This is a lease contract wherein the CLC IBD (lessor) leases the property to the customer (lessee) in return for a rental payment as agreed by both parties for a specified financing period. IBD promises to transfer the title of the property to the customer at the end of the financing period, if all payments have been made. Ijarah is an effective financing tool allowing clients to acquire their intended assets through leasing, instead of outright purchase, thus reducing the heavy burden of capital expenditure. Ijarah is available for:
Murabaha is a financing arrangement whereby CLC IBD agrees to purchase an asset at the request of the customer. CLC IBD takes legal possession of the asset, that is then sold to the customer at an agreed sale price consisting of the amount of financing plus the profit margin which is a cost plus profit transaction. Murabaha is a convenient mode of finance, which can be used to purchase trading commodity and almost for any type of asset-backed financing. Murabaha will be available for:
This product focuses on the customers who are looking to avail financing by creating joint ownership of CLC IBD & the customer in a particular asset. After creation of co-ownership, CLC IBD will then rent out its portion of the asset to the customer for periodic rental payments and in the meanwhile customer would also periodically purchase CLCâ€™s partial ownership in the asset such that the Customer would become the sole owner of the asset at the maturity of the transaction.
IBD of CLC will join hands with you in providing the financial support you require to initiate your business venture right from its inception. The Diminishing Musharakah is a versatile financial instrument which can be and is being applied in a wide variety of business forms all over the world. This is ideally suited for:
To satisfy working capital requirements of the customer, CLC Islamic Finance provides Wakala Financing facility to the customers. Within the precepts of the Wakala concept, a contract is constitute where the Principle would be IBD of CLC (Fund Provider/Investor) who would then appoint the Client as the Agent (Entrepreneur) for the Investment. The agent is provided with short term finance as specified in the Wakala agreement to which repayment methods with Investment and profit returns are flexible. Under such investment contract, the entrepreneur is authorized to manage the investorâ€™s funds by investing in Shariâ€™ah Compliant business activities and remunerate profits under agreed terms to the Investor for a fixed management fee (Wakala Fee). Profit of the Wakala will be paid according to mutually pre-agreed profit rate. If the agent managed to conclude a surplus (higher than agreed profit rate), he may retain it as an incentive as agreed with him in the Wakala agreement.
This is ideally suited for: