ayan.co.uk

Not Genuine Islamic Finance – Important Risk Details to Understand

I contacted Ayan Capital because they advertise their car finance as “Islamic.” The staff were polite and responsive, but after discussing the details, it became clear that the agreement is not structured according to recognised Islamic finance principles, and I think it’s important that other Muslims understand this before signing anything.A major issue is the way risk is handled. In authentic Islamic contracts like murabaha or ijarah, the seller/financier must take ownership risk until the asset is transferred. With Ayan Capital, however: • All mechanical risk is placed on the buyer from day one, • If the car needs major repairs, they told me the monthly instalments will increase, • Meaning the buyer is effectively penalised for problems with a car they don’t fully own yet.This structure contradicts the basic fiqh requirement that the seller carries ownership risk during the finance period. When I raised this point, the explanation I received did not align with any recognised Sharia-compliant models, and the burden of risk remained entirely on me.To be fair, the team are polite, and they seem to believe in what they are offering. But this product should not be marketed as “Islamic finance” when it does not follow the principles of risk-sharing, transparency, or ownership responsibility required in Islamic contracts.Key concerns potential buyers should be aware of: • Monthly payments can increase if the car develops major faults • Buyer bears all repair liability, even before ownership transfers • No supporting reference to an established Islamic finance framework • The structure resembles conventional finance with a different labelI’m not saying the company is acting in bad faith, but Muslims looking for a genuinely halal solution should seek qualified scholarly advice and read the terms very carefully.I hope this review helps others make an informed decision.

Date of experience: Oct 27, 2025