Glossary

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Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Participants’ Special Account
An account to credit a portion of contributions from the participant for the purpose of tabarru’
Qabadh قبض
Qabadh means taking possession in the contracts of exchange ('uqud mu'āwadhāt). Generally qabadh is practiced based on urf i.e. the common practices of the local community in recognizing the way the possession of an asset has taken place. Qabadh varies from one type of asset to another.
Qardh Hasan قرض الحسن
Refers to benevolent loan, i.e. a loan contract between two parties with no extra charge over and above the loan. Any extra payment imposed by the lender or promised by the borrower is considered riba, thus prohibited. However the borrower is permitted to pay extra on payment at his absolute discretion as a token of appreciation to the lender.
Qardh قرض
Loan
Qurān قرءان
The holy scriptures of Islam i.e. the words of Allah revealed to the Prophet Muhammad SAW in Arabic conveyed by the angel Jibrail AS.
Rabbul Mal
Capital provider
Rahnu رهن
Making an asset a security or collateral for a debt. The collateral will be used to settle the debt when the debtor is in default. It may also be used as a name for a kind of borrowing with collateral or pawn broking.
Ra’sul Mal
Takaful Contribution
Retakaful Operator’s Deposit
An amount deposited with or retained by a takaful operator by way of security for performance by the retakaful operator of its retakaful contracts.
Ribā ربا

An increase, in a loan transaction or in exchange of a ribawī asset, accrued to the owner (lender or seller) without giving an equivalent counter value or compensation in return to the other party. It is prohibited according to Sharīah.

In lending, it is the extra payment imposed by the lender or promised by the borrower over and above the loan (known as ribā qardh).

In trade it is mostly the difference in weight in the exchange of gold of different measures of purity, e.g. 10 grams of 750 gold with the 8 grams of 835 gold (known as ribā fadhl); or the difference in time between payment and delivery in foreign currency exchange, e.g. payment or RM10,000 on 1st January 2008 and delivery of USD3,800 on 2nd January 2008 (known as ribā nasīah).

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