Sources checked 6 October 2026 · r2-2026-10-06
Read a contract term as an action, not a badge. Murabahah is a disclosed-cost sale; tawarruq combines sales to generate cash; ijarah lets you use an asset; musharakah and mudarabah organise capital and profit sharing; wakalah appoints an agent; rahn pledges collateral. The word helps identify a role, but the full agreement decides how that role is implemented. Banking & Islamic Banking policy register.
A Malaysian home purchase, leased vehicle, small business and takaful fund can all involve Islamic-finance terms. They do different jobs: a financing payment, an investment profit share and a contribution for protection are not interchangeable. Use the alphabetic term links below, or your browser’s Find function, to locate a word. Every entry is readable without scripts.
Start with what the contract does
Figure 1 · G04
Contracts by function
A reading map, not a complete classification or a product approval. Several contracts can appear in one product.
Sale → ownership and price
Murabahah: disclosed cost + markup. Tawarruq: deferred purchase, then cash resale to a third party.
Lease → use and rent
Ijarah: right to use an asset. AITAB: lease followed by a separate sale.
Partnership → capital and outcomes
Musharakah: partners contribute capital. Mudarabah: capital provider funds, manager manages.
Agency → authority and tasks
Wakalah: another party acts within delegated authority; a fee can be agreed.
Security → collateral and debt
Rahn: an asset secures an obligation; it does not itself supply the financing price.
Related roles → repayment and protection
Qard: repay an equivalent amount. Tabarru’: donation portion for protection in the cited takaful fund.
A single cash-financing product can combine murabahah, tawarruq and wakalah. The first names the type of sale, the second the linked transaction sequence, and the third the agency appointment. Seeing several terms does not mean you pay three separate financing prices; read which charges and obligations the documents actually impose. Personal Financing-i Terms and Conditions.
The terms in a money flow
Open or close an entry to focus on it. All entries start open and contain their own definition, flow, document pointer and source. Product examples are attributed; the business and pledged-asset examples are conceptual scenarios, not current bank offers.
Figure 2 · G04
A term in a money flow
Seven complete entries, alphabetically arranged. Named examples use provider documents; conceptual examples contain no quoted price or product promise.
Ijarah / AITAB إجارة · Lease / lease then sale
For an asset lease, ijarah gives the customer the right to use the asset for agreed rent and time. Asset ownership and use are distinct. AITAB means al-ijarah thumma al-bai’: lease followed by a sale; it is not automatic ownership merely because rent is paid.
- Maybank Islamic Hire Purchase example: bank owns vehicle → customer uses it under lease
- Customer → bank: agreed rentals
- At lease expiry: separate purchase from bank at agreed sale price
Where to look: July 2026 PDS §1 and §4; lease and purchase documents. Ask who pays maintenance/protection and what happens on damage, default or early exit. The PDS puts comprehensive vehicle takaful first, with conventional insurance allowed if takaful is unavailable, every operator rejects the application, or insurance is significantly more cost-competitive. It also describes repossession risk.
Mudarabah مضاربة · Capital provider + manager
One party supplies capital; another manages it. Profit is shared by an agreed ratio. Ordinary financial loss is borne by the capital provider up to the capital contributed; the manager is responsible for loss caused by the manager’s misconduct, negligence or breach of specified terms. A profit-sharing ratio is not an annual return guarantee.
- Maybank Private Banking Account-i example: customer → investment capital; bank → investment management
- Investment result → shared profit if generated, or capital loss subject to the stated exception
Where to look: PDS effective 15 December 2025, pp.1–2; investment mandate and profit-sharing terms. This account’s principal and returns are not guaranteed and it is not protected by PIDM. It has product-specific asset requirements and charges; it is not a suggested salary account.
Murabahah مرابحة · Disclosed-cost sale
The seller discloses its acquisition cost and markup to the buyer. A sale transfers ownership and creates the agreed price obligation; the term is not a promise that the seller shares your future business profit.
- Maybank CM Home Financing-i example: bank purchases commodity from third party
- Bank → customer: commodity at markup, payable over agreed period
- Bank acts as customer’s resale agent → cash proceeds disbursed under facility terms
Where to look: Home-financing PDS and sale/agency agreements. The commodity transaction generates financing cash; the secured property is a separate asset. This public PDS has no printed issue/version date, so it does not establish a dated customer offer.
Murabahah policy document; Commodity Murabahah Home Financing-i PDS.
Musharakah / Musyarakah مشاركة · Capital partnership
Two or more parties contribute capital to a partnership. Profit follows the agreed sharing ratio; ordinary losses follow capital contributions. Misconduct, negligence or breach can give rise to separate responsibility. Unlike mudarabah, capital comes from the partners rather than only one capital-provider side.
- Conceptual Malaysian small business: partners A and B → capital for shared venture
- Business → profit divided by agreed ratio; ordinary loss allocated by capital proportions
Where to look: Partnership agreement: capital contributions, management authority, profit/loss rules and exit valuation. A declining-ownership home structure needs its own purchase/lease/share documents; do not infer it from every home-financing label.
Rahn رهن · Pledged collateral
An asset is pledged to secure a liability or obligation if the obligor defaults. The collateral function is separate from the debt’s pricing contract. Giving collateral does not cancel your repayment duty.
- Conceptual pledged-asset example: owner → asset pledged as security for an identified obligation
- Default → realization under applicable terms; proceeds address the secured obligation
- Settlement → collateral release under the agreed completion process
Where to look: Collateral agreement and underlying financing agreement; ask about valuation, custody expenses, realization, surplus/shortfall and release. BNM distinguishes maintenance from other rahn expenses; do not assume every charge is a profit rate.
Tawarruq تورق · Deferred sale + cash resale
First, buy an asset on deferred payment. Then sell it to a different third party for cash on a spot basis. These are separate sales with ownership transfers. Murabahah can be the form of a sale within this sequence; the two words are related, not synonyms.
- HSBC example: bank sells commodity → customer; customer appoints bank as purchase agent
- Bank as customer’s resale agent → third-party cash buyer
- Sale proceeds → specified customer account; deferred bank-price obligation remains with rebate terms
Where to look: HSBC terms v.Mar 26, §§ 4–5 and 7; purchase/resale confirmations. A PDS describes the arrangement but cannot audit actual supplier ownership or execution. In a tawarruq deposit the bank/customer financing roles differ; do not reuse this financing flow unchanged.
Tawarruq policy document; Personal Financing-i Terms and Conditions; PIDM’s Islamic Protection System – Part3.
Wakalah وكالة · Agency appointment
A principal authorises an agent to carry out a task within the stated mandate. Agency can be with or without a fee. It does not by itself tell you who owns the fund or guarantee a return.
- Takaful myClick Motorcycle example: participants → contribution; tabarru’ portion → General Takaful Fund
- Participants collectively own fund → operator manages as agent for wakalah fee
- Fund → eligible covered claim; actual schedule and exclusions govern payment
Where to look: Motorcycle certificate May 2026, p.6 and glossary 12/31; contribution breakdown and selected schedule. This is a protection fund, not your personal investment account. The fee rate and claims rules vary by product.
Wakalah policy document; Takaful myClick Motor – Motorcycle Certificate Wording.
Other words beside the contract name
- Qard: a loan requiring repayment of an equivalent amount. In the selected motorcycle PDS, the operator lends interest-free to a deficit risk fund; it is not the participant’s personal loan or a guaranteed cash payout.
- Tabarru’: donation. In the cited takaful arrangement, a contribution portion goes to the mutual protection fund. Do not read it as a savings balance you can withdraw in full; refund and surplus rules are separate.
- Ibra’: rebate in sale-financing documents. Check which amount is rebated, the notice requirement and the settlement formula. It is not automatically a refund of every fee.
- Hibah: gift without consideration. The motorcycle PDS uses it for benefits from its fund. Do not assume that this one word decides a family-certificate nomination or an estate outcome.
These are contextual explanations, not interchangeable entitlements. The selected motorcycle PDS and HSBC agreement support the uses above. A hibah benefit under general takaful and a conditional-hibah family nomination need their respective documents. Takaful myClick Motor – Motorcycle PDS; Personal Financing-i Terms and Conditions.
Find the term in your document
The following is a fictional reading exercise. Its headings resemble the kinds of clauses you may encounter, but none of the wording is a quoted bank agreement or an offer. Read the annotations, then ask the provider to point to equivalent clauses in your actual documents.
Figure 3 · G04
Find the term in your document
Fictional sale-financing facsimile. It has no legal effect and supplies no rate, selling price or eligibility condition.
FICTIONAL READING EXERCISE · NOT A BANK DOCUMENT
1 · Contract: commodity murabahah within tawarruq
An identified commodity is sold at disclosed cost and markup on deferred payment, then separately resold for cash to another buyer.
Trace the commodity, seller ownership, cost/markup and each separate sale. See murabahah and tawarruq above.
2 · Authority: wakalah
Customer appoints an agent for specified purchases and resale.
Read what the agent may do, any delivery request, charges and when authority ends. Agency authority is different from the price you owe.
3 · Payments and exit: effective rate, ceiling, ibra’
The payment schedule and rebate terms explain how the deferred selling-price obligation is paid or settled.
Find the actual figures and formula. “Rebate” does not mean every remaining instalment or fee disappears.
4 · Separate security, if used: rahn
An identified asset is pledged for the specified obligation.
Check which asset, custody/valuation costs, default process and release terms. Not every financing product requires collateral.
Participation is a separate question
An Arabic contract name does not itself mean Muslim-only participation. HSBC’s named FAQ includes eligible Muslims and non-Muslims. That does not establish eligibility for every bank product. Ask the provider about the actual applicant and offer instead of guessing from the terminology. Personal Financing-i FAQ.
Participation and benefit use can also differ. For Takaful myClick Motorcycle’s optional Bike PA Plus, the FAQ states the same total benefit payout for Muslim and non-Muslim participants, while named Badal Hajj and Qurban components concern Muslims. The May 2026 certificate’s C 200 endorsement and selected schedule govern actual cover. Inclusion is not a claim guarantee, and that motorcycle example does not describe all takaful products. Motorcycle FAQ; Takaful myClick Motor – Motorcycle Certificate Wording.
Costs and exclusions still apply to the protection example: separate the operator fee from the donation portion and check the selected coverage, excess and endorsements. The motorcycle PDS excludes flood and the rider’s own death/injury from basic cover unless relevant additional protection is taken. A cash-back or surplus payment is not guaranteed. None of those terms describes medical-cover eligibility. Takaful myClick Motor – Motorcycle PDS; Motorcycle FAQ.
Three misunderstandings to avoid
- “Profit” always means an investment share. A sale markup and partnership profit are different. In a sale, you owe its agreed price; in a partnership, outcomes depend on the venture and its loss rules.
- “Account” means protected savings. The selected mudarabah investment account explicitly warns of capital/return risk and no PIDM protection. Check the product classification, not just easy access or the name.
- A definition proves implementation. A glossary can explain requirements. It cannot prove that your seller owned the asset, your agent executed every sale, or your claim meets all conditions.
The investment-account distinction is explicit in the cited Maybank PDS. Ownership and sequencing are requirements in the BNM sale policies; actual confirmation needs transaction-level records. Private Banking Account-i PDS; Murabahah policy document; Tawarruq policy document.
Five questions to take to the provider
- What do I own, what may I use and what do I owe?
- Who acts as agent, and for which tasks?
- Which fees, contributions and losses do I bear?
- Which schedule, mandate, sale, lease or collateral document controls this term?
- What changes on default, withdrawal, early settlement or a claim?
Source credit and further reading
This is a newly authored bilingual glossary based on the linked regulator and provider documents. The reconstruction plan associates this route with the historical ISRA i-FIKR Compendium. Its archive pointer is retained for attribution, but the archive could not be retrieved in this pass; no historical wording has been reproduced or represented as current advice. Historical i-FIKR Compendium archive pointer.
Profit, interest and costs · Home financing.
References
Sources checked 6 October 2026. Printed original dates take precedence over filenames and old index rows. This glossary uses general definitions and attributed product examples; it does not endorse providers. Source titles remain in their original language.
- Murabahah policy document — Bank Negara Malaysia. Issued 23 December 2013; effective 1 January 2014. Definition, cost disclosure and ownership requirements; current register still links this original.
- Tawarruq policy document — Bank Negara Malaysia. Issued/effective 28 December 2018. Separate deferred sale and cash resale to third party; not proof of product execution.
- Ijarah policy document — Bank Negara Malaysia. Printed issue date 29 June 2018; effective 1 August 2018 except §38 immediate; register row is older lineage. Asset-use lease here; also covers service ijarah. Filename/date and older index row do not override printed issue date.
- Musyarakah policy document — Bank Negara Malaysia. Issued 20 April 2015; effective 1 June 2016 (§6.1). Partnership definition, agreed profit shares, capital-proportion losses and misconduct exceptions.
- Mudarabah policy document — Bank Negara Malaysia. Issued 20 April 2015; Part B effective on issuance; Parts C/D effective 1 June 2016 (§6.1). Capital-provider/manager roles and loss exception for misconduct, negligence or breach.
- Wakalah policy document — Bank Negara Malaysia. Printed issue date 24 June 2016; effective 1 July 2018 except §28 immediate; register row 27 June 2016. Agency and fee arrangements; no universal fee or capital guarantee.
- Rahn policy document — Bank Negara Malaysia. Printed issue date 18 July 2018; effective 1 August 2019 except §33 immediate; register row 19 July 2018. Collateral secures liability; expenses and realization are separate contractual questions.
- Commodity Murabahah Home Financing-i PDS — Maybank Islamic Berhad. No issue/effective date or version printed in retrieved copy; customer date blank. Attributable home-financing flow; illustrative pricing excluded. Actual property/security documents not examined.
- Islamic Hire Purchase PDS — Maybank Islamic Berhad. PDS Islamic_ENG_V3.0 (07/2026). AITAB lease then sale; bank ownership until purchase; vehicle protection with takaful-first and stated insurance exceptions. No reform-wide legal conclusion or live rate.
- Personal Financing-i Terms and Conditions — HSBC Amanah Malaysia Berhad. v.Mar26. Named purchase and resale agency, payment/rebate and settlement.
- Personal Financing-i FAQ — HSBC Amanah Malaysia Berhad. Undated live page. Eligible Muslim and non-Muslim participation; no thresholds adopted.
- Private Banking Account-i PDS — Maybank Islamic Berhad. Effective 15 December 2025. Mudarabah investment; principal/returns not guaranteed; not PIDM-protected. Product-specific eligibility and charges.
- Takaful myClick Motor – Motorcycle Certificate Wording — Syarikat Takaful Malaysia Am Berhad. V1.0(E)/05-2026. GTF collective ownership, operator agency and selected benefit distinction. EN actual certificate checked; BM here is authored explanation.
- Takaful myClick Motor – Motorcycle PDS — Syarikat Takaful Malaysia Am Berhad. V101-2026; 1 January 2026. Qard, tabarru’, wakalah and additional protection; no universal contribution allocation inferred.
- Motorcycle FAQ — Takaful Malaysia. Undated live FAQ. Muslim named religious benefits and same total non-Muslim payout; actual endorsement/schedule needed.
- PIDM’s Islamic Protection System – Part3 — PIDM. Undated public explainer. Deposit roles differ from financing; investment/deposit distinction.
- Banking & Islamic Banking policy register — Bank Negara Malaysia. Live index checked 6 October 2026. Discovery/index lineage only; dates printed in originals used.
- Historical i-FIKR Compendium archive pointer — Internet Archive capture of historical ISRA i-FIKR. Archive URL timestamp 19 December 2017. Planning record links this predecessor; archive retrieval failed. No historical definitions or current endorsement attributed.
For an individual transaction, check the actual agreement, records, schedule and applicable version with the provider or an appropriately qualified adviser.