A comparative fiqh in Islamic finance: Bai' Bithaman Ajil / Nik Zaidatul Aqilah Nik Zulkifli … [et al.]

Several nations with a majority of Muslims employ the Islamic finance technique known as Bai Bithaman Ajil (BBA). A vendor provides an asset to the buyer at a marked-up price that includes an agreed-upon profit margin. This is a contract for sale with deferred payment. The customer consents to making the purchase money over a predetermined time period in installments. The ownership of the product is given to the buyer under Bai Bithaman Ajil at the time of sale, but payment is put off. While having to make recurring installment payments to the seller, the buyer receives ownership and uses the asset. The seller's profit margin serves as the penalty for missing the payment. This type of financing is frequently used to buy assets like properties, motor vehicles, or equipment. It adheres to Islamic financial standards, which prohibit the giving or receiving of interest (riba). Instead of using traditional based on interest loans, Bai Bithaman Ajil enables consumers to purchase assets using a postponed payment arrangement. Popular Islamic finance practice known as Bai Bithaman Ajil (BBA) provides an alternative to traditional based on interest loans. It is frequently practiced in nations with a majority of Muslims, especially Malaysia and other Southeast Asian countries. BBA adheres to Islamic financial principles, which place a focus on moral and Sharia­compliant financial practice.