in 1991.
The objective to encourage and promote both
domestic and foreign trade through an Islamic
financing mechanism.
The Shariah concepts of murabahah (cost-
profit) and bai’ dayn (debt trading)
2types of financing under the AB-I facility :-
-Imports and local purchases
-Exports and local sales

12. Import & local purchases
An applicable mechanism under this type of
financing is the working capital financing
under murabahah
The bank appoints the customer as the
purchasing agent for the bank
The customer is allowed a defered payment
If the bank decides to sell the SB-i to a third
party, AB-i will be sold under the concept of
bai’ dayn

13. Export & local sales
The applicable Shariah concept under this
type of financing facility is bai’ dayn
The customer prepares the sale documents
as required under the sales contract or letter
of credit
The bank will purchase the AB-i at the
matually agreed price using the concept of
bai’ dayn and the processs will be credited to
the customer’s account

14. 4. GOVERNMENT INVESTMENT
ISSUES
It is long term non-interest bearing securities
issued by the Government of Malaysia based on
Islamic principles
It is a Domestic Ringgit Islamic Bond structured
on the concept of Bai Al-Inah and can be traded
in the secondary market
Through this sale and purchase transaction . A
debt has been created.This debts is then
securitized through the issuance of GII
GII is assigned with no credit risk as it is issued by
the government

15. 5)BANK NEGARA NEGOTIABLE
NOTE-I
A short-term instrument issued by the Central Bank
Structured based on the concept of Bai Al-Inah and
can be traded in the Islamic Money Market (IMM)
secondary market based on the concept of Bai Al-
Dayn
A monetary policy instrument
Traded on a discounted basis and pay able at face
value on maturity
Tenure up to 6month
High liquidity in secondary market
No credit risk

17. THANK
YOU