Islamic Hire Purchase financing follows the Shariah contract as well as the spirit of the Hire Purchase Act 1967. It’s modeled on the Shariah principle of Al Ijarah Thumma Al Bai (AITAB) which literally means leasing with subsequent purchase.
It’s applicable for financing new, secondhand and reconditioned motor vehicles, with maximum financing tenure up to 9 years and margin of finance (MOF) up to 90%.