Islamic Personal Financing

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What is it?

Purchase of Islamic Personal Financing from Islamic Financial Institutions (IFIs) under Bai' al-Dayn al-Sila'ii (purchase of debts with commodity) or Bai' al-Dayn (debts trading).

Product Features

  1. Purchase Price: Principal balance outstanding at the cut-off date
  2. Tenure: 3 to 7 years
  3. Rate Type: Fixed
  4. Instalment Frequency: Monthly, Quarterly, Semi-Annually, Annually or Lump sum at maturity
  5. Hibah Assets: Cagamas undertakes (Wa’d) to give Hibah to IFI for performing the Retained Functions after the sale
  6. Repurchase: Repurchase of defective debts on quarterly intervals
  7. Replacement: Replacement of repurchased debts by way of sale of debts of equivalent value
  8. Rollover Option: At maturity, the IFI will be given option to repurchase the pool of debts sold to Cagamas or continue the contract for a further review period based on the new service fee agreed upon between Cagamas and the IFI.

Eligibility Criteria

  • IPF under the Shariah Concept of Al-Inah or other approved Shariah principle
  • fully disbursed;
  • not be more than 1 month in arrear at the time of sale;
  • have a remaining life which expires on or after the Review Date;
  • have a book balance, less unearned profit, if any, not exceeding RM2 million per debt;
  • have an effective rate greater than Cagamas' required rate of return; and
  • comply with other criteria as per Cagamas' requirements