Meezan Bank has introduced a groundbreaking initiative called “Meezan Women First” in Pakistan, aimed at providing women with interest-free monthly installments for car financing. This exclusive car financing product is based on the Islamic financing mode of Ijarah (leasing), empowering women with greater financial independence and convenience in acquiring locally manufactured/assembled vehicles.
The bank’s Car Ijarah program is the country’s first interest-free car financing solution. Under this arrangement, Meezan Bank purchases the vehicle and rents it out to the customer through a car rental agreement. The rental period can range from 1 to 5 years, depending on the mutually agreed contract duration. At the end of the Ijarah period, the customer has the option to purchase the vehicle at a token amount or even receive it as a gift.
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To cater to various customer needs, Meezan Bank offers flexible financing options for local manufactured vehicles above 1000 CC with a financing period of 1 to 3 years, and for local manufactured vehicles up to 1000 CC with a financing period of 1 to 5 years. A key benefit of “Meezan Women First” is the waiver of processing charges, making it a cost-effective financing option. Additionally, the upfront payment required is significantly low, ensuring easy access to vehicle ownership.
Customers also enjoy discounted rental payments that start after vehicle delivery. These monthly rentals can be conveniently paid through Direct Debit Instructions (DDI) from a Meezan Bank account. Another attractive feature is the 100% waiver on charges and restrictions in case of early termination of the vehicle agreement, providing customers with added flexibility.
Eligibility criteria for salaried individuals and women entrepreneurs are outlined. For salaried individuals, the minimum employment period required is 3 months in the current job with a minimum continuous employment history of 2 years for permanent employees, and 6 months in the current job with a minimum continuous employment history of 3 years for contractual employees. The net take-home income should be at least 2 times the monthly rental (inclusive of takaful), and up to 50% of the spouse’s verifiable income can be clubbed for eligibility purposes. The total monthly payments, including the proposed Ijarah rental and other loans, should not exceed 40% of net/take-home income.
For women entrepreneurs, a minimum of 2 years of continuous involvement in the current business/industry is required. They should be in the position of a proprietor, partner, or director, with the percentage of sharing/holding considered in the case of a partner or director. The eligibility criteria for net take-home income, spouse’s income, and total monthly payments are the same as for salaried individuals.To ensure a smooth approval process, Meezan Bank requires a clear data check and e-CIB (Electronic Credit Information Bureau) with no current defaults or overdue records.
The “Meezan Women First” initiative by Meezan Bank presents an excellent opportunity for women in Pakistan to become car owners through interest-free financing and a hassle-free application procedure. The bank’s commitment to empowering women with financial inclusivity is expected to make a significant impact on the nation’s automotive landscape.