How Ijara Works

IJARATM

Our IjaraTM Home Financing Program was created by a Board of Internationally recognized Shariah Scholars and has been available since 1996. The program complies with Islamic Finance Guidelines and is free of both types of Riba and also Gharar.

The program is called “Lease to Purchase” (Ijara wa Iqtina). The Lease to Purchase or Lease to Own contract blends many of the concepts used by traditional lending institutions.  The architects of the Ijara Contract used here were guided by three basic principles:

 To create interest/riba-free financing.

 To structure the Ijara Contract so it upholds the basic rights, duties, and obligations found in a traditional home mortgage and

 To retain the income tax deductibility benefits of the traditional home mortgage.

Download an explanation of Ijara in:

english-min
English
english-min
English
french-min
French
french-min
French
spanish-min
Spanish
spanish-min
Spanish
3noun-islam-58855-min
Arabic
3noun-islam-58855-min
Arabic
somali-2
Somali
somali-2
Somali
urdu-2-min
Urdu
urdu-2-min
Urdu
bahasa-2-min
Bahasa
bahasa-2-min
Bahasa
bengali - lily
Bengali
bengali - lily
Bengali

 For devout Muslims, Sharia law prohibits mortgages because of the prohibitions on interest and unequally shared risk. The Ijara-wa-Iqtina (lease and ownership) process allows Muslims to create a rent-to-own agreement in which the home’s inhabitant becomes a renter, thus abiding by Sharia principles.

Help Us Spread The Word

Download A Poster And Place It In An Appropriate Location,
Click Here to download

The Sharia contract “Lease to Purchase” is owned and copyrighted by Samad-Ijara Home Financing, LLC, which is also the master licensee for the US.  Ijara Marketing, LLC may license the program to other financial organizations that might be interested in meeting the needs of the Muslim market in the United States. www.Ijaraloans.comwww.ijaracdc.com, and  www.ijaracdc.com are owned and operated by Ijara Community Development Corporation, a Michigan Non-Profit Corporation.  A complete history is available on our site.