The acquisition of a car is for some a real financial investment and the necessary funds are not always available. While some opt for loans from relatives, or joint bank loans, others seek and wait for an Islamic banking alternative that is not available throughout the national territory.
In addition, with the resumption of automobile imports and the revival of local industry, banking institutions must keep pace with adequate offers. It is within this framework that the External Bank of Algeria has opened five counters of Islamic banking services in the wilayas of Mostaganem, Relizane and Tiaret.
“Halal” credits, the CEO of the BEA says more
In order to provide the necessary information, the director general of the BEA, Lazhar Létrache, intervened by means of a press release.
According to the Arabic-language media Echorouk, he revealed the launch of car financing with the BEA intended for citizens who wish to acquire a car. The offer would be in line with the Islamic Sharia.
According to the same press release, people who want to buy cars can now “apply for a loan under Islamic finance for the purchase of a car”. Indeed, from Friday, December 30, 2022, 4 counters for Islamic banking services will be open at the branches of Tlemcen, Maghnia, Ain Temouchent and Sidi Bel Abbes, bringing the number of branches that include counters for these financial services to more than 50 agencies nationwide.
Note that the first account in the Islamic bank has already been opened in Mostaganem.
What are the financing rates for buying a car?
People wanting to buy a car will be happy to know that financial assistance (ie the loan) is provided. However, one question remains: at what rate is this financing?
The general manager of the BEA therefore revealed that the said bank will finance the purchase of a vehicle with an estimated rate of 90%.
Nevertheless, some gray areas remain present since the information relating to the conditions and deadlines have not yet been communicated.
