Minimum Salary Salary Transfer Early Settlement Fees Maximum Term Flat Rate Reducing Rate
Al Hilal Bank - New Vehicle Finance Al Hilal Bank - New Vehicle Finance Minimum Salary: AED 8,000 Salary Transfer: No Early Settlement Fees: - Maximum Term: 5 Years Flat Rate: 2.35% Reducing Rate: 4.26%

Al Hilal Bank puts your car buying plans into overdrive. If you are looking to buy a brand new vehicle from a franchised dealer, we can buy the vehicle under our New Vehicle Finance product and sell it to you at a cost including an agreed profit through the Shariah contract of Murabaha or on a specific sale price through Musawamah.

Shariah Contract:
We follow two different Shariah structures for our vehicle finance Product.

  • Murabaha:
    Murabaha is a Shariah-compliant sale where the seller (in this case Al Hilal Bank) discloses the true cost incurred in acquiring the vehicle and then sells the same to the Murabaha buyer (in this case Al Hilal Bank customer) for an agreed profit. The buyer is aware of the cost and profit amount.
  • Musawamah:
    Musawamah is a general and common kind of sale in which price of the vehicle to be traded is bargained between the seller and the buyer. Unlike Murabaha, the seller in Musawamah is not bound by the Shari'a to disclose the cost incurred and the profit made out of such a transaction. Both the parties negotiate on the price. Musawamah can be used where the seller is not willing to disclose the exact cost of a vehicle the seller is offering to sell.
Benefits:
  • Get up to 60 days grace period to start your first instalment
  • Vehicle registration on the 3rd party name
  • High financing limit
  • Salary transfer is not mandatory

Eligibility & Required Documentation:
• Minimum salary requirement of AED 8,000
• Down payment requirement of 20%
• A valid passport
• Residence visa page (as applicable)
• Latest 3 months bank statements
• Quotation addressed to Al Hilal Bank
• Any other additional documentation which may be required thereafter according to the Al Hilal Bank policies and procedures

** Calculator Definitions
Amount: The total amount of money borrowed, also referred to as the principal amount.
Rate (%): This is the annual interest flat rate on the product. This is not the 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.
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