---
title: "What is Bay bithaman ajil (BBA)? | IslamicOpenFinance™"
description: "A sale at a deferred price, paid later or in instalments; the name used in Malaysian practice for deferred-payment sale financing."
url: https://islamicopenfinance.com/glossary/bay-bithaman-ajil/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Sale-based contracts](https://islamicopenfinance.com/glossary/#sales)

Sale-based contracts

# Bay bithaman ajil (BBA)

A sale at a deferred price, paid later or in instalments; the name used in Malaysian practice for deferred-payment sale financing.

Bay bithaman ajil is a sale in which the price is deferred to a certain date or paid in instalments. Bank Negara Malaysia's compilation of Shariah Advisory Council resolutions defines it as a sale contract based on deferred payment at a certain price, and treats bay al-muajjal as the same contract under another name. In Malaysian practice it was widely used for fixed-price home and asset financing, and the Council's resolutions deal with its rebates on early settlement and its use as the basis of sukuk.

## Sources

- [Bank Negara Malaysia, Shariah Resolutions in Islamic Finance, second edition, 2010: glossary, bai\` bithaman ajil, and resolutions on BBA financing](https://www.bnm.gov.my/documents/20124/9198675/shariah_resolutions_2nd_edition_EN.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Bay al-muajjal (deferred-payment sale)** A sale in which the goods are delivered now and the price is paid later, in one sum or in instalments.](https://islamicopenfinance.com/glossary/bay-muajjal/) [**Murabaha** A sale at cost plus an agreed, disclosed profit; the seller must own the asset first. Payment is often deferred in instalments.](https://islamicopenfinance.com/glossary/murabaha/) [**Ibra (rebate on early settlement)** Releasing a debtor from part of a debt; in sale-based financing, the rebate of unearned profit when a customer settles early.](https://islamicopenfinance.com/glossary/ibra/) [**Deferred profit** The profit on a deferred-payment sale that is recognised over the payment period rather than all at once at the sale date.](https://islamicopenfinance.com/glossary/deferred-profit/)

**Sale-based contracts**

1. [Murabaha](https://islamicopenfinance.com/glossary/murabaha/)
2. [Musawamah](https://islamicopenfinance.com/glossary/musawamah/)
3. [Bay al-muajjal (deferred-payment sale)](https://islamicopenfinance.com/glossary/bay-muajjal/)
4. [Salam](https://islamicopenfinance.com/glossary/salam/)
5. [Istisna](https://islamicopenfinance.com/glossary/istisna/)
6. [Tawarruq](https://islamicopenfinance.com/glossary/tawarruq/)
7. [Bay al-sarf (currency exchange)](https://islamicopenfinance.com/glossary/bay-al-sarf/)
8. [Murabaha to the purchase orderer](https://islamicopenfinance.com/glossary/murabaha-purchase-orderer/)

[All 221 terms](https://islamicopenfinance.com/glossary/)