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What is Meezan Bike Ijarah?

Bike Ijarah is Pakistan’s first Riba-free motorcycle financing facility which is based on the Islamic financing mode of Ijarah (leasing). It is ideal for individuals who want to get interest-free financing for acquiring a motorcycle.


Bike Ijarah works through a bike rental agreement, under which the Bank purchases the vehicle and rents it out to the customer for a period of 1 to 3 years, agreed at the time of the contract. Upon completion of the Ijarah period, the vehicle will be sold at a token amount or gifted to the customer.

Key Features

Affordable Rental

Two Periodic Maintenance

Rental paid after delivery, not in advance

Low Monthly Rental

Fastest processing and delivery

Rental after Delivery

Affordable Rental

Fast Processing and Delivery

Affordable Rental

Takaful Available

Bike Ijarah Features

Basic Features

  • Mode of Financing : Ijarah.
  • Ownership : The motorbike will be registered and insured in favor of Meezan Bank before its physical possession is given to the customer
  • Product Offering : All Suzuki, Yamaha & Honda Motorcycle variants
  • Facility Tenure : The scheme is available for 1, 2 & 3 years
  • Security Deposit / Advance Rental : Minimum 15% of cost of the vehicle and Maximum 50% of cost of the vehicle
  • Facility Available in : Karachi, Hyderabad, Multan, Lahore, Faisalabad, Rawalpindi & Islamabad
  • Processing and / Documentation Charges : Non-refundable processing fee of PKR 750 will be charged whereas documentation charges will be charged at actual.
  • Registration Charges : At actual and recovered in monthly rentals.
  • Mode of Payment :Through post dated cheques
    Direct debit instructions of Meezan Bank account
    Direct deduction from salary by employer (only in corporate cases)
  • Takaful : Takaful premium will be paid by the bank and will be recovered through Ijarah rentals from the customer
  • Maturity of Ijarah : At the end of lease period, the vehicle will be gifted to the customer
  • Early Premature : In early termination, the customer has the option to buy the motorbike on the agreed purchase price mentioned in the ‘Purchase Price’ schedule, which comprises of:
    • The principal outstanding as determined by the amortization schedule of the lease.
    • Early termination charges - A sum calculated at 5% of the principal outstanding (net of customer’s advance rent).
    • The un-recovered portion of the takaful premium paid by Meezan bank

Unique Selling Points

  • Pakistan’s first completely Shariah-compliant Motercycle Financing Scheme
  • Lowest per month rent
  • Lowest processing charges
  • Lowest up front payment
  • First rent after one month of delivery
  • Availability of Takaful
  • Competitive Service

How is Bike Ijarah Shariah-compliant?

Bike Ijarah, designed under the supervision of Meezan Bank’s Shariah experts, is unique to bike leasing facilities provided by other banks.


Rights & Liabilities of Owner v/s User

An Islamic Ijarah is an asset-based contract, i.e. the Lessor should have ownership of the asset during the period of the contract. Under Islamic Shariah, all ownership related rights and liabilities should lie with the owner while all usage-related rights and liabilities should lie with the user. A conventional lease contract does not distinguish between the natures of these liabilities and places all liabilities on the user of the asset, which is contradictory to Islamic Shariah.

Under Ijarah, all ownership-related risks lie with the Bank while all usage related risks lie with the user, thus making the Lessor the true owner of the asset and making the income generated through the contract permissible (Halal) for the Bank.


Continuation of lease rentals in case of total loss or theft of vehicle

If the leased vehicle is stolen or completely destroyed, the conventional leasing company continues charging the lease rent till the settlement of the Insurance claim. Under the Islamic system, rent is consideration for usage of the leased asset, and if the asset has been stolen or destroyed, the concept of rental becomes void. As such, in the above-mentioned eventualities, Meezan Bank does not charge the lease rental.


Takaful instead of Insurance

Legally (in accordance to Pakistan’s Law and Regulations), it is required for all leasing entities to insure the leased assets. Meezan Bank insured its assets through Takaful only, which is the Islamic product for insurance.


Permissibility for Penalty of Late Payment of Rent under Islamic Shariah

In most contemporary financial leases, an extra monetary amount is charged, in their income, if the rent is not paid on time. This extra amount is the considered as Riba and is Haram. Under Ijarah, the Lessee may be asked to undertake, that if he fails to pay rent on its due date, he will pay certain amount to a charity, which will be administered through the Islamic Bank. For this purpose, the Bank maintains a charity fund where such amounts may be credited and disbursed for charitable purpose.


How to get a bike through Bike Ijarah?

To apply for Meezan Bank’s Bike Ijarah, fill out a customer application form (available at all branches), attach the required documents and get your financing approved in a 5-7 working days.


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Required Documents

General Requirements

  • Copy of Applicant's CNIC (Computerised National Identity Card)
  • One Passport-sized colour photograph of the applicant
  • Copy of Driving License
  • Declaration of Financing
  • Signature Verification Form

Specific Requirements

For Salaried Individuals

  • Original / Certified copy of Bank Statement (last 6 months)
  • Original / Certified copy of Pay Slip
  • Employer's certificate including Tenor /Designation /Salary

Specific Requirements

For Businessmen / SEP

  • Original / Certified copy of Bank Statement (last 12 months)
  • 2 years Proof of Business (e.g. Tax return / Bank Certificate/ any other document)

Who can avail Bike Ijarah Facility?

Citizenship

Pakistani, Adult, Permanent resident

Age

20 - 65 years old (Businessmen & SEP) at maturity

20 - 60 years old (Salaried) at maturity

Minimum Income Requirements

Salaried Class - 25,000/- (Gross Salary)

SEP - 40,000/-

Businessmen - 40,000/-

Debt Burden Ratio

35% of net monthly income /- (For Salaried, SEP and Businessmen)

Down Payment

Minimum 15% of cost of the vehicle and Maximum 50% of cost of the vehicle

Tenor

1,2 and 3 years

Payment Mode

Through post dated cheques

Direct debit instructions of Meezan Bank account

Direct deduction from salary by employer (only in corporate cases)

Cheque Return charges

Cheque return charges would be levied as per the Bank’s schedule of Charges

Takaful Coverage

As per Takaful company’s policy

Application Procedure

Fill out a customer application form (available at any Branch)

Attach the required documents and submit your application with Rs. 750 (Non-refundable processing fee)

Get your financing approved in a 5-7 working days

Helpful Downloads: Bike Ijarah Form

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Note : The financing facility for Honda brand bikes is not available in the province of Sindh

Get Contacted By a Bike Ijarah Representative

Fill out the form below and you will be contacted by a Meezan Bank representative.

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