Editing Islamic banking and finance (section)

===== Ijarah thumma al bai' and Ijarah wa-iqtina =====
''Ijarah thumma al bai''' (hire purchase)<ref>{{cite web|title=Ijarah thumma al bai'|url=https://ijaracdc.com/ijarah-thumma-al-bai/|website=IjaraCDC|access-date=4 October 2017}}</ref> and ''Ijarah wa-iqtina''<ref name="Definition of Ijarah wa-iqtina">{{cite web|url=https://www.islamicbanker.com/dictionary/i/ijarah-wa-iqtina|title=Definition of "Ijarah wa-iqtina "|website=Islamic Banker|access-date=21 July 2016|archive-date=11 July 2015|archive-url=https://web.archive.org/web/20150711201441/http://www.islamicbanker.com/dictionary/i/ijarah-wa-iqtina|url-status=dead}}</ref> ("lease and ownership")<ref name="if-literal">{{cite web|title=ijara|url=http://www.islamic-finance.com/item_ijara_f.htm|website=Islamic-finance.com|access-date=19 August 2017}}</ref> involve the leasing/renting/hiring of a good, paid in installments and ending with its purchase (or option to purchase) by/for the customer.<ref name="Definition of Ijarah wa-iqtina "/> Both involve two contracts – a lease and a transfer of ownership of the asset or the property – that should be recorded in separate documents.<ref name=":1">{{cite web|url=https://ijaracdc.com/what-is-ijara-wa-iqtina/|title=What is Ijara wa Iqtina?|website=Ijara CDC|access-date=21 July 2016}}</ref>

The two modes differ in that in ''Ijarah wa-iqtina'' (or ''ijara muntahia bittamleek'') sale/ownership transfer is "an option given to the lessee" and cannot be a precondition.<ref name=":1"/> In ''ijara thumma bay''' sale is part of the contract.<ref name="I&F">{{cite web|title=What is the Difference Between Ijara Muntahia Bittamleek and Ijara Thumma Bay'?|url=http://investment-and-finance.net/islamic-finance/questions/what-is-the-difference-between-ijara-muntahia-bittamleek-and-ijara-thumma-bay.html|website=Investment & Finance|access-date=4 October 2017}}</ref>