Al-Ijarah Muntahia Bittamleek or Lease-to-Own ending in Ownership
It is a form of financing where the Bank acquires a property called the Ijarah Asset, to be leased to client at a pre-determined lease payments and lease period. The lessee promises to the lessor (the Bank) to purchase the Ijarah Asset at the end of the lease term.
Purpose: For acquisition of all types of machinery and equipment used for business; acquisition of commercial/industrial lots with or without buildings/ improvements thereon for business use.
Amount: 100% of Total Cost of Ijarah Asset