Ijara

Ijarah" is a term of Islamic fiqh. Lexically, it means 'to give something on rent'.
 In the Islamic jurisprudence, the term 'Ijarah' is used for two different situations. In the first place, it means 'to employ the services of a person on wages given to him as a consideration for his hired services." The employer is called 'mustajir' while the employee is called 'ajir', while the wages paid to the ajir are called their 'ujrah'.
 The second type of Ijarah relates to the usufructs of assets and properties, and not to the services of human beings. 'Ijarah' in this sense means ' to transfer the usufruct of a particular property to another person in exchange for a rent claimed from him.' In this case, the term 'Ijarah' is analogous to the English term 'leasing'. Here the lessor is called 'Mujir', the lessee is called 'mustajir' and the rent payable to the lessor is called 'ujrah'.
 The rules of Ijarah are very much analogous to the rules of sale, because in both cases something is transferred to another person for a valuable consideration. The only difference between Ijarah and sale is that in the latter case the corpus of the property is transferred to the purchaser, while in the case of Ijarah, the corpus of the property remains in the ownership of the transferor, but only its usufruct i.e. the right to use it, is transferred to the lessee.
Lease as a mode of financing
Lease is not originally a mode of financing. It is simply a transaction meant to transfer the usufruct of a property from one person to another for an agreed period against an agreed consideration. However, certain financial institutions have adopted leasing as a mode of financing instead of long term lending on the basis of interest.
 This transaction of lease may be used for Islamic financing, subject to certain conditions. It is not sufficient for this purpose to substitute the name of 'interest' by the name of 'rent' and replace the name of 'mortgage' by the name of 'leased asset'. There must be a substantial difference between leasing and an interest-bearing loan. That will be possible only by following all the Islamic rules of leasing.
Basic Rules of Ijarah

Leasing is a contract whereby the owner of something transfers its usufruct to another person for an agreed period, at an agreed consideration.
The subject of lease must have a valuable use (which is recognized as Mal-e-Mutaqawwam in Shariah. Therefore, things having no usufruct at all or whose usufruct is not permissible according to Shariah cannot be leased.
It is necessary for a valid contract of lease that the corpus of the leased property remains in the ownership of the seller, and only its usufruct is transferred to the lessee. Thus, anything which cannot be used without consuming cannot be leased out. Therefore, the lease cannot be effected in respect of money, eatables, fuel and ammunition etc.
As the corpus of the leased property remains in the ownership of the lessor, all the liabilities emerging from the ownership shall be borne by the lessor, but the liabilities referable to the use of the property shall be borne by the lessee.
The period of lease must be determined in clear terms.
The lessee cannot use the leased asset for any purpose other than the purpose specified in the lease agreement. If no such purpose is specified in the agreement, the lessee can use it for whatever purpose it is used in the normal course.
The lessee is liable to compensate the lessor for any damage to the leased asset caused by any misuse or negligence on the part of the lessee.
The leased asset shall remain in the risk of the lessor throughout the lease period in the sense that any harm or loss caused by the factors beyond the control of the lessee shall be borne by the lessor.
A property jointly owned by two or more persons can be leased out, and the rental shall be distributed between all the joint owners according to the proportion of their respective shares in the property.
A joint owner of a property can lease his proportionate share to his co-sharer only, and not to any other person.
It is necessary for a valid lease that the leased asset is fully identified by the parties.
The rental must be determined at the time of contract for the whole period of lease.
In the long term lease agreements, it is mostly not in the benefit of the lessor to fix one amount of rent for the whole period of lease because the market conditions change from time to time. For this purpose it is allowed to use benchmark rate to determine the rental amounts. However, rent for the month will be fixed at the start of the month, any change in benchmark rate during the month will not cause rent for that month to change. It is also necessary to define a floor and ceiling.
The lessor cannot increase the rent unilaterally, and any agreement to this effect is void.
The rent or any part thereof may be payable in advance before the delivery of the asset to the lessee, but the amount so collected by the lessor shall remain with him as 'on account' payment and shall be adjusted towards the rent after its being due.
The lease period shall commence from the date on which the leased asset has been delivered to the lessee, no matter whether the lessee has started using it or not.
If the leased asset has totally lost the function for which it was leased, and no repair is possible, the lease shall terminate on the day on which such loss has been caused. However, if the loss is caused by the misuse or by the negligence of the lessee, he will be liable to compensate the lessor for such negligence.



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"The words of the Islamic jurisprudence. Lexically, mean something on the Rent".
In Islamic jurisprudence of the term 'Ijarah" two different situations. In the first place, this means that "the use of the services of people on wages to the consideration of wage earners". The employer called ustajir while ajir officer called "at a time when the wages paid ajir called "ujrah'.
The second relates to usufructs Ijarah assets and property, and not to the services of human beings. (Ijarah this' means the transfer of the right of utilization of certain property to another person for rent claimed responsibility for it. In this case, use the term "Ijarah" resembles the English term "leased". Here the lessor called ujir" the lessee called ustajir) leasing the lessor called ujrah'.
Ijarah rules very similar rules of vending because in both cases there are transferred to another person for Awad. The only difference between Ijarah sale is that in the latter case the habeas corpus before the royal court to the buyer, while in the case of Ijarah, the corpus property is still in the ownership of the switch, only the right of utilization of any use to the lessee.
Leasing as a way of
financing lease not originally method of financing. It is simply a means of transactions the transfer of the right of use of property from one person to another for an agreed period of time against agreed. However, some financial institutions adopted leasing as a means of financing of long-term loans rather than on the basis of interests.
This deal rent may use the Islamic financing, subject to certain conditions. It is not sufficient for this purpose, to be replaced by the name of "interest" in the name of 'nt to bring ortgage the name "the name of the leased asset. There must be a substantial difference between the lease interest bearing. This will be possible only through the Islamic rules of the lease.
The basic rules of Ijarah
leasing contract under which the owner of something convey the right of utilization to another person for an agreed period of time to consider.
The subject of the lease must be the use value (which is bad Mutaqawwam electronic commerce in the sharia. Therefore, matters do not usufruct or which may not benefit in accordance with the provisions of the sharia does not can be rented.
It is necessary to lease Saleh that the leased property in the ownership of the seller, only the right of access to the lessee. Thus, nothing can be used without exhausting can be rented. It was therefore not possible to rent effected in respect of money, food and beverages, fuel, ammunition and other
overall leased leased property to all the obligations arising from the property bear the obligations of the lessor, but due to the use of the property are borne by the lessee.
The period of the lease to be clearly identified.
Could not use the lessee of the leased asset for any purpose other than the purposes specified in the lease agreement. If no such purpose specified in the agreement, the lessee used for any purpose was used in a normal way.
The lessee responsibility for the lessor compensation for any damage to the leased asset because of any abuse or neglect of the lessee.
These leased assets in danger the lessor throughout the period of the lease, meaning that any damage or loss caused by factors