Buy 1000cc car only for Rs5,776 monthly installment

ISLAMABAD: The Islamic Auto Finance scheme has been launched by Faysal Bank to help customers acquire locally produced vehicles of 1,000cc capacity through a Shariah-based financing scheme, with a tenure of up to five years.

The bank is providing the facility under the Diminishing Musharakah scheme wherein the bank and the customer both participate in the purchase of the vehicle. As the customers repay the amount monthly, they gain more share till they get full ownership of the vehicle at the end of the financing tenure.

As per the five-year financing scheme for vehicles of 1,000cc capacity, the estimated monthly installment payable by the customers would be Rs5,776.

To start the financing scheme, the customers need to pay Rs112,750 initially as an upfront installment that comprises Rs75,000 as equity participation, Rs12,000 as processing fees excluding FED, Rs22,000 as tracker fee excluding FED, and Rs3,750 as Takaful for the first year. Charges for vehicle registration are separate and depend on the model chosen by the customer.

On the other hand, Faysal Bank is financing up to 70 percent of the value of the vehicle with financing of up to Rs3 million.

This facility can be used by customers buying both new and used local cars, and used cars can be financed if they do not exceed nine years of age during the financing process.

Furthermore, no rental fees will be charged by the bank until the car is delivered. Early payment and partial prepayment facilities, co-partner finance, tracker fitment, and Takaful are some other services offered by the bank to its customers.

However, according to Faysal Bank, the above-mentioned monthly installments are provisional and might vary once the booking is done. Furthermore, the bank has advised the customers about the possibility of damaging their credit record in the eCIB system due to late or missed payments.