Beruflich Dokumente
Kultur Dokumente
Presented by :
Zubair Mughal
CEO AlHuda: Centre of Islamic Banking & Economics
Existence of Product/Commodity
Ownership of Product/Commodity
Possession of Product/Commodity
Unconditional basis
Kinds of Bai
Bai
There are three basic type of Bais which are using in Islamic Banking as the mode of financing in Pakistan Murabahah Salam Istisna
Murabahah
Basically, its not a mode of financing but a source to avoid interest Dealing Its not a type of loan, but a deal (Bai) Murabahah can be used as source of financing when client needs funds to purchase any product/Machinery etc.
Murabahah
Sharing of Risk of loss differentiate Murabahah from the interest category Product Must be bought from third party for avoid buy back transaction Roll over is not Valid in Murabahah If actual cost can not be identified then Murabahah deal not possible.
Bai
Important Note Following 3 Basic Rules of Bai are exceptional for Salam & Istisna
Salam
Pay 100% amount in Advance. Product must be quantified, identified and Measured with quality. Date of delivery, Time, Place must be mentioned clearly in advance. Salam is not valid for a specific farm/land/garden.
Istisna
Not necessary to pay the 100% amount in advance Like Bai salam. Price must be decided on beginning of the contract. Qualities, features of that product must be clearly identified.
Bai
Istisna deal with manufacturing items, but Salam could or could not be manufacutred, but salam ideal of agriculture sector. In salam advance payment is necessary, but in Istisna its not.
Date, time of delivery the necessary part of Bai Salam, But in Istisna, it is not the part of the deal. In Bai salam, it can be cancelled one sided, but in Istisna, it could be cancelled, if production is not started yet.
Thank you