Bai’ul Inah – Is it really Permissible? Part IV

Definition of “Inah”?

Inah is derived from the word “ain” means goods or items since the buyer or the customer who is involved in this contract is in need to get the goods which is in this context, the “MONEY” or in more simple and descriptive words that usually used in the advertisments by banks or financial institutions “fast cash” or “express cash” only with a dash “i” ( -i ) to differentiate from the convetional financing options.

There are 2 (two) types of Bai’ul Inah:

1. The CUSTOMERS are REQUIRED to immediately sell the items or goods to the BUYER with CONDITION that the customer will sell it at a lower price from the first sale.
2. The CUSTOMERS are given to keep the items and after the buyer have the ownership, the cusomers have the OPTIONS to sell it back to the BUYER at a lower price from the first sale.

The Fiqh Scholars are collectively agreed on the prohibition of the first type of Bai’ul Inah since it has a condition that required the customers to immediately re-sell the goods to the buyer at a lower price in exchange for cash.

However, there are conflicts in opinion of the scholars regarding the second option of Bai’ul Inah since it may lead to the practice of riba’. The prophet S.A.W said that “Anyone who hover around the Hima-foyer (where prohibited) to fear of falling into it” – Al-Bukhari. Only a certain ulama’ from Syafi’e School are allowing the second type of Bai’ul Inah.