Bank Islami Pakistan Limited has introduced a groundbreaking auto financing facility, providing customers with the opportunity to purchase pre-owned Toyota Corolla cars on interest-free monthly installments. With the aim of making car ownership easier and more accessible, the bank’s interest-free installment option is set to revolutionize the automobile financing landscape.
The auto financing facility covers a diverse range of locally manufactured new and used vehicles, offering customers a wide selection to choose from. Whether one desires the latest models or a well-maintained pre-owned vehicle, Bank Islami ensures all needs are met.
To cater to different requirements, the bank provides flexible tenure options. For vehicles with up to 1000 cc engine capacity, customers can opt for financing tenures ranging from 1 to 5 years. For vehicles above 1000 cc engine capacity, the tenure extends from 1 to 3 years.
With a focus on customer convenience, Bank Islami offers auto financing with a minimum equity requirement of 30% and a maximum of 90%. The financing amount ranges from a minimum of Rs. 250,000 to a maximum of Rs. 3,000,000.
Ensuring transparency and simplicity, the bank has limited upfront charges. An application fee of Rs. 1,500 (inclusive of FED) per car is the only upfront charge required. Additionally, for financing up to Rs. 3 million, documentation and processing fees amount to Rs. 6,300 per car.
To ensure security and safety, tracker installation is made mandatory for all financed vehicles. Bank Islami collaborates with customers to install the tracker, while also offering Takaful coverage ranging from 1.85% to 2.8% for comprehensive protection of the financed vehicle.
The unique auto financing model is based on the concept of Diminishing Musharakah, a partnership transaction designed to gradually terminate the partnership between the bank and the customer. Through Shirkat-ul-Milk (joint ownership), both parties jointly own the asset (vehicle).
The financing process involves three main steps: creation of Musharakah, Ijarah transaction, and gradual sale of Musharakah units. This process ensures a transparent and fair method of ownership transfer, making the customer the sole owner of the vehicle at the end of the financing tenure.
Bank Islami’s auto financing is available to all Pakistani citizens. The documentation requirements for salaried and self-employed professionals are kept simple and hassle-free, further streamlining the process.
This remarkable initiative by Bank Islami opens up new possibilities for potential car owners, making their dream of owning a Toyota Corolla more achievable. With this interest-free installment facility, the bank reaffirms its commitment to providing convenient and customer-friendly financing solutions to the people of Pakistan.