BankIslami Pakistan Limited is offering a hassle-free auto financing facility for all locally manufactured new and used vehicles. With the aim of providing convenience to customers, the bank has introduced an interest-free monthly installment option, making car ownership easier and more accessible for everyone.
Financing Options for Locally Manufactured New/Used Vehicles
The auto financing facility allows customers to choose from a wide range of locally manufactured vehicles, both new and used. Whether you’re eyeing the latest models or a well-maintained pre-owned vehicle, BankIslami has got you covered.
To cater to various needs, BankIslami offers flexible tenure options. For vehicles with up to 1000 cc engine capacity, customers can opt for a financing tenure of 1 to 5 years. For vehicles above 1000 cc engine capacity, the tenure ranges from 1 to 3 years.
Customer Equity and Financing Amount
Customers can avail themselves of auto financing with a minimum of 30% and a maximum of 90% equity. The financing amount ranges from a minimum of Rs. 250,000 to a maximum of Rs. 3,000,000.
BankIslami believes in transparency and simplicity. The application fee of Rs. 1,500 (inclusive of FED) per car is the only upfront charge required. For financing up to Rs. 3 million, the documentation and processing fees amount to Rs. 6,300 per car.
Tracker Installation and Takaful Coverage
As part of ensuring security and safety, tracker installation is mandatory for all financed vehicles. BankIslami Pakistan Limited takes this responsibility seriously and installs the tracker in collaboration with customers.Takaful coverage, ranging from 1.85% to 2.8%, is offered for comprehensive protection of the financed vehicle. This coverage may vary for special l
Diminishing Musharakah (DM) Auto Financing
BankIslami’s auto financing is based on the concept of Diminishing Musharakah, which is a partnership transaction designed to gradually terminate the partnership between the bank and the customer. It allows both parties to jointly own the asset (vehicle) through Shirkat-ul-Milk (joint ownership).
How Diminishing Musharakah Auto Financing Works
Under Diminishing Musharakah financing, the process involves three main steps:
1. Creation of Musharakah: Bank and customer jointly participate in the ownership of the vehicle, and the bank’s ownership share is divided into Musharakah units.
2. Ijarah Transaction: Bank rents out its share of ownership to the customer against periodic rental payments.
3. Gradual Sale of Musharakah Units: The customer purchases BankIslami’s share in units over time until they become the sole owner of the vehicle at the end of the financing tenure.
BankIslami’s auto financing is available to all Pakistani citizens.
Simple Documentation Requirements for Salaried and Self-Employed Professionals
Salaried Individuals: Filled and signed application form- SBP undertaking form- 6 months’ bank statement with salary credits- Current salary slip- Signature specimen form- Clear and visible copy of CNIC- Processing cheque of Rs. 1,500
Businessmen/Self-Employed Professionals (SEP’s): Filled and signed application form- SBP undertaking form- 1-year bank statement- Proprietorship letter/partnership deed/shareholding proof- Signature specimen form- Clear and visible copy of CNIC- Processing cheque of Rs. 1,500- Copy of NTN and Income Tax Returns or any authentic business proof- NOC from partners or other shareholders, if applicable.
