Ijara Wa Iktina

Ijara Wa Iktina definition - finance
An Islamic finance strategy that governs financial and operating leases where the lessee makes rental payments and then purchases the assets on previously agreed to terms when the payments are completed. Islam has a set of strict rules that forbid making or receiving interest payments, and this is one way to get the benefits of leasing without charging interest.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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