AITAB is a current demand that focusing on motor vehicles. Besides that, AITAB features is a product that not really known by the customers, so AITAB needs some strategies to be known in the futures. In other side, AITAB in Malaysia is very bright and need some modification. There is a lot of prospects that can make AITAB better than now which is strong public acceptance, competitiveness, legal protection and Muamalah hire-purchase bill.It is hoped that issues related to Islamic hire purchase can be solved by Shariah regulation. Therefore, the effort should be strengthened to provide a better application in financial institutions. This recommendation will help AITAB to be accepted in current practices. Hopefully, AITAB can contribute to the Malaysian economic growth and development of Islamic banking.
STRONG PUBLIC ACCEPTANCE
In Malaysia, AITAB offer a better features compared to conventional hire-purchase and this features contributed to attract customers prefer to Islamic products. Customers who are more concerned about the Islamic product will prefer the AITAB than conventional hire-purchase because it avoid from the interest and uncertainty. Besides…show more content… There is a prohibition of of the interest and prohibited (haram) elements. Besides that, AITAB has a requirement for a hiring contract at the beginning and a sale contract at the end, signing of an acceptance letter (‘Aqd letter) to indicate the parties’ intention of accepting the terms of agreement, and late penalty charges. In AITAB, it is has a clear procedure of ownership and gives a protection for customers and guarantors towards the financing. Initially, AITAB financing focusing on national car, then in December 2003, Banks widen the scope of AITAB financing with introduces the new products of non-national car financing to