Hamish Jiddiyah

Shari'ah Standard 8 of the AAOIFI Standards explains it as follows: 2/5/3; It is permissible for an institution, in the case of a binding promise by the customer, to take a sum of money as hamish jiddiyyah (i.e., a security deposit). This is to be paid by the customer at the request of the institution, both as an indication of the financial capacity of the customer and to ensure the compensation of any damage to the institution arising from a breach by the customer of his binding promise. For further details, see ISRA research paper No: 46/2012


Is It Allowed to Appoint the Supplier as an Agent to Collect Earnest Money from the Client in a Murabahah Transaction?
Is it permissible for the bank to make a prior specification of the profit rate and earnest money (Urbun) without taking into consideration the nature of the commodity?

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