How Bai al Inah works?

In a bai al inah transaction, a lender sells an asset to a buyer (the borrower) on credit for a fixed price (the loan amount) plus a profit element (analogous to the interest amount in a conventional finance transaction). The lender immediately repurchases the asset from the borrower in cash for the fixed price.

What is Bai Bithaman Ajil concept?

Bai’ Bithaman Ajil (BBA) refers to a sale and purchase transaction of an asset to be paid on later date (deferred payment) based on a price, which include a profit margin agreed to by both contracting parties.

What are the products offered by the Islamic banks for businesses in Pakistan?

Some of these include Mudharabah (profit sharing), Wadiah (safekeeping), Musharakah (joint venture), Murabahah (cost plus finance), Ijar (leasing), Hawala (an international fund transfer system), Takaful (Islamic insurance), and Sukuk (Islamic bonds).

What is Inah contract?

Bai al inah or inah is a sale contract that existed in the time of the Prophet (saw). A seller sells an asset to a buyer on a cash basis and later buys it back on a deferred payment basis where the price is higher than the cash price.

What is INAH?

7.1. Bai` `inah refers to an arrangement that involves sale of an asset to the. purchaser on a deferred basis and subsequent purchase of the asset at a cash price lower than the deferred sale price or vice versa, and which complies with the specific requirements of bai` `inah.

What is Ijarah Thumma Al Bai?

Al-Ijarah Thumma Al-Bai’ (AITAB) is a Syariah-compliant car financing based on the principles to lease (Ijarah) followed by sale (Al-Bai’). Customer during the leasing contract should pay at an agreed rental payment over a specific period.

What is INAH in Islamic finance?

‘Inah (also spelled eina) is an Arabic term (عينة) that denotes purchase with instant resale.

What are products of a bank?

Banking Products

• Savings Account. An account that delights you with rewards, security and ease of banking.
• Family Wealth Account. Share a wealth of privileges and tailor-made solutions with your family.
• Home Loans.
• Car Loans.
• Foreign Exchange Services.