BANKING AFFAIRS

Detailed explanation-1: -Bai al dayn is essentially a contract of the sale of debt. Being a contract of sale, there must be all the elements or pillars of a sales contract such as legitimacy of contracting parties, and offer and acceptance.

Detailed explanation-2: -Dayn can also arise when a person lends his money to another, whereas qard is more specific and may arise only through a loan contract. Thus, debt ( dayn) is a broader concept than loan ( qard). Hence every qard is a dayn, but not vice versa.

Detailed explanation-3: -7.1. Bai‘ ‘inah refers to an arrangement that involves sale of an asset to the. purchaser on a deferred basis and subsequent purchase of the asset at a cash price lower than the deferred sale price or vice versa, and which complies with the specific requirements of bai‘ ‘inah.

Detailed explanation-4: -In Islamic finance, murabaha financing is used in place of loans. Murabaha is also referred to as cost-plus financing because it includes a profit markup in the transaction rather than interest. A seller and buyer agree to the cost and the markup, which are then paid in installments.