Halal Murabaha Car Financing

The Only Halal Car Financing in Canada

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Why Get Murabaha Car Financing Through Manzil?

  • Manzil and it’s team of Islamic Finance experts have structured and reviewed the full process and documentation to ensure its compliance within Shariah and AAOIFI guidelines
  • You can be approved for up to $20,000 for new or used vehicle purchases, including private auto sales
  • Financing can be arranged towards any vehicle – sedans, SUVs, trucks and more
  • Benefit from affordable payments that fit your needs and budget, and of course, are Halal
  • Pay off your Murabaha contract anytime without penalty
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What Makes Dealing with a Conventional Financier Halal?

The transaction you are entering into has no money involved in fact it is a trade based transaction. You are buying the car directly from the Financial Institution partner in a true Murabaha fashion. The money they make is their profit on selling you the car.

This is a trade based transaction
This is a trade based transaction

There is no lending of money involved in this transaction. You are simply purchasing a car and making monthly instalments

You are buying a car directly in a true Murabaha fashion
You are buying a car directly in a true Murabaha fashion

After selecting the car you want to buy. The financier will purchase it on your behalf and they will then re-sell it to you

The money the financier makes is their profit on selling you a car
The money the financier makes is their profit on selling you a car

Because they own the car, they can then sell it to you for a mutually agreed upon profit

Steps to Acquire a Car through Murabaha Financing

Follow the 5 simple steps below to own your Halal vehicle.

1

Submit your pre-application form online.

Submit your pre-application form online and agree upon the Murabaha car repayment terms

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Our Financial Partner Reviews your Application for Pre-Approval
2

Our Financial Partner Reviews your Application for Pre-Approval

Submit your pre-application form online and agree upon the Murabaha Car repayment terms

3

Choose your Car

Select the Car you would like to purchase and enter into a Murabaha agreement with our partner financial institution

Choose your Car
Our Financial Partner Purchases The Car and Sells It Back to You
4

Our Financial Partner Purchases The Car and Sells It Back to You

Plus the agreed upon profit – taking into account your personal credit risk profile, the value of the car and length of repayment term

5

Your car is registered in Your Name

And the sale is recorded in a Murabaha car financing contract

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Your car is registered in Your Name

Halal Wheels FAQs

Please take the time to go through our frequently asked questions below.

1. What is Manzil's role in all of this?

Manzil has many roles in this engagement primarily bringing its expertise in structuring the Murabaha car financing contract to ensure its compliance with Shariah and AAOIFI's standards and guidelines. Secondly we oversee all the transactions to ensure they are being properly executed. And lastly, we act as the promotor for our Financial Institution Partner by engaging the Muslim community with education and awareness about Islamic Finance and the products that are available to them.

2. How did this partnership come about?

As part of the Holt Accelerator program, one of their partner institutions saw an opportunity with Manzil and the Muslim community here in Canada we were catering to. They wanted to see if we could structure a car financing product that is Shariah compliant so that you don’t have to worry about buying your next vehicle fully in cash.

3. Why has Manzil partnered with a conventional financier to provide a Halal solution?

Islamicly, under a Murabaha transaction there is no “lending of money”. Our Financial Institution partner is purchasing the car using their own sources of capital and they are reselling the car back to you with the ability to make equal instalments based on the agreed upon price between you both. This in essence is trade financing and nothing to do with the lending of money.

4. How can I be sure that this is a Shariah-compliant solution?

Our Shariah advisors from IFAAS along with our Shariah Supervisory Board have reviewed the process and the documentation to ensure it complies with all the relevant AAOIFI standards.

5. Who am I signing the Murabaha contract with?

You are signing the Murabaha contract directly with the Financial Institution we have partnered with.