MCB Islamic Bank has introduced a Shariah-compliant MCB bank car loan solution for people who want to purchase vehicles for personal use.
The offer includes financing for the JAECOO J5 SHS vehicle. The bank said the product is designed to make vehicle ownership easier and within reach.
The financing offer includes a profit rate of 1-year KIBOR plus 2 per cent. The Takaful rate is set at 1 per cent.
In this article, you can see all the details. The bank has also shared further details on its official website.
MCB: MICAR financing
The product is called MICAR. It is a Shariah-compliant financing solution for individuals.
It helps customers to purchase their own vehicles for personal use.
The financing is based on two Islamic modes. These include Diminishing Musharakah and Ijarah, according to the information provided on the official website.
Who is it available for
The financing facility is available for a wide group of customers. These include both self-employed businessmen and professionals. Salaried individuals can also apply for it.
The product is also open to foreign remittance beneficiaries. Non-resident Pakistanis are also included in the target group.
MCB bank car loan: eligibility criteria
For salaried individuals, the minimum monthly net salary requirement is Rs60,000. For self-employed individuals, the minimum monthly net income has to be Rs100,000.
The minimum age requirement is 25 years. The maximum age at the time of financial maturity is 60 years for salaried individuals. And for self-employed people, the maximum age is 70 years.
Salaried applicants need to have a minimum of three months of employment. In addition, self-employed applicants must have at least 24 months of work history.
Read more: You can now get up to Rs10 million loan for your dream home under govt housing scheme
Eligibility for foreign remittance beneficiaries, NRPs
Special conditions will apply to foreign remittance beneficiaries and Pakistanis who are non-resident.
Additionally, financing is only available for ready delivery vehicles. This includes used local vehicles.
The primary applicant has to be the person receiving remittance in their name. The non-resident Pakistani or remitter will act as a secondary co-applicant.
The primary applicant must be a Pakistani national. The minimum income requirement for this category is Rs50,000 per month.
The non-resident Pakistani also must have an account with MCB Islamic Bank.
Important features of MICAR
The financing time varies based on the vehicle type. For vehicles up to 1000cc and locally assembled electric vehicles, the time ranges from 1 to 5 years. For vehicles above 1000cc, the time range is 1 to 3 years.
Importantly, customers can finance both new and used locally assembled or manufactured vehicles.
The bank offers financing of up to 70 per cent of the vehicle value. However, the total auto financing limit from all banks and DFIs must not exceed Rs3 million at any time, as per the details.
Customers can pay through equal monthly instalments under Diminishing Musharakah as well. They can also pay equal monthly under Ijarah.
The financing includes comprehensive motor vehicle Takaful coverage. This covers total loss and theft cases too.
The bank offers competitive financing and Takaful rates, as per the details. Customers also have the option to finance a second car. But it is important to know that this is subject to terms and conditions.
Early buyout options are also available. Customers can make partial early payments under Diminishing Musharakah to reduce monthly instalments.
Full early settlement is also allowed under both Ijarah and Diminishing Musharakah.
You can also pay the processing fee only after approval of the finance. Other charges will apply as per the bank’s schedule of charges.
Vehicle delivery will be made through the bank’s approved authorised car dealers.
What are the required documents
Applicants have to provide a copy of their CNIC, SNIC, NICOP, or POC. Two passport-size colored photographs are also required. The pictures should be recent.
In addition, a bank statements for six months to one year must be submitted too. Applicants must also provide salary slips or proof of business or other relevant documents.
Additional documents for remittance cases
Foreign remittance beneficiaries and non-resident Pakistanis should provide additional documents.
These include a 12-month bank statement showing remittance transactions or remittance receipts. A valid work permit or Iqama of the remitter is also required.
Applicants must also provide a valid passport copy of the remitter with a work visa. Any document showing the relationship between the applicant and the remitter has to also be submitted.
Which cities is it available in
The MICAR financing facility is available in all cities of Pakistan where MCB Islamic Bank has at least one branch. However, the facility is not available in Balochistan yet.
Read more: How to get Rs450,000 with PM’s Youth Business and Agriculture Loan Scheme?
How to contact
You can contact the bank for further details. The email address is cs.consumer@mcbislamicbank.com. You can contact the helpline number 042-36282452.
