b) Ijarah and Ijarah Muntahia Bittamleek
Ijarah is an operating lease which is the Islamic Bank will buy the asset or equipment and lease it out the asset or equipment to the lease for an agreed rental fees. In the agreement of Ijarah does not include a promise that the asset or equipment will be transferred or sell it to lessee at the end of the Ijarah lease term. Ijarah has classified into two kinds. First kind is operating Ijarah, operating ijarah is the bank usually will buy the a number of various asset according to the need of different customer. The asset usually have high market value, the bank will rent it out to any party so desirous to utilize for a term to be agreed upon. After the end of the lease term, the asset will return to…show more content… There are two type of Murabaha which is Direct Murabaha and Murabaha to the purchase ordered.
Direct Murabaha is the bank acquires the asset and makes it available for sales without any prior agreement or promise from a customer to purchase it.
Murabaha to the purchase ordered is the bank purchases the assets which ordered by a customer from other party and sell the asset to the customer. The bank will purchase the asset which order by customer after made an agreement with the customer.
Salam also known as sales-by-order. Salam means a contract which the customer made an advance cash payment for goods to be delivered later on. For an example, the bank promise to supply the specific good or asset to his client at future date but the client must fully paid an advance payment at the time of contract. Salam transaction occur when the customer paid the full amount of the goods first at the time of contract to ensure that the customer did not entering into debt with second party in order to eliminate the debts. There are two type of salam contract which is ordinary salam contract and parallel salam contract. Ordinary salam contract is the normal contact which involves the buyer and seller. Parallel…show more content… Al- Qard also can define as a loan which did not include interest or share in profit or loss. The objective of Al-Qard is to help people who need help, to mobilize wealth in the society, improve the national economy and help poor with create new job market and business venture by using their knowledge. Besides that, the characteristic of Al-Qard are Al-Qard documentary procedures usually are very simple, Al-Qard loan usually are small amount and approval procedure are usually rapid also. Other than that, there are no interest involve in Al-Qard. Last, Al-Qard fund are normally easy access to the capital contributor and the borrowers because of the local