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Car Ijarah

Residual Value Ijarah

 

What is Residual Value Ijarah?

 

The value of an asset at the conclusion of the lease term or the price at which a fixed asset is expected to be sold at the end of its useful life is commonly referred as Residual Value (RV).

 

The average car buyer should take some effort to determine the estimated value of their new car in the future it would be best to know how much your car is worth in the future.

 

Based on the above definition, Meezan Bank Car Ijarah is introducing Residual Value Financing, enabling customer to afford luxury with economy, where the customer can enjoy the benefits of eased rental. A high residual value would result in a lower monthly lease.

 

 

 

Basic Features - Suzuki

Parameters

 

Details

 

Asset (vehicle)

For Residual Value Ijarah: Suzuki Mehran, Cultus, Swift, Bolan and Wagon-R

Ownership

Ownership lays with MBL

Period of facility

3, 4 & 5 years

Periodicity

Pre-determined monthly rentals

Advance Rent / Security deposit

Minimum 10% of cost of the vehicle 
Maximum 70% of the cost of the vehicle

Residual value (RV)

3 Year 5% to 55% 
4 Year 5% to 50% 
5 Year 5% to 50%

Processing charges

Rs. 3,000/-

Free Accidental Death Coverage

Upto Rs. 400,000/-

Mode of payment

Through post dated cheques / debit instruction

 

 

Unique Selling Points

  • Pakistan’s first truly / completely
  • Shariah-compliant Car Financing Scheme
  • Lowest per month rent – Much lower than normal Ijarah
  • Lowest processing charges
  • Lowest up front payment
  • First rent after one month of delivery
  • Availability of Takaful
  • Free accidental death coverage upto Rs. 400k
  • Free Tracker (with installation & annual monitoring charges)
  • Competitive Service

Premature Termination

In case the customer wishes to terminate the Agreement before the agreed period, the customer will have an option to buy the vehicle on the agreed purchase price as mentioned in the Terminal-value schedule forming part of the lease documents. The purchase price takes into consideration the following amounts:

 

  • The principal outstanding as determined by the amortization schedule of the lease.
  • Residual value amount.

Maturity of RV Ijarah

At the end of the Ijarah period, Meezan Bank will make following offers to the customer:

 

Purchase Option: Customer will have an option to purchase the vehicle from MBL on pre-agreed Residual Value.
Return Option: Customer will have an option to return the vehicle to MBL (MBL conduct 3rd part vehicle assessment of condition)

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