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ABSTRACT
The term Sale by Installments (SI) is a very common and modern
banking facility
provided by banks in their day to day transactions due to its
merits. SI is popular
among those with limited income among wage earners. Furthermore,
SI is a viable
economic tool for stimulating market products. This study has
tried to resolve the
issues surrounding the concept of SI from the Sharcah
perspective, and laying down
Sharcah principles for its application. It examiners doubts
regarding SI turning into
Riba through transactions involving the interest-based system.
The study has shown
that SI is a new kind of sale that was not prevalent in the
past. Instead, it was referred
to as al-Bayc Bithaman jil (Sale with Deferred Price). Thus SI
is a Sharcah
alternative to the prohibited Riba. It resembles some other
sales with similar features,
such as al-Bayc al-jil (Deferred Sale), Bayc al-Nasa (Deferment
Sale), cAqd al-
Istisn (Contract of Manufacture) and al-Ijrah al-Muntahiyah bi
al-Tamlk (Lease
ending with Ownership of Asset). The study has resolved to
define SI as a sale where
the asset is delivered on the spot, and all, or part, of the
price is deferred, to be paid in
specified installments within a specific time period. The study
relies on analytical
method, reviewing issues and statements on the subject
objectively in order to
generate results that would benefit the society relative to SI.
The study also provides
Sharcah opinions on the validity of dealing with this kind of
sale. That is, is SI
appropriate and practically suitable in the contemporary
reality, considering its
advantages that accrue to the seller and buyer in terms of
facilitating their transactions
and fulfilling their needs? The study concludes by validating SI
based on the majority
opinion of Muslim scholars, derived from al-Qurn, al-Sunnah,
al-Ijmc , al-Qiys,
rational and the public interest. The study also takes into
consideration the application
of SI, in which an asset is sold on deferment at a price higher
than the prevailing
acceptable price.
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APPROVAL PAGE
I certify that I have supervised and read this study and that in
my opinion it conforms to acceptable standards of scholarly
presentation and is fully adequate, in scope and quality, as a
thesis for the degree of Master of Islamic Revealed Knowledge and
Heritage (Fiqh and Usual al-Fiqh).
____________________________
Hossam EL Din Ibrahim El Sefy Supervisor I certify that I have
read this study and that in my opinion it conforms to acceptable
standards of scholarly presentation and is fully adequate, in scope
and quality, as a thesis for the degree of Master of Islamic
Revealed Knowledge and Heritage (Fiqh and Usul al- Fiqh).
_________________________
Mohd Fuad Sawari Examiner
This thesis was submitted to the Department of Fiqh and Usul
al-Fiqh and is acceptable as partial fulfillment of the requirement
for the degree of Master of Islamic Revealed Knowledge and Heritage
(Fiqh and Usul al-Fiqh).
__________________________ Mek Wok Mahmud
Head Department of Fiqh and Usul al-Fiqh This thesis was
submitted to the Kulliyah of Islamic Revealed Knowledge and Human
science and is acceptable as partial fulfillment of the
requirements for the degree of Master of Islamic Revealed Knowledge
and Heritage (Fiqh and Usual al-Fiqh).
___________________________
Hazizan bin Md. Noon Dean Kulliyah of Islamic Revealed Knowledge
and Human Sciences
