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.

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.