Additional fees cannot be charged after a Murabaha due date, making Murabaha`s default a growing problem for Islamic banks. Many banks believe that defaulting debtors should be blacklisted and should not receive future loans from an Islamic bank to reduce Murabaha`s default. Even if it is not expressly mentioned in the credit agreement, this regulation is allowed in the Sharia. If a debtor is faced with a real emergency and cannot repay a loan on time, a respite can be granted, as described in the Qur`an. However, the Government may take action in the event of intentional default. Failures under the Murabaha accords have become a problem for companies operating under Islamic law, and there has been no clear consensus on how to deal with them. Murabaha Agreement means the agreement between the Bank and the Primary Cardholder under which the Bank sells identified goods or an ordinary share of generally identified goods to the Primary Cardholder on a Murabaha basis at the sale price. A- If the intention of the question is that an agreement on the expected benefits is concluded, that is to say not yet realized, and that the question is settled later on the basis of the actual profits (in the valuation of the portfolio), then it is not legal. Indeed, the lawyers have decided that the profits will not appear until they are ready to be shared after the recovery of the initial capital investment.
(Also Bay` al-`Inah). This simple form of murabahah involves the Islamic bank buying an item from the customer (such as their house or motor vehicle) for cash and then reselling it to the customer at a higher price, deferring payment over time. The customer now has money and repays a larger amount of money to the bank over time. This similarity to a conventional loan led to Bay` al-Ina being criticized as a ruse for a cash loan repaid with interest.  It has been used by a number of modern Islamic financial institutions despite condemnation by lawyers, but in recent years its use has been “very limited,” according to Harris Irfan.  While another source claims that it is “widely used” by Islamic banks in Malaysia, “especially for personal financing and capital markets.”  Bilal wants to buy a boat sold for $100,000 by Billy`s Boat Shop. To do this, Bilal would contact a Murabaha bank that would buy the boat from Billy`s Boat Shop for $100,000 and sell it to Bilal for $109,000 to pay for it in installments over a three-year period. The amount Bilal pays is a fixed amount to a bank that owns the asset, and there are no interest charges.
If Bilal defaults, there will be no additional costs it incurs. The additional amount that Bilal pays on the cost price of the boat shop is indeed a 3% loan, but since it is offered as a fixed payment at no additional cost, it is allowed by Islamic law. THE MINISTER – It is not recommended that the bank participate in transactions in which it does not play an important role. In order not to harm itself and avoid the impression that the bank is only acting as a banker, the bank should instead work on the issues of buying and selling through an agent. The written agreement on the part of the exporter of the offer and the terms and conditions of the bank can be considered as an express acceptance (qubul). When the offer and acceptance take place, the transaction is completed. The bank does not have the right to sell the goods to the secured creditor or any other person before receiving payment from him or his representative. The goods cannot be shipped to the purchase secured creditor or to another before (the bank concludes a contractual agreement with them. THE MINISTER – It is legal for the bank to buy tickets from an airline and then sell them to its customers on the basis of Murabahah, provided that the agreement between the bank and the airline and the details of the execution of the transaction are first reviewed by the bank`s fatwa board before the implementation of the plan. There are a number of requirements for this transaction to be an actual transaction that meets the Islamic standards of a legal sale.
The entire Murabaha transaction is to be completed in two stages. As a first step, the customer asks the bank to make a Murabaha transaction and promises to buy the goods specified by him if the bank buys the same goods. Of course, the promise is not legally binding. The customer can withdraw his promise and the bank risks losing the amount it has spent. In the second phase, the customer purchases the purchased goods from the bank on the basis of a deferred payment and accepts a payment plan. Another important condition for the sale of Murabaha is that two sales contracts, one of which the bank acquires the goods and the other through which it sells them to the customer, must be separate and authentic transactions. On the other hand, Faleel Jamaldeen notes that “commodity murabaha” contracts are used to finance short-term liquidity needs for Islamic interbank transactions, although they are not allowed to use gold, silver, barley, salt, wheat or dates for commodities, for this is forbidden by Riba al-Fadl. Islamic banks using Tawarruq (as of 2012) include United Arab Bank, QNB Al Islamic, Standard Chartered of the United Arab Emirates and Bank Muaamalat of Malaysia, according to Jamaldeen.  (cost-plus financing) This is a sales contract between the bank and its customer for the sale of goods at a price that includes a profit margin agreed by both parties. As financial engineering, it is the purchase of goods by the bank at the request of its client.
The goods are sold to the customer for a fee. The refund, usually in instalments, is specified in the contract. THE MINISTER – It is lawful for the bank to enter into such a transaction, provided that the price indicated in the contract is clearly described as the price of the equipment plus the installation costs. Another source (Skrine Law Firm) distinguishes between Murabahah and Bay`bithaman `ajil (BBA) banking products and states that in BBA, disclosure of the cost price of the item to be financed is not a condition of the contract.  The Applicant requested an extension of Murabaha`s contract for a further period, whereby the amounts due were carried forward. The defendant granted the plaintiff`s request and extended Murabaha`s contract on 8 May 2007; Granting a new payment plan to the applicant. As a result, the plaintiff paid the first instalment due in the amount of AED 651,775 and issued a cheque for the balance. The defendant claimed that the plaintiff had not paid the outstanding amount and instead commenced legal proceedings. This research develops his theoretical background in classical and contemporary literary research on the treatise of Murabahah from an Islamic point of view. Group discussions (FGDs) and in-depth interviews will be conducted with 32 bankers (in 14 Islamic banks), two National Sharia Councils, five academics and three central bank representatives as a contribution to the qualitative analysis. Content analysis is used in this paper to focus on the process of discovering the relationship between the dynamic factors that influence the contractual agreement process in the Murabahah scheme in the Indonesian banking sector.
Usmani notes that while it may seem to some people that while this may seem like giving a buyer more time to pay for a product/merchandise (deferred payment), in exchange for a higher price, it`s virtually the same as paying interest on a loan.  this is false. In fact, just as a buyer may pay more for a product/merchandise if the seller has a cleaner store or more polite staff, the buyer may also pay more if they have more time to make payment for that product or merchandise.  When this happens, the supplement they pay is not a riba, but only “an additional factor in determining the price.” In such a case, according to Usmani, “the price is against a commodity and not against money” – and therefore allowed in Islam.  If a credit transaction is made without the purchase of a particular good or product (i.e., .B d. a loan that charges interest), the additional fees for the deferred payment are for “nothing but time”, and therefore Riba is prohibited.  According to another Islamic financial promoter – Faleel Jamaldeen – “Murabaha payments constitute debt” and are therefore not “negotiable or negotiable” as Islamic financial instruments, which makes them (according to Jamaldeen) unpopular with investors.  (also called Bai` muajjal abbreviated BBA, and known as credit sales or sale of deferred payments).
According to reports, the most popular type of Islamic financing is the higher-cost murabaha in a credit selling environment (Bay bithaman `ajil) with “an additional binding promise to the client to buy the property and thus replicate the secured loans in a Shariah-compliant manner.” The concept was developed by Sami Humud, and shortly after it became popular, Islamic banking began its strong growth in the late 1970s.  (Usmani and other Islamic finance specialists agree that the fact that he was unable to punish a lender/buyer for late payments led to late payments in Murâbaḥah and other Islamic financial transactions.