Maybank Singapore Islamic Banking has launched a new Shariah-compliant banking product for the financing of auto vehicles, marking another industry first as it continues to develop the retail Islamic banking sector in Singapore.

Islamic Auto Finance, or AF-i as it is known, is based on the Shariah concept Al-Ijarah Thumma Al Bai’ (AITAB), the bank said in a statement.

AITAB is a leasing contract (Ijarah) followed by sale contract (Bai’). Under the leasing contract, the customer leases the vehicle from the Bank at an agreed rental amount over a specific period.

Upon expiry of the leasing period, the customer then enters into a sale contract to purchase the vehicle from the Bank at an agreed price.

This is another milestone in Maybank Singapore’s retail Islamic banking offering and reinforces its commitment to offering customers a wide variety of options in their banking choices.

Similar to a conventional car loan, the AF-i is available for the purchase of new or used vehicles for personal use and the financing amount is dependent on the Open Market Valuation (OMV) of the financing vehicle.

Individuals who are Singapore citizens, Singapore permanent residents and foreigners who are at least 21 years of age can apply for Islamic Auto Finance.

Customers can apply for the AF-i through car dealers Car Times Automobile Pte Ltd, Faster Auto Trading, Henly Enterprise Co Pte Ltd, Hua Yang Credit Pte Ltd, Mayfair Motoring, Mohamed Taifoor Motoring and Thong Lee Trading Pte Ltd.

The launch of the AF-i brings to 10 the number of Shariah-compliant products available to customers of Maybank Singapore.

Maybank Singapore Islamic Banking aims to continue to be the leading provider of Shariah-compliant financial solutions to the Singapore market. It was recently named the Best Islamic Bank 2013 in Singapore by Global Finance magazine.

*This article was published by Bernama. Read the original article here.