Ijarah/ Lease Financing Mode of Financing
Lease/Ijarah mode of financing may be used for financing agricultural & Building and construction sector where all kinds of equipment leased.
In Ijarah, the bank /lessor/ hands over the capital goods to the customer /lessee/ for an agreed period at an agreed consideration. After the completion of lease payments, the bank may transfer ownership of asset to the client.
Specific Criteria for Ijarah Financing
In addition to the general eligibility criteria and terms and condition of Ijarah, the customer shall fulfil the following requirements:
- The supplier and lessee shall not be affiliated companies;
- The lessee should sign a letter of continuity. In which he/she/it specifies for using the leased asset in the lease period;
- The lessee must present necessary documents as stipulated in the checklist and other necessary documents; and
- The lessee shall provide acceptable collateral to secure the finance.
Required Documents for all Applicants
- Application Letter
- Renewed Trade License
- Tax Identification Numbers (TIN)
- Recent Tax Clearances
- Memorandum and Articles of Association (if PLC, S.C. etc)
- Audited Financial Statement
- Ownership Documents such as Land Holding Certificate, Ownership Booklet, etc
- Marriage Certificate of Borrowers and Mortgagors