Vehicle Financing- Diminishing Musharakah
Let Your Business Thrive on Wheels!
U Bank Islamic Banking offers a Shari’ah-compliant Vehicle Financing Facility under the Diminishing Musharakah mode of finance to support customers’ business transportation needs. The facility enables customers to purchase vehicles for income-generating purposes, including passenger cars for online ride-hailing and passenger transport services, as well as loader rickshaws, pickup trucks, cargo vehicles, and other commercial vehicles used for transporting goods, agricultural produce, livestock, milk, or passengers. Under the Diminishing Musharakah arrangement, the customer gradually purchases the Bank’s ownership share through regular payments and becomes the full owner of the vehicle upon successful completion of the financing term.
Salient Features
Financing Facility: PKR 500,000 to PKR 5,000,000
Financing Tenure: up to 07 years
Customer Share: 20%
All new and old or used, locally manufactured brands included
Repayment in easy monthly installments
Complete Takaful coverage of the vehicle
Tracker facility included
Required Documents
- Original CNIC
- Passport-sized photograph of the applicant
- Proof of business
Terms and Conditions are applicable
FAQs
Who can apply for this financing?
The applicant must be a resident Pakistani with a CNIC/NICOP.
What is the eligibility criteria?
The applicant must have an Monthly income (net of business expense) in excess of PKR 40,000. The applicant must be a business individual currently involved in the business of transportation or logistics.
Is there any age limit for the customer to avail this financing?
Applicant should be at least 20 years old at the time of financing application & applicant age should not exceed 68 years/60 years if salaried at financing maturity. Age criteria is same for all Fresh & Repeat financings
What is the procedure to apply for this financing?
The customer will be required to follow the following steps:
- Select your desired vehicle
- Visit your nearest U Bank Islamic Banking branch
- Provide the required documents
- Deposit any upfront charges
- Sign the financing application form and submit
What documents are required to avail this financing facility?
- Original CNIC
- Passport-sized photograph of the applicant
- Proof of business
For what purpose can I receive this financing?
This financing is provided to support income-generating business activities requiring a vehicle, including transportation of goods, agricultural products, livestock, milk supply, passenger transportation, and online ride-hailing services.
Any processing charges included?
Processing Fee: 1% + FED or 15000 whichever is lower
What is the down payment requirement for new and used vehicle?
Minimum 20% down payment is required
Cars / Passenger Vehicles
- Customer Share New:
Min 10%
Max – No capping - Customer Share Used:
Min 30%
Max – No capping
Commercial Vehicles / Freight Vehicles
- Customer Share New:
Min 20%
Max – No capping - Customer Share Used:
Min 20%
Max – No capping
List of vehicle brands available on your panel?
Pak Suzuki Motor Co.
Indus Motors Co.
Kia Lucky Motors
J.W Motors
Hyundai Motors
Changan Motors
Proton Motors
Prince Motors
FAW Pakistan
DFSK Motors
Daehan Motors
Is this Shari’ah-compliant financing?
Yes – It is Shari’ah-compliant financing based on Diminishing Musharakah