Vehicle Finance
Vehicle Finance
 
 

Motor vehicles which were once considered a luxury are now a daily necessity. Financing a vehicle for either your family or business is an important decision. Once you've made that decision it's comforting to know that there is a bank that understands your needs.

We, at Al Baraka, understand how important a motor vehicle can be and have developed a practical and effective package that's customised to your needs. 

Ijarah Financing

Al Baraka Bank presents a Shariah-compliant financing solution that allows for flexibility and peace-of-mind when it comes to purchasing a motor vehicle.

Ijarah allows for the vehicle to be leased to you over a pre-agreed period at a monthly rental with an option of a fixed or variable payments, putting control in your hands.

Features:
• Shariah-compliant finance lease
• Quick and efficient processing 
• Competitive profit rates
• No monthly admin fees
• Flexible term of 12 up to 60 months
• Minimal upfront lease payments (deposits) and no upfront lease payments for professionals and high net worth individuals

How it works:

1. You find the perfect vehicle* and contact Al Baraka for Motor Vehicle Finance, selecting the Ijarah option that has a variable pricing option
2. Al Baraka processes the application and purchases the vehicle, leasing it to you over an agreed-upon period of between 12 and 60 months
3. You have the option of a fixed or variable rental. The variable rental option allows for flexibility in your rental payments as you have the ability to place in lump sums annually, with annual re-pricing
4. At the end of the lease period, the motor vehicle is donated to you in terms of a separate agreement, subject to fulfilment of all contractual payment obligations 

*Currently available to Individual applicants purchasing NEW Passenger and Light Commercial Vehicles 

Eligible applicants must:

- Be a South African citizen and 18 years or older
- Have a valid South African driver’s licence

Documentation required:

Salaried individuals:

- Latest 3 months Bank statements
- Latest 3 month’s salary confirmation
- FICA documentation 

Non-salaried individuals:

- Proof of income (latest Annual Financial statements / Income tax return)
- Latest 3 months Bank statements 
- FICA documentation

Businesses:

- Latest original and signed Annual Financial statements
- Statement of Asset & Liabilities of Shareholders
- FICA documentation 

How to apply:

Visit us at one of Branches nationwide or at our website on www.albaraka.co.za

Motor Financing - Individual Application Form
Ijarah Agency Agreement

Murabaha

The Bank will purchase the motor vehicle of your choice and sell it to you on a Murabaha basis at a price which includes a profit. The price is repaid in instalments over an agreed period.

No changes can be made to the terms of the contract over the stated period. Ownership of the motor vehicle passes onto the client upon conclusion of the Murabaha transaction.

Your choice of the payment period can suit your budget and stretch over a period of up to 72 months. Of course, the shorter the period the higher your repayments.

Although a minimum deposit against the purchase price is required you may increase your initial deposit by as much as you like, thereby reducing your fixed monthly repayment.

Dealing with Al Baraka Bank will not only give you peace of mind but the knowledge that your vehicle is financed in an Islamically permissible way.