What determines borrowing power?
What Is Islamic Car And Asset Finance
Are There Different Types Of Islamic Car And Asset Finance?
There are two main methods for financing vehicles and assets utilizing Australian Islamic finance. These include:
Ijarah Muntahia Bittamleek (Lease To Buy)
This is a form of lease agreement where a funder will finance a property with an agreed rental instalment. These rental instalments can be either fixed or variable and are over an agreed period of time. At the end of the lease period, the ownership of the property will be transferred from the funder to the client or the funders claim to the property will be removed.
Murabaha (cost plus)
This form of Islamic finance is where the funder and the buyer agree to the markup of an asset. The markup takes place for the services rendered by the funder to secure and purchase the asset. After this, the buyer makes payments based on the price + mark up until the finance has been paid off. As with Ijarah agreements, the buyer does not become the owner until after the finance has been paid in full
How Does Sharia Finance Help?
It can be difficult to navigate Islamic car and asset finance in Australia. At Sharia Finance, our team of Islamic specialists have significant experience helping our clients around Australia to successfully apply for Islamic Investment Finance.
Our team support you every step of the way including discussions about different Islamic funders and their contracts, negotiating with the funder on your behalf and managing the application all the way until the funds are paid.
If you would like to speak with us about your personal circumstances, simply give us a call or request a call using our online booking platform.
