MIB launches Shariah compliant Motorbike financing facility

Maldives Islamic Bank (MIB) has announced the launch of its new motorbike financing
facility providing a Shariah compliant solution with more rental period.

The facility provided is based on the concept AL-IJARAH (“leasing”) which is
a bilateral arrangement concluded between the bank and the client whereby the bank buy’s the motorbike from selected dealer and leases it to Customer at an agreed monthly rental and period.  At the end of the lease period the bank may offer Customer to purchase the motorbike at nominal.

According to MIB the advantages of the facility include: Shariah compliant (Al-Ijarah) based facility; Fixed monthly rental throughout the lease period; Longer rental period of up to 3 years (36 months) maximum, which lower the monthly rental amount; Free Takaful coverage equivalent to the financing amount throughout the lease period.

Anyone who meets the requirements for this facility can easily choose a motorbike from the Bank’s selected motorbike vendor in the country.

The minimum requirements are: Age between 22 to 60 years; Employed actively for last 24 months of which at least 12 continuous months has been with employer acceptable by the Bank; Monthly rental not exceeding one-third of the salary or confirm regular income; Minimum advance rental of MRf 5,000 or 10% of motorbike, whichever is higher; Payment of monthly rental through salary deduction by employer acceptable by the Bank.

MIB said that each customer is limited to one motorbike financing.