What is the ruling on lease-to-own financing, in which the bank owns the asset and leases it to the lessee, with a promise from the bank to transfer ownership of the asset to the lessee at the end of the contract through a gift or sale at a symbolic price?

Some forms of lease-to-own are permissible, and some are forbidden. If the bank adheres to the following Sharia-compliant guidelines, then there is no objection to the transaction:

There must be two separate contracts (a lease followed by a sale) or a promise to transfer ownership.

The lease must be actual.

The leased asset must be guaranteed by the owner.

The insurance must be cooperative Islamic insurance, borne by the owner.

The rules of leasing apply during the lease period, and then the rules of sale apply upon ownership transfer.