Filter by Categories
Accounting
Banking

Islamic Finance




Types of Ijarah Muntahia Bittamleek


Ijarah muntahia bittamleek (ijarah ending with ownership transfer) is a form of ijarah that concludes with passing the legal title in the leased property to the lessee at the end of the lease tenor. This ijarah can be classified into two main types:

  1. Ijarah muntahia bittamleek through hibah (gift): where legal title is transferred to the lessee without any more payments.
  2. Ijarah muntahia bittamleek through ba’i (sale): which itself can be divided into:
    1. Ijarah muntahia bittamleek through transfer of legal title at the end of lease tenor for a nominal consideration.
    2. Ijarah muntahia bittamleek through transfer of legal title prior to the end of lease tenor for a price that is equivalent to the remaining ijarah installments (net of rental).
    3. Ijarah muntahia bittamleek through gradual transfer of legal title of the leased property.

The second type of ijarah muntahia bittamleek (through sale) is also known as ijarah wa iqtina or ijarah thumma al ba’i.



Tutorials
This section contains quite a vast collection of easy-to-understand explanatory manuals, practical guides, and best practices how-tos covering the main themes of this ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments