Car Finance by Meezan Bank: Everything You Need to Know
Looking for a halal and reliable way to finance your car? Car Finance by Meezan Bank offers a Shariah-compliant solution through its popular product called Car Ijarah. This service allows individuals to lease a car with flexible terms while ensuring that the financing is interest-free and Islamic in nature.
In this article, we’ll break down everything about car finance by Meezan Bank — from eligibility criteria to the application process and the benefits you get. Whether you’re looking for a brand-new ride or a used vehicle, this guide will help you make an informed decision.
Table of Contents
What Is Car Finance by Meezan Bank?
Meezan Bank’s car finance solution is called Car Ijarah — a leasing agreement based on Islamic financing principles. Instead of charging interest like conventional loans, the bank purchases the car and leases it to you for an agreed period. At the end of the lease, ownership is transferred to you.
It’s a smart option for people who want to avoid interest-based transactions and prefer a halal financing method.
Key Features of Meezan Car Ijarah
Shariah-Compliant Financing
This is the biggest selling point. Meezan Bank follows the rules of Islamic banking, which means the product is approved by a board of Islamic scholars. No riba (interest), no hidden charges.
New and Used Car Options
You can finance both new and used cars (up to 7 years old). This gives flexibility to people who want affordable vehicles without compromising on quality.
Flexible Tenure and Payment Plans
You can choose a repayment plan that suits your income — from 1 year to 7 years. Payments are fixed, so you know exactly what you’re paying every month.
Eligibility Criteria for Meezan Car Finance
To apply for car finance from Meezan Bank, you need to meet the following requirements:
- Must be a Pakistani citizen
- Age: Between 21 and 60 years
- Minimum income: Rs. 30,000/month (varies for salaried vs self-employed)
- Employment status: Salaried, self-employed, or business owner
- Good credit history
Required Documents
Make sure you have the following when applying:
- CNIC copy
- Latest salary slip or bank statement
- 2 passport-sized photographs
- Proof of income/business
- Completed application form
How to Apply for Car Finance by Meezan Bank
Step-by-Step Process
- Visit your nearest Meezan Bank branch or website.
- Fill out the Car Ijarah application form.
- Submit required documents.
- Bank evaluates your creditworthiness.
- Once approved, choose your car (from a dealer or seller).
- Meezan Bank purchases the car and leases it to you.
Online Application Facility
You can also apply online by visiting Meezan Bank’s website. Fill in your personal details and upload the required documents. It’s convenient and fast.
Car Ijarah vs. Conventional Car Loan
| Feature | Meezan Car Ijarah | Conventional Loan |
|---|---|---|
| Basis | Islamic (Lease-based) | Interest-based |
| Interest | No | Yes |
| Ownership | Transfers at end | Immediate |
| Shariah Compliance | Yes | No |
| Flexibility | High | Moderate |
Benefits
Transparent Pricing
No hidden fees. The monthly rentals are clearly defined in the contract and agreed upon upfront.
No Interest-Based Transactions
The biggest advantage — it’s entirely riba-free and follows Islamic finance principles.
Quick Approval Process
If all documents are in order, approval can take as little as 3–5 working days.
FAQs About Car Finance by Meezan Bank
Is Meezan Bank’s Car Finance only for Muslims?
No, anyone can apply as long as they meet the eligibility criteria.
Can I apply jointly with a spouse or parent?
Yes, joint applications are allowed.
Is insurance mandatory?
Yes, Meezan Bank requires Takaful (Islamic insurance).
Is early termination allowed?
Yes, but it comes with certain conditions and charges.
Conclusion
Meezan Bank’s Car Finance solution is ideal for anyone seeking a halal and flexible way to drive their dream car. With its Shariah-compliant structure, transparent leasing model, and wide eligibility, it caters to a diverse audience across Pakistan. Whether you’re eyeing a new model or a budget-friendly used car, Car Ijarah by Meezan Bank gives you peace of mind and financial convenience.
