Ayan Capital's car finance is considered halal, as it is designed to be Shariah-compliant, avoiding interest (riba) and excessive uncertainty (gharar) in the UK. They utilize an Ijara wa Iqtina (lease-to-own) model, where Ayan purchases the vehicle, rents it to the customer, and transfers ownership at the end of the term.
Yes, under UK law Ijara wa Iqtina is recognised as a form of. The key difference is that ours is Shariah-compliant (Halal) - there's no interest (riba), no uncertainty (gharar), and the Sale and Transfer agreement is executed separately.
Ethical alternatives and nearby options
Totalee Halal - lease-to-own Ijara with fixed monthly payments. Halal Cars UK - fully certified Sharia-compliant car finance. Halal Motor Leasing - fixed-payment Islamic leasing for cars and vans.
Sharia law is perfectly compatible with car leasing because there is an underlying asset at the heart of the transaction. It also works because all of the information about who owns the vehicle, how much it will cost to lease and what it will be worth at the end of the lease term are all set out in advance.
The most popular sharia-compliant car financing involves what's known as Murabaha, a cost-plus financing model that's offered by many Islamic banks. In this case, the bank buys the car from the dealership on your behalf and then sells it to you with a markup (the cost plus an agreed upon profit margin).
Halal loans avoid riba (interest) and use Shariah-compliant financing such as Murabaha, Ijarah, Salam, Istisna, Mudarabah, and Musharakah to fund assets ethically and share risk.
Islam forbids both receiving and paying interest (riba). Many of us can end up accumulating interest through our bank accounts even if we don't want it, so what should we do with it? Since it is not permissible to use riba for one's own benefit, we should donate it to charity.
How It Works? Our Halal auto financing option follows an Islamic lease-to-own (Ijara) or Murabaha model, ensuring that you acquire your vehicle without engaging in conventional interest-based loans. This means: You choose your car – Select from our wide range of vehicles that suit your needs.
Ayan Capital has just secured its license from the UK's Financial Conduct Authority to offer Shariah-compliant consumer finance. This move could reshape the retail car market by introducing more inclusive and morally driven finance options suitable for Muslim car buyers.
Ayan follows Shariah principles with no riba and no gharar. We use Ijara wa Iqtina which is lease to own. We buy and own the car, you pay rent to use it, and when your term ends you may purchase the car through a separate sale step. All terms are clear, fixed, and asset based.
That shiny 0% offer might come with trade-offs: No price negotiation: Dealers are less likely to budge on the sticker price. No rebates or incentives: Many 0% deals disqualify you from manufacturer cash-back offers. Higher monthly payments: Shorter terms (like 36–48 months) mean steeper payments.
Ayan Capital Ltd - overview
Founded in 2023 and based in London, UK, Ayan Capital Ltd focuses on providing vehicle financing solutions tailored for private hire and business drivers in the UK. The company was co-founded by its CEO, Abdullo Kurbanov, and others.
Islamic HP finance
Instead of adding interest, the total cost reflects an upfront charge for providing the credit, similar to other halal financing options. Although halal HP isn't common, interest-free HP agreements are available, allowing you to enjoy the benefits of HP in a way that aligns with Islamic principles.
Beyond religious edicts, the question of “is mortgage haram mufti menk?” sheds light on broader socio-economic concerns. Renowned scholars like Mufti Menk emphasize the societal pitfalls of interest-based systems. Mortgages, as instruments of riba, perpetuate wealth disparity.
Avoid riba (interest)
Riba is prohibited because it is seen as unjust and provides no clear benefit. To ensure your transactions remain halal, always pay off your credit card balance in full and on time. Choose a credit card that does not impose interest or extra fees, like the Honest Card.
The 7 major sins in Islam, often called the "seven great destructive sins," are derived from a Hadith and include: associating partners with Allah (Shirk), practicing magic, unjustly killing a soul, consuming usury (riba), eating an orphan's wealth, fleeing from battle, and slandering chaste, believing women. Avoiding these sins requires sincere repentance and turning to Allah.
According to Sunan Ibn Majah, the Muhammad declared the practice of riba worse than "a man committing zina (fornication) with his own mother".
Buy on a Monday
Some people advise shopping for a new or used car on the busiest day of the week, usually on the weekend. The rationale is that salespeople will be so busy that they'll try to reach a quick deal so they can move on to the next customer and make their money on volume rather than one overpriced car.
This hadith shows that the Prophet also took loans in his lifetime and repaid the debt including more than the principal amount borrowed. It was narrated by Abu Huraira that the Messenger of Allah borrowed a young camel from a man and then the man came to get his camel back.
30% was deemed an acceptable standard, just below one-third in order to prevent “excessiveness” from being within reach. Despite the fact that this is an ijtihad (independent reasoning by a shariah law expert) , the majority of scholars have adopted this view since then.