Maybank

The elements/tenets of Ijarah:

Lessor
The Bank (Lessor) i.e. the beneficial owner of the asset/property
who grants the lease.

Lessee
The customer (Lessee) who leases the asset/property from the Bank (Lessor).

Subject Matters of the Lease

• The leased (Ijarah) asset/property
• The lease payment (rental) i.e. the agreed rental over a specified leasing period and the usage of the benefit (usufruct)

Contract Documents
The offer and acceptance of the Ijarah contract agreement by lessor and lessee.

• For project financing under manufacturing and/or construction such as landed properties, vessel, aircraft and infrastructure projects.

Type of Facility

• Term Financing-i

Eligibility

• Existing and new eligible corporate and commercial customers, local and foreign.
• For local or foreign corporate and commercial customers

• Based on credit policies for Islamic Term Financing.

Lease Term / Tenure

• Based on customer's requirements and credibility

The following is type of pricing for Ijarah Term Financing-i:-

Fixed rate

• The rate will remain fixed throughout the financing tenure.

Floating rate

• BFR + margin/spread (at par with the conventional rate).

A combination of fixed rate and floating rate. 

Note:There is no Selling Price element for Istisna' Wa Ijarah Muntahia Bi al-Tamlik Term Financing-i thus Selling Price Rate is not applicable to this product.

• Bullet or lump-sum payment; Periodically i.e. monthly, quarterly, half-yearly and yearly. 
• Payment of Advance Rental during the construction period

• Daily Rest/Monthly Rest

Profit Charged

• Daily Rest (Month End)
• Monthly Rest (Month End)

• As per agreed terms between the Bank and the customer

Prepayment/ Prepayment Fee

• Prepayment is allowable during the lease/financing period
• Prepayment fee on early settlement of the financing is not allowed

Processing Fee

• Processing fee can only be imposed on approved financing for commercial and industrial properties such as factories, plants and housing

Costs and Expenses

• Customer is responsible for all costs and expenses related to the maintenance of the Ijarah Asset

Customer is responsible for cost of Takaful against fire/burglary on:-

• The asset/property leased from the Bank 
• The asset/property charged/assigned/pledged to the Bank

This facility will operate within the parameter set by Islamic Financial Service Act 2013, Exchange Control Malaysia (ECM), Anti-Money Laundering and Anti-Terrorism Financing Act (AMLATFA), Association of Islamic Banking Institutions Malaysia (AIBIM) Rules & Regulation, Maybank Group's policy and procedures including Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) and related guidelines issued by Bank Negara Malaysia (BNM).