Islamic Leasing

Up to 60 months Lease Term
Up to 300 bln sums Lease Amount

LLast Updated 29.03.2024

Product description

On behalf of the lessee, the bank purchases the property (the subject of leasing) specified in the original contract from a third party (the seller) and hands it over to the lessee for possession and use for a fee under the Islamic financing specified in the contract, on Islamic terms for the period of more than twelve months.

Lease Terms

Leasing objects Equipment used for business activities, light and heavy vehicles.
Line of business funding of whicn prohibited by lease terms 1. Casino, betting, lotteries and gambling;
2. Production and sale of intoxicating beverages and substances;
3. Marketing of products containing porcine and others.
LeaseTerms From 13 months up to 60 months
Leaseholders Requirements Financially sustainable economic entities with the status of legal entity.
Lease Amount Up to 300 billion sums
Currency Type In national and foreign currencies
Leasing Allocation Money Transfer
Grace period No grace period
Profit from Islamic Lease (Bonus) Based on Islamic Lease Agreement
One-time Bank Commission Free of Charge
Islamic Leasing Payment Terms Monthly in simple or annuity form. Depending on the project other forms of payment can be offered
Payment Schedule When signing a lease agreement, the system creates a payment schedule for Islamic lease. This schedule remains unchanged throughout whole lease period
Initial Installment No less than 30%
Insurance of the Leasing Object (Takaful) Insurance of the leasing object is carried out according to the principles of Islamic financing (Takaful) by agreement of the parties. In this case, all insurance costs are borne by the lessor
Sequence of execution of contracts between bank, lessee and seller 1. Preliminary agreement between bank and lessee;
2. Contract between a bank and a seller for the purchase and sale of a leasing object;
3. Acceptance certificate of the leasing object;
4. Leasing agreement between the bank and the lessee
Fines collected by the bank will be sent to charity Fines (sent for donation) In case of late lease payments by customers, the bank will charge fines in accordance with the lease agreement.

FAQ

Is interest fee charged on late lease payments?

No interest on late payments

What payments are collected from the client?

The client is charged lease payments according to the schedule, as well as fines (sent for donation) for overdue payments

What are Islamic leases issued for?

For the purchase of light and heavy vehicles and equipment

How fines are calculated in Islamic leasing?

The fine is calculated on the amount of the overdue lease payment. The entire amount of the penalty is sent to the bank for donation.

Is Islamic lease subject to interest fees?

Interest on Islamic leasing is not accrued, but the bank calculates the benefit in interest

Is it possible to charge interest fees in Islamic leasing? Isn’t it usury?

The bank calculates its income as interest, adds it to the amount of leasing, which is returned by the lessee according to the agreed schedule. The originally agreed payment schedule remains unchanged throughout the lease period.

Does Islamic Leasing require Initial Installment or Down Payment?

By Islamic lease terms at least 30% of the amount should be covered by leasing facilities, this part can also be covered by additional collateral.

Is collateral required in Islamic leasing?

Participation of the client in the project must be at least 30%.
If the client has not provided the initial installment of 30% it can replaced by a deposit. Following can be provided as a collateral:
• Property;
• Letter of Guarantee;
• Third party guarantee.

How is Islamic Leasing Insurance Implemented?

Islamic leasing insurance is provided by the Takoful method.
Takoful is a type of insurance that is implemented on the basis of Islamic methods.
Insurance by Takoful method can be issued in APEX INSURANCE and «UZARO» companies.

What bank funds are used for Islamic leasing?

The bank finances Islamic leasing by its own funds obtained from halal income.

When is the leasing object transferred to the client?

After full repayment of leasing payments, the leasing object is transferred to the lessee on the basis of the acceptance certificate

Who is accountable for delivery and presentation of the leasing item to the customer?

Lessor

What contracts are signed with the client?

Initially a contract-agreement on delivery of the leasing object and its transfer is signed. After the transfer of the leasing object to the client, an Islamic lease agreement is finalised.

What documents are required to sign the agreement? The obligations of the bank and the client?

The contract of the original agreement means that the lessor promises to transfer the leasing object to the lessee specified in the agreement.

Who chooses the leasing object?

The leasing object is selected by the lessee as the lessor’s representative and organizes the signing of the contract.