Ijara Home Finance
Lease-to-own home finance: the bank owns, you rent, then ownership passes to you.
Loans and finance
Buy what you need, the Sharia-compliant way.
With Lanternvale Murabaha, the bank buys the goods you choose and sells them to you at a fixed profit you know from day one, repaid in equal monthly instalments.
Applications are not possible: this is a fictional test website.
Key benefits
A known price from day one
The selling price, including our profit, is fixed in the contract and never increases.
Profit rate 5.95% p.a. flat
Disclosed upfront, so you can compare the full cost before you sign.
No compounding penalties
Any late payment amount is donated to charity and is never income for the bank.
Reviewed by a Sharia board
Contracts follow the guidance of the bank's (fictional) Sharia supervisory board.
Who it's for
For customers who want to finance a purchase in line with their faith.
- Families furnishing a new home
- Buyers of cars, appliances and electronics who avoid interest
- Newlyweds preparing their first home
- Salaried customers who want a clear, fixed total cost
Features
- Finance from JOD 2,000 to JOD 60,000
- Tenor up to 6 years
- Bank owns the goods before selling them to you
- Fixed selling price and fixed instalment
- Early settlement rebate (ibra') at the bank's discretion
- Available for cars, furniture, appliances, electronics and building materials
How Murabaha works
Murabaha is a sale, not a loan. You tell us what you want to buy. We buy it from the supplier and take ownership. We then sell it to you at the cost price plus a profit we agree on upfront. You pay the fixed selling price in monthly instalments. Because it is a sale of real goods, there is no interest.
Conventional or Islamic: a quick comparison
A conventional Lanternvale Personal Loan charges interest from 7.99% p.a. on a reducing balance, and you can spend the cash on any purpose. Murabaha finance is based on the sale of specific goods, at a profit rate 5.95% p.a. flat that is fixed in the selling price. Flat and reducing rates are calculated differently, so compare the total cost in your offer.
Rates and figures
| Customer type | Profit rate (flat) | Maximum tenor |
|---|---|---|
| Salary transferred to Lanternvale | 5.95% p.a. | 6 years |
| Salary not transferred | 6.45% p.a. | 4 years |
The profit is added to the cost price once, at the start, to form the fixed selling price. Fictional figures.
| Item | Amount |
|---|---|
| Bank's cost price | JOD 10,000 |
| Bank's profit (5.95% × 4 years) | JOD 2,380 |
| Fixed selling price | JOD 12,380 |
| Monthly instalment | About JOD 258 |
Illustration only.
Fees and charges
| Administration fee | JOD 100 |
|---|---|
| Late payment | JOD 10 per missed instalment, donated to charity |
| Early settlement | No fee; a rebate may be granted |
| Takaful cover (optional) | Priced by the takaful provider |
Eligibility
- Aged 21 to 60 at the end of the finance
- Minimum monthly salary JOD 400
- At least 6 months with your current employer
- Goods must be permissible (halal) and identifiable
Documents you need
- National ID or passport with residence permit
- Salary certificate
- Supplier quotation for the goods
- Bank statements for 3 months (if salary is not with Lanternvale)
How to apply
- Choose the goods and get a quotation from the supplier
- Apply and sign a promise to purchase
- The bank buys the goods from the supplier
- The bank sells the goods to you and you pay monthly
Frequently asked questions
Is Murabaha just a loan with another name?
No. The bank must own the goods before selling them to you, and the price cannot change after the contract is signed.
Why do you show a flat profit rate?
The profit is fixed once at the start and added to the price. Showing it as a flat yearly rate helps you compare offers.
What happens if I pay late?
A late payment amount applies to encourage timely payment, but it is given to charity and is never income for the bank.
Can I use Murabaha for cash?
No. Murabaha must be for specific permissible goods. It cannot give you cash.
Do I get a discount for settling early?
The bank may grant a rebate (ibra') on the unearned profit when you settle early.
Related products
Mudaraba Savings Account
Share in the bank's investment profits instead of earning interest.
Tayseer Islamic Card
A Sharia-compliant card with a fixed monthly fee and no interest.
Lanternvale Bank is fictional. Figures are examples for software testing only. Finance is subject to credit approval and, if it were real, to local banking regulation. References to a Sharia board are fictional.