An Islamic bank has approved for its customer the financing facility for a commercial property on an Islamic financial lease (Ijarah Muntahiya Bittamlik)‎ basis for a period of seven years

Fatawa Question

An Islamic bank has approved for its customer the financing facility for a commercial property on an Islamic financial lease (Ijarah Muntahiya Bittamlik) basis for a period of seven years. Since the customer expects an increase in the property value in the near future, it has asked the bank for an option to settle the entire facility at any time during the financing period, and to acquire the title to the property free from any encumbrance if he decides to sell the property to materialize the capital gain. How should the Islamic bank accommodate the customer’s request ?

Fatwa

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Publisher

Islamic Finance News

Publication Date

2013-10-30

Country of Publication

Malaysia

Main Subjects

Economics & Business Administration
Islamic Studies

Data Type

Fatawa

Language

English

Record ID

BIM-783608

• APA
• MLA
• AMA