Ijarah

What is Ijarah?

"Ijarah", a term of Islamic fiqh, means 'to give something on rent'. Ijarah relates to the usufructs of assets and properties. UBL Ameen transfers the usufruct of a particular property to another person in exchange for a rent claimed from him. In this case, the term 'Ijarah' is analogous to the English term 'leasing'. Here the lessor is called 'Mu’jir', the lessee is called 'musta’jir' and the rent payable to the lessor is called 'ujrah'. In case of Ijarah, the corpus of the property remains in the ownership of the transferor, but only its usufruct i.e. the right to use it, is transferred to the lessee.

At UBL Ameen, the mode of Ijarah is used to meet medium or long term financing needs of the customer by giving the asset to the customer on rental basis.

Key Features
  • Flexibility with the proportion of security deposit required for Ameen Ijarah.
  • Ameen Ijarah facility can be availed for various tenors depending on the requirement of the client.
  • Ameen Ijarah provides you security as the ownership and the risk of the leased asset remains with the bank.
  • Flexible payment frequencies can be set for the rentals.
  • Both fixed and variable rental options are available.