Istisna`a

Istisna`a is the Islamic long-term construction finance option whereby a party undertakes to manufacture, build or construct assets, with an obligation from the manufacturer or producer to deliver them to the customer on completion. The key advantage of an istisna’ contract is that it can provide flexibility to the customer, where payments can be made in instalments linked to project completion, at delivery or after project completion.

FinnOne Neo provides an extensive solution for Istisna’a financing (origination and servicing) which even encompasses the conversion of the product from Istisna’a to Ijarah / Murabaha on the basis of the terms defined in the contract.