Is an opiating lease whereby the bank buy and lease out equipment or asset required by the customer for an agreed rental fee. Ijarah means “to give something on rent or to provide some service for consideration”. The agreement shall include a promise that the leased asset will be transferred to the lessee at the end of the lease term. Lexically, Ijarah means “to give something on rent or to provide some service for consideration”.
Basic rules of Ijarah
- It is necessary for valid leases property remains in the ownership of the lessor.
- The period of lease must be determined in clear terms.
The lease period shall start from the date on which the leased asset has been delivered.