Just in case you want to take an auto-loan in Singapore the islamic way, here is what you should do :
Visit May Bank Singapore. Ask for AF-i ( Auto Finance-Islamic ). And you are granted one.
So how is this any different from any auto loan ? And what is Islamic about it ?
First, you don’t apply for a loan. And due to that you don’t pay interest for that.
Then what do you get ? An Auto Loan that has the Islamic flavor.
What you essentially get is a lease contract. You enter into a lease with the bank and agree to pay a fixed sum of money for the duration of the lease. And once the lease expires, you enter into a sale contract with the bank to buy the vehicle at an agreed price.
Why this round about manner to get an auto loan ? That is because the Sharia law forbids getting interest payments. In the lease and purchase method, you don’t pay an interest.
So, if you are market conscious, and want to reach out to people by addressing their concerns that might border on religious beliefs, then you are a winner.
And even banking software companies are coming out with Islamic banking products that are compliant with the tenets of the religion.