Bai' Bithaman Ajil
بيع بثمن آجل
Pronunciation: BY-uh bith-THAH-man AH-jil
A deferred-payment sale: the price is fixed up front and paid in installments, usually higher than the cash price.
Definition
A sale where the price is agreed at signing but paid later, in a lump sum or installments. The deferred price may exceed the cash price, which the majority of scholars permit because the increase is part of a sale price for a real asset, not a charge for lending money. Once fixed, the price cannot rise if the buyer pays late.
Bai' Bithaman Ajil (BBA) is the generic deferred-sale structure; Murabaha is the version where the seller also discloses its cost and markup. In Malaysia BBA was the dominant home financing contract for decades; in Canada the same economics appear inside Murabaha home and auto financing.
Related Terms
Bai' Muajjalبيع مؤجل
A credit sale where delivery is immediate and payment is deferred to an agreed future date.
Murabahaمرابحة
A cost-plus sale where the seller discloses the original cost and adds a transparent, agreed-upon markup.
Bay'بيع
A sale contract - the foundational transaction type in Islamic commercial law.
Riba al-Nasi'ahربا النسيئة
Riba of delay: any increase charged for time on a debt, which is what modern interest is.
Sarfصرف
Currency exchange: trading money for money, which must be settled on the spot to avoid riba.
Khiyarخيار
An option to confirm or cancel a sale within a set period or on a set condition.
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Bai' Bithaman Ajil (بيع بثمن آجل) - A deferred-payment sale: the price is fixed up front and paid in installments, usually higher than the cash price. A sale where the price is agreed at signing but paid later, in a lump sum or installments. The deferred price may exceed the cash price, which the majority of scholars permit because the increase is part of a sale price for a real asset, not a charge for lending money.
- A deferred-payment sale: the price is fixed up front and paid in installments, usually higher than the cash price.
- Category: Contracts
- Related: Bai' Muajjal, Murabaha, Bay', Riba al-Nasi'ah, Sarf, Khiyar
- Compare related Shariah-compliant products on HalalWallet
Source: HalalWallet (halalwallet.ca)
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-01
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