An agreement between two parties.

Refers to deposit in trust.
Entails absence of liability for loss except in breach of duty.
Current Accounts are regarded as Amanah (trust).
If the bank gets authority to use the funds for its businesses, then it would transform into loan.

Sale on future delivery.
A contract whereby the payment is made in cash at the point of contract but delivery will be made at the pre-determined future date.

Sale and buy-back contract.

The sale of goods on a deferred payment basis.

The person who is applying for the financing facility with the bank.


Also known as a Mudi' in a Wadiah Account and Rabbul-Mal in a Mudharabah Investment Account.

The bank’s purchase price or the amount paid by the bank to acquire the goods.

Islamic law or jurisprudence.


Referred to as an uncertainty.

Anything that is permitted by Shariah.

Unlawful, forbidden or prohibited by Shariah.

Gift as a token of appreciation.

Rebate/ Set-off.

Refers to ‘the offer’ in a contract.

Lease/ Hire.


General principles of Islamic law

Gambling or a form of speculation.

A form of partnership where one party provides the funds while the other provides expertise and management.

The entrepreneur or the bank accepting the money from the investor to be invested on behalf of the investors.

Cost-plus financing.

Partnership/ Joint venture under the profit and loss sharing agreement.

Partnership and joint purchase of the asset by two contracting parties. One of the partners promises to buy over the equity share of the other gradually until the title is completely transferred to the former.

Individuals or companies involved in haram activities as prescribed by Shariah.

The acceptance of a contract.

Benevolent loan.

The capital provider or the investor who will deposit or invest the money with the Mudharib/entrepreneur.


An excess or increase over the principal in a loan transaction or in exchange for a commodity accrued to the owner (lender) without giving an equivalent counter-value or recompense in return to the other party.

Goods subject to Fiqh rules on Riba in sales i.e. gold, silver, wheat, barley, date and salt.

Voluntary charitable giving or donation.

Refers to the divine guidance as given by the Holy Quran and the Sunnah of the Prophet. It embodies all aspects of the Islamic faith, including beliefs and practice.

Islamic insurance.

Commodity Murabahah. Monetization or Cost plus sale using commodities.


Fees and charges.

Agency Contract.

Religious tax to purify the wealth.