Introduction:
The feeling of owning a car is one of those enchanting feelings that every man wants to cherish with the key in the hand of a vehicle he owns. Due to financial barriers and the strict measures of car financing companies, this feeling goes to the grave with almost half of the lot. In Pakistan, in order to abate the outburst that may cause due to the involvement of foreign financing companies on one hand, and due to their non-conformable payment conditions, Islamic Car Financing has been introduced by the banks and financing companies all over the country. Here in this article, we are going to list some of the most prominent Islamic Car Financing banks along with the benefits, which are providing the customers with their dream cars under the terms and conditions of Islamic Loan system. PakWheels provides Car Loan Calculator facility on its website to calculate monthly loan payment installment for each bank.
Islamic Car Financing Banks:
- Dubai Islamic Bank:
Being crowned as the No. 1 Islamic car financing bank, Dubai Islamic Bank comes with the provision of lowest installment rate and the markup as well. The salient features that are being offered by Dubai Islamic Bank are:
- This bank is offering the lowest insurance rate in the market, than any other car financing firm.
- You can choose a time span for the payment from a period of 1 to 7 years.
- The best point is, no any additional charges or rental payments are to be paid by the customer in lieu of the advance payment, till the day your vehicle arrives at your doorstep.
- Lowest markup rate is 100,000 PKR and the highest markup is 500,000 PKR.
- Faysal Bank Car Financing:
Faysal Bank is at the second place in providing quality and hassle free services to its customers. The vital points that make it distinguished from those who follows it, are as under:
- This bank provides relaxation on selecting the cars either they are local or imported.
- The payment time span varies from 1 to 5 years.
- It also provides the facility of advance booking, just in case you are a car enthusiast and can’t wait for much.
- Bank AlFalah Auto Car Financing:
Bank AlFalah, another well-known conglomerate in the Islamic banking, have also stepped in the race of Islamic car financing and has added Islamic Banking Car Financing Calculator on-site as well, in order to get the customers to calculate even the minute details about what they are going to step into and under what payment plan. The benefits, this bank is offering as follows:
- Customers are free to choose from a list of new or used cars.
- After the car has been selected, again the payment plan and the rate is also set by the customer himself, in order to avoid any monetary inconvenience in the future.
- A groundbreaking feature is a relaxation being offered in selecting the fixed or the variable payment plan.
- No any charges, in the case of termination, are charged from the customers.
- Minimum documentation is required if you are applying for a vehicle from AlFalah Car Insurance.
- Meezan Bank Car Financing:
Also known by the name of Meezan Bank Car Ijarah, it also provides its customers the best Islamic car financing services strictly under the shariah law. It also has its own formula being used by many customers in its Islamic car financing calculator. Its distinguishing features are as follows:
- The lessor has the ownership, unless or until the contract has been ended.
- According to a provision in the shariah law, that the asset will lie with the user, the lessor, on the other hand, will have liability rights over the vehicle.
- In case the vehicle gets stolen, the insurance company will keep charging the rent till the claimed amount has been recovered.