Lease Based financing

Leasing refers to giving rights to use a particular item or service for a specified period at a fee. The owner retains ownership of the asset or the service.

Hazina uses Ijarah financing arrangements when a member approaches us with a request to lease out a property/asset. We then get into an understanding with the member that we as the lessors buy the asset or property and enters into a leasing contract which specifies rental amount and frequency of payments to be made by the member as a lessee.

Since ownership is retained by us as the lessor; we also retain the obligation of the risk associated with the ownership rights. The lessee is only responsible for maintenance and minor repairs of the asset or property.

We finance both agricultural and business machineries using this type of financing arrangements.