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Comparison Between Loan and Debt

A loan (qard) is a fungible item (including money) that is transferred from one party (the lender) to another (the...

Discount on Premature Payment in Murabaha Transactions

Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...

Shari’a Stipulations on the Price in Istisna’ Contract

Istisna' (الاستصناع) is a type of sale (ba'i or bay') in which the underlying asset (a predefined product known as...

Differences Between Mudaraba and Sharika

Mudaraba is a partnership in profit in which one partner provides capital (rab al-mal) and the other provides labor and...

Sources and Uses of Funds in a Qardh Fund

An Islamic bank may set up a qardh fund as a means of serving specific social objectives through providing for...

Direct Expenses Associated with Murabaha

Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...

Effect of Currency Volatility on Murabaha Transactions

Murabaha (also spelled murabahah) is a shari’a permissible mode of debt financing which involves the sale of a commodity mostly...

Ineligible Assets for Murabaha

Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...

Early Settlement in Istisna’a Contract

In istisna'a contract, if al-mustasni’ (the buyer or the party seeking a manufactured item) makes a payment in advance of...

Takaful Coverage On Murabaha Asset

Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...