Ijarah Financing | Motorcycle - Bike on Installments | ebike.pk

Motorcycle Ijarah Financing

Motorcycle Ijarah financing is a type of contract in Islamic finance. As Ijarah contracts are used either as a lessor or a lessee by the Islamic Financial Institutions. However, Ijarah in simple terms means to give something where another party has to pay the rent for the use of an asset or the property. In short, Ijarah is basically the Islamic alternative of leasing.

As Muslims, we all somehow prefer to avoid dealing with financial contracts that are Haram and want to find ways which can provide us benefit using a right path which is permissible. In this case, if one wants to go for leasing and yet want it to be Halal, Ijarah financing is the best option to go for.

Conditions of Motorcycle Ijarah Financing

  • First of all Motorcycle Ijarah Financing contract is to be valid and it is necessary that the asset is leased by the institution (lessor) before the asset is acquired by the customer (lessee). However, it is important to note that the Ijarah contract is a binding contract which might neither be terminated nor altered by the party without the other’s consent.

  • The time duration of the contract between both the parties must be stated in the contract and should begin on the day the contract is executing unless both the parties mutually agree on a future date.
  • The rent will not be due in case the lessor is not able to deliver the asset to the lessee on the decided date according to the contract. However, when the Ijarah agreement ends, the lessee might avail one of the three options; he might either return the leased asset to the lessor or he might renew the Ijarah contract for another term. The third option is that he might simply purchase the asset for a price that is based on installments he paid.
  • Normally, the major repairs will be the responsibility of the lessor unless the damage is due to the lessee’s misuse or misconduct.


  • The financial statements of the Islamic Bank should document the asset that is need for Ijarah. As its historical costs including its net purchase price plus other expenditures required to bring the asset into its anticipated use.
  • It is also mandatory for the Islamic Bank to disclose their accounting policies, which are necessary for operating Ijarah in the notes associated with the bank’s financial statements.
motorcycle ijarah financing
Motorcycle Ijarah Financing

Bike Ijarah Financing

Like other assets, Motorcycle Ijarah Financing and Cars are also popular in Pakistan. As this will help vehicle users who need a vehicle but cannot afford to purchase it. There are many people in our country who belong to the lower class or the middle class, who want to own a bike to solve their transportation problems but because of their financial conditions they are not able to purchase a bike of their own as they don’t have a huge wholesome amount to pay for a bike. For such people, it was very necessary to get a solution to their problem. So the solution to their problem is to get the bike on installment. So that the people could get their bikes by paying a smaller monthly amount in order to take benefit of the assets.


Again the problem was that people wanted the interest free financing as being an Islamic State. Hence, Pakistan has started first Riba-free motorcycle financing facility for the ease of its citizens. Individuals who prefer interest-free financing when acquiring a motorcycle should definitely go for Motorcycle Ijarah Financing as it the best and most feasible mode for them.It is found out from the resources that last year Meezan Bank and Suzuki Motors joined hands to entertain the users for getting bikes on easy installments. So now all those people who always wanted to buy Suzuki Motor Bikes might easily get on installments.

How Does it Work Motorcycle Ijarah Financing

According to the vehicle rental agreement, a vehicle purchased by a bank and then it rents out the vehicle to a customer for 1 to 3 years. Furthermore, the Motorcycle Ijarah Financing monthly installments are written on the agreement. After completion of Ijarah period, there are two things that might take place; either vehicle can be sold out at a residual value or else gifted to the customer.

motorcycle ijarah financing
Motorcycle Ijarah Financing

Features of Motorcycle Ijarah Financing

There are some attractive features which Meezan Bank offered when it collaborated with the Suzuki Motors,

  • Free registration for the first 600 customers.
  • Two periodic maintenance
  • The monthly rent is low, which can be affordable for bike users.
  • The customers can pay the rent after delivery, no hassle of paying in advance
  • The payment plans are very flexible
  • The processing and delivery is the fastest
  • The security deposit is as low as 10%
  • Competitive Service
  • Takaful available – Islamic Insurance
  • Available Models of Suzuki on Motorcycle Ijarah Financing

  • Suzuki GS 150
  • GD 110 S
  • Suzuki GD 110
  • Suzuki Raider 110
  • Sprinter Eco
  • Inazuma GW 250

General Requirements for Motorcycle Ijarah Financing

  • Copy Applicant’s CNIC
  • 1 Passport-sized colored photographs of the applicant
  • Driving License
  • Declaration of Financing
  • Signature Verification Form
motorcycle ijarah financing
Ijarah Financing

Specific Requirement

  • For Salaried Individuals
  • Original / Certified copy of Bank Statement (last 06 months)
  • Original / Certified copy of Pay Slip
  • Employer’s certificate including Tenor /Designation /Salary

The facility of Motorcycle Ijarah Financing is available in Karachi, Hyderabad, Multan, Lahore, Faisalabad, Rawalpindi, and Islamabad.

How is Bike Ijarah Shariah Adaptable?

The whole discussion will conclude on this note. Motorcycle Ijarah Financing is supervised by Shariah experts, engaged with different Islamic Financial Institutions.

In Motorcycle Ijarah Financing, all risks related to ownership tied with the Bank, whereas usage related risks go with the user.This makes the lesser the real owner of the asset and thus the income generated through the contract becomes permissible i.e. Halal for the Bank.