Ijarah Rail

Islamic leasing contract endpoints for asset-based financing.

Overview

The Ijarah rail provides:

Islamic lease contract creation and management
Lease-to-own (Ijarah Muntahia Bittamleek) support
Rental schedule generation
Asset ownership transfer workflows

Ijarah is a lease contract where the institution acquires an asset and leases it to the customer for an agreed rental over a fixed term.

Endpoints

Create Ijarah Contract

POST /v1/rails/ijarah/contracts

const contract = await iof.ijarah.create({
  asset_description: "Office premises - Unit 5B, Business Park",
  asset_value: 500000,
  lease_type: "ijarah_muntahia_bittamleek",
  rental_amount: 4500,
  currency: "USD",
  lease_terms: {
    duration_months: 120,
    frequency: "monthly",
    ownership_transfer: "gift_at_end",
  },
  counterparty_id: "cpty_abc123",
});

Response:

{
  "id": "ija_xyz",
  "type": "ijarah",
  "subtype": "ijarah_muntahia_bittamleek",
  "status": "DRAFT",
  "asset_value": 500000,
  "rental_amount": 4500,
  "currency": "USD",
  "lease_schedule": {
    "duration_months": 120,
    "total_rental": 540000,
    "frequency": "monthly",
    "ownership_transfer": "gift_at_end"
  },
  "created_at": "2024-01-15T10:30:00Z"
}

Get Ijarah Contract

GET /v1/rails/ijarah/contracts/:id

List Ijarah Contracts

GET /v1/rails/ijarah/contracts

Execute Ijarah Contract

POST /v1/rails/ijarah/contracts/:id/execute

Transfer Ownership

POST /v1/rails/ijarah/contracts/:id/transfer-ownership

Contract Types

Type	Description
`operating_ijarah`	Standard lease, asset returned at end
`ijarah_muntahia_bittamleek`	Lease-to-own, ownership transfers

Ownership Transfer Methods

Method	Description
`gift_at_end`	Asset gifted to lessee at lease end
`sale_at_end`	Asset sold at nominal price at lease end
`gradual_sale`	Ownership transfers gradually over the term

Contract Status

Status	Description
`DRAFT`	Contract created, pending review
`PENDING_SHARIAH_REVIEW`	Awaiting Shariah board approval
`SHARIAH_APPROVED`	Approved by Shariah board
`ACTIVE`	Lease active, rental payments due
`COMPLETED`	Lease ended, ownership transferred
`TERMINATED`	Contract terminated early

Shariah Compliance

The lessor must own the asset before leasing
Rental must be agreed upon at contract inception
Maintenance responsibility lies with the lessor (owner)
Insurance costs are borne by the lessor
The ownership transfer promise is a separate undertaking

Webhooks

Event	Description
`ijarah.contract.created`	Contract created
`ijarah.contract.executed`	Lease started
`ijarah.rental.received`	Rental payment received
`ijarah.ownership.transfer`	Ownership transferred
`ijarah.contract.completed`	Lease completed

Standards

Next Steps

Murabaha Rail - Cost-plus financing
Musharakah Rail - Partnership finance
Contracts Rail - General contract management