Ijara is one of the Islamic financial contracts used in Islamic banks that is compatible with the provisions of Sharia. In this contract, assets or services are leased to customers in exchange for periodic payments. This contract is considered a legitimate alternative to financing assets in a traditional way, such as interest-bearing loans.
The Concept of Ijara
Ijara means leasing the benefits of assets for a specific fee. The leased asset can be real estate, a vehicle, equipment, or any other asset.
Types of Ijara
Operating ljara
The asset is rented to the customer for a specific period of time, and after the end of the contract, the asset is returned to the bank or the contract is renewed.
Ijara Ending with Ownership (ljara Muntahia Bittamleek)
The asset is leased to the customer for a specific period of time, with an option or promise to transfer ownership to the customer at the end of the ijara period after all payments have been made.
Steps of Ijara Process
Customer request: The customer begins by requesting to lease a specific asset from the bank.
The bank purchases the asset: The bank purchases the required asset.
Renting the asset to the customer: The asset is rented to the customer according to a rental contract that includes details of the rent and rental period.
Transfer of ownership for Ijarah Muntahia Bittamleek: At the end of the rental period, ownership of the asset is transferred to the customer after all payments are made according to the agreement.
Advantages of Ijara
Sharia compliance: Provides financing that is compatible with Islamic Sharia.
Flexibility: Ijara can be used to finance a variety of assets.
Periodic payment: The customer pays the rent in periodic payments, which facilitates cash flow management.
Transfer of ownership (in Ijarah Muntahia Bittamleek): It gives the customer the opportunity to own the asset after the end of the rental period
Examples of Ijara Application
Car rental: The customer can rent a car for a specific period with the option to own it at the end of the period.
Real estate leasing: renting real estate such as homes or offices for a specific period with the option of ownership.
Equipment leasing: leasing industrial, agricultural or commercial equipment with the possibility of owning it after the end of the leasing period.
Why choose Ijara with us?
Sharia commitment: We are committed to providing financial solutions that comply with the provisions of Islamic Sharia.
Excellent Customer Service: Our dedicated team is ready to assist you throughout the process.
Complete transparency: We provide clear details about all costs and terms.
For more information, contact us or visit one of our branches. We are here to help you every step of the way!
For more information, contact us or visit one of our branches. We are here to help you every step of the way!
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Misk Islamic Bank offers a variety of banking services that comply with the provisions of Islamic Sharia
