Развитие сотрудничества в области туризма между странами

2. The procedure for the execution of the Ijara Contract

1

• The client independently determines the asset and the supplier of this asset and applies to the bank for financing. The client provides the bank with relevant information about the asset.

2

• After the bank has reviewed the submitted terms and prices, the client informs the bank of his expressed intention to enter into a lease agreement with the bank.

3

• The supplier of the product opens an account for payment in the name of the bank, and the bank purchases the specified asset from its account, after which the bank leases the asset to the customer under a lease agreement for a pre-agreed period.

Procedure for making an Ijara:

2. The procedure for the execution of the Ijara Contract

4

• During the Ijara term, the customer pays rent at pre-agreed intervals, consisting of fixed, variable and additional contents.

5

• At the end of the Ijara term and in the case that the client fulfills all obligations under the contract, the bank transfers the asset to the client's ownership by means of a sale or gift contract at the nominal value of the asset.

Procedure for making an Ijara:

*Leasing is one of the most common forms of Islamic financing

Stages of implementation of Ijara contracts(briefly):

1.The client sends a notification about the description of the asset to be purchased by the bank and his intention
2.The bank buys the specified asset from the product supplier at its own expense and leases it to the customer
3. The customer pays the rent according to the previously agreed terms
4.The bank transfers the asset to the client by selling or giving a gift at nominal value

Sale of leased object

• The lessor has the right to sell the leased asset but needs to inform the buyer of the lease agreement and ensure the lease continues as binding and irrevocable. All terms and conditions, rights and liabilities agreed upon in the lease contract are transferred to the new owner. In case the original lessor or the new owner would like to cancel the lease agreement, due notice as stipulated in the Ijara contract must be given