Implementation of i-Tawarruq (personal financing agreement) at Bank Islam Malaysia Berhad (BIMB) in Denai Alam Shah Alam, Selangor / Siti Masrurah Naksahbandi

Al-Tawarruq is one of the instruments and products that are becoming more well knowns and employed by Islamic banks in Malaysia today. It is regarded as a viable alternative to bai’ al-inah, which has several drawbacks and is debated. As a result, the goal of this study is to define the notion of BIMB's i-Tawarruq Personal Financing Agreement. This study also contributes to the investigation of the i-Tawarruq Personal Financing Agreement's implementation in Malaysian Islamic Banking Practices. Finally, this research contributes to a better understanding of how BIMB operates in terms of executing i-Tawarruq contracts in line with Islamic banking standards. Interviews with experienced bank employees were conducted as part of the qualitative research. According to the findings of this study, BIMB has implemented Personal Financing- i-Tawarruq in the best possible accordance with Islamic principles. However, there are dubious elements in its implementation at BIMB. The accumulation of elements that should not exist in Islamic banking products such as gharar and riba is known as al-tawatu’ which is a preliminary agreement. Hopefully the findings of this study can help improve the implementation of personal al-tawarruq financing agreements at BIMB as well as be able to attract the public to obtain services from this product.