Knowledge

Islamic car finance glossary

Plain-language definitions for the terms used in a halal vehicle finance structure.

Ijarah

A lease for the use of a real asset.

Ijarah Muntahia Bittamleek

An Ijarah that ends in ownership after the agreed conditions are fulfilled.

Wa'd

A unilateral promise, here for the later transfer of ownership.

Riba

Interest or an impermissible increase on a loan; an IMB prices use of a vehicle rather than money.

Code 178

A Swiss registration note that can restrict a change of registered keeper.