Finance Your Car
the Shariah-Compliant Way
Diminishing Musharakah is a genuine Islamic partnership model — not just a rebrand of conventional interest. No Riba. No ambiguity. Just a transparent, step-by-step path to owning your vehicle.
Payment Required
(Condition Dependent)
Financing Structure
Six Steps from
Enquiry to Keys
The process is straightforward. Each step is designed to keep you informed and in control — from your first enquiry to the moment you drive away.
Know Before You Apply
Use our EMI Calculator to check whether your income, age, and down payment qualify for the vehicle you have in mind. The calculator uses real bank criteria — DBR ratios, age-at-maturity rules, and vehicle age limits — so you get an honest picture upfront, not a surprise at the bank.
Takes 2 minutesChoose Your Vehicle
Select any new or used vehicle. New vehicles can be financed for up to 5 years (under 1000cc) or 3 years (1000cc and above). Used and reconditioned vehicles are also eligible, provided the total vehicle age at tenure end does not exceed 12 years.
New or usedSubmit Your Application
Provide your CNIC, proof of income (salary slip or bank statement), and vehicle quotation. Salaried applicants, businessmen, and pensioners each have a slightly different documentation set. We guide you through exactly what is required for your profile.
Guided processCredit Assessment & Offer
The bank conducts its credit assessment and issues a formal offer letter detailing the finance amount, pricing rate (KIBOR + margin), monthly installment, and Takaful schedule. All figures match what our calculator showed you — no hidden additions.
Transparent offerPay at Signing
On booking you pay the down payment, first-year Takaful premium, processing fee, and tracker management fee via cross-cheque or pay order. The full upfront amount is shown in your offer letter — and in our calculator — before you sign anything.
No surprisesVehicle Registered in Your Name
Under Diminishing Musharakah, the vehicle is registered in your name from day one. Each monthly installment buys a further share of the bank's stake, until you own it outright at tenure end. Registration and E.T.O charges are payable before delivery.
Your name on the titleWhy Diminishing Musharakah?
Conventional car loans charge interest — Riba — which is prohibited in Islamic finance. Diminishing Musharakah replaces interest with a shared ownership structure, where the bank and customer co-own the vehicle, and the customer gradually buys out the bank's share.
"Allah has permitted trade and forbidden usury."
— Al-Quran, Surah Al-Baqarah 2:275Shared Ownership (Musharakah)
The bank and customer jointly own the vehicle. The customer's share grows with each monthly payment until full ownership is achieved.
Diminishing Bank Stake
Each installment consists of a rental (Ijarah) for the bank's share, plus a unit purchase that reduces the bank's ownership — hence "Diminishing."
Takaful Instead of Insurance
Conventional insurance is replaced with Takaful — an Islamic mutual-guarantee arrangement where contributions are shared, not speculated upon.
Variable Rate (KIBOR-Linked)
The profit rate is benchmarked to KIBOR and revised annually. It is a pricing reference, not interest — the structure remains Shariah-compliant throughout.
Eligibility at a Glance
Requirements vary by employment type. Use the EMI Calculator for a complete, personalised eligibility check.
SSalaried Individuals
BBusinessmen
PPensioners
What You Pay & When
All charges are disclosed upfront. Nothing is added after you calculate — what the EMI Calculator shows is what you pay.
Debt Burden Ratio (DBR)
The bank limits your total monthly debt obligations to 39.4% of your gross monthly income. This is the maximum installment you can qualify for.
If the EMI Calculator flags a DBR issue, it will suggest adjustments — a higher down payment, a longer tenure, or both.
Takaful in Subsequent Years
The 1st year Takaful is paid upfront. From Year 2 onwards, Takaful is collected monthly as a Supplementary Rental. The amount reduces each year as the bank's ownership stake decreases.
In the final year of any tenure, no Takaful supplementary rental is charged — the bank assumes the remaining Takaful obligation.
Common Questions
Can't find what you need? Book a free consultation — we'll walk you through the full process at no charge.
Book Free Consultation →Diminishing Musharakah is a recognised Islamic finance structure approved by Shariah scholars. The bank and customer genuinely co-own the vehicle. Your monthly payment has two components: a rental (Ijarah) you pay to use the bank's share, and a unit purchase that grows your ownership. There is no loan, no interest account, and no Riba. The structure is reviewed and certified by the bank's Shariah board.
Yes. Early settlement is permitted. Since the structure is ownership-based and not interest-based, you simply purchase the bank's remaining units at the prevailing outstanding value. The bank may apply a nominal early settlement fee — confirm this in your offer letter before signing.
The pricing rate (KIBOR + Margin) is revised once per year on your anniversary date. If KIBOR rises, your installment increases; if it falls, your installment decreases. This is disclosed in your offer letter as a variable-rate product. You can use our EMI Calculator to model different KIBOR scenarios before committing.
Under Diminishing Musharakah, the vehicle is registered in your name from day one — unlike some other structures where the bank holds the title. This is one of the key structural differences from a conventional hire-purchase arrangement. The bank holds a lien on the vehicle until the finance is fully settled.
The calculator will show you exactly why and suggest specific adjustments — usually increasing your down payment, extending the tenure, or a combination of both. If you still have questions, book a free consultation. We can often find solutions that aren't obvious from the numbers alone, such as a co-applicant arrangement or a different vehicle choice.
Conventional insurance involves uncertainty (Gharar) and can include interest-bearing investments — both of which are problematic in Islamic finance. Takaful is a mutual-contribution model where participants contribute to a shared fund and support each other in case of loss. The operator manages the fund on a Wakala or Mudarabah basis. Any surplus at year-end is returned to participants rather than retained as insurer profit.
Ready to See Your
Actual Numbers?
Use the EMI Calculator for a precise, personalised estimate in under 2 minutes — or speak to us directly.