Bai Al-Inah and Tawaruq As A Solution to Interest-Based Personal Financing Facility.

Islamic banks offer personal financing in Malaysia based on the concept of Bai al-Inah. However, there exists some concern over the treasure of riba, in the implementation Bai al-Inah in personal financing. This study hence, attempts to seek opinion of scholars Shariah Advisory Council, Muftis and practitioners on the usage of Bai al-Imh and its alternative, Tawarruq. Tawarruq is widely used
in Middle East commercial transaction but not in Malaysia. From a survey of these respondents and structured interview with the Muftis, we obtain the following Findings: i) Bai al-Inah is acceptable to be used in Malaysia. ii) Although Tavarruq is better alternative, many practitioners are not familiar with this concept. iii) Hardly any application of Tawarruq by Islamic banks in
Malaysia.