Applying for Car Finance

How can I apply for ICFAL’s Car Finance?

After ensuring your eligibility, you can apply online through our online form.

Am I eligible for ICFAL’s Car Finance?

For eligibility, you will need to ensure you:

- Are an Australian Citizen or Permanent Resident of Australia
- Are aged 18 or over
- Have a regular, verifiable Australian taxable income
- Have a fixed, verifiable residential address in Australia

Other credit and approval criteria will apply depending on individual circumstances.
Car Finance Features

Where does ICFAL source its funds from?

Our funds are strictly sourced only from our members and not any other external providers or parties.

How are my monthly payments for Car Finance determined?

Monthly payment depends on the ICFAL?s share of the vehicle, target profit, and duration of the contract. 

Does ICFAL provide Car financing for business purposes?

Yes, Car financing is available for companies. 

Can I pay off early?

Yes, you have to pay the profit with ICFAL?s remaining share on the car.
Car Finance Shariah Compliance

How are the payments made to ICFAL different from payments made to a Bank?

The payments made to a bank in a conventional finance system is based on repayment of money with no relationship to the vehicle. The bank lends a customer a certain amount of money and expects a certain amount of money in return for the money they lent out.

The payments made to ICFAL are based on the concept of trading and reflects the real-world return on the investment. Payments are dependent on 3 components: Rent, Share Purchase, and Profit on Share Purchase.

If there is no interest, why am I paying additional to the amount ICFAL initially invested by the end of the contract?

Paying more does not mean you are paying interest. The money that ICFAL makes is derived from rental payments and profit made on ICFALs shareholding. Most of the profit that ICFAL derives over the term of its finance contracts is in the form of rental payments.

What Islamic contract is used for ICFAL’s Car Finance?

Our Car finance contracts are based on Murabaha (cost-plus financing). We share partnership with the member in purchasing the vehicle and sell our share to them over a period of time.

Over time, the member pays rent on ICFAL’s share of the car. This rent amount will reduce with each additional share purchase the member makes.

Is there such thing as true Islamic finance? 

We believe there are true Islamic financing alternatives available. In particular, our model of Home Financing is significantly different from the market that many of our legal, regulatory and compliance partners recognise our unique Musharakah model as substantially different from a standard principal and interest model.

What makes ICFAL Islamic?

ICFAL operates a truly unique financing model by:

1. Sourcing our funds only from our members and kept in an interest-free bank account.
2. Sharing in any equity profits and losses in the sale of the property in the market.
3. Allowing for the rent and profits paid under our Musharaka financing model to be based on the actual rent and property prices using an independent valuer.
4. Our profit rates are not tied to the prevailing market interest rates.
5. ICFAL is a community-owned and operated organisation. The profits are not attributed to any single member or a small group of individuals.
6. ICFAL simply offers a platform to bring members who would like to help other members to homeownership through a proven Islamic financing model.

We believe these factors make us substantially different from other financing models.

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