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An Islamic bank has a standard auto finance product for its customers. The product is based on the Murabahah structure under which the Islamic bank purchases the vehicle from the dealer and sells it to the customer on its cost
Fatawa Question
An Islamic bank has a standard auto finance product for its customers. The product is based on the Murabahah structure under which the Islamic bank purchases the vehicle from the dealer and sells it to the customer on its cost plus profit on an agreed deferred payment. In order to secure the Murabahah debt, the Islamic bank seeks from the customer to allow mortgage on the vehicle until all the installments are paid. In relation to the mortgage, Shariah guidance is sought on the following two aspects : Will the Islamic bank be considered as an owner of that vehicle since it is mortgaged to it ? Can the Islamic bank claim its ownership on the mortgaged vehicle in case of default and if so, to what extent ?
Fatwa
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Publisher
Publication Date
2015-06-10
Country of Publication
Malaysia
Main Subjects
Economics & Business Administration
Islamic Studies
Data Type
Fatawa
Language
English
Record ID
BIM-783014
American Psychological Association (APA)
Hassan, Husayn Hamid. 2015-06-10. An Islamic bank has a standard auto finance product for its customers. The product is based on the Murabahah structure under which the Islamic bank purchases the vehicle from the dealer and sells it to the customer on its cost. . Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-783014
Modern Language Association (MLA)
Hassan, Husayn Hamid. An Islamic bank has a standard auto finance product for its customers. The product is based on the Murabahah structure under which the Islamic bank purchases the vehicle from the dealer and sells it to the customer on its cost. Kuala Lumpur Malaysia : Islamic Finance News. 2015-06-10.
https://search.emarefa.net/detail/BIM-783014
American Medical Association (AMA)
Hassan, Husayn Hamid. 2015-06-10. An Islamic bank has a standard auto finance product for its customers. The product is based on the Murabahah structure under which the Islamic bank purchases the vehicle from the dealer and sells it to the customer on its cost. Kuala Lumpur Malaysia : Islamic Finance News.
https://search.emarefa.net/detail/BIM-783014