A Study On Al Ameen Car Ijarah Commerce Essay

October 8, 2017 Commerce

Al-Ameen Car Ijarah is a Shari’ah compliant auto leasing for the clients, Muslims and non-Muslims. Al-Ameen Car Ijarah is an involvement free auto funding merchandise, which is based on the rules of Ijarah. This auto funding merchandise is really much helpful for the people who wants to sell their autos ‘ stock without bear downing involvement and do their net income Halal on Islamic footing. It is besides good for those clients who are interested in car funding and who avoid the inerest-based traffics.

Al-Ameen Car Ijarah is the understanding of rental between the client and the distributer, in which the contract is signed between both the parties and the distributer rents his auto for the period of 2-5years to the client. The client will be proprietor of the auto by the terminal of the clip period decided in the contract, as client paid money to the distributer in footings of progress and the payments in episodes. Ijarah is the sale of definite usufruct of an plus in exchange for a definite wages ( rental payment ) . In Ijarah, the proprietor of a auto ( distributer ) will non stay proprietor of that peculiar auto at the terminal of the understanding. In the eyes of Shari’ah jurisprudence, the user have all the user related rights and liabilities while the proprietor has all the ownership rights and the liabilities of an plus. Conflicting to Shari’ah, the normal rental put all types of liabilities in the tribunal of tenant and does non distinguish the nature of liabilities. But, Ijarah conract says that all the hazard related to ownership is fot the distributer and the hazard related of utilizing an plus is with the user. The income for the distributor from the contact is halal by doing renting party the proprietor of an plus at the terminal of contract.

Key Features of Al-Ameen Car Ijarah for New Cars:

O Advance rent is non required

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O Easy manner to acquire a new auto signifier a distributer

O No payment for insurance required in progress.

O Security sedimentation is 50 % upper limit

O Agreements for used and new autos

O Agreements for 3-5years clip periods.

O 10 % – 15 % required as minimal security.

O Rent in monthly episodes after bringing.

Key Features of Al-Ameen Car Ijarah for Used Cars:

O The selected used auto must be from its first proprietor.

O The vehicle must non be old more than 5years.

O The autos older than 2years have to lodge minimal security of 20 % of its age.

O And 10 % sedimentation of the age is due on those autos that are older than 3years.

O The auto must be under 7years old at the clip of finishing the contact of Ijarah. For illustration, if the auto is 4years old, so the contract of Ijarah must be within four old ages clip.

Al-Ameen Car Ijarah VS Conventional Leasing Features:

Features

Conventional Renting

Al-Ameen Car Ijarah

Leases

The bank has merely the authorization to fluctuate the rent and dealing rates.

The bank is non being able to take a solo determination to fluctuate the rental sum, decided at the clip of understanding.

Risk & A ; Ownership

The hazard of proprietor is parked to tenant while the ownership remains to proprietor.

Here the hazard related with the ownership, remains with the proprietor.

For illustration ; if a individual gets a Equus caballus on rent and the Equus caballus dies, it will be the loss of the proprietor.

Expenses

In conventional leasing system, all the hazard realted to the ownership, will be beared by the renter.

For case ; overhead, insurance, inadvertent fixs etc.

In AL-Ameen Car Ijarah, the hazard related to ownership must be beared by the proprietor and all the hazard related by the usage of an plus, must be beared by the user or renter.

Late Payment Charges

If rent is non paid on clip so the excess pecuniary sum is charged this is taken from income of the organisation.

This excess sum is Haram which is called Riba.

In Al-Ameen auto Ijara.Tenant may be assure that if he fails to pay rent on his due day of the month. So he will pay the certain sum to a charity fund.

This sum is non goes into bank income. So this is non a Riba. Charity is merely charged to train the client.

Asset Theft/ Damage

In Conventional leasing are non stopped in any instance of larceny or amendss to the plus.

In the instance of plus ( auto ) larceny or harm that becomes infeasible rental are stopped because they merely obtain for usage of the plus.

Leases / Monthly Payments

In Conventional leasing, the rental starts from the booking day of the month of an plus, disregarding that whether that plus is delivered to the renter or non?

When the plus delivered to the renter, the rental start after a month.

Upfront Payments

Initially it is consist of:

minimal 10-15 % initial sedimentations.

1st month rent.

insurance premium of 1st twelvemonth.

1st installment of 2nd twelvemonth payment.

enrollment charges.

In Al-Ameen Car Ijarah, there is n’t any upfront charges except the security sedimentation from 15 % -50 % of the existent payment by the client and the cost to treat the paperss.

At the terminal

Here, harmonizing to the contract, the vehicle will be transferred to the client automatically by the terminal of the contract.

Bye the complete subject of Ijarah, the client has an option to owe the auto through the sale title from the distributer or have an option to return the auto to the bank and able to take back his security deposited against the auto.

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