Ijarah bi-tamlik (Lease- then- purchase)
This product is a mode of investment whereby a particular machine or asset (Landed property) is purchased by the society and leased out to the member. This type of mode of financing can be in two forms; one allows the member to purchase the machine or asset (land) after the stipulated time for the lease contract i.e lease- then- purchase. The second one does not allow the member to purchase the machine or asset after the lapse of the contract. However, for the co-operative based on its objective, the first form of lease is encouraged which will allow the member to purchase the machine or asset through periodic payment of rent and have ownership right on it.