What is it?

Purchase of Islamic hire purchase/leasing debts 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. Rate Type: Fixed
3. Instalment Frequency: Monthly, Quarterly, Semi-Annually, Annually or Lump sum at maturity
4. Hibah Assets: Cagamas undertakes (Wa’d) to give Hibah to IFI for performing the Retained Functions after the sale
5. Repurchase: Repurchase of defective debts on quarterly intervals
6. Replacement: Replacement of repurchased debts by way of sale of debts of equivalent value
7. 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

• IHP of equipment/motor vehicles under the Shariah concept of Al-Ijarah Thumma Al-Bai' (AITAB)
• 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