Lease at 4% interest rate

[AliTepu]

salam everyone
yesterday my class felow told me that bank employees have to pay 4% interest on car.I called my another friend immediately who is in meezan bank and asked if it is true and he said yes.
since i want to buy a new swift with almost 75% Down payment i really consider this opportunity.
but my question is
can i transfer the car on my name immediately after delivery from factory or it will be registered on his name till the last installment??
is there any risk if i lease it through the employee(my friend)???

quick reply please.i really really appreciate that

[Asad_B]

it will be registered on his nam till the last installment.............and after u can registerd on ur name

[AliTepu]

so he cant sell his car during installments?
is there any legal issue if we agree upon a contract that he is purchasing on behalf of me?

[m_waqas]

one thing that your friend in bank should consider is that usually the interest on only first car is 3-4% and on next car (if he buys another in future) will be 10% or more. So make sure he is aware of that and doesn't get upset with you and your friendship is not compromised. If thats not the case with Meezan bank then all is fine

[siddiq75]

meezan bank offers car loan equal to 20 basic salaries to its staff on zero percent for a period of 4 year...and this facility can be availed only one time during the entire employment with the bank and till such time the employee is not entitled to a bank maintained car. moreover, during the entire period of the loan, the car is registered in the name of the bank. one more

thing is that the car must not be more than 3 years old. this info was availed by me during course of my employment with the same bank many years ago and the bank may have changed its policy now.

[fouadar]

if you can not trust then do not proceed.
all legal shegal is useless, he would be the owner and he can use it or sell it any time....

[ammarspk]

Why go for a new car using lease and paying interest. Just buy a JDM Vitz in your case.

[guls4eva]

meezan bank offers car loan equal to 20 basic salaries to its staff on zero percent for a period of 4 year...and this facility can be availed only one time during the entire employment with the bank and till such time the employee is not entitled to a bank maintained car. moreover, during the entire period of the loan, the car is registered in the name of the bank. one more thing is that the car must not be more than 3 years old. this info was availed by me during course of my employment with the same bank many years ago and the bank may have changed its policy now.

Few clarifications,

1. All banks offer 30 basic salaries for staff to avail any loan, be it home or Car.
2. Employees can avail home loan facility only 2 times in their stay with that particular bank but there is no limit for how many time he can change or avail the Car loan.
3. Some Banks charge 2%p.a, some charge 3%p.a some charge 4p.a and others charge 5p.a. Usually big banks like HBL, UBL, ABL, MCB charge 4 to 5%p.a from their employees. International banks such as SCB, Citi, HSBC, Dubai Islamic and Barclays charge 2 to 3%p.a.
4. The car is registered in the name of the employee but HPA marked in favor of the bank.
5. The car can be maximum 5 years old.
6. No bank offers ZERO interest to any of it employees.
7. Once Auto loan is availed the employee can not sell the car or change the car for next 2years minimum. Otherwiz no loan will be given to him till his 2years are complete and this can be done only once in 5yrs.
8. Zero interest is for employees who are AVP, VP or SVP. But they are given a choice of cash or car. its called entitlement car. If they go for car then they are not given cash.
9. Some banks dont give Car or Cash option to AVP.

Guys I know all this as I am a banker for the past 8yrs and am entitled/ using Toyota Corolla Gli.

Employees can avail all loan facilities or entitlement facilities for themselves or family (meaning wife, Kids or parent.... Not brother and sister or friends or their families).

[AliTepu]

Thankyou so much guys.
especially m_waqas and gul4eva
My only concern was the legality.i will tell him every detail then lets see what he say
i m going to meet him at monday or tuesday.
Thanks again

[AliTepu]

Few clarifications,

1. All banks offer 30 basic salaries for staff to avail any loan, be it home or Car.
2. Employees can avail home loan facility only 2 times in their stay with that particular bank but there is no limit for how many time he can change or avail the Car loan.
3. Some Banks charge 2%p.a, some charge 3%p.a some charge 4p.a and others charge 5p.a. Usually big banks like HBL, UBL, ABL, MCB charge 4 to 5%p.a from their employees. International banks such as SCB, Citi, HSBC, Dubai Islamic and Barclays charge 2 to 3%p.a.
4. The car is registered in the name of the employee but HPA marked in favor of the bank.
5. The car can be maximum 5 years old.
6. No bank offers ZERO interest to any of it employees.
7. Once Auto loan is availed the employee can not sell the car or change the car for next 2years minimum. Otherwiz no loan will be given to him till his 2years are complete and this can be done only once in 5yrs.
8. Zero interest is for employees who are AVP, VP or SVP. But they are given a choice of cash or car. its called entitlement car. If they go for car then they are not given cash.
9. Some banks dont give Car or Cash option to AVP.

Guys I know all this as I am a banker for the past 8yrs and am entitled/ using Toyota Corolla Gli.

Employees can avail all loan facilities or entitlement facilities for themselves or family (meaning wife, Kids or parent.... Not brother and sister or friends or their families).

in point 4 u mentioned hpa in favour of bank.i want to know what exactly hpa is?
and i have few questions more
during lease period,what if car stolen or hit by accident?who will bear loss?
in ordinary case the master bear everything and enjoys risk and reward,is this case is similiar too or not?
in short i wnt to know whos gonna bear if something happens to car?
employee(or me in this case) or bank????

[AliTepu]

anyone?

[onlinecourse321]

Can you provide some information about home loan, which is the best shariah based bank which provides loan and pls identify any risks.

[onlinecourse321]

Can you tell me info about house loan which is best shariah based bank in terms of return amount ,dealing and overall service .Also any insight outs of these loans