The Application Of Rule 78 In Vehicle Financing By Islamic Banks In Malaysia

Assoc. Prof. Dr. Omaima Eltahir Babikir Mohamed and Assoc. Prof. Dr. Mohd Yaziz Mohd Isa

QR Code Link :
Type :	Academic Journal
Main Author :	Assoc. Prof. Dr. Omaima Eltahir Babikir Mohamed and Assoc. Prof. Dr. Mohd Yaziz Mohd Isa
Title :	The Application Of Rule 78 In Vehicle Financing By Islamic Banks In Malaysia
Varying Form of Title :	Arabian Journal Business Management Review (Kuwait Chapter), (2017) Vol. 6 (9)
Content Type :	still image (rdacontent)
Media Type :	computer (rdamedia)
Carrier Type :	online resource (rdacarrier)

Publisher :	Arabian Journal Business Management Review
Year of Publication :	2017
Summary :	Al-Ijarah Thumma al-Bay’ (AITAB) is an innovative product designed to vehicle financing. Since its inception, AITAB has been a popular product due to the heightened demand by customers. Although AITAB is popular, it is not without condemn especially on the issue of using Rule 78, which is similar to conventional Hire-Purchase practise. This paper, attempts to address the issue of using Rule 78 which affects the customers in the case of default. A case study is used to compare the use of Rule 78 and simple profit rate methods on repaying the principal amount and the profit rate by the customer. The discussion is based upon the case on vehicle financing for three years and the impact on the defaulter on the thirteenth month of financing. The result shows the customer pays higher amount in the case of default using the Rule 78 in financing compared to simple profit rate method.
Corporate Name :	UNIRAZAK Library
PDF Guest :	Click to view PDF file

This material may be protected under Copyright Act which governs the making of photocopies or reproductions of copyrighted materials.
You may use the digitized material for private study, scholarship, or research.

Back to previous page