Glossary › Ijarah
What is Ijarah?
An Islamic lease-to-own financing structure with no interest (riba).
In Ijarah, the bank buys an asset and leases it to you for a fixed monthly rental; ownership transfers at the end. It's used for Shariah-compliant car and home finance — the cost is a transparent rental, not interest.
Example
Meezan Car Ijarah finances a vehicle as a lease rather than an interest loan.