This financing is based on the principle of Al-ljarah. By definition, Al-ljarah is a contract where the benefits/use of an asset is transferred by the owner (lessor) to the lessee at an agreed price/rental amount for an agreed period of time or Ijarah period. During the period the Ownership of the assets remains with PIM.

The rules of Ijarah, in the sense of leasing, are very much analogous to the rules of sale, because in both cases something is transferred to another person for a valuable consideration. The only difference between Ijarah and sale is that in the latter case the corpus of the property is transferred to the purchaser, while in the case of Ijarah, the corpus of the property remains in the ownership of the transferor, but only its usufruct i.e. the right to use it, is transferred to the lessee.

Basic Rules of Ijarah/ (Islamic Leasing)

PIM will provides customers with short to medium term financing by way of Ijarah/leasing and finally acquiring items such as:

Sale & Lease Back

In this case, the customer will first sell the asset to the PIM which constitutes the financing amount, with the understanding that the PIM will given on Ijarah it back to the customer. This is also known as Sale and Lease back transaction. However the PIM will not sell the assets back to Customer within twelve months.