Search Islamic Finance Answers

1,000+ scholar-approved answers and growing...

Murabaha Security Deposit
What is the difference between Arbun and Haamish Jiddiah?
Arbun refers to a down payment and Hamish Jiddiah refers to a collateral. Both are permissible to ask the client to provide in a Murabaha. In the case of Arbun, the down payment may be used toward the purchase of the good, and if the purchase is cancelled, part of the down payment may be used for the institution to recoup direct and actual costs associated with the transaction according to the guidelines outlined in AAOIFI’s standard on Murabaha.

ASK AN ISLAMIC FINANCE QUESTION

Each question is reviewed by an Islamic finance expert and approved by a scholar.

Ask Now »

SEARCH ISLAMIC FINANCE Q&As

Browse one of the world's largest database of Islamic finance Q&As available online.

View details »

What’s New at Ethica

Press releases, live events, book recommendations, discount offers, and more

View details »

sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter