Moratorium in Islamic hire purchase financing: A Shariah perspective

This study examined the implementation of moratorium in Islamic hire purchase financing based on Al-Ijarah Thumma Al-Bay’ (AITAB) from Shariah perspective. The by Bank Negara Malaysia (BNM) is a new practice banking and finance industry Malaysia. Implementing causes several changes to AITAB contract such as extension tenure increase total payment obligation due profit charged outstanding principal. analysed these perspective using al-takyif al-fiqhi methodology. results analysis confirm IFIs line with requirements long it agreed parties - which are bank customer. Needless say, both Ijarah Policy Document Hire Purchase Act 1967 allow any forms amendments including compounding when restructured, provided that between contracting parties. Despite this permissibility, still required comply ruling issued SAC BNM prohibits during COVID-19 crisis. Although, principle, concept ihsan (beneficence) not compulsory (wajib) but rather recommendation (istihbab) perspective; however, regulatory for pursuant section 28(1) 28(2) Financial Services 2013 (IFSA) stated compliance means Advisory Council. seen manifestation towards customers affected financially pandemic. commendable effort should be encouraged continued financial institutions upholding principle maslahah lifting difficulties (raf al-haraj), particularly current outbreak impact MCO.