Frequently Asked Questions on Car Finance:

1. What is Islamic Car Finance?
Islamic Car Finance is a sharia-compliant financial product that enables customers to purchase vehicles without involving interest (riba), in line with Islamic principles.

2. How does Islamic Car Finance work?
Islamic car murabaha finance involves the bank purchasing the vehicle on behalf of the customer and selling it to the customer at an agreed profit margin. The customer then settles the total selling price in installments, in compliance with sharia principles.

3. What is the difference between conventional and Islamic Car Finance?
Conventional Car Finance charges interest, while Islamic car murabaha finance involves the bank selling the vehicle at a pre-agreed profit margin, without interest, in accordance with sharia law.

4. What types of Islamic car financing are available?
Currently, the bank offers murabaha-based car financing.

5. Are interest (riba) charges applied in Islamic Car Finance?
No, Islamic Car Finance does not involve interest charges, as interest (riba) is prohibited under sharia law.

6. Who is eligible for Islamic Car Finance?
Anyone who meets the bank’s eligibility criteria for Islamic finance can apply, regardless of religious beliefs.

7. Can non-Muslims apply for Islamic Car Finance?
Yes, non-Muslims can apply for Islamic Car Finance if they meet the eligibility requirements.

8. What vehicles are eligible for Islamic Car Finance?
Any vehicle approved by the bank according to their financing terms and conditions is eligible.

9. What is the down payment required for Islamic Car Finance?
The down payment is determined by central bank guidelines, with a minimum benchmark of 20%. It may vary depending on the bank's policies.

10. What happens if I miss a payment?
Late payments may incur penalties, which are donated to charity as per sharia principles.

11. Can I settle my Car Finance early?
Yes, early settlement is allowed, subject to the bank’s terms and conditions.

12. Is Takaful required for Islamic Car Finance?
No, Takaful is not a mandatory requirement for Islamic Car Finance.

13. How is profit determined in Islamic Car Finance?
The profit margin is pre-agreed and calculated based on the finance amount and tenure.

14. What is the maximum payment tenure for Islamic Car Finance?
The maximum payment tenure is 60 months.