Recently, there have been noticeable increases in the prices of new owners cars, which prompted many to stop buying new cars and go to buy used cars. For this reason, Islamic banks, in their efforts to meet the needs of customers, included used car financing in the list of products they provide, in In an attempt to attract more customers, it offers, through the service, a loan to buy a used car, the terms of which comply with the principles of Islamic Sharia.
Banks offering car loans
If you are a resident in Egypt, you can obtain the privileged service through 4 banks: “Faisal Islamic Bank, Al Baraka, Abu Dhabi Islamic Bank and The United Bank.” The list includes the first three banks, which provide all their services based on Islamic Sharia regulations, while The United Bank provides a mixture Some of the services that are compatible with Islamic law and others that are not.
The service is provided by banks to various customers, employees in the “private and government” sectors or self-employed people, within programs whose conditions vary according to the category. and 8 years, and this condition comes to ensure the quality of the car, in addition to submitting an approved invoice through which the total value of the car is disclosed, and the value of the loan is determined based on the individual’s total monthly income, so that the value of the installment does not exceed 50% of the total monthly salary.
Faisal Bank Financing
The bank offers financing up to 350 thousand pounds, at a decreasing annual cost of 15.5%, with exemption from administrative expenses, and the maximum financing value is 50% of the total value of the car to be paid over 5 years, and the minimum acceptable monthly income is 1500 pounds with the condition that the customer’s age Between 21 and 60 years old.
The bank provides financing of up to 600,000 pounds for German cars, while the rest of the types are provided financing with a maximum of 400,000 pounds, provided with an interest between 8.4% and 9.5% in the form of a flat rate, in addition to administrative expenses of 2%, the total financing rate up to 75% of the price The car is allowed to be paid in installments up to 5 years, the minimum allowed income is 1500 pounds, and the age allowed to apply is between 21 and 60 years.
United Bank Financing
The United Bank provides financing up to 750,000 pounds, with a reducing interest rate of 13.5% and up to 16.5%, in addition to 2.5% administrative expenses, and the customer can obtain financing up to 100% of the price of the car, and customers are accepted between 21 and 60 years with a minimum income of 1500 pounds monthly.
Al Baraka Bank Financing
Al Baraka Bank provides customers with financing up to 600,000 pounds at a reducing annual interest rate of 12.75%, in addition to administrative expenses of 1%, and the customer can obtain financing up to 80% of the price of the car, which can be paid over 7 years, and financing is available to customers between 21 and 65 years With a minimum of 3 thousand pounds for monthly income.