Launch Partners

Launch Partners

GlossaryIjarah wa Iqtina

Ijarah wa Iqtina

English: buy-back leasing

Definition: A hire and purchase mode of financing where an Islamic bank finances equipment, a building or other facility for the client against an agreed rental, together with an undertaking from the client to repurchase the facility at the end of the contract. The rental and the purchase price are fixed so that the bank gets back its principal sum along with some predetermined profit.