• The Shariah concepts applied are Ijarah, Wakalah, Bai’ & Wa’d
• ITB is a leasing contract (Ijarah) followed by sale contract (Bai’). Under the leasing contract the customer leases the asset from the Bank at an agreed rental payment over a specific period. Upon expiry of the leasing period, the customer enters into a sale contract to purchase the asset from the Bank at an agreed price.
• At the end of the lease period, the customer will purchase the asset from the Bank. In the occurrence of any event of default or the lease is dissolved before its maturity, the customer is required to purchase the asset from the Bank based on promises and undertakes (Wa’d) given by the customer to the Bank.
• Under the Wakalah, the Bank appoints the Customer as an agent to do all acts with respect to the purchase of the Goods from the dealer on behalf of Bank.
• The customer shall pay the security deposit (urbun) to the dealer, which shall be considered as the deposit to be paid by SME Bank.
• The usage of the asset by the customer is at the customer’s risk and the Bank shall have no responsibility or liability for any loss or damage to the asset resulting from the customer’s negligence.
• The Bank also appoints the customer as its service agent in all matters pertaining to the major maintenance on behalf of the Bank and also ordinary maintenance and repair. The Customer as service agent will bear all the costs, charges and expenses in carrying out the major and ordinary maintenance and repair.

PDS ITB