ISLAMIC HIRE-PURCHASE IJARAH THUMMA AL-BAI' - AITAB) The Handbook

• Main Authors: Razli Ramli (Author), Hasleenda Onn (Author)
• Corporate Author: Islamic Banking and Finance Institute Malaysia
• Format: Book
• Language: English
• Published: Kuala Lumpur Islamic Banking and Finance Institute Malaysia 2007; ©2007
• Series: IBFIM handbook Series 1
• Subjects: Conditional sales (Islamic law); Conditional sales (Islamic law) > Handbooks, manuals, etc. > Malaysia
• Online Access: Click Here to View Status and Holdings.

 "IBFIM Handbook - AITAB" is published with the intentions of establishing it as a reference as well as a reading material for those who are looking forward to understand the Islamic version of hire purchase in Malaysia. Ijarah Thumma Al-Bai' (AITAB) also known as Hire Purchase-i (HP-i) is a system of buying goods on credit involving three parties namely a dealer, a hirer and an owner. The ownership of the goods bought under HP-i is not passed to the hirer at the time of the HP-i agreement is signed or upon delivery of the goods. The ownership will remain with the owner until the hirer has fully paid the rental as stated in the agreement. Unlike the conventional hire purchase, the transfer of ownership in HP-i is only completed once the sales agreement is executed.