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BAI BITHAMAN AJIL (BBA)

GROUP NAME :-

MOHD FAZLAN BIN AHMAD FAUZI 62289113548

DHIYA NURLIYANA BINTI TOHIRAN 62289113699

NAZATUL NATASHA BINT MD YASIN 62289113543

NUR ALIA BINTI ARZALI 62289113892

WAN NURFATIHAH BINTI WAN SUHAIMI 62289113559

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BBA - INTRODUCTION

BBA is predominant concept for Islamic home

financing currently in Malaysia.

BBA has been practice by almost all financial

institutions in this country since it was implemented

by BIMB in 1983. BBA practiced in Malaysia is seen not to be in

compliant with the shariah principles as the bank

does not take the risk of ownership and liability on

the property. BBA is not acceptable by international scholars.

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LEGALITY OF BBA

O you who believe! Whenever you give or take credit for a stated term, set it

down in writing (Al-Baqarah 2:282)

O you who believe! Eat not up your property among yourselves in vanities: not

even by way of trade based in mutual consent (An0Nisaa4:29)

It was reported that the prophet S.A.W had bought some food from a Jew on a

credit basis (with a delayed payment) and he pledged to him his steel armor.

The legality of BuyNasiah (BBA) in this hadith indicates the legality of

BuyTaqsit (sale trough installment payment) since this type of sale actually a

sale with differed payment of the price.

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DEFINITION

BBA is a sale contract in which the

payment of the price payable at acertain particular time in the future.

BBA

Al Bay

(SALE)

Ajil

(deferment)

Bithaman

(with price)

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SCOPE OF FINANCING

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MODUS OPERANDI BBA

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MODUS OPERANDI

Step 1 - Customer identifies the asset to bepurchased.

Step 2 Maybank, as agreed by the customer ,

purchases the qualified asset from the owner.

Step 3

Maybank sells the asset to financing

customer.

Step 4 financing customer repays the selling

price by the installment per month.

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LEGAL DOCUMENTATION

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ISSUES ON BBA

Balance for early settlement is high

- High compared to conventional loan

- High amount being a burden to customer.

Bank holds no such liability

- Customer my claim for defect and proceed thecontract or cancel the contract.

- Based on the given rules a khiyar Ayb , it is apparent

that an Islamic bank as a selling party must hold all

liability arising from all defective goods sold.

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OBJECTIVE

To provide financing for potential buyer thatenable to fulfill responsibility without

hardship.

Aimed at permitting individual to acquire asset

without involve any interest. To smooth the progress of transaction.

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ISSUES ON BBA

BBA financing : selling of the non-existent

- BBA financing in Malaysia is applied over

property under construction & completed

property.

- Financing for house under construction is not

allowed since the subject matters is not existent

(majority of jurist).

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VIEW FROM MAJOR SCHOLARS

Shaykh Ahmad Kutty, Dr. Yusuf AI-Qaradawi and Dr. Monzer Kahf,5

among other contemporary scholars, allowed the installment sale. In their views,

it is a necessity for the people and without allowing the installment sale it would

put the hardship on them in performing their everyday life activities, and that

is contrary to the Qur'anic verse stating ... Allah intends every facility for

you He does not want to put you to difficulties ... (AI-Qur'an, al-Baqarah:

185). Furthermore, the Holy Qur'an says: And strive in His cause as ye ought

to strive (with sincerity and under discipline): He has chosen you and has

imposed no difficulties 011 you in religion ...

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ON LUSION

The conventional system focuses primarily on the

economic and financial aspects of transactions theIslamic system places equal emphasis on the ethical,moral, social and religious dimension to ensure fairnessto both contracting parties and the society as a whole.

Therefore in BBA contract the asset here must be clearly

identified and must be in existence. For the purchase of house to be constructed there should

be other alternative Islamic banking product introducedsuch as musharakah mutanaqisah or other method offinancing which can further reduce and eliminate the

principle ghrrin the contract.