ijara wa-iktina

ijara wa-iktina
This is a lease ijara where the financial institution buys an asset, leases the asset to a customer for a specific price and period, and then sells that asset to the customer for an agreed price at the end of the lease period. This structure is permissible provided the leased asset is used productively and in ways permitted under Islamic law.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

  • ijara — ijara(h) is similar to a conventional finance lease. The financial institution leases an asset to a lessee in return for agreed rental payment. The terms of ijara leases differ from those found in a conventional finance lease because, in order to …   Law dictionary

  • ijarah — ijara(h) is similar to a conventional finance lease. The financial institution leases an asset to a lessee in return for agreed rental payment. The terms of ijara leases differ from those found in a conventional finance lease because, in order to …   Law dictionary

  • Islamic finance — bai al inah bai salam (forward financing) HM Revenue & Customs (HMRC) ijara …   Law dictionary

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