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FUND BASED FECILITIES
 
Ijarah
 
No initial registration and other documentation charges.
Lessor/Bank will bear all ownership expenses. These expenses will however be built into the monthly rental payments due from Lessee (Mustajir).
No Risk for the Lessee
During the tenure of Ijarah, the subject matter should be at the risk of Lessor (Mo’ajir). If the subject matter endears accidental loss then the loss will be borne by Lessor (Mo’ajir). In this case Lessee (Mustajir) cannot be bound to pay the remaining installments, nor can he be forced to fulfill the promise to buy the subject matter. However, if during the tenure there is a mishap or damage to the subject matter resulting from negligence or misconduct of the Lessee (Mustajir) then the loss would be borne by Lessee (Mustajir).
Rentals
For determination of rental in long term Ijarah, two aspects should be kept in mind:
 
a Rentals can either be fixed or variable (i.e. variable rate will vary after a certain period i.e. 6 months or one year).
b If a benchmark is used to determine a rental, which is variable in nature, then a floor and a cap would be set accordingly.
 
Is the subject matter of Ijarah Sharia Compliant?
Consumable items such as edible items and cash are not Sharia compliant.
 
 
 
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