MEEZAN BANK
Meezan Bank Limited is a publicly listed company first incorporated
on January 27, 1997. It started operations as an investment
bank in August of the same year. In January, 2002 in an historic
initiative, Meezan Bank was granted the nation's first full-fledged
commercial banking license dedicated to Islamic Banking, by
the State Bank of Pakistan.
Meezan Bank stands today at a noteworthy point along the
evolution of Islamic Banking in Pakistan. The banking sector
is showing a significant paradigm shift away from traditional
means of business and is catering to an increasingly astute
and demanding financial consumer who is also becoming keenly
aware of Islamic Banking. Meezan Bank bears the critical responsibility
of leading the way forward in establishing a stable and dynamic
Islamic Banking system replete with dynamic and cutting-edge
products and services.
Product List:
Car Ijarah - Islamic Car Financing
Our totally halal auto finance facility that is very affordable,
with quick processing and minimal documentation. Car financing
that is very competitively priced, hassle-free, and totally
Halal. Ijarah is simply a rental agreement under which the
car is given on rent for an agreed period ranging from 3 to
5 years. There is no advance rental, no up-front insurance
payment, and as little as 20% security deposit.
Easy Home : Islamic Housing Finance
Welcome to Pakistan’s long awaited totally Shariah-compliant
Home Finance facility! One that is comprehensive, affordable,
and totally hassle-free. At Meezan Bank, we are committed
to meeting our customers’ needs in a truly Shariah-compliant
manner coupled with dedicated service excellence. Meezan Bank’s
Easy Home is the answer you’ve been waiting for.
Car Ijarah Pakistan's First Islamic Car Financing
As a step towards our mission of providing a one-stop shop
for innovative value added Shariah compliant products to our
customers Meezan Bank is pleased to offer ‘Car Ijarah’-
a car-financing, that is based on the principles of Ijarah
and is free of the element of interest.
"Car Ijarah"
Car Ijarah is Pakistan's first "Interest Free" car
financing based on Islamic financing mode of Ijarah or Islamic
leasing. This product is ideal for interest averse individuals,
looking for a car financing that provides the convenience
of a well designed product while avoiding an interest based
transaction.
Car Ijarah is simply a rental agreement under which the car
will be given to the customer on rent for a period, agreed
at the time of the contract. Meezan Bank purchases the car
and rents it out to the customer for a period of 3, 4 or 5
years. Upon completion of the lease period the customer gets
ownership of the car against his initial security deposit.
What makes Car Ijarah unique?
Some of the key characteristics of Car Ijarah are as follows
- 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 currency 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 dumps all liabilities
on the user, 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 would continue 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.
- Why does Meezan bank insure its Ijarah vehicles if Insurance
is not permitted under Islam ?
Legally, it is required for all leasing entities to insure
the leased assets. As such, Meezan Bank insures its leased
assets. However, our Ijarah Agreement clearly states that
Meezan bank will use conventional Insurance only as long as
Takaful, which is Islamic product for insurance is not available.
As soon as Takaful becomes available in Pakistan Meezan Bank
will convert to Takaful and discontinue using conventional
Insurance.
- Is there a Penalty for Late Payment of Rent and how is this
permissible under Islamic Shariah?
In most contempo rary financial leases, an extra monetary
amount is charged if rent is not paid on time. This extra
amount is the considered as Riba and is Haram. This amount
is taken by the leasing institution in their income. 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 purposes.
Key Features of Car Ijarah
• No application fee
• Ease of acquiring any new locally assembled car
• No upfront Insurance Payment
• No advance Rental
• Available in tenures of 3, 4 and 5 years
• Minimum security deposit as low as 20%
Car Ijarah also features Used Vehicles
In addition to our leasing of new cars, we also provide the
unique opportunity of leasing second hand locally assembled
vehicles as well. This feature is specifically designed as
a very economical option as well. With a minimum security
deposit as low as 30%, our used Car Ijarah facility is at
your service.
Used Car Selection Criteria
Selecting a used car is very simple, all you need to ensure
is:
• That the second hand car you select should be from
its first owner.
• The vehicle should not be older than 5 years when
selected by you for Car Ijarah.
• At the time of termination of our Ijarah agreement,
the vehicle should not be more than 8 years old. This means
that if a car is 5 years old, the Car Ijarah tenure is not
more than 3 years and if its 4 years old, the tenure may be
set for a 3 year or 4 year term.
• This facility is for locally manufactured cars of
Suzuki, Toyota, Honda & the new model of Santro only.
• Second hand vehicles selected should not be worth
more than Rs. 1 million and less than Rs. 250,000/-. Meezan
Bank will have the vehicle valued by an independent valuation
company accordingly.
Approved by Meezan Bank's Shariah Board
Car Ijarah is designed under the supervision of Meezan Bank's
Shariah Supervisory Board and is approved by the Board.
The Shariah Board comprises of the following eminent scholars
of Islamic finance:
• Justice Muhammad Taqi Usmani. (Pakistan)
• Dr. Abdul Sattar Abu Ghuddah (Saudi Arabia)
• Sheikh Essam M. Ishaq (Bahrain)
• Dr. Muhammad Imran Ashraf Usmani (Pakistan)
Documentation required for Car Ijarah
It is very easy to apply for Car Ijarah, just bring the following
documents.
Individuals/Self-Employed Professionals/Businessmen
• Copy of NIC
• Two recent passport sized photographs
• Recent Utility Bill (Electric/Gas/Water) received
at the residential address
• Last Six Month Bank Statement
• Last Six Month Bank Statement of Business (for Businessmen)
• Certified/Original copy of Recent Pay slip (for Salaried
Individuals)
• Copy of Rent Agreement (if applicable)
Are a salaried individual/ self-employed professional/businessman
Have a net take home income exceeding three times your monthly
installment
Have 3 years working/professional /business experience
Are working with your present employer for at least 6 months
(for salaried
individuals)
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