Comparison between conventional leasing and Ijara?

[wasif99]

What’s the difference between conventional leasing and Ijara?
I kind of find both the same.
Kindly if somebody can help.

[abrarshaikh1]

Conventional leasing is Suud = interest = Usury

Ijara is Halal but most Islamic banks get interest on the money they deposit in state bank so their transactions are fishy.

You end up paying almost the same. Meezan bank has an Ijara calculator you may try that.
https://www.meezanbank.com/calculators/

[ashbal]

Both have the same interesst and same insurance rates...the catch is in islamic the car is owned by bank and the person who leased it pays rent for it monthly as decided by the bank...at the end of tenure the bank gifts the car to the person
Basically both are cows but one is australian and the other is our desi one

[wasif99]

After studying and research a lot about both of these, I've concluded that both of these banks type are doing the same thing and just by minor changes in the plan. They are calling one Ijarah and the other the basic financing plan. So no difference in the depth of plans. Whatever you do, However you are planning. In the end you'll be paying the approx same amount.

[azyy]

Ijarah system is like bank gives you the car for driving and gets the rent and takes a small amount of the car in units. when these units are completed you get the ownership. this system is near to islamic one. and many Qualified and authentic Mufti has accepted this system

in my personal view one should supports islamic systems even if he feels that these are not pure islamic. But supporting this system will lead to purity by time.

[pwuser151067492819]

In Islamic banking ijara, bank has car ownership which means they have the risk. Second if u dont pay the monthly amount there is a penalty but the price of vehicle dont change. In interest based system bank has no risk and incase of non payment interest amount increases so total price increases.

If you wish to learn more the best resource are by Mufti Taqi Usmani sb.

Its always best to stay away from bank loan though. Personal opinion. Pray to Allah for a better arrangement.

[capsat]

at the back end it is all identical ... as in conventional lease terms.

penalty is called service charges for delayed payment. which is in excess of actual installment.

Photograph is spelled with ph .. in some parts of the world while some spell it as Fotograph means the same.

[wasif99]

At last somebody said it. Thank You

[Sarkaar]

Guys, there are always minor things which creates a difference... 10 min Nikkah make women halal for you so why not this change ? I understand that bank never loses in both islamic and non islamic car financing. Major difference is in case of default or delayed payment, amount deducted as fine is used for charity in islamic banking while conventional bank consider it as income.