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.
Bay al-muajjal is a sale with the price deferred: the buyer takes the asset immediately and pays on a later date or in instalments. The deferred price may be higher than the cash price, provided it is fixed when the contract is made and does not increase with later delay. Murabaha is often executed as a deferred-payment sale, and AAOIFI's accounting standard on murabaha also covers other deferred payment sales.
Sources
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
MurabahaA sale at cost plus an agreed, disclosed profit; the seller must own the asset first. Payment is often deferred in instalments.Riba al-nasiahRiba of deferment: an increase stipulated in return for extra time, most commonly on a loan.Deferred profitThe profit on a deferred-payment sale that is recognised over the payment period rather than all at once at the sale date.MusawamahA negotiated sale in which the seller does not disclose its cost; the price is simply agreed between the parties.