Islamic Personal Financing
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).
- Purchase Price: Principal balance outstanding at the cut-off date
- Tenure: 3 to 7 years
- Rate Type: Fixed
- Instalment Frequency: Monthly, Quarterly, Semi-Annually, Annually or Lump sum at maturity
- Hibah Assets: Cagamas undertakes (Wa’d) to give Hibah to IFI for performing the Retained Functions after the sale
- Repurchase: Repurchase of defective debts on quarterly intervals
- Replacement: Replacement of repurchased debts by way of sale of debts of equivalent value
- 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.
- 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