Are you looking for options in vehicle finance? Qatar banks might just be able to help you find exactly what you are looking for. At Barwa Bank, the newest retail and commercial Islamic banking facility in Qatar, you can avail of a murabaha vehicle finance product to help you purchase a car, whether to replace your old one that is becoming to be expensive to maintain or to add a new car for the family's growing needs. To those who are new to the workings of finance products, it would be important to note that there are certain differences in the handling of finance products between conventional banks and Islamic banks. Understanding how an Islamic bank like Barwa Bank configures their vehicle finance products would give you an idea of what options and benefits you can enjoy with such murabaha vehicle finance products.
The Concept of Murabaha Finance
In offering vehicle finance, Qatar's Islamic banks are bound by Islam laws and economic principles and are required to be Shari'ah compliant. According to these laws, individuals or businesses are not allowed to receive or render interest payments in relation to the granting of loans - Islamic banks are constrained to apply such principles by turning to murabaha in their finance products. This concept as applied to vehicle finance products results in what could be likened to a rent-to-own arrangement wherein the bank purchases the vehicle and sells the same to the bank customer at a profit margin agreed upon during the application process. The total cost at which the bank sells the vehicle to the bank customer is then paid by the customer for a pre-agreed term during which the bank cannot levy any more additional fees. The bank also retains ownership of the vehicle throughout the term of the finance agreement until the customer fully settles the amount financed.
Dedicated Vehicle Finance
At Barwa Bank, you can avail of a vehicle finance product that is dedicated to helping you purchase your new vehicle through an application process that is quick and easy and with flexible terms that are beneficial to you. Barwa Bank's Shari'ah compliant vehicle finance product offers attractive profit rates on your vehicle of choice payable up to seven years with no other charges collected throughout the term of the finance agreement. As an added bonus, all vehicle finance customers are given free life insurance coverage for the financed amount. In processing an application for vehicle finance, Qatar's Barwa Bank normally takes less than 24 hours to grant approval provided that all application and supporting documents required have been submitted.