Islamic Car Financing: Benefits & Differences from Conventional Financing
Sharia car financing is one way to purchase the desired new or used cars without having to incur interest or usury.
If you are interested in taking out sharia car financing, do not miss this article. Here, we will present various information about sharia car financing, from its benefits to its differences with conventional financing. All this information can be read directly below!
Benefits of Taking Sharia Car Financing
If you decide to take sharia car financing, you will gain several benefits. These benefits include:
Halal Source of Funds
In sharia car financing, the source of funds used comes from halal sources. Whether from sharia bonds, capital, or savings accounts. This will make the car financing you take more blessed.
Safer Installments
In addition to halal funds, sharia car financing is also safer in terms of installments. It is said to be safe because the amount of the installment does not increase or decrease during the tenor period. For example, if the initial installment is IDR 1 million, the subsequent installments will remain the same. Safe installments will allow you to gain fixed benefits.
Fines Paid Will Be Allocated to Positive Things
Although it does not use interest, sharia car financing still applies a fine system. However, the fines imposed on sharia car financing are more positive in nature. Why is that?
The fines imposed in sharia car financing will be allocated to positive things. One of them is channeled to the poor or those in need. This is different from the interest on conventional car financing, which is channeled as funds for the company.
List of Institutions Providing Sharia Car Financing
To take sharia car financing, you must do so at institutions that provide sharia car financing. Whether it is a sharia bank or sharia leasing. Below, we present a list of several institutions providing sharia car financing. The list can be seen as follows!
Bank Syariah Mandiri (BSM)
The first institution on this list is Bank Syariah Mandiri (BSM). This institution under Bank Mandiri provides sharia car financing supported by more than 3000 dealers and is considered light.
This institution is suitable for those who want to purchase a new car. For the tenor, BSM offers a long tenor period of 60 months or 5 years.
BNI Oto iB Hasanah
The next institution is BNI Oto iB Hasanah. This institution has advantages such as varied financing, stable selling prices, and light down payments.
For financing, BNI Oto iB Hasanah offers financing starting from IDR 5 million to IDR 1 billion. The tenor is the same as BSM, which is 60 months or 5 years.
Currently, BNI Oto iB Hasanah allows you to apply for financing online. You can visit and register on their official website.
Later, they will contact you via phone or WhatsApp. Their intention in contacting you is to provide important information about the sharia car financing you will take.
BPRS Al Salaam Sharia Car Financing
If you apply for financing at this institution, you will receive various promotions and non-fluctuating installment offers. This institution not only offers financing for new cars but also for used cars.
On average, institutions providing sharia car financing are only intended for individuals. However, this is different with BPRS. At this institution, sharia car financing applications can be made by business entities.
KKB BRI Syariah iB
Like the previous institutions, this one also allows us to take financing for new or used cars. This institution offers a buying and selling system as its main principle.
You can take loans starting from IDR 50 million to IDR 1 billion. If you want to obtain it, you must pay a down payment of 30 percent. This institution provides sharia car financing specifically for employees and professionals.
Mobilima
The four previous institutions are sharia banks. Unlike this one. Mobilima is a financial technology company that provides sharia car financing services. Like sharia car financing providers, this company will also first buy the car in cash and then offer it to us for financing.
Mobilima applies financing for various parties, including employees, business actors, and business entities. Each party will be given different requirements when applying for financing.
Once the requirements are met, the creditor will be asked to enter the official Mobilima website. There, the creditor can choose the type of car they wish to finance.
Differences Between Sharia Car Financing and Conventional Car Financing
Now we enter the final discussion in this article. There are several differences between sharia car financing and conventional car financing. These differences are:
Installment Amount
The first difference between the two car financing systems is the amount of the installment. In sharia car financing, the installment amount is relatively stable. So, if your first installment is IDR 1 million, the subsequent installments will be the same.
This is in contrast to conventional car financing. This type of car financing provides an unstable installment amount. This instability is due to the application of the floating interest system used in conventional car financing.
Interest System
This is the most obvious difference between sharia car financing and conventional financing. Sharia car financing is, of course, free from interest. This is what makes this financing system start to be noticed by the public.
Sharia car financing relies more on fines as their main system. Interestingly, the fines they impose are not for their personal benefit. Instead, they are for those in greater need. Every fine they receive will be donated to orphanages, the poor, or other parties in need.
Meanwhile, conventional car financing clearly uses interest as its main system. There are two types of interest used in conventional car financing: flat and floating.
Flat interest is a fixed interest. So, the amount of interest remains the same over time. Meanwhile, floating interest is interest whose value fluctuates, depending on market value.
Unlike the fines in sharia car financing, the interest in conventional bank financing is usually used for their own benefit. Typically, this interest will be saved to increase the funds or capital of the conventional bank providing the financing.
That is the information about sharia car financing, from its benefits to its differences with conventional car financing. Hopefully, it can add information and references for you, especially if you later want to take sharia car financing. See you in the next article!
Author: Anggie Warsito
