| Minimum Salary | Salary Transfer | Early Settlement Fees | Maximum Term | Flat Rate | Reducing Rate | |
|---|---|---|---|---|---|---|
Al Baraka Islamic Bank Auto Finance
|
Minimum Salary: BHD 400 | Salary Transfer: Yes | Early Settlement Fees: - | Maximum Term: 7 Years | Flat Rate: 2.88% | Reducing Rate: 5.18% |
Taqseet Auto & Other Goods Finance execution based on Murabaha Contract which is an Islamic form of asset financing and has a fixed term and a predetermined profit.
In a Murabaha the bank buys a specific asset that the customer wants, and after having owned it and becomes its property, it sells to the customer at the buying price plus a profit at a rate agreed at the time of entering into the contract.
Al Baraka Islamic Bank Auto Finance Features:
If you borrow BHD 10,000 over 3 years at a Representative APR of 4.6% fixed and an annual interest rate of 4.6% you would pay:
Payment per month – BHD 297.50 | Total charge for credit – BHD 710 | Total amount you repay – BHD 10,710
Please note, the actual rate applied to your loan will depend on your circumstances.
In a Murabaha the bank buys a specific asset that the customer wants, and after having owned it and becomes its property, it sells to the customer at the buying price plus a profit at a rate agreed at the time of entering into the contract.
Al Baraka Islamic Bank Auto Finance Features:
- Interest rates starting from 2.88%
- Islamic Finance
- Salary transfer is required
- Latest Pay Slip / Salary Certificate
- Bank statement for the last 3 months (6 months for self-employed Individuals)
- Valid Commercial Registration for self-employed Individuals
If you borrow BHD 10,000 over 3 years at a Representative APR of 4.6% fixed and an annual interest rate of 4.6% you would pay:
Payment per month – BHD 297.50 | Total charge for credit – BHD 710 | Total amount you repay – BHD 10,710
Please note, the actual rate applied to your loan will depend on your circumstances.
** Calculator Definitions
Amount:
The total amount of money borrowed, also referred to as the principal amount.
Rate (%):
This is the annual interest rate on the product which is equivalent to APR, which is going to be calculated in this example.
Years:
This is the original term or length of the product, stated in years.
Effective Monthly Payment:
This is the effective monthly payment, which takes into consideration fees and other costs associated with this product. The effective monthly payment is the basis for the APR calculation.
Calculated Annual Percentage Rate (%):
The Calculated Annual Percentage Rate (APR) is determined using the annual interest rate of the product plus fees and other costs. This rate may differ from bank to bank. APR is useful when comparing two or more products with different interest rates and fee structures.
