Ijara

Ijara

A form of Islamic financing, in which the Bank purchases an item for a customer, then leases it to them with a profit via a leasing agreement between the two parties.

Ijara Muntahia Bittamleek

One of the forms of Ijarah used by Islamic financial institutions is Ijarah Muntahia Bittamleek. This is a form of leasing contract which includes a promise by the lessor to transfer the ownership in the leased property to the lessee, either at the end of the term of the Ijarah period or by stages during the term of the contract.

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