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Car Ijarah

Meezan Bank provides Shariah Compliant financing solutions for individuals.

As a step towards Meezan Bank’s mission to provide a one-stop shop for innovative value-added Shariah compliant products, Meezan Bank’s Car Ijarah unit provides car financing based on the principles of Ijarah and is free of the element of interest.

 

Car Ijarah is Pakistan’s first Interest Free car financing based on the Islamic financing mode of Ijarah (Islamic leasing). This product is ideal for individuals looking for car financing while avoiding an interest-based transaction.

 

Meezan Bank’ Car Ijarah is a car rental agreement, under which the Bank purchases the car and rents it out to the customer for a period of 1 to 5 years, agreed at the time of the contract. At the end of Ijarah period, the vehicle will be sold at a token amount or gifted to the customer.

 

Special Offer - Residual Value Ijaraah with Pak Suzuki Motors

Meezan Bank Car Ijarah Introduces Residual Value Financing enabling customer to afford luxury with economy, where the customer can enjoy the benefits of eased rental.

Car Ijaraah also features Used Vehicles!

In addition to leasing of new cars, Meezan Bank also provides the unique opportunity of leasing second hand, both locally assembled and imported vehicles. This feature is specifically designed as a highly economical option. The Used Car Ijarah facility is made available at a minimum-security deposit as low as 20%. Financing of used cars are subject to a selection criteria.

Key Features of Car Ijarah

  • Low monthly rental
  • Rental paid after delivery, not in advance
  • Fastest processing and delivery
  • Tracker option available
  • Minimum security deposit as low as 10%*
  • All new, used, local, imported and luxury vehicles can be financed

 

* Conditions apply

Apply Now

Car Ijarah, designed under the supervision of Meezan Banks Shariah Supervisory Board, is unique to car 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 nature 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.

 

Legally (in accordance to Pakistan’s Law and Regulations), it is required for all leasing entities to insure the leased assets. As such, Meezan Bank insures its 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.

 

 

In addition to leasing of new cars, Meezan Bank also provides the unique opportunity of leasing second hand, (Used/Registered) both locally assembled and imported vehicles. This feature is specifically designed as a highly economical option. The Used Car Ijarah facility is made available at a minimum-security deposit as low as 15%. Financing of used cars are subject to the following Selection Criteria.

 

Used vehicles (locally assembles or imported) costing up to Rs. 8 million may be financed.

 

MBL shall finance the cars older than nine years. However, cars older than five years and up to nine years can only be financed subject to the condition that complete repayment of financing is restricted within twelve years of such car age.

 

Monthly rentals to be paid through post-dated cheques in favour of Meezan Bank Limited.

 

OR

 

Standing instructions to debit account on rental due date if the customer is Meezan Bank’s account holder only Non-refundable valuation charges for the appraisal of used vehicles to be collected after approval of the case.

 

You can enjoy the benefits of Car Ijarah if you:

 

Salaried Professionals


  • For Permanent employees – 3 months in current job with a minimum 2 years   continuous employment history
  • For Contractual employees – 6 months in current job with a minimum 3 years continuous employment history.
  • Net take home income in excess of  2 times the monthly rental (inclusive of takaful)
  • Spouse’s verifiable income may be clubbed to an extent of 50%.
  • In case of other loans, all monthly payments including proposed Ijarah rental combined not to exceed 50% of net / take home income.
  • Both data check & e-CIB should be clear and must not have current default / overdue at the time of case approval.

 

Businessmen

 

  • Minimum 2 years continuous involvement in current business / industry.
  • Proprietor, partner or director. In case of partner or director, percentage of sharing / holding will be applied.
  • Net take home income in excess of  2 times the monthly rental (inclusive of takaful)
  • Spouse’s verifiable income may be clubbed to an extent of 50%.
  • In case of other loans, all monthly payments including proposed Ijarah rental combined not to exceed 50% of net / take home income.
  • Both data check & e-CIB should be clear and must not have current default / overdue at the time of case approval.

 

Required Documentation

If you meet the requirements and wish to apply for Car Ijarah, simply fill out an application form and bring the following documents to your nearest Meezan Bank branch.

 

  • Application form duly filled and signed by the applicant
  • Copy of recent pay slip/certificate showing – For Salaried.
  • Business Proof - such as bank certificate confirming proprietorship, NTN, business Association letter or tax return etc is required. For businessman.  
  • Copy of last six months bank statements
  • One recent photograph.
  • Specimen Signature card  preferably on bank’s prescribed format

 

To apply for Meezan Bank’s Car Ijarah, fill out a customer application form (available at any Branch), attach the required documents and get your financing approved in a 1-2 working days.

 

 

Processing & vehicle valuation charges

Domestic Vehicles - New

Cost of Vehicle
Charges
Amount (PKR)
Less than 1.00 million (999,999/-)
Processing
4,000/-
Greater than 1.00 million
Processing

5,000/-

Domestic Vehicles - Used / Imported

Cost of Vehicle
Charges
Amount (PKR)
Less than 1.00 million (999,999/-)
Processing
3,000/-
Valuation
1,500/-
Total
4,500/-
Between 1.00 million & 1.5 million
Processing

4,000/-

Valuation
1,500/-
Total
5,500/-
Note: Valuation charges for vehicle greater than 1.5 million will be charged at actual. Processing charges will remain unchanged.

Commercial Vehicles - New

Cost of Vehicle
Charges
Amount (PKR)
Less than 1.00 million (999,999/-)
Processing
4,000/-

Out Station Verification Charges

Cost of Vehicle
Charges
Amount (PKR)
Less than 1.00 million (999,999/-)
Processing
4,000/-

 

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)

Parameters Detail
Asset    All new locally assembled vehicles costing up to Rs. 8.00 million
Role of Meezan Bank To purchase a vehicle and rent it to the customer under an Ijarah agreement
Ownership (title) Ownership lies with Meezan Bank Limited
Periodicity Pre-determined monthly / quarterly / semi-annual rentals
Period of facility 1 to 5 years
Mode of payment Through post dated cheques or direct debit instructions, In case of Direct Debit Instruction six additional cheques will also be obtained.
Takaful All vehicles under Meezan Bank Car Ijarah will be covered by our approved Takaful /Insurance companies
Tracker Tracker (both installation & annual monitoring charges) to be installed in all vehicles.

 

Unique Selling Points

  • Pakistan’s first truly / completely
  • Shariah-compliant Car Financing Scheme
  • Lowest per month rent
  • Priority delivery for all Indus variants (50%)
  • 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

Apply Now

Followings Hubs (branches) are offering Car Financing:

 

ABBOTABAD

Address: 843-846 Mansehra Road, Abbottabad
PABX: (0992 ) 344701-3 Ext.11 Direct # 0992-344710

Contact Persons

Saifullah Khan (Relationship Officer)
Cell No. 0342-9800720
E-mail:saifullah.khan@meezanbank.com

 

BAHAWALPUR

Address: Milad Chock Eidgah Road, Bahawalpur
PABX: (062) 2732145-7 Direct: (062) 2732151

Contact Person

Hammad Hassan Chisthi (Hub Manager)
Cell No. 0304-0920531
E-mail:hammad.chishti@meezanbank.com

 

CLIFTON HUB (Karachi)

Address: 4th Floor, Al-Karam Centre, Plot # Bc -1, Block &, Karachi.
PABX: (021) 99250671-74 Ext. 105 | Direct: (021) 35308174

Contact Person

Mansoor Ahmed Khan (Regional Manager, Car Ijarah - South )
Cell No. 0304-0920556
E-mail:mansoor.khan@meezanbank.com

 

DG KHAN

Address: Jampur Road, Dera Ghazi Khan
PABX: (064) 2474255-58 Ext. 106 | Direct: (064) 2474254

 

Contact Person

Rashid Hussain (Hub Manager)
Cell No. 0304-0920547
E-mail:rashid.hussain@meezanbank.com

FAISALABAD

Address: P 719 Batala Colony Main Satiana Road Faisalabad .
PABX: (041) 8500715-20 Ext. 112 | Direct: (041) 8500712

Contact Person

Shahnaz Ali (Hub Manager)
Cell No. 0304-0920543
E-mail:shahnaz.ali@meezanbank.com

 

HYDERABAD

Shop # 06,07 Boulevard Enclave, Auto Bhan Road, Hyderabad
PABX: (022) 3821292-6 Ext 116 | Direct: (92-22) 3821297

Contact Person

Altaf Memon (Relationship Manager)
Cell: 0304-0920529
E-mail: altaf.memon@meezanbank.com

 

ISLAMABAD

Address: 33-Buland Markaz, Blue Area, Islamabad
PABX: (051) 2871228-31 Ext. 118 | Direct: (051) 2271-071

Contact Person

Imran Khalid Shami (Regional Manager, Car Ijarah - North)
Cell: 0304-0920554
E-mail: imran.shami@meezanbank.com

 

LAHORE

Address: 60-Main Boulevard, Gulberg, Lahore.
PABX: (92-42) 5879870-2. Ext: 242 Direct: (92-42) 5777431, IP # 9801

Contact Person

Muhammad Muddassar (Regional Manager, Car Ijarah – Central - I)
Cell: 0304-0920555
E-mail: muhammad.muddassar@meezanbank.com

 

MULTAN

Address: 64-Abdali Road, Multan
PABX: (061) 4785604-7 | Direct: (061) 4588537

Contact Person

Asrlan Farooq (Regional Manager, Car Ijarah – Central - II)
Cell: 0304-0920552
E-mail: arslan.farooq@meezanbank.com

 

PESHAWAR

Address: Saddar Road. Peshawar
IP 9809 | 7 +91- 9213475 |

Contact Person

Adil Naveed (Hub Manager)
Cell: 0304-0920551
E-mail: adil.naveed@meezanbank.com

 

RAHIM YAR KHAN

Address: 17-18 City Centre, Rahim Yar Khan
PABX : 068-5887603-4 Ext 118 | Dir 068- 5889082

Contact Person

Zaigham Ali Ahmed (Relationship Officer)
Cell: 0300-6703948
E-mail: zaigham.ahmed@meezanbank.com

 

RAWALPINDI

Address: Usman Plaza, Shop No. 55-T-6, 1st Floor, Haider Road Rawalpindi Cantt.
PABX: (051) 927401-4 Ext. 118 | Direct: (051) 5562541

Contact Person

Syed Atif Naqvi (Hub Manager)
Cell: 0304-0920555
E-mail: atif.naqvi@meezanbank.com

 

SADIQABAD

Address: 13/D, Main Bazar, Sadiqabad
PABX 068-5701207-08 Ext. 111 | Direct 068-5803511

Contact Person

Mian Bilal Arshad (Relationship Officer)
Cell: 0301-8694000
E-mail: bilal.arshad@meezanbank.com

 

SARGODHA

Address: 91-Civil Lines University Road, Sargodha
PABX: :048-3741610-13 Ext. 104 | Direct: 048-3741608

Contact Person

Masud Ahmed (Relationship Manager)
Cell: 0304-0920536
E-mail: masud.ahmad@meezanbank.com

 

If you encounter with any of the service queries regarding any product innovations, sale services, takaful & tracker related services or any other issues regarding our product, please feel free to contact below precursor personnel;
  • Car Ijarah modernization / Sale Services, please contact our sales team at 021-99250682 / 5308174
  • For Registration / excise related matter, please contact our EAMU at 021-99250681
  • For Tracker Services, please contact Falcon-i at 111-007-333
  • For Takaful Claims and other Customers Services, please contact our CSU at 021-99250688.
  • Rental Repayment Confirmation, please contact Our Collection Team at 021-36404320
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