Bai’ Bithaman Ajil

A deferred payment sale where the payment is made in a single installment is called Bai' Bithaman Ajil. The deferred payment sale contract would include all the terms and conditions present in Bai' al-Mu'ajjal.

This particular contract has become exceedingly popular in the Islamic banking context, as will be explored later.


Filed under Contracts and Transactions

19 responses to “Bai’ Bithaman Ajil

  1. qwerhtyuy

    Here are some links that I believe will be interested

  2. Jamail

    What is the meaning of the term “Iqolah”?

  3. Hananie

    Does bai bithaman ajil and bai muajjal have a same meaning literally and tecnically?

  4. rixal

    does this system create value that are out of nothing?? isn’t deferring payment will provide higher return to the creditor, and thus means riba??

    • Nada

      In Islamic Finance the time element can affect the price in the genuine transactions. In arabaic they say” إن للزمن نصيباً من الثمن” which can be transelated as “Time has part of the price” or”Time is part of the price”.

  5. siti

    peace upon u….

    i just want to asking the differentiation btwn the concept og bba n musyarakan mutanakisah..regards..

  6. no name

    is it secured or unsecured borrowings? anyone can help for clarification?

  7. AdiQ

    Adakah BBA mempunyai unsur-unsur Riba?

  8. momo

    its no enough information

  9. haikal


    bba is actually deferred payment method in islam. but in malaysia it’s practice as a deferred installment sale, bcoz the combination with murabahah concept.
    deferred installment mean the repayment made on deferred monthly installment basis and the sale mean the buying and selling contract (murabahah).

    so, the concept of bba in malaysia is a long term murabahah sale with deferred price/payment.

    the issue in bba is the profit margin took place between the bank and customer. then it will cause the total repayment price is higher than the normal price. but it’s not riba (riba is forbidden in islam), however it’s based on the time value of money. remember rm100 today is not same value with rm100 in the future. this is the result of inflation. every year our currency is changes bcoz of inflation.

    thank you..

    • Nada

      Wa’alaikum Alsalam
      There is no time value of money in Islam as it only represents a mean of payment, so it doesn’t have an intrinsic value that can change by time.

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  11. nurul

    which source of syariah has approve it?

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