what is the difference between Islamic and conventional leasing?
There are some differences between islamic and conventional leasing.
- In islamic leasing, the bank bears the risk of loss if it’s not because of the lessee’s fault. While in conventional leasing, the bank doesn’t responsible for any losses.
- Penalty on late payment is charged in conventional leasing, while it’s not charged in islamic leasing.
- No party can terminate the contract without mutual consent unless one party broke the agreement.