![]() Permissibility for Penalty of Late Payment of Rent under Islamic Shariah ![]() Meezan Bank insures its assets through Takaful only, which is the Islamic product for insurance. As such, Meezan Bank insures its leased assets. Legally (in accordance to Pakistan’s Law and Regulations), it is required for all leasing entities to insure the leased assets. As such, in the above-mentioned eventualities, Meezan bank does not charge the lease rental. 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. If the leased vehicle is stolen or completely destroyed, the conventional leasing company continues charging the lease rent till the settlement of the Insurance claim. 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.Ĭontinuation of lease rentals in case of total loss or theft of vehicle 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 places all liabilities on the user of the asset, which is contradictory to Islamic Shariah. the Lessor should have ownership of the asset during the period of the contract. How is Car Ijarah Shariah-compliant? Download FatwaĬar Ijarah, designed under the supervision of Meezan Banks Shariah Supervisory Board, is unique to car leasing facilities provided by other banks.Īn Islamic Ijarah is an asset-based contract, i.e. If the applicant has availed other financing facilities, all monthly repayments combined, including proposed Ijarah rental, should not exceed 40% of net / take-home income.Minimum business experience 3 years continuous involvement in current business / industry for businessman / self-employed professional.Minimum 2 years continuous employment history in current employment for salaried professionals.Maximum age limit of applicant at time of maturity should not exceed 65 years for businessman / self-employed professional.Maximum age limit of applicant at time of maturity should not exceed 60 years for salaried professional.Minimum age limit of applicant should be 25 years.In case of a non-filer, 4 % Advance Tax on the Cost of Vehicle will be applicable at the time of vehicle disbursement.The maximum age of authorized nominee / co-borrower should not be above 70 years at the time of Ijarah maturity.The vehicle would be delivered to the nominee / co-borrower (blood relative – father / mother, son / daughter, brother/ sister or spouse residing in Pakistan) of applicant.Monthly Rentals are to be paid through direct debit instructions from PKR Roshan Digital Account.Documentation and security perfection charges are to be paid at actual by the applicant at the time of disbursement of the case The facility is available for all Roshan Digital Account holders including foreign currency account holders.Both data check & e-CIB should be clear and must not have default / overdue at the time of case approval.Security deposit / Advance rental: Minimum 15% and maximum 50% of the cost of vehicle.Financing facility for new locally assembled and Complete Built Up (CBU) vehicles.Roshan Digital Account Holders Eligibility Criteria
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |