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Ijarah thumma al bai' (hire purchase) Ijarah thumma al bai' (literally "renting/hiring/leasing followed by sale") [124] involves the customer renting/hiring/leasing a good and agreeing to purchase it, paying both the lease/rental fee and the purchase price in installments so that by the end of the lease it owns the good free and clear. This ...
Hire Purchase under Shirkatul Melk (HPSM) is a type of hire purchase contract which has been developed through practice and approved in Shariah. The term is used in Islamic banking. It is a synthesis of three contracts: shirkat, ijarah and sale. Under this mode, banks supply goods on rental basis.
Ijarah thumma al bai' (hire purchase) [ edit ] In this transaction (hire purchase [ 7 ] or Lease-Sale or Financial Lease) [ 8 ] the customer leases (hires) a good and agrees to purchase it, paying in installments so that by the end of the lease it owns the good free and clear.
These are based on "contracts of exchange", [248] and involve the "purchase and hire of goods or assets and services on a fixed-return basis". [214] The fixed return resembles the interest of conventional banking rather than variable profits and losses, but is called "profit" or "markup", not "interest".
Profit and loss sharing is one of two categories of Islamic financing, [2] the other being debt like instruments [5] such as murabaha, istisna'a (a type of forward contract), salam and leasing, which involve the purchase and hire of assets and services on a fixed-return basis. [2]
Hire purchase A hire purchase ( HP ), [ 1 ] also known as an installment plan , is an arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment (e.g., 40% of the total) and repaying the balance of the price of the asset plus interest over a period of time.
Murabaḥah, murabaḥa, or murâbaḥah (Arabic: مرابحة, derived from ribh Arabic: ربح, meaning profit) was originally a term of fiqh (Islamic jurisprudence) for a sales contract where the buyer and seller agree on the markup (profit) or "cost-plus" price [1] for the item(s) being sold. [2]
Purchase-to-pay, often abbreviated to P2P and also called Procure-to-Pay and req to check/cheque, refers to the business processes that cover activities of requesting (requisitioning), purchasing, receiving, paying for and accounting for goods and services. Most organisations have a formal process and specialist staff to control this activity ...