Our housing finance products are based on a lease arrangement that ends in ownership also known in the Islamic Finance industry as Ijarah Muntahiyya Bittamlik. This arrangement has been recognized by a large number of contemporary Scholars and is widely implemented and utilized by Islamic banks and financial institutions around the world.
How does Amlak work from a Shariah viewpoint:
- A potential client approach us for assistance and complete an application form applies for Amlak finance;
- MCCA conducts a preliminary assessment on the client’s financial serviceability;
- Subject to a satisfactory preliminary assessment, MCCA issues a conditional letter of funding approval on behalf of the Funder to the client;
- The client is considered to have been appointed by MCCA as Wakeel to identify a property the client wishes to lease (to own);
- You The client then identifies the property as Wakeel of the Funder to buy and promises to lease the property (to own) from the Funder;
- The client will be considered to have entered into lease arrangement with the Funder which details the client’s rights to occupy the property;
- 0nce the property is purchased, the client will make ongoing periodic payments to the Funder considered to be lease rental, (typically via a Direct Debit setup automatically from The client’s nominated bank account);
- The client may purchase the property outright from the Funder at any time during the agreement period by paying the Funder’s outstanding finance amount on the property which is considered to represent the Funder’s ownership in the property;
- The Funder will transfer the property title over to the client in the form of a promissory gift (hiba);
- If the client chooses to maintain lease arrangement though-out the whole agreed period, on receipt of the last payment the Funder will transfer the property title over to the client in the form of a promissory gift (hiba).