bai muajjal

International, USA

bai bithaman ajil, Also known as bai muajjal

an Islamic finance technique used to finance the acquisition of assets (for example, equity interests, property, machinery or cars) on terms compliant with Sharia. In a bai bithaman ajil transaction, a lender buys an asset desired by the borrower and sells that asset to the borrower for the original purchase price plus a profit element (analogous to the interest amount in a conventional finance transaction). This structure is similar to the murabaha except that the entire payment is usually made in a lump sum on a deferred basis.