Current application of istisna in Malaysia
PURCHASE APPLICATIONS IN BANKING SYSTEM ISTISNAC
ISTISNAC SELLING MECHANISMS
Al-istisna’ practice in Malaysia is an evolved in a form of facility that is practical and ideal financing and meet customer requirement. It is in accordance with the principles applied in Islamic transaction. In addition, it much helps to the development of the national economy. There are a lot of housing constructions and infrastructure uses these facilities. In Islamic banking system, specifically in our country, namely Bank Islam Malaysia Berhad (BIMB) has provided a modern facility financing mechanisms which applied and practiced the principles of contracts through the sale and purchase contract of al-istisnac. Facilities that offer the facility is known as Istisnac Facility ISTISNAC FACILITY
Istisnac Facility is a facility purchase order or reservation by the buyer or the booker of a product. It is a product offered by BIMB to its customers who originally want to make loans. However, as we are well aware that in Islamic law, principles which can be used for services only contract loans Qard Al-Hasan. As a result of discussions and studies made by the Syariah Advisory Council and the individuals who are qualified in the field of economic and religious, then the bank agreed to issue a facility to their customers namely Istisnac Facility. The basic concept of Istisnac Facility is that the bank will purchase ownership of an asset that is in the process of construction of the customer in accordance with the construction contract between the customer and the supplier or contractor, and the next title to the asset is sold back to the customer, the sales price which includes the purchase price and profit margins. Customers will pay the selling price by installments according to an agreed period. In daily practice, BIMB has adapted the bridging scheme (Bridging Loans) issued by conventional banks and also contract of al-istisnac. Both were...
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