Meezan Bank Car Lease on car

1. Presentation
CAR LEASE VS IJARAH

2. GROUP MEMBERS
• Ahmad Ali G1F17BSCM0025
• Fatima Zahra G1F17BSCM0002
• Sherbano G1F17BSCM0018
• Momina G1F17BSCM0023

3. Ahmad Ali
G1F17BSCM0025

4. Leasing
• A lease is a contractual arrangement
calling for the lessee to pay the lessor for
use of an asset. Property, buildings and
vehicles are common assets that are
leased. Industrial or business equipment is
also leased.

5. Meaning of Lease and Leasing
• Broadly put, a lease agreement is a
contract between two parties, the lessor
and the lessee.

6. Important Terms
• Lessee is the receiver of the services or
the assets under the lease contract
• Lessor is the owner of the asset.

7. • Term is the fixed or an indefinite period of
time involve in the lease contract.
• Rent is the consideration for lease.

8. Ijarah (lease)
• Ijarah, (Arabic: ‫اإلجارة‬, al-Ijārah,) "to give
something on rent" or "providing services
and goods temporarily for a wage" It
means a contract for the hiring of persons
or renting/leasing of the services or the
“usufruct” of a property, generally for a
fixed period and price.

9. Meaning of ajir and musta’jir
• In hiring, the employer is called musta’jir,
while the employee is called ajir.

10. Lease vs Ijarah
Aspect Conventional leasing Islamic leasing (Ijarah)
Leased asset
The leased asset is not
owned by the leasing
bank.
The leased asset is
owned by the leasing
bank.
Liability for losses
The bank cannot be held
liable for any losses that
might be incurred on the
asset.
The bank bears the risk
of loss if it is not caused
by negligence of the
lessee.
Rent payment
Rent is charged and
billed prior to delivery of
the leased asset.
No rent (ujrah) can be
charged and billed prior
to delivery of the leased
asset.

11. Lease vs Ijarah
Aspect Conventional leasing Islamic leasing (Ijarah)
Termination
The agreement gives the
leasing bank a unilateral
right to terminate it at its
own discretion.
Ijarah is a binding
contract and hence neither
party can terminate it
without mutual consent
unless the contract is
breached by either party.
Late payment
Penalty on late payment is
charged.
Penalty on late payment is
considered impermissible
and hence it cannot be
charged.

12. Reference to Meezan bank

13. What is Meezan car ijarah?
• Car ijarah is Meezan bank car’s financing
product and Pakistan first interest free car
financing. It is based on the Islamic
financing mode of ijarah (leasing). This
product is ideal for individual who want
to get interest fee financing for acquiring
a car.

14. Sherbano
G1F17BSCM0018

15. • Basically car Ijarah works through a car rental
agreement under which the customer demanded
from the bank to purchase for him and rents it out to
the customer for the specified time period of 1 or 1-
7 years, that is agreed or mentioned in the agreement
at there on the time of agreement which is clearly
decided. When the time is completed it will be
gifted to the customer after the completion of the
time period and payments also be cleared.

16. Salaried professional

17. Businessmen

21. Car Ijarah product

22. Momina
G1F17BSCM0023

24. Processing charges

25. Used car financing

26. How is car Ijarah Shariah-
compliant?

28. FATWAH

31. Fatima Zahra
G1F17BSCM0002

32. Procedure of car leasing in Islamic bank
(Meezan bank)

36. For example, we took the Bolan at lease at 7 years. In this
page its show all the calculation tax rent charges and other
charges clearly are mentioned

37. After opening the account, the banker gave you a foam /
application of car leasing to fill the necessary blanks and
documents attached at are mentioned in the foam

42. After the filling of the foam the bank
issues a declaration document

43. After this banker started to visiting the source of the
customer from which the customer is earning the income by
physical inspection the shop, business whatever he has
written in the agreement