'Inah

Inah (sale and Repurchase) Literally, ˜inah is a loan or an advance payment. It is said in Arabic: tana al-rajul (the man bought on credit). Technically, scholars gave different definitions to ˜inah due to their differing opinions regarding its forms, which will be mentioned later. However, the most famous definition given to it by classical scholars was: A situation whereby a person sells a commodity to another for a specific price with payment delayed until a fixed date, then he buys it back from the other person at a lower price in cash. However, Al-Mawsu'ah Al-Fiqhiyyah (The Juristic Encyclopedia) defines it on the basis of the essence of engaging in it: that it is a loan in the form of a sale in order to make the increase appear lawful. Or Technically: when one sells a commodity for a delayed payment and then buys it from the buyer for a lower price in cash. Some said: it is a loan in the form of a sale, to legitimize the excess. The majority of jurists have forbidden this sale, but al-Shafi and Ibn Hazm permitted it. See ISRA Islamic Financial System: Principles and Operations for further details.

Total Fatwas : 52
No. Title
1 Bai' 'Inah Transactions In The Money Market
2 Is It Permissible for KFH to Buy Back a Real Estate Property That Was Sold to a Customer on Deferred Payment Basis?
3 Can a Seller of Goods by Delayed Payment Buy Some of Them Back from the Buyer by Cash Payment?
4 Is It Permissible for KFH to Purchase Goods Back from the Bank and Then Sell Them to the Same Customer Who Could Not Afford to Pay the Bank for It When the Commodity Arrived?
5 When Does It Become bayÑ al-ÑÊnah If KFH Sells a Good for a Deferred Payment and Then Buys It After That for a Cash Payment?
6 Is It Permissible to Finance a Deal in Which There Exist a Suspicion of Bay’ Inah?
7 The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 148th Meeting
8 The Purchase Undertaker by Deferred Payment Wants to Sell the Good before Completing the Payments
9 Pre-murabahah Transaction
10 Murabahah Transaction With A Foreign Company

 

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