Ijarah

Ijarah literally means “To give something on rent”. Ijarah is an Islamic alternative of leasing and refers to the transfer of benefits and use of an asset by the owner (lessor) to the (kasb modaraba) lessee at an agreed rent for an agreed period of time. Ijarah is a lawful method of earning income, according to Islamic law. KASB Modaraba provides a direct facility to customers whose requirement is business driven. The tenure of the Ijarah ranges from 3 to 5 years. It is based on use rather ownership of asset. It also serves as a safeguard against technological obsolescence. Both the tenure and the rental of Ijarah are tailored to the needs of the client.