What Is A Halal Car?

What is a Halal car?

Whether is its manufacturing, or design, or anything a halal car purchase with Halal Finance must be environment friendly. Also how it is insured, counts. Following are some conditions of a halal car which has to follow:

  • It should be manufactured in a halal way with ethical manufacturing conditions.
  • The environment is friendly.
  • It should be financed according to Islamic sharia law.
  • Halal auto insurance

Only when the above conditions are met, the Muslim driver can then consider the vehicle as a halal car. Get easy Halal Car Finance Australia with Ijarah Finance.

Islamic Car Finance Australia

What are the conditions of manufacturing a halal car?

There are many things which are too kept in mind if you want to buy a halal car such as:

  • If any leather is used then it should not be of pork
  • The manufacture must respect some ethical laws such as No Child labor.


The halal car must have the least impact on the environment both in terms of fuel consumption and manufacturing conditions. Ethics also consists of ensuring objective traceability that justifies the purchase decision. So an electric car will be less polluting? Not as sure as long we cannot trace the origin of the electrify it is using.

What is Takaful?

It is a type of Islamic insurance in which various members combine their money in a type of pool system which helps them to guarantee against loss or damage. Takaful-branded insurance is based on sharia or Islamic religious law, which explains how individuals are responsible to cooperate and protect one another.

Principles of Takaful

The principles of takaful are as follows:

  • Policyholders cooperate among themselves for their common good.
  • Policyholders’ contributions are considered as donations to the fund (pool).
  • Every policyholder pays his subscription to help those who need assistance.
  • Losses are divided and liabilities spread according to the community pooling system.
  • Uncertainty is eliminated concerning subscription and compensation.
  • It does not derive an advantage at the cost of others.

What is Marabha?

It is also a type of finance in Islam in which the client asks the bank to purchase an item on their behalf. And the Halal Finance In Australia bank makes a contract in which the cost and how much profit and how much the client has to pay in installments is written. A set amount of Riba is charged and this loan is allowed in Islam. It is one of the most common types of Halal Loans or halal finance used all over the world by Islamic banks. Islamic banks are not allowed to charge or take interests which makes it really difficult for Muslims to get financial services. Ijarah Finance is the best option for Muslims in Australia to get an Islamic halal loan easily. Contact us today.

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