Boubyan Bank    Corporate Banking    Products    Ijara Finance

Ijara Finance



Ijarah Product:

Ijara is an agreement whereby the bank acquires the property / properties identified by the client and leases the same to the client at agreed rental for an agreed lease terms. The bank promises to transfer the title of the property to the client at the end of the lease period if all payments have been made at a pre agreed price.

Ijara Tranches

A lease agreement whereby a bank buys an asset from the Customer and transfers the asset value in a pre-defined financing tranches then leases it to him over a specific period. During the period of the lease, the asset remains in the ownership of the lessor (the bank), but the lessee has the right to rent and use it. The bank promises to transfer the title of the property to the client at the end of the lease period if all payments have been made at a pre agreed price.

Ijara Features:

  • Flexible withdrawal
  • Sharia compliant product. After the first three months, the profit will be charged monthly
  • Competitive deal execution time frame
  • Competitive profit rate