An Islamic bank has in its array of retail products, auto financing for its individual customers
Fatawa Question
An Islamic bank has in its array of retail products, auto financing for its individual customers. The product is based on the Murabahah structure whereby the bank, based on the ‘promise to purchase’ from its customer, purchases the vehicle from the individual seller in the case of a used vehicle, or the dealer in the case of a new vehicle. It then sells the vehicle to the customer on a Murabahah basis with deferred payment terms, in installments. In the case of a used vehicle, the Islamic bank carries out an evaluation, which at times is more than the price demanded by the seller and sometimes less than it. Shariah guidance is required if the bank should purchase the vehicle based on the evaluation carried out by the bank or at the price offered by the seller. It is to be noted that in the majority of the cases the seller is identified and introduced by the customer to the bank.
Fatwa
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Publisher
Publication Date
2015-04-08
Country of Publication
Malaysia
Main Subjects
Economics & Business Administration
Islamic Studies
Data Type
Fatawa
Language
English
Record ID
BIM-783037
American Psychological Association (APA)
Hassan, Husayn Hamid. 2015-04-08. An Islamic bank has in its array of retail products, auto financing for its individual customers. . Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-783037
Modern Language Association (MLA)
Hassan, Husayn Hamid. An Islamic bank has in its array of retail products, auto financing for its individual customers. Kuala Lumpur Malaysia : Islamic Finance News. 2015-04-08.
https://search.emarefa.net/detail/BIM-783037
American Medical Association (AMA)
Hassan, Husayn Hamid. 2015-04-08. An Islamic bank has in its array of retail products, auto financing for its individual customers. Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-783037