Ijarah

IJARAH

Ijarah is a type of Shari’ah mode financing whereby the Bank (lessor), leases out the identified asset such as vehicles, building, machinery and equipments etc, either purchased or manufactured or constructed, to a customer (lessee) at an agreed rental payment and lease period. During the lease term, the ownership of the asset remains with the Bank (lessor) while the customer (lessee) only has the right to use the asset.