Professional Documents
Culture Documents
Al-Kafalah: Mahyuddin Khalid Emkay@salam - Uitm.edu - My
Al-Kafalah: Mahyuddin Khalid Emkay@salam - Uitm.edu - My
Al-Kafalah: Mahyuddin Khalid Emkay@salam - Uitm.edu - My
MAHYUDDIN KHALID
emkay@salam.uitm.edu.my
CONTENT
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
DEFINITION
EVIDENCE
PILLARS OF AL-KAFALAH
TYPES OF AL-KAFALAH
ADVANTAGE OF AL-KAFALAH
CONDITIONS OF AL-KAFALAH
APPLICATION OF AL-KAFALAH
AL-KAFALAH
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
Kafalah
Conjoining of the guarantors liability of the
guaranteed
Dhaman
Guarantee for future obligations involving
property such as debt obligation, the return of
borrowed property, the delivery of products,
payment for purchase of products or services or
the security if goods.
Hamalah
Guarantee for future obligations involving diyat
(blood-money)
DEFINITION
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
Technically
The pledge given by the guarantor/surety (al-kafil) to a
creditor (al-makful lah) on behalf of the principal debtor
(al-makful anh) to secure that the guaranteed (al-makful
bih) i.e the debtor, will be present at a definite place, e.g.
to pay his debt, or fine, or, in the case of retaliation, to
undergo punishment.
EVIDENCE
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
Al-Quran
EVIDENCE
Hadith
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
Ijma
The scholars of Islam unanimously agreed on the legitimacy
of al-kafalah in principle since it is a necessity in the society
6
PILLARS OF AL-KAFALAH
1. Guarantor/surety (al-kafil)
DEFINITION
EVIDENCES
CONDITIONS
APPLICATION
5. Sighah
Offer
Acceptance
FLOWS OF AL-KAFALAH
DEFINITION
Kafil (Gurantor)
TYPES
CONDITIONS
APPLICATION
Makful Anh
(Principle Debtor)
8
Cr
e
ca dito
se
rc
de
bto of d an r
efa et
r
ult riev
by e h
the is d
pri ebt
nc
ipl in
e
PILLARS
Gu
res aran
lia pon tor a
bil sib
ity
le gree
Pri s t
nc o b
ipl
eDe
eb
tor
s
EVIDENCES
Makful Lah
(Creditor)
TYPES OF AL-KAFALAH
Al-Kafalah bi al-nafs ()
DEFINITION
EVIDENCES
PILLARS
Al-Kafalah bi al-mal ()
Guarantee to return an asset to its owner
Can be divided into three main categories:
1. Kafalah bi al-dayn
TYPES
APPLICATION
3. Kafalah bi al-darak
AL-KAFALAH BI AL-NAFS
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
10
Guarantee of Person
In Suretyship for a person the guarantor is
assuming the responsibility to make sure the
presence of the principal in a lawsuit.
This is also possible in cases where the principal
owes the creditor.
The guarantor is required only to make sure the
presence of the person.
He is not liable to settle the debt on behalf of the
principal.
If the principal dies the guarantor is not bound to
pay on his behalf. This is because the guarantee
given is for the presence of the principal and not
for the settlement of his debt.
AL-KAFALAH BI AL-MAL
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
11
EFFECTS OF AL-KAFALAH
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
12
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
13
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
14
Debtor
Minimize and spread his risk because the
guarantor by his guarantee, joined his liability to
the creditor
Can convince the creditor to lend him the money
since he has somebody to back him up as the
guarantor of payment. Nobody will normally lend
him any amount of money if he has nobody that
can support him and perform the obligation on
his behalf in case of default
CONDITIONS OF AL-KAFALAH
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
15
Guarantor
Has the capacity and capability to be a
guarantor
Has the cant withdraw or pullback after the loan
agreement has been sealed or after the money
has been given to the debtor
No limit to the number of people that can be a
guarantor to the debtor
Not forced or threatened by anybody to be the
guarantor
CONDITIONS OF AL-KAFALAH
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
16
Creditor
Must be known by the guarantor
Has the right to claim the debt from either the
debtor or the guarantor in case of default
Can relief the guarantor from his obligation but
the debtor is still obligated to settle his debt
Can relief the debtor from his obligation and in
this case, the guarantor is no longer obliged to
settle the debt on behalf of the debtor
CONDITIONS OF AL-KAFALAH
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
17
MODERN APPLICATION
Two ways of application of al-kafalah in IFI
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
18
Murabaha
Ijarah
Salam
Istisna
Sharikah and Mudarabah,
Guarantee in documentary credit,
Credit card based on contract of kafalah.
END OF CHAPTER
DEFINITION
EVIDENCES
PILLARS
TYPES
CONDITIONS
APPLICATION
19