1. Which mode of financing is being used?
AHAF is being offered under the Shariah Compliant mode of financing i.e. Diminishing Musharakah (DM). Diminish means ‘Reduce’ and Musharakah means ‘Partnership’ Diminishing Musharakah (DM) is that form of partnership wherein the Customer and Bank contribute their funds for purchasing vehicle(s). After taking possession of purchased vehicle(s), the Customer takes that Bank’s Share of Units in vehicle(s) on rent and pays rental for use of the vehicle and simultaneously purchases the Bank’s share through monthly Installments until Customer becomes 100% owner of the purchased vehicle(s).
2. When will the processing fee be applied?
Processing fee of Rs. 2,400/- will be applied at the time of submission of the application at the branch.
3. What is the pricing/rental mechanism?
The pricing/rental of AHAF is based on variable rate (inclusive of Takaful Cost) and will be revised after 01 year based on 01 Year KIBOR rate and spread as per agreed formula mentioned in Payment Agreement.
4. What is the age of used vehicle that can be financed?
Maximum age of vehicle not to be more than 9 Years old at the time of financing and 12 Years at the time of maturity of financing.
5. Who can apply for the facility?
- Salaried employees (Permanent & Contractual) including but not limited to NBP, Government Institutions & Armed Forces Employees.
- Self Employed Professional (SEP)
- Self Employed Businessman (SEB)
- Other Income Groups including Pension Income, Remittance Income, Investment Income, Property Rental Income, etc.
- Non-Resident Pakistani (NRP), the requirement of Co-Customer is mandatory and he / she must be resident Pakistani.
6. What is the age requirement of the Customer?
Customer’s age must be between 21 Years (Minimum) to 60 Years (Maximum) for salaried employees & between 21 Years (Minimum) to 65 Years (Maximum) for self-employed professionals / businessmen, other income groups & NRP.
7. What is the minimum monthly income requirement?
The minimum net monthly income requirement for AHAF facility is PKR. 50,000/- for Salaried / SEP / SEB / OIG & PKR 400,000 for NRP.
8. Are co-customers allowed under the facility?
Yes, only spouse will be considered as Co-Customer. In case of NRP, the requirement of Co-Customer is mandatory and she must be resident Pakistani.
9. To what extent can the income of co-customers be incorporated to meet the minimum requirements?
50% of Co-Customer’s verifiable Net Monthly Income can be clubbed to meet net monthly income and DBR.
10. To what extent can the income of co-customers be incorporated to meet the minimum requirements?
40% of Co-Customer’s verifiable Net Monthly Income can be clubbed to meet net monthly income and DBR.
11. What is the minimum and maximum requirement for Customer’s contribution as equity?
The Customer can contribute Minimum 30% and Maximum 80% of the vehicle cost as equity contribution in case of new/used vehicles.
12. What are the options available for the financing tenure(s)?
The AHAF facility can be availed for 01 - 05 Years for vehicles with engine capacity of upto 1000 cc & 01 – 03 Years for vehicles with engine capacity more than 1000 cc.
13. Is there any nationality restriction?
Yes, only Resident & Non-Resident Pakistani Nationals having valid CNIC / NICOP can avail the AHAF facility.
14. Is there any mandatory requirement of clean credit history?
Yes, the clean eCIB and data check history of the Customer is required in order to avail the AHAF facility. However, NOC for previous settled loans is required if still reflecting in eCIB.
15. What is the maximum Debt Burden Ratio (DBR) criteria?
The maximum DBR of the Customer should not exceed 40% of the net income.
16. Whose name will the vehicle be registered in?
The vehicle will be registered in the name of the Customer with HPA mark in favor of NBP.
17. If insurance is prohibited in Islam, how does the Bank get the vehicle(s) insured?
The Bank has arranged to have all of its vehicles insured under Takaful, the Shariah compliant substitute of insurance.
18. What happens in case of total loss / theft?
In case of total loss/theft, the partnership will be terminated on the day on which such loss has occurred. Otherwise the total loss claim received from the Takaful Company will be shared amongst the partners i.e. the Bank and the Customer in proportion to their outstanding Musharakah Units.
19. At what point will the Customer be obliged to start making the monthly instalments?
The monthly installments will commence from the date on which the vehicle is delivered to the Customer.
20. What are the rights and liabilities of the Bank and the Customer?
As Bank and the Customer have joint ownership of the vehicle, therefore, both are liable to bear all kinds of loss or damage to the vehicle as per their ownership ratio unless the loss occurred due to the negligence of either party.
21. Is there a penalty for late payment of installments?
In case of delay in purchasing the Musharakah Units by the Customer then Customer will purchase the outstanding Musharakah Units of respective Installment(s) on additional purchase price at 20% per annum and this would be credited to Bank’s income whereas charity shall be charged on unpaid rental(s) of respective Installment(s). In case of cancellation of Booking of Vehicle post down payment, Charity amount would be PKR 10,000/-.
22. After expiry of the financing period, how will the Customer become the sole owner of the vehicle?
After the gradual sale of Musharakah units by the Bank to the Customer on monthly basis, the Customer becomes the sole owner of the vehicle at the end of the financing tenure or with the option of early purchase of units whereby an additional amount of 5% of the outstanding Musharakah units will be applied.
23. In which circumstance will the Bank initiate repossession of the Vehicle?
The Bank will initiate the repossession of the vehicle is case the Customer’s account has been overdue for 60 days plus.
24. What will happen to the vehicle if the customer dies within the financing period?
The Musharakah agreement will stand terminated and the vehicle can be purchased by legal heirs subject to legal formalities.
25. Can you sell your vehicle to a third party during the tenure of the facility?
No, you are not allowed to sell the vehicle to a third party during the term of the contract.
26. Where can you get assistance and redress?
Through NBP website www.nbp.com.pk/islamic and call center # 021-111-627-627 or contact NBP Aitemaad Branch.
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