Meezan Bank Interest Free Car Loan
Meezan Bank Interest Free Car Loan If you’re a car enthusiast ready to buy your dream car without the burden of interest, Meezan Bank has the perfect offer for you! Meezan Bank’s Car Ijarah is Pakistan’s first interest-free car financing product, based on the Islamic principle of Ijarah (leasing). This Shariah-compliant solution allows you to finance locally manufactured or assembled vehicles with the convenience of interest-free payments. Whether you’re looking for a brand-new car or a second-hand vehicle, Meezan Bank’s Car Ijarah offers a hassle-free way to get on the road while keeping your finances in check.
Also Read : Khushhali Cash Sahulat Loan Scheme 2024
What is Meezan Bank Interest Free Car Loan?
Car Ijarah is Meezan Bank’s flagship car financing product, designed for individuals who prefer an interest-free, Islamic financing option. This product works through a leasing agreement where the bank purchases the car and rents it out to the customer for a term of 1 to 5 years. Once the lease period is complete, the vehicle is either sold to the customer for a nominal price or gifted to them. This system ensures that all financing transactions are Shariah-compliant and free from any form of interest.
Key Features of Meezan Bank’s Car Ijarah
Meezan Bank’s Car Ijarah comes with several advantages that make it a popular choice for people seeking Islamic car financing. Some of its key features include:
- Lowest Upfront Payment: Meezan Bank offers one of the lowest down payments in the market, making it easier for customers to get their dream car.
- Rental Payment After Vehicle Delivery: You only start paying once the car is delivered, ensuring peace of mind during the transaction process.
- Quick Processing Time: With a fast approval process, you can get your car in minimal time.
- Minimum Security Deposit: The security deposit can be as low as 30%, making this option accessible to a wide range of customers.
- WHT (Withholding Tax): Meezan Bank takes care of the withholding tax on the vehicle, providing further financial relief.
Whether you’re looking for a brand-new car or a second-hand vehicle, Meezan Bank’s Car Ijarah has you covered.
Also Read : Khushhali Karobari Vehicle Finance Loan Scheme 2024
Eligibility for Meezan Bank’s Car Ijarah
Meezan Bank offers Car Ijarah to both salaried professionals and business owners. Below are the detailed eligibility criteria for both categories:
Salaried Professionals:
- Must have at least 3 months in their current job and 2 years of continuous employment history.
- Contractual employees need 6 months in their current job and a minimum of 3 years of continuous employment.
- Monthly income must be more than twice the rental payment, including Takaful (Islamic insurance).
- Spouse’s verifiable income can be added up to 50% to meet the income criteria.
- Clear e-CIB (Electronic Credit Information Bureau) and data check with no current overdue payments.
Business Owners:
- A minimum of 2 years of experience in the current business or industry.
- Should be a proprietor, partner, or director with a clear shareholding percentage.
- Monthly income must exceed twice the rental payment, including Takaful.
- Spouse’s income can be clubbed up to 50%.
- Clear e-CIB and data check with no current overdue payments.
How to Apply for Meezan Bank’s Car Ijarah
Applying for Meezan Bank’s Car Ijarah is simple and hassle-free. Follow these steps to secure your interest-free car loan:
Fill Out the Application Form: Visit any Meezan Bank branch and fill out the customer application form. Ensure that all the details are correctly filled.
Attach Required Documents:
- For salaried individuals: Attach your recent payslip or employment certificate.
- For business owners: Submit business proof such as a bank certificate, NTN (National Tax Number), or tax return.
- Six months of bank statements.
- One recent photograph.
- Specimen signature card on the bank’s prescribed format.
Submit and Await Approval: Once your documents are submitted, the bank will process your application. Thanks to Meezan Bank’s quick processing system, you’ll receive approval in a short amount of time.
Also Read : Khushhali Karobari Running Finance Loan Scheme 2024
Car Ijarah Products Offered by Meezan Bank
Meezan Bank provides flexibility in car financing, offering both new and used cars under its Car Ijarah product.
New Car Ijarah:
- Choose from a wide range of new locally manufactured vehicles.
- The rental payments begin only after the car is delivered to you.
Used Car Ijarah:
- Meezan Bank also offers leasing for second-hand cars, providing a cost-effective alternative for customers.
- A minimum security deposit of 30% makes this option highly affordable.
How is Car Ijarah Shariah-Compliant?
Meezan Bank’s Car Ijarah is fully compliant with Islamic Shariah principles, as overseen by the bank’s Shariah Supervisory Board. Here’s what makes Car Ijarah unique compared to conventional leasing:
- Ownership vs. Usage: In Car Ijarah, the bank (lessor) retains ownership of the vehicle, while the customer (lessee) has usage rights. Ownership-related risks lie with the bank, while usage-related risks belong to the customer, making the contract permissible (Halal).
- No Rent for Lost or Stolen Vehicles: If the leased vehicle is stolen or destroyed, Meezan Bank stops charging rent, unlike conventional leasing companies.
- Takaful: Meezan Bank insures its vehicles through Takaful, an Islamic insurance system, instead of conventional insurance.
- Late Payment Penalties: In case of late rental payments, Meezan Bank directs any penalties towards charitable purposes instead of adding them to the bank’s income.
This system ensures that the leasing agreement is fair, transparent, and aligned with Islamic financial principles.
Frequently Asked Questions (FAQs)
- What is Meezan Bank Interest Free Car Loan?
Car Ijarah is Meezan Bank’s interest-free car financing product, based on Islamic leasing principles (Ijarah). - Is Car Ijarah Shariah-compliant?
Yes, Car Ijarah follows Islamic Shariah principles, making it a permissible (Halal) car financing option. - What is the minimum security deposit for Car Ijarah?
The security deposit can be as low as 30%. - Can I finance a used car through Meezan Bank?
Yes, Meezan Bank offers leasing options for second-hand vehicles. - What is Takaful, and how is it different from conventional insurance?
Takaful is an Islamic insurance product used instead of conventional insurance to comply with Shariah law. - What happens if the leased car is stolen or destroyed?
Meezan Bank stops charging rent in case the leased vehicle is stolen or destroyed. - Can salaried individuals apply for Car Ijarah?
Yes, salaried professionals with a stable employment history are eligible for Car Ijarah. - How long is the financing period for Car Ijarah?
The lease period can range from 1 to 5 years. - Is Car Ijarah available for locally assembled cars?
Yes, Car Ijarah is available for locally manufactured or assembled vehicles. - How can I apply for Meezan Bank’s Car Ijarah?
You can apply by filling out an application form at any Meezan Bank branch, attaching the required documents, and submitting them for approval.
Meezan Bank’s Car Ijarah provides an excellent opportunity for those looking to finance their dream car without interest, while staying compliant with Islamic principles. With easy eligibility, minimal upfront costs, and fast processing, it’s an ideal solution for Pakistanis seeking a hassle-free and ethical car financing option.
