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Ijara (الاجارة):
A contract under which a bank purchases and leases out equipment required by its client for a rental fee. The duration of the lease and rental fees are agreed in advance. Ownership of the equipment remains in the hands of the bank. Ijara w Iqtina (اجارة و اقتناء): The same as ijara except the business owner is committed to buying the equipment at the end of the lease period. Fees previously paid constitute part of the purchase price. This type of lease to purchase agreement is commonly used for home financing.

Ijtehad (اجتهاد):
Literally: effort, exertion, industry, diligence. Technically, Endeavour of a jurist to derive or formulate a rule of law on the basis of evidence found in the sources.

Iman ( ايمان):

Istisna (اصطصناع):
A contract of acquisition of goods by specification or order where the price is paid progressively in accordance with the progress of a job. An example would be for the purchase of a house to be constructed, payments are made to the developer or builder according to the stage of work completed. This type of financing along with bai salam are used as purchasing mechanisms, and murabaha and bai muajjal are for financing sales.


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