CPA – Your Local Bank in Algeria

Are you looking to buy a house, plot of land or commercial premises in accordance with Sharia law?

Ijara Mountahia Bi Tamlik can help you acquire your property.

Your values inspire us.

With CPA Ijara Mountahia Bi Tamlik, you begin a journey that combines values and achievements.

What is Ijara Mountahia Bi Tamlik?

Ijara Mountahia Bi Tamlik is a real estate financing formula that complies with Islamic Sharia principles. CPA acquires the property (plot for residential use, premises, or new/existing individual or collective housing) to rent it to the customer at a fixed rent known and agreed upon in advance.

Who can benefit?

Private individuals of Algerian nationality, whether residents or non-residents, with a salary or regular income; including retired people.

What are the eligibility criteria?

Any natural person of Algerian nationality meeting the following conditions:

• Be under 75 years of age on the date of the last rent payment;
• Have a stable, regular income equal to at least one time the Guaranteed National Minimum Wage (SNMG);
• Have legal capacity to borrow;
• 100% guarantee from a spouse or direct relative.

What are the advantages of this financing?

• Compliant with the precepts of Islamic Sharia;
• The financing amount is unlimited;
• The monthly rent for the leased property is known to the customer and agreed in advance under a lease contract;
• Financing may be granted considering the income of a spouse or a family member, either ascending or descending, as a guarantee;
• The customer can purchase the property at a symbolic price after paying the final instalment.

For which amount?

• Up to 100% of the property's sale price;
• The financing amount is unlimited.

For which duration?

• Maximum financing duration is 40 years for collective or individual real estate, and 15 years for premises and land plot;
• This includes a deferment period of up to three months.

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What is Ijara Mountahia Bi Tamlik Aqar, and how does it work?

Real estate Ijara Mountahia Bi Tamlik is a contract whereby the bank makes a property available to the client for a set period in exchange for rent payments. This contract may include an agreement to sell (promise to sell)  or a purchase option.

The practice of Ijara as a financing technique is similar to leasing, but there are some important differences.

The property chosen by the client and subject to the contract can be (new or existing individual or collective real estate), commercial premises or land.

• The client chooses the property to be acquired through this financing method and submits a financing request to the bank.
• The bank then purchases the property and leases it to the client for a known and agreed rent.
• At the end of the leasing period, the bank transfers ownership of the property to the client through an independent sale contract from the initial Ijara contract, thereby making the client the owner of the property.

Who can benefit?

The Mourabaha and Ijara Real Estate (Aqar) financing formulas are intended for individuals of Algerian nationality residing abroad who meet the following conditions:

• Have legal capacity
• Be under 75 years of age
• The net monthly income used as a basis for the debt capacity calculation must be equivalent to fifty percent (50%) of the income received abroad, and converted into the local currency according to the current exchange rate.

For what amount?

• The financing amount can reach 100% of the price of the real estate property to be acquired or leased.
• It is primarily determined based on the client's income and, possibly, that of his guarantor

• The percentage deducted for the monthly instalment is proportional to the client's net monthly income bracket.

For what duration?

• Real estate property (new or old, collective or individual unit): The repayment period can be up to 40 years, with an age limit of 75 years. A deferment period may be granted at the client's request.
• Commercial premises and land: The repayment period can be up to 15 years, with an age limit of 75 years. A deferment period may be granted at the client's request.

What documents are required?

It is important to recall that any document required for this process, or any equivalent document issued outside of Algeria, must be authenticated by Algerian consular services abroad.

- A copy of a valid identity card;

- A recent work certificate (less than 03 months old) for salaried employees;

- The annual salary statement, or the last three (03) payslips, or the bank account statement for the last six months for salaried employees;

- The retirement pension certificate issued by the National Retirement Fund CNR for retirees;

- A copy of the tax card for self-employed entrepreneurs (merchants, artisans, professionals...);

- C20 form or the balance sheets and income statements for the last three financial years for self-employed individuals (merchants and professionals);

- A cleared tax assessment less than three (03) months old for self-employed individuals;

- A cleared CASNOS certificate, less than three (03) months old, for self-employed individuals;

- The descriptive sheet of the property, signed by both parties;

- An authorization to consult the Central Risk Division for Businesses and Households, signed by the client;

-The land register booklet or the property deed;

-The certificate of no mortgage on the property, dated less than three months old;

-The certificate of conformity for properties acquired from a real estate developer;

-A property valuation report issued by a technical consulting office approved by the Bank;

- The financing file must include additional supporting documents to be provided, namely:

- Proof of residence abroad;

A permanent employment contract, supported by the last three (03) payslips.