Ijarah

Creating Wealth the Halal way

Lotus Capital is a full-service, Halal investment management boutique specializing in Shari'ah compliant Asset Management, Private Wealth Management Advisory Services and Financial Advisory Services. Lotus Capital was founded in June 2004 with the specific objective of meeting the investment needs of ethical individuals, businesses, and organizations across West Africa.

"Pioneering Islamic finance in Nigeria"

The Lotus Ijarah is an Islamic lease such that the customer (lessee) pays for the usufruct of an asset owned by the Lessor at a predetermined price spread across an agreed repayment period. At the completion of payment, there is an option of sale of the asset to the customer on previously agreed terms.

Islam has a set of strict rules that forbid making or receiving interest payments, and this is one way to get the benefits of leasing without charging interest.

Features of Ijarah

Rentals have to be known prior to each period.
Owner of asset can make all transactions on leased asset
Owner of usufruct can make all transactions on usufruct
It can be contracted for existing assets
Proceeds of sale of usufruct can be used to finance construction of the leased asset

Benefits

Can be used to acquire assets such as cars, office equipments, manufacturing equipments, household appliances etc
Customer pays for usage of asset
Buy back is N100
Income is not charged on insurance
No interest is charged on due obligation

Sun Trust Floats N20bn Hybrid Offer » • Targets 90% Real Estate Investment Sun Trust Sa...

LC INDEX » 1,193.73 (13/2/2012)

HISAB » N132.78(bid) N133.93(offer)

HALAL FUND » N0.73(bid) N0.75(offer)

Lotus Capital Funds as at Friday, May 18, 2012

RC Number 600195