[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]BankIslami Pakistan Limited provides simple auto finance for all locally manufactured new and old vehicles. In order to provide consumers with ease, the bank has developed an interest-free monthly instalment option, making car ownership easier and more accessible to everyone.
Options for Financing Locally Manufactured New/Used Vehicles
Customers can choose from a wide range of locally manufactured vehicles, both new and secondhand, through the auto finance service. Whether you want the most recent models or a well-kept pre-owned automobile, BankIslami has you covered.
BankIslami provides customizable tenure choices to meet a variety of demands. Customers can choose a loan term of 1 to 5 years for automobiles with engine capacities of up to 1000 cc. The term spans from 1 to 3 years for automobiles with engines larger than 1000 cc.
Amount of Customer Equity and Financing
Customers can obtain auto finance with as little as 30% and as much as 90% equity. The finance amount ranges from Rs. 250,000 to Rs. 3,000,000.
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BankIslami believes on simplicity and openness. The only upfront price is a Rs. 1,500 (including of FED) application fee per automobile. The documentation and processing fees for financing up to Rs. 3 million are Rs. 6,300 per automobile.
Takaful Coverage and Tracker Installation
Tracker installation is required for all financed vehicles as part of assuring security and safety. BankIslami Pakistan Limited takes this obligation seriously and works with customers to install the tracker.Takaful coverage is available for the financed vehicle, with rates ranging from 1.85% to 2.8%. This coverage may differ for specific l.
Auto Financing with Reduced Musharakah (DM)
BankIslami’s vehicle finance is based on the concept of Diminishing Musharakah (DM), which is a partnership transaction meant to gradually terminate the partnership between the bank and the consumer. Shirkat-ul-Milk (shared ownership) lets both parties to jointly own the asset (vehicle).
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How Reduced Musharakah Auto Financing Works
The procedure of Diminishing Musharakah funding consists of three major steps:
- Musharakah creation: The bank and the customer share ownership of the vehicle, and the bank’s ownership share is divided into Musharakah units.
- Ijarah Transaction: The bank rents out a portion of its ownership to the consumer in exchange for periodic rental payments.
- Gradual Sale of Musharakah Units: The customer gradually purchases BankIslami’s share of units until they are the sole owner of the vehicle at the end of the financing term.
Auto loan from BankIslami is available to all Pakistanis.
Requirements for Simple Documentation for Salaried and Self-Employed Professionals
Individuals with a Salary: Application form filled out and signed- SBP undertaking form- 6 months’ bank statement with salary credits- Current pay stub- Signature sample form- A clear and accessible copy of the CNIC- A Rs. 1,500 processing cheque
Entrepreneurs/Self-Employed Professionals (SEPs): Application form filled up and signed- SBP undertaking form- 1-year bank statement- Proprietorship letter/partnership deed/shareholding proof- Signature specimen form- A clear and accessible copy of the CNIC- A Rs. 1,500 processing cheque- A copy of the NTN and Income Tax Returns, or any other valid business documentation. – NOC from partners or other shareholders, if appropriate.[/vc_column_text][/vc_column][/vc_row]
