Full Description
HPSM is a modern financial contract that comprises shirkah (partnership), ijarah (lease), and sale contracts. In the HPSM contract, ownership of the asset is jointly held by the bank and the client. The client makes regular instalments. During the contract, the client is granted to use the asset as long as he meets specific conditions. Upon the completion of all instalments, the asset becomes the property of the client.
This book seeks to shed light on the fundamental concept of HPSM, including the policies, regulations, and subsidiary contracts that play a vital role in its practical application. It provides a thorough exploration of the documentation and accounting procedures, while also addressing potential Shari'ah-related issues in HPSM, and will be of potential interest to students, researchers, policymakers and practitioners, offering a comprehensive understanding of how HPSM is applied within the Islamic finance industry.
Contents
Chapter1. Historical Development and Shari'ah Permissibility of Hire Purchase under Shirkah al-Milk (HPSM) in the Islamic banking and finance industry. Chapter 2. SHIRKAH: ThE First Essential Contract in HPSM.- Chapter 3. IJARAH: The Second Essential Contract IN HPSM.- Chapter 4. Sale: The final Essential Contract in HPSM.- Chapter 5. Operational Procedure of HPSM.- Chapter 6: Ownership Transfer Methods and Shari'ah Issues Related to the Application of HPSM.- Chapter 7: The Other IJARAH and SHIRKAH Contracts in Modern Islamic Finance.-Chapter 8: Hybrid Contracts and Their Underlying Issues in Islamic Finance.- Chapter 9: Conclusion
