Bai Bithaman Ajil Home Financing

Official website for taib which offers savings deposit and term deposit accounts as well as corporate financing products and platinum banking services.

Bai bithaman ajil home financing. Bai bithaman ajil bba purpose. It is based on the debt financing where. These usage is now done under the tawarruq arrangement using commodity murabahah where the proceeds from the sale of commodities is used to settle the purchases of houses or commercial properties. Out of 23 home financing products offered 15 products or 65 23 exercise bba concept particularly by the local islamic bank 21 75 for musyarakah mutanaqisah financing and 4 34 each for tawarruq istisna and murabahah financings.

Various islamic home finance products have been introduced and practised in malaysia. Bai bithaman ajil bba seemed to be the most preferable and. Your dream home is now a reality. Bai bithaman ajil bba usually bba is used for purchasing of properties home financing or commercial properties financing or sometimes for trade financing products.

Jbm 242 4c 2. International journal of law government and communication 3 13 01 20. A critical analysis syuhaeda aeni mat ali azhani arsfiad nur asma yahaya. In recent times there has been a dramatic increase in the application or practices of the al bai bithaman ajil bba home financing in both islamic and conventional banks in malaysia.

The dual banking system in malaysia is expected to put islamic banks at a disadvantage due to the latter s over dependency on fixed rate asset financing such as al bay bithaman ajil and murabahah when interest rates are rising rational product choice among non muslim customers nmc is expected to produce a shifting effect that may frustrate deposit mobilization and at the same time. Islamic banking has been established since in the 1980s in malaysia. Case law on issues of islamic home finance bay bithaman al ajil bba. The bai bithaman ajil bba or deferred installment sales facility is the most predominant mode of home financing in malaysia since the introduction of islamic banking in 1983.

Various names of home financing products. Bay bithaman ajil housing financing 1. Bai bithaman ajil sale of goods on a deferred payment basis at a price which includes profit margin as agreed by both parties.