Let's imagine this as follows:
A is in need of $10,000 cash urgently and finds no lender. He owns a house, which he had rented out to someone for $500 a month. A, driven by the need of cash wants to lease it out. Now, if he leases it out to B for $10,000 for a period of 1 year, he has to part with the monthly rent he used to get. After the lease period, A returns $10,000 and frees his house. Meanwhile, B saved $6,000 ($500X12).
If we look from banking perspective, B is a banker and has a fixed deposit of $10,000 with A, he gets a monthly interest of $500 in the form of rent saving. On the other hand A can be treated as a borrower who has borrowed $10,000 from a lender B for a monthly interest of $500 which he pays as a deprival of rent.
This is how leasing goes on. Most importantly there is interest involved here.
While some others, including scholars argue that leasing is a process in which A borrows money from B and gives his property in return as surety, which upon return of the lease money, should be returned back. They also argue that since the lessor(A) can use the money independently (and shares no profit gained) and the lessee(B) has no command over it, it is rightful for a lessee to use the leased property and share no profit (the rental savings) gained out of it.
Well, that argument may sound okay, but two questions stand erect.
- If Interest is not involved, then why did the rental money of $6,000 which A was deprived of through a period of one year, move to B?
- What do Qur'an and Ahadith have to say about leasing?