HOME PURCHASE WITH AN ISLAMIC LOAN (USING BBA)
Let us now go through the same transaction but with an Islamic loan. One of the most popular Islamic financing products to meet long-term financing needs is bai bithaman ajil (BBA), and its method involves a sale where payment is deferred to a future date. Figure 8.3 shows how a basic BBA transaction works.
You identify a home you desire.
You approach the bank to obtain financing.
The bank buys ...