Drive Your Dreams with Islamic Car Finance

An Affordable Way to Own Your Dream Car. Do you dream of driving your own car? Are you looking for a way to finance your car purchase without compromising your values? Afiyah is here to help you drive your dreams with our Islamic car finance.


How Can Islamic Home Finance Help You?

Research shows that one in three Australian Muslims choose to keep significant cash savings at home instead of taking out a mortgage due to the lack of permissible financing options.

Since conventional financial products and services are most likely exposed to a lot of interest income, it creates a conflict with Islamic finance beliefs. This puts extra pressure on Muslims looking to purchase their first home as they are left with few options.

Stressed about financing your car?

Financing a car purchase can be a stressful process. You may worry about interest rates and hidden fees, and the thought of taking on a large amount of debt can be overwhelming. And if you're looking for an Islamic loan that adheres to your values, it can be even harder to find a suitable option.

How we can help with your new car

At Afiyah, we understand your concerns and have on offer a solution that meets your needs. Our Islamic car loans are based on the Murabahah principle, a Shariah-compliant mode of financing that allows you to purchase a car without compromising your values.

Embrace the freedom of the open road.

Our car loans are affordable, with competitive rates and flexible repayment options. We offer financing for both new and used cars, as well as commercial vehicles and trucks. Our Islamic car finance is free of interest and other haram practices, giving you peace of mind knowing your finances align with your values.

The Islamic Car Finance Process

Our process is simple and transparent:


Complete the Apply Now form or contact us directly.


Choose your car from a dealership or private seller.


The funder will purchase the car on your behalf and sell it to you at an agreed-upon price, with a predetermined profit margin.


You make payments over a period of time, with flexible repayment options to suit your needs.

FAQ: Islamic Car Finance

Our process is simple and transparent:

What is Murabahah Financing?

Murabahah car financing is a type of Islamic financing rooted in the principle of Murabahah. It's a Sharia-compliant method to finance the purchase of a car, eliminating the involvement of interest-based transactions. Derived from principles outlined in the Quran and Hadith, Murabahah financing aligns with the values of Islamic finance.


What documents will I be required to provide?

For individuals:

  • Applicant ID verification
  • Employment details to verify the date of joining, designation, and name of the company
  • Original or certified salary slip showing financial strength of the individual
  • Bank statement of the salary account for the last 12 months
  • Previous year tax returns

For Companies

  • Applicant ID verification
  • Company details and financials
  • Bank statement of the account for the last 12 months
  • Previous year tax returns
  • GST registration

Is the contracts approved by the Shari'ah board?

The products offered have been reviewed and certified by FSAC (Financial Shariah Advisory and Consultancy).

FSAC is a Singapore-based Independent Shari’ah Consultancy Firm that specialises in Islamic Financial Contracts Certification for companies and entities all over the world.

Why an international board is used and not a local body?

Regrettably, we lack organisations in Australia that focus on the certification of financial contracts in the Islamic context. On the international level, though, numerous firms possess this specialisation.

While Australia is home to numerous scholars and Imams with profound knowledge of Islamic principles, there is a shortage of infrastructure to facilitate an authority dedicated to certifying financial contracts. This is particularly true for the highly specialised and complex field of finance.

Our choice to utilise FSAC was influenced by the striking parallels between Singapore’s and Australia’s credit and contract laws, as well as their taxation systems. The board's familiarity with Australian finance and credit procedures is extensive, as is their experience in this sector, especially in the context of advanced economies.

Grasping Islamic Finance and Conventional Finance, financial instruments, Australian taxation laws, Australian credit laws, property laws, and legal contract laws, among other things, is indeed a complex task.

There's a necessity for specialised firms, ones capable of aligning with these laws whilst staying true to the essence of Shariah compliance. They should possess a deep understanding of how to integrate these laws with Shariah principles, while also being conversant with the laws applicable in a Muslim minority country and exercising discretion when needed.

Hence, our board was particularly well-equipped to guide us as an organisation when it came to providing Islamic finance to our customers in Australia. They ensured that we remained within the ambit of both the letter and spirit of the law, while also staying true to the principles of Islamic finance.

Do we pay interest to our partners?

Riba is strictly prohibited in Islamic finance. We work on profit and loss sharing principles with our partners that eliminates riba. The profit our business generates is interest-free and distributed among the partners on strict sharia laws.

Is it necessary for the funder to be Shari'ah compliant?

To offer a sharia-compliant product or contract, the funder does not need to be an Islamic bank or Islamic finance entity. Rather, the transaction, finance contract, or agreement being issued must comply with Sharia.

Yes, they can depend upon the financial position and the regulatory position. However, the change in interest rate will depend upon the nature of Islamic finance products. For example in case of Ijarha, both fixed and varied interest rates can be used; however, the same should be mentioned in the agreement details and mutual consent of parties.

Various benchmarks like LIBOR are subject to criticism from various Islamic scholars. However, there is no harm in using these benchmarks unless they are being used for purpose of calculating profit margin only. Various international accounting and financial authorities have given the permissibility to use these benchmarks for purpose of calculating their margin.

The answer is simple; the nature of the Ijarha contract allows the owner to receive compensation when the asset is leased out. Both lessor and the lessee get benefits, the lessor gets the profit in the shape of rentals and the lessee doesn’t have to purchase as an asset, rather the lessee can utilize the usufruct for its business operations.

What are the benefits of Islamic Car Finance?

  • Interest-free: It allows you to purchase a car without paying or receiving interest, making it a halal alternative to conventional car loans.

  • Transparent pricing: The marked-up price is agreed upon upfront, ensuring transparency and clarity in the transaction.

  • Flexible terms: Islamic Car Finance offers flexible repayment terms, allowing you to tailor the installment plan according to your financial capabilities.

  • Ownership from the start: Unlike conventional car loans, where the lender retains ownership until the loan is fully repaid, Islamic Car Finance grants you ownership of the vehicle from the outset of the contract.

How can I make the most out of Islamic Car Finance?

  • Assess affordability: Before committing, ensure that you can comfortably afford the monthly installments within your budget.

  • Consider long-term costs: Understand the total cost of the financing, including the marked-up price and any additional fees or charges.

  • Compare offers: As with any financing option, compare the offers from different financial institutions to find the best deal for you.

  • Choose a reputable lender: Opt for a financial institution with a solid reputation and expertise in Islamic finance, such as Afiyah.

What types of cars can I finance with Islamic Car Finance?

Islamic Car Finance from Afiyah can be used for both new and used cars, as well as commercial vehicles and trucks. Whether you're purchasing from a dealership or a private seller, we can accommodate your needs.

Can I use Islamic Car Finance for a car I’ve already chosen?

Absolutely. If you've already chosen a car from a dealership or a private seller, our funding partner can purchase the car on your behalf. The car is then sold to you at an agreed-upon price, which includes a predetermined profit margin.

Can businesses use Islamic Car Finance?

Definitely. Businesses seeking to finance commercial vehicles or trucks can also utilize our Islamic Car Finance. We offer flexible and competitive options to suit a variety of business needs.

How do I get started with Islamic Car Finance?

Starting with Islamic Car Finance is as simple as completing the "Apply Now" form on our website or contacting us directly. We're here to guide you every step of the way. If you're not sure if Islamic Car Finance is right for you, schedule a call with us. We're here to help you understand your options and make an informed decision.

Once the rentals have been paid out and the sale has been concluded, the lessee will be the new owner of the property. The lessor will transfer the title of the property to the lessee. After registration of the property under your name, you can enjoy full rights over your property.

We have both the options for you both the fixed and variable rental rates based upon your need and specifications.

Other than finding scholarly opinions on variable and fixed rate of rentals, the Australian Consumer Credit Protection (NCCP) act and customer Best Interest Duty also favour the right of the consumer to select appropriate rental rate for their contract.

Contact us, and learn more about our Islamic Car Finance and start driving your dreams!

Afiyah is for all Muslims in Australia, and that includes the future generation of forward-looking Muslims. Reach out to one of our friendly specialists to discuss your options.


Afiyah is not just a car finance solution, it is a community for all Muslims in Australia. We strive to foster a forward-looking Muslim community by providing an ethical, interest-free alternative to conventional car loans.


With our focus on education and transparency, we aim to demystify the concept of Islamic finance for our customers. Through our resources and expert consultation, we encourage informed financial decisions that are in line with our customers' religious beliefs and financial aspirations.


If you're considering a car purchase and wish to maintain financial and religious integrity, we invite you to contact one of our friendly specialists. Our team is committed to assisting you in understanding our process, answering your queries, and setting you on the path to owning your dream car.