Everyone wants to live in the best place that is comfortably affordable. This means being able to cope with other financial commitment, while still having money left over for extras and unexpected expenses. Askari Islamic Banking is pleased to offer Shariah Compliant Home Financing. We facilitate you to Purchase, Construct, Improve and Transfer of the property through Diminishing Musharakah.
Askari Home Musharakah (For Buying, Construction, Renovation of private residential real estate/property and Balance Transfer Facility).
|Home Buying:||Purchase of already constructed house on Diminishing Musharakah basis|
Construction is to be completed within 18 months from the date of disbursement of the first tranche
|Home Renovation||Renovation, extension, restoration and enhancement of an already owned housing unit|
|Home Balance Transfer Facility (BTF):||Taking over the existing house finance facility obtained by the customer from other financial institutions. Only Principal Amount will be taken over|
|How It Works?||
|Underlying Islamic Mode:||Diminishing Musharakah|
|Financing Limits of the Products||Minimum Finance||Maximum Finance|
|Home Buying||Rs. 0.300||Upto Rs.50 M|
|Home Construction (plot purchase + Construction)||Rs. 0.300||Upto Rs.30 M|
|Home Renovation||Rs. 0.300||Upto Rs.10 M|
|Home BTF||Rs. 0.300||Upto Rs.50 M|
|Product||Minimum Tenor||Maximum Tenor||*Grace Period for Unit Purchase (Principle) only|
|Home Buying||1 year||20 years||nil|
|Home Construction (plot purchase + Construction)||1 year||20 years||18 months|
|Home Renovation||1 year||10 years||6 months|
|Home BTF||1 year||20 years||6 months|
*Rent will be paid during the grace period.
|Customers||Individuals (salaried, business persons/self-employed persons)|
|Security/Collateral:||Registered/ Equitable Mortgage with token registered mortgage of property owned/ purchased by main applicant/co-applicant|
|Financing Limit (Equity Participation):||
|Pre-Payment Profit:||Allowed with 3% profit (in case the value of property appreciates and Nil if it decreases or remains the same)|
For Business/Self-employed Individuals
For Salaried Individuals
|What is Ijarah?||Ijarah is a rental agreement, under which the usufructs of an asset is transferred to the client on pre-agreed terms and conditions. It is a Shariah Compliant mode of finance, adopted by Askari Islamic Banking to meet the Car Financing needs of its valued customers.|
|Why Askari Ijarah Bis Sayyarah?||We are Shariah Compliant and market competitive. Askari Islamic Banking deals in all kinds of new, used, locally assembled, as well as imported vehicles. Terms and conditions we offer are most flexible, with prompt processing time. Moreover, in order to enhance customers’ convenience, we offer family income evaluation plan, where our valued clients can also avail Ijarah Bis Sayyarah facility for more than one vehicle.|
|Name of Product||Askari Ijarah Bis Sayyarah (Islamic Car Leasing for both new and used, locally manufactured/imported vehicles)|
|Tenors:||1 – 7 years (for new vehicle only) The used vehicle shall not be older than 5 years at the time of commencement of Ijarah and shall not be more than 8 years at the time of maturity of Ijarah|
|Customers:||Individuals (salaried, business persons/self-employed persons)|
|Repayment:||Monthly Ijarah Rental Payments, in arrear|
For Business Persons
For Salaried Persons
For Self-Employed Persons
When does the rental start In Askari Ijarah Bis Sayyarah?
As Ijarah, by definition, is “rental paid for the usufruct of an asset” hence, rental payment always starts with delivery of the vehicle to the user, unlike conventional lease, where lease installments start right after the payment to the vendor by the lessor.
What are the respective roles of both parties under Ijarah?
In Ijarah, as Bank is the owner of the vehicle and only transfers its usufruct to the customer, hence, customer is responsible for any risks and liabilities attached to the usage of the vehicle, while risks relating to ownership remain with the Bank throughout the Ijarah period.
|Expenses related to ownership||Bank|
|Expenses related to use of asset||Client|
|Risk associated with ownership||Bank|
|Risks associated with use of asset||Client|
|Third party liability in case of accident||Client|
|Expenses and risks associated with ownership but caused due to gross negligence||Client|
Is there any penalty involved if one fails to pay the rental on time?
In Ijarah, nominal additional charges are taken by the Bank due to any delay in rental installment(s) by the customer, which are used for “charity” purposes, rather than going into the income of the Bank, as it is done in the case of conventional lease This concept of charging “penalty” is approved by the contemporary Shariah Scholars to allow the Banks to safeguard themselves against the “habitual defaulters”
What if any mishap happens to the vehicle?
If the vehicle is stolen or destroyed in any mishap, unlike conventional lease, Ijarah rentals will not be charged, and security is refundable in this case However, this is subject to there being no misconduct, or negligence, on part of the client
How the client becomes owner of the vehicle?
Once the client successfully pays all Ijarah rentals, Bank gives him/her the option to become the owner of the vehicle, by purchasing it against the security already deposited with the Bank