Islamic Secured Personal Finance

1. Asset Purchase Agreement will be signed between the Bank and Customer whereby the Bank will acquire share in the vehicle owned by the Customer.
2. Customer and Bank will establish a partnership (Shirkat-ul-Milk) in the vehicle. Proportionate share of both Bank and Customer in the vehicle shall be specified in the Shirkat-ul-Milk Agreement.
3. Bank will rent out its ownership share in the vehicle against agreed rentals. Rental amount and dates shall be agreed in the Payment Agreement signed between Bank and the Customer.
4. Client would sign an Undertaking to Purchase Musharakah Units at an agreed price on specified dates.
5. The arrangement of deposit of unit purchase price by the Customer in his/her account and the Bank recovering the amount from the Client’s account will be considered to be the sale of Musharakah Units by the Bank to the Customer.
6. Since this transaction is based on sale and lease back (SLB), after completion of at least one year grace period from the date of Asset Purchase Agreement customer will start purchasing of bank’s share and at the end of the financing tenure the vehicle would be transferred to the customer.
7. Islamic secured personal financing facility will be granted to credit worthy profiles against the vehicle valuation and customer’s payment capacity. It will be secured through hypothecation of vehicle in bank’s favor.

Eligibility Criteria:

Citizenship : Pakistani

Eligible Segments: Salaried, Self Employed Professionals and Businessmen

Age: 

Minimum Age for Salaried/ SEP and SEB is 21 years

Maximum Age for Salaried is 60 years and for businessmen and SEPs is 65 years

Income:

Minimum Income for Salaried and SEP is Rs. 60,000

Minimum income for Businessmen is Rs. 100,000

To understand the difference between Musharaka and conventional lease knowledge center link should be mentioned.

https://bankislami.com.pk/knowledge-center/

Employment Tenure:

Salaried:

– Minimum 3 months in current employment and 1 year continuous work history (Permanent & Confirmed) for employees of MNS, LCG, Public & Private Ltd, Government & Armed Forces.

-Minimum 3 months in current employment (Permanent & Confirmed) and 1 year continuous work history within the same industry / field for renowned proprietorship & partnership company employees.

-No minimum years in current employment required if customer has a substantial employment experience (2 years minimum) in MNC & LCG, Government & Armed Forces category and are now moving into the PVT. & Public LTD Company.

SEP/ Businessperson: §

– Minimum 1 years in current business/Industry.

Islamic Secured Personal Finance is a Shariah-compliant financing facility based on Diminishing Musharakah and Sales & Lease Back. It allows individuals to access liquidity while securing the financing against their vehicle.

The facility is available to:

• Salaried individuals
• Business owners and self-employed professionals (SEP)

You can avail financing up to 80% of the market value of your vehicle, with a maximum limit of PKR 7 million.

• Salaried Individuals & SEP:6 month KIBOR + 5%
• Businessmen:6 month KIBOR + 6%

The vehicle must be:

• New/Used locally manufactured/assembled/imported vehicles.
• Not older than 7 years from the date of manufacturing at the time of financing.
• Not older than 9 year at the time of maturity of financing.

Unlike conventional loans that involve interest (Riba), this financing is based on Shariah-compliant structures like Diminishing Musharakah and Sales & Lease Back, ensuring that transactions remain free from Riba and align with Islamic principles.

Yes, the financing can be used for personal needs, such as medical/hospitalization expenses, educational expenses, marriage expenses, pilgrimage/travel, settlement of conventional loan or any other Shariah Compliant purpose deemed appropriate by Shariah Supervisory Board.

The financing tenure can range from 2 to 4 years with 1 year of grace period.

BankIslami has arranged to have all the vehicles insured under Takaful, the Shariah Compliant substitute of insurance.

Yes, the vehicle must be covered under a Shariah-compliant Takaful policy throughout the financing tenure.

No, the vehicle must be free from any existing financing and must be in the name of the applicant.

The Bank gives its share to customer on rental basis under separate lease agreement wherein customer undertakes that if he/ she fails to pay rent on due date, he/ she will pay certain amount to charity through BankIslami. The charity is utilized by BankIslami for charitable purposes and is not included in the income of the bank.