Faysal Islami Solar Financing: Shariah-Compliant Solution for Your Home
In Pakistan, the rising cost of electricity has led many homeowners to look for alternative energy solutions to reduce their monthly electricity bills. One of the most effective solutions is solar energy, which can not only lower electricity costs but also help contribute to a cleaner environment. However, the upfront cost of installing a solar system can be high, and not everyone can afford to pay for it out of pocket. That’s where Faysal Islami Solar Financing comes in, offering a Shariah-compliant, affordable way to finance your solar power system.
Faysal Bank offers this financing solution under the Diminishing Musharakah structure, ensuring it adheres to Islamic finance principles. Moreover, the financing is provided at subsidized rates under the State Bank of Pakistan’s (SBP) Islamic Refinance Scheme. This means you can now get your solar system installed at a lower cost while enjoying the benefits of net metering, which allows you to earn credits for any extra electricity your solar system generates and sends back to the national grid.
Here, we will walk you through the details of Faysal Islami Solar Financing, how it works, and how you can apply for this facility.
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What is Diminishing Musharakah?
Diminishing Musharakah is an Islamic mode of financing where two parties, in this case, Faysal Bank and the customer, jointly own an asset—in this case, the solar power system. Over time, the customer gradually buys out the bank’s share through regular monthly payments until they own 100% of the solar system.
The Diminishing Musharakah structure is completely Shariah-compliant, ensuring no riba (interest) is involved, which makes it an ideal financing solution for those who want to avoid conventional interest-bearing loans.
Key Features of Faysal Islami Solar Financing
Faysal Bank’s solar financing solution offers several attractive features designed to make the transition to solar energy affordable and accessible for homeowners. Here’s an overview of the key features:
- Islamic Mode of Financing: Based on Diminishing Musharakah, where joint ownership is transferred to the customer over time.
- Financing Amount: You can get financing starting from PKR 100,000 up to a maximum of PKR 3,000,000, depending on the size and cost of your solar system.
- Flexible Tenure: The loan tenure ranges from 1 to 7 years, giving you flexibility in choosing how long you need to repay the loan.
- Profit Rate: A fixed profit rate of 6% per annum, which is much lower than many other financing options.
- Repayment Plan: You will make fixed and equal monthly installment payments, and the repayment will start only after the solar system is installed and operational.
- Solar Capacity: The financing covers solar systems with capacities ranging from 4KW to 20KW, depending on your energy needs.
- Processing Fee: A non-refundable processing fee of PKR 6,000 + FED (Federal Excise Duty) applies.
- Equity Contribution: You must contribute at least 15% of the total asset amount, while the bank finances the remaining 85%.
- Takaful Coverage: Your solar system will be covered by Takaful, which is Islamic insurance, from reputable Takaful companies on Faysal Bank’s panel.
- Co-Partner Facility: Faysal Bank also offers a co-partner facility, allowing another individual to apply jointly for the loan if needed.
With this financing, you can install a high-quality solar system from reputable brands that are registered with the Alternative Energy Development Board (AEDB), ensuring the quality and reliability of your solar setup.
Net Metering and How It Benefits You
One of the most significant advantages of switching to solar energy is the ability to use the net metering system. Net metering allows you to generate your own electricity through solar power and send any surplus electricity back to the national grid. In return, you earn credits that are applied to your electricity bill, helping reduce your overall energy costs even further.
For example, if your solar system generates more electricity than your household consumes during the day, the excess power is sent to the grid. At the end of the month, these credits are deducted from your electricity bill, meaning you pay less—or even nothing—depending on how much electricity your system generates.
This not only helps lower your energy costs but also contributes to Pakistan’s overall energy supply.
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Eligibility Criteria for Faysal Islami Solar Financing
To avail of Faysal Islami Solar Financing, you must meet the following eligibility requirements:
Age Requirement:
- Minimum Age: 21 years
- Maximum Age: 60 years at the time of loan maturity
Income Requirements:
- Salaried Individuals: Minimum monthly income of PKR 100,000.
- Self-Employed Individuals: Minimum monthly income of PKR 150,000.
These income thresholds ensure that customers can afford the monthly payments and are suitable candidates for the financing plan.
How to Apply for Faysal Islami Solar Financing
Applying for Faysal Islami Solar Financing is a simple process. Here’s how you can get started:
- Visit a Faysal Bank Branch:
To apply, visit your nearest Faysal Bank branch and speak to a representative about their solar financing solution. The representative will guide you through the application process and help you choose the right solar system based on your needs. - Contact the Call Center:
Alternatively, you can call Faysal Bank’s Contact Center at 021 111 06 06 06 to inquire about the financing details and get help with your application. - SMS to Apply:
You can also apply by sending an SMS. Simply send “ISS [City Name] [CNIC]” to 9181 and a representative will contact you to assist with the next steps.
Once your application is submitted, the bank will review your documents and financial details. After approval, Faysal Bank will finance your solar system, and you can get it installed by their authorized vendors.
Documents Required for the Application
When applying for Faysal Islami Solar Financing, you will need to provide some essential documents. Here’s a list of the commonly required paperwork:
- CNIC Copy: A valid Computerized National Identity Card (CNIC).
- Proof of Income:
- For salaried individuals: Recent salary slips or a salary certificate.
- For self-employed individuals: Bank statements or proof of business income.
- Utility Bills: Recent electricity bill for the property where the solar system will be installed.
- Property Ownership Documents: Proof that the property is owned by the applicant or an immediate family member.
Make sure to have these documents ready to speed up the application process.
Also Read : Meezan Bank Solar System Loan
FAQs (Frequently Asked Questions)
1. Is the financing interest-free?
No, but the loan is offered at a subsidized profit rate of 6% per annum, under Shariah-compliant principles, which is lower than traditional loans.
2. Can I apply for a loan if I’m self-employed?
Yes, self-employed individuals can apply if they meet the income requirement of PKR 150,000 per month.
3. How much of the solar system’s cost does Faysal Bank finance?
Faysal Bank finances up to 85% of the system’s cost, while you need to contribute 15% as equity.
4. What is net metering, and how does it help?
Net metering allows you to send surplus electricity generated by your solar system back to the national grid. In return, you get credits that reduce your monthly electricity bill.
5. What is the maximum financing amount?
The maximum financing available is PKR 3,000,000.
6. What solar system sizes are eligible for financing?
Solar systems with capacities ranging from 4KW to 20KW are eligible for financing.
7. Are there any upfront fees?
Yes, a non-refundable processing fee of PKR 6,000 + FED applies.
Conclusion
Faysal Bank’s Islamic Solar Financing offers an ideal solution for anyone looking to reduce their electricity bills and invest in clean, renewable energy. With its Shariah-compliant structure, subsidized profit rate, and flexible repayment options, this financing makes it easier and more affordable to switch to solar power.
Whether you’re looking to power your home or business, this financing solution can help you install a solar system that not only cuts your energy costs but also contributes to a sustainable future. Visit your nearest Faysal Bank branch or contact their support center today to take the first step towards solar energy independence.
