Kafalah

Question 1

En. Khairul guaranteed Aidil’s RM30,000 study financing from Bank Barakah, but due to an accident and permanent disability, Aidil cannot work and relies on his family for life.

Answer 1

Bank suruh En. Khairul Repays Financing Aidil sbb
* En. Khairul is the guarantor of Aidil.

Question 2

Definition of al-Kafalah contract: literally:

Answer 2

guarantee, security, bail, warranty, surety

Question 3

Kafalat al-Dayn:

Answer 3

commitment to established rights for others.

Question 4

Definition of al-Kafalah Contract Technically:

Answer 4

Contractual Commitments in Islamic Law

Question 5

Kafalat al-badn/wajh

Answer 5

a contract that promises to bring a person who has rights for others

Question 6

Kafalat al-’ayn:

Answer 6

delivery of subject matter to another party.

Question 7

BNM PD

Answer 7

guarantor-guarantor joint in assuming liability.

Question 8

Shariah Rulings Al-Kafalah is

Answer 8

permissible (mubah) for the guaranteed party (makful ‘anhu) and beneficiary (makful lahu).

Question 9

Shariah Rulings: It is also recommendable (mandub) if the guarantor (kafil) has the

Answer 9

capability and reliability to carry out the commitment.

Question 10

Conditions of permissible debt

Answer 10

• Shariah-compliant purpose.
• Intention to repay.
• Payment is based on expected future income.

Question 11

Nature of Kafalah Contract

Answer 11

• Considered one of three security contracts: al-kafalah, al-hawalah, and al-rahnu.
• Act of Tabarru’, where the guarantor guarantees commitment for another party.
• Also known as حمالة وضمانة وزعامة.

Question 12

Kafalah: Assurance for Guaranteed Party’s Liability

Answer 12

• Provides assurance on obligation fulfillment.
• Binding (mulzim/lazim) on the guarantor.

Question 13

Pillars of al-Kafalah Jumhur :

Answer 13

parties, subject matter, format qawul

Question 14

Pillars of al-Kafalah Abu Hanifah & Muhammad Hasan: Format

Answer 14

Ijab & Qabul

Question 15

Kafalah Contracting Parties

Answer 15

• Guarantor (kafil): legal capacity to enter into a contract.
• Beneficiary (makful lahu): legal entity.
• Guaranteed party (makful `anhu): can be guaranteed by multiple guarantors.

Question 16

Kafalah Contract Process

Answer 16

• Affected by the guarantor’s offer.
• An offer can be oral, written, or documented.

Question 17

Charging Fee on al-Kafalah

Answer 17

• Percentage
• Fixed amount

Question 18

Guarantor Fee Permission

Answer 18

• Permitted for necessities or public conveniences.

Question 19

Application of al-Kafalah

Answer 19

• Letter of Credit
• Letter of Guarantee
• Shipping Guarantee
• Bank Guarantee
• Advance Payment Guarantee
• Performance Guarantee
• Tender Guarantee
• Credit card based on al-Kafalah contract.

Question 20

Contractual Agreement and Islamic Bank Guarantee

Answer 20

• Customer enters contractual agreement with beneficiary.
• RHB Islamic Bank issues Islamic Bank Guarantee (IBG) as a surety.
• IBG issued as a fee to customer.
• Customer default results in beneficiary claim from RHB Islamic Bank.
• RHB Islamic Bank pays immediately on demand, provided claim meets guarantee conditions.
• If no default, beneficiary returns IBG, RHB Islamic Bank cancels upon maturity.