The financial institution is considered to be the buyer of the property, and the customer pays rent to the financial institution in the:

Question

Quizplus · Accepted Answer

In the ijara method, the financial institution purchases the property and leases it to the customer, who pays rent to the institution. This is a form of Islamic leasing that does not involve interest or riba. Murabaha involves the financial institution purchasing a property on behalf of the customer and reselling it to them at a higher price, which may involve interest. Takaful is a form of Islamic insurance, not a method of financing. Riba is interest, which is prohibited in Islamic finance.

The Financial Institution Is Considered to Be the Buyer of the Property