MUSCAT, 21 August 2013 – The Ramadhan promotion car finance launched by Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has evoked good response owing to its attractive features, including the lowest profit rates, free life Takaful coverage and funding up to eight years. The special Meethaq car finance is available until 31 August following which a raffle draw will be held to pick four customers who will win their cars without any profit payment.
The first-of-its-kind Shari'a compliant car finance product in the Sultanate by Meethaq has gained in popularity, mainly due to its Islamic financing mode of Murabaha. The benefits of Meethaq car finance include financing up to 80 per cent of the car value and repayment tenure up to 8 years. The bank does not charge any processing fee and offers competitive pricing. With minimal documentation and fast processing, the car finance also offers free Takaful life coverage for customers. Meethaq car finance is available for Omanis and expatriates holding valid resident card and a minimum monthly income of RO 250.
Sulaiman Al Harthy, Group General Manager – Meethaq Islamic Banking, said: “Meethaq is gratified by the big response to the innovative car finance which was launched as part of the focus to take the lead in offering a suite of banking products which combine traditional values with modernity. Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and complements the Islamic banking industry. The Meethaq strategy is to attract customers through innovative Shari'a based products and services."
Meethaq car finance is based on Murabaha, a form of financing done on the basis of sale. Meethaq, instead of giving a loan, purchases the car as per customer's description and sells it to him at a cost plus agreed profit. Under Meethaq car finance, the subject matter of the contract is the car and the deferred installments, and not money against money. The bank buys the car according to the customer's specification and sells the same to the customer against deferred repayments by concluding a Murabaha sale contract.
Every Meethaq product goes through a process of Shari'a compliance certification by the Shari'a Supervisory Board and the car finance has been created in line with the guidelines of the Central Bank of Oman.