Car Ijarah is Meezan Bank’s car financing product and is Pakistan’s first Interest-free car financing. It is based on the Islamic financing mode of Ijarah (leasing). This product is ideal for individuals who want to get interest-free financing for acquiring locally manufactured /assembled vehicles.
Car Ijarah works through a car rental agreement, under which the Bank purchases the car and rents it out to the customer for a period of 1 to 5 years, agreed at the time of the contract. Upon completion of the Ijarah period, the vehicle will be sold at a token amount or gifted to the customer.
Meezan Women First Car Ijarah Key Features
- Financing period 1 to 3 years for all local manufactured vehicles above 1000 CC (engine capacity)
- Financing period 1 to 5 years for all local manufactured vehicles up to 1000 CC (engine capacity)
- Security deposit / advance rental: Minimum 30% SD for all vehicles
- Maximum financing of Rs. 3 Million Net Financing Amount
- No processing charges, 100% waiver
- Documentation and security charges to be paid at actual by applicant
- Meezan Bank will bear W.H.T (With Holding Tax) on purchase of vehicle
- Discounted Rental Payments, which starts after Vehicle Delivery
- Monthly rentals to be paid through Direct Debit Instructions (DDI) from PKR Meezan Bank Account
- No Charges & restriction on early termination of vehicle, 100% waiver
- Lowest Upfront Payment with Priority Processing
Eligibility Criteria
- Salaried Individual
- Permanent employees: 3 months in current job with a minimum 2 years continuous employment history
- Contractual employees: 6 months in current job with a minimum 3 years continuous employment history
- Net take home income: In excess of 2 times the monthly rental (inclusive of takaful)
- Spouse’s verifiable income: Clubbed to an extent of 50%
- In case of other loans, all monthly payments including proposed Ijarah rental combined not to exceed 40% of net / take home income
- Both data check & e-CIB should be clear and must not have current default / overdue at the time of case approval
Women Entrepreneur
- Minimum experience: 2 years continuous involvement in current business / industry
- Position: Proprietor, partner or director (In case of partner or director, percentage of sharing / holding will be applied)
- Net take home income: In excess of 2 times the monthly rental (inclusive of takaful)
- Spouse’s verifiable income: Clubbed to an extent of 50%
- In case of other loans, all monthly payments including proposed Ijarah rental combined not to exceed 40% of net / take home income
- In Case of small-scale women entrepreneur with cash income, income estimation will be done to access income
- However, up to 50% net/ take home income will be allowed for locally manufactures or assembled vehicles of up to 1000 CC engine capacity
- Both data check & e-CIB should be clear and must not have current default / overdue at the time of case approval
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