Rating based on 8 reviews

Al Baraka Bank

  • Car finance up to R5,000,000
  • Affordable Vehicle Finance
  • Low-interest starting from 12 months%

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Al Baraka Bank homepage
Author Al Baraka Bank. Screenshot of Al Baraka Bank website.
[Accessed April 17, 2023]

About Al Baraka Bank

Al Baraka is a top-class commercial Islamic bank. They offer South Africans a sustainable Shari’ah-compliant financial service as an alternative to traditional banking. They endorse a profit-sharing ideal and forbid the acceptance or payment of interest.

Al Baraka at a glance

With a growing need for a financial institution that follows Islamic principles, Al Baraka was registered in South Africa in 1989. To date, they’re South Africa’s only comprehensive Islamic bank.

Al Baraka is headquartered in Durban, KwaZulu-Natal, and currently employs more than 100 staff members. They currently boast 6 retail branches, a regional office, and three corporate banking offices providing their customers with a wide range of financial products and services.

As part of an internationally renowned institution, Al Baraka has representative offices in 16 countries, offering Islamic banking innovation through more than 600 branches.  

Al Baraka strives to build lasting relationships

Every customer that uses the banking services of Al Baraka can rest assured that they’ll be treated with outstanding personal service. Because of their profit-sharing ideal, every transaction is beneficial to both you and Al Baraka.

Al Baraka is invested in their communities

They’re dedicated to making a positive, lasting difference in the lives of the communities in which they operate. Al Baraka does this through a commitment to a range of Corporate Social Investment initiatives that include:

  • Investing in the education sector
  • Poverty alleviation
  • Supporting the healthcare sector

Their mission is a simple one

By conducting ethical business and in line with Islamic beliefs they aim to provide the credit and financial services you need. They strive to deliver professional standards and service excellence that isn’t found elsewhere in the banking industry. Al Baraka prides itself in the sharing of mutual benefits with everyone participating in the business’ success.

Al Baraka Bank Services

Unparalleled service delivery is at the top of the priority list at Al Baraka. They’ve set the bar above industry standards and strive to get better each day.

At Al Baraka, you can enjoy vehicle finance with low deposits, no monthly fees, and competitive prices. They offer you flexible or fixed repayment terms of up to 72 months.

Al Baraka’s vehicle finance offers

  • Fixed instalment vehicle finance
  • Fixed-rate for the entire loan term
  • No early repayment penalties/no monthly fees
  • A 10% deposit is required/vehicle not older than 6 months
  • New/used vehicles
  • Maximum of 120,000km

Variable instalment vehicle lease

  • New/demo vehicles
  • A 10% deposit is required/loan term of up to 60 months
  • Rates are fixed for 12 months/reviewed annually
  • No early repayment penalties/no monthly fees
  • Vehicle not older than 6 months
  • Maximum of 100,000km

Fixed instalment vehicle lease

  • New/Demo vehicles
  • A 10% deposit is required/loan term of up to 60 months
  • Fixed-rate for the entire loan term
  • No early repayment penalties/no monthly fees
  • Vehicle not older than 6 months
  • Maximum of 100,000km

A vehicle finance example

With vehicle finance from Al Baraka, the repayment term and profit rate are determined by you. The repayment terms range from 12 to 72 months and the profit rate starts at 8,85%, with a maximum of 17,50%.

If you purchase a vehicle through Al Baraka for R100,000, depending on affordability, you can expect the following figures:

  • Vehicle finance of R100,000
  • Deposit of 10%
  • No balloon payment
  • A profit rate of 8,75%
  • A repayment term of 72 months
  • Initiation fee – R1,207.50

Thus, you can expect a monthly premium of R1611,15 and a total repayment of R116,002.80 once your vehicle finance contract is completed.

Al Baraka Bank – Car loan

  • Loan Type Car finance
  • Interest Rate 12 months72 months% p/a
  • Loan Amount up to R5,000,000

Benefits of Al Baraka Bank

  • Annual lump sum payment options
  • Low deposit
  • Flexible repayment terms
  • Competitive vehicle finance

Car loan calculator

The interest rate of a loan will vary based on your credit score and risk profile.
This car loan calculator is for illustration purposes only.
The use of this loan calculator is subject to our terms of use.

How to get approved for vehicle finance from Al Baraka

Al Baraka has made it super easy to apply for vehicle finance. Their comprehensive website has all the information needed to complete the application successfully. Before you commence with the application form you should have a few documents on hand.

Documents needed to apply

  • To verify your current address you’ll need any account sent to you, not older than 3 months
  • South African ID document/Smart card

For proof of income you may supply one of the following:

  • Last 3 months’ payslip
  • Latest income tax return
  • Last 3 months’ bank statements
  • Signed breakdown of income and expenses
  • Signed statement of personal asset and liability statement

What’s next?

Once you have these documents ready, you can move to the application form. On the vehicle finance homepage, there is a finance calculator that’ll give you a complete breakdown of what you can expect related to your vehicle finance.

When you’re satisfied with these amounts, you can click on the apply now button. This will direct you to the online finance application. You’re required to enter your cell phone number and your ID number into the areas provided.

If you’ve read the terms and conditions and agree with them, you can tick the box and click on submit. A One Time Pin or OTP will be sent to your cell phone. You’ll use it to access the online application form. Complete it in full and submit it along with the relevant documents.

Why vehicle Finance from Al Baraka is a good choice

  • Competitive interest rates
  • Profit-sharing business model
  • No monthly fees
  • No early repayment penalties
  • Low deposit required

Let Al Baraka assist you with vehicle ownership

Owning your own vehicle is a dream for many South Africans. High-interest rates and large deposit requirements often prevent them from making that dream a reality. With Al Baraka, you can enjoy a completely different approach to financing.

You could drive off in the vehicle of your dreams at a much lower price than you’d expect. Complete the easy online application form today and become a part of the Al Baraka family.

man holding thumbs up

Al Baraka Bank is a trusted & reliable provider of car finance

In our review, Al Baraka Bank adheres to the compliance criteria in accordance with the National Credit Act, where the granting the loan will not cause financial distress to the consumer.

✅ Al Baraka Bank is a registered credit provider in South Africa: NCRCP14

Customer Reviews & Testimonials

February 2023

A colleague told me about the incredible deal she got on vehicle finance from Al Baraka. I decided to see for myself and browsed their website. They offer great financing and I applied.

Sophie N
— Bloemfontein —

November 2022

I needed a new vehicle but could not afford to pay cash. The vehicle finance from Al Baraka was exactly the type of financing I had in mind. They are a great bank and I will recommend them to any...

Rasheed A
— Durban —

July 2022

I would like to take this opportunity to thank the friendly and knowledgeable staff at Al Baraka. They assisted me with vehicle finance and I now own my own car. Their rates are the best.

Johan R
— Mosselbay —

Al Baraka Bank Contact

Physical Address

Opening Hours

  • Monday 09:00 – 15:30
  • Tuesday 09:00 – 15:30
  • Wednesday 09:00 – 15:30
  • Thursday 09:00 – 15:30
  • Friday 09:00 – 12:00 – 14:30 – 15:30
  • Saturday 08:30 – 11:00
  • Sunday – Closed