HALAL CAR LEASING CAR WITH NO RIBA CAR LEASING WITHOUT RIBA RIBA-FREE PCP PCH LEASING WITHOUT INTEREST
A car leasing without Riba is by definition an Islamic long-term car rental solution provided by a lessor in favor of a Muslim lessee who will not pay interest by leasing a vehicle and applying the rules of Islamic finance that excludes usury (Riba).
A car leasing with no Riba follows the principles of Islamic Sharia law by which interest is banned (Haram) and cannot be invoiced by a lessor credit during this financial transaction including leasing.
A Riba-free vehicle leasing is composed of two Islamic vehicle leasing options, that are halal PCP (Personal Contract Purchase equal to buying the car after the leasing contract) and PCH (Personal Contract Hire that means lease a car and change to another new car after a period of 3 to 4 years).
Leasing without Riba is according to Islamic finance a principle that prohibits charging interest (Riba) to a consumer, because even a rental property cannot bring in money without there being tangible added value which will then be considered as the profit of the lessor credit.