2. DEFINITION
• BAI’ BITHAMAN AJIL
Refers to the sale of
goods on a deferred
payment basis at a
price, which includes a
profit margin agreed
upon by both parties.
The profit is not an
interest
payment, however it is
part of the sale price.
• MUSYARAKAH
MUTANAQISAH
Form of partnership in
which one of the
partners promises to
buy the equity share of
other partner gradually
evidence until the title
of the equity is
completely transferred
to him.
3. ADVANTAGES
MUSYARAKAH
MUTANAQISAH
• Facility to pay more installments
at any time as well as get the
rebate.
• Bank profits are calculated on a
monthly and daily. Early
customers to make installment
payments during the month then
lower the rate of profit taking.
• Customers are given exemption
from payment installments a
month or once a year over the
financing balance.
• Free from the constraints of the
problem of failed development of
house.
BAI BITHAMAN AJIL
• The total cost of the
property purchased is
determined at the time of
contract or aqad.
• There is no additional or
“hidden” cost that will
change the price of the
property purchased.
• The transaction is
transparent.
• There is no element of
uncertainties or Gharar.
• Customers will know exactly
when the financing will end.
4. DIFFERENCES BETWEEN BBA AND
MMQ CONTRACTS.
The MMQ contract is seen as a joint ownership structure
whereas the BBA is a debt-type financing.
As a financing structure, the MMQ is more flexible than the
BBA as the customer can own the property earlier by
redeeming faster the principal sum of the bank without the
need to compute rebates, as is the case with the BBA.
Many may be of the opinion that the BBA is similar to a
convention-al loan.
The MMQ is accepted internationally as Shariah compliant
whereas the BBA is recognized predominantly in the east, e.g.
in Malaysia and so on.
5. FLOW OF BAI’ BITHAMAN AJIL
BANK
CUSTOMER
HOUSING DEVELOPER
2. Bank purchased the house at RM100,000.00
3. Bank sells the house to customer at
RM180,000.00
4. Customer repays RM180,000.00 by 180 equal
monthly installment of RM1,000.00
1.Customer indentifies a house to be
purchased (sign s&p agreement)
