So you want to buy a car in Australia, but your conscience and your beliefs simply don’t align with the way traditional financing models are set up. It can be really tough getting ahead in life when you’re unable to keep your finances aligned with your values.
Whether you’re a devoted Muslim business owner or a self-employed professional in the city who doesn’t want to engage in the dubious practice of interest-based lending, you’ll be glad to know there’s another legitimate way to get the equipment you need.
Islamic car finance in Sydney from Ijarah Finance makes it possible to avoid interest-based loans through a Sharia-compliant rental structure.
Here’s how to apply:
Step 1: Check Your Eligibility
You don’t have to be a Muslim to apply. However, you do need to be self-employed and hold an active ABN for at least one year.
The financing is designed for business purposes, so your structure must fall into one of four recognised categories: sole trader, partnership, company or trust.
Although your approval depends on meeting certain key financial criteria, all Australian citizens, permanent residents and non-residents can apply.
Step 2: Prepare Your Documentation
To move forward, you’ll need to provide the right paperwork. This includes proof of your ABN registration, GST registration if applicable, and any other supporting documents that show your income and business activity.
Having these ready before you begin will save time and reduce back-and-forth later in the process.
Step 3: Submit Your Application
Once your documents are in order, you can lodge your application with Ijarah Finance. Applications are reviewed on a case-by-case basis, wherein your creditworthiness and business viability will be assessed.
Although Islamic finance is not interest-based, Ijarah Finance still takes on some risk when entering into a rental-based contract. Therefore, we need to be confident that you can meet your payment obligations throughout the term. That’s why we still need to assess your financial standing, repayment history, and business stability much like any other lender would.
Step 4: Enter the Agreement
If you’re approved, you will enter into a rental-based contract known as Ijarah Thuma Albai. The vehicle will be purchased by Ijarah Finance and then registered in your name. However, we will retain legal ownership of the asset for the duration of the term. This is done to avoid double stamp duty costs and keep the structure compliant.
At any time, you can make an offer to purchase the vehicle by paying the remaining finance balance plus a nominal fee.
For more details on how Islamic car finance in Sydney works and to begin your application, contact Ijarah Finance today.