​​Bank AlBilad offers a Sharia-compliant Fleet Finance - IJARAH​ product designed for the business sector in alignment with Saudi Vision 2030. This solution empowers business owners to expand their operations and grow their fleets by leasing multiple vehicles and/or equipment tailored for commercial and operational use.

Terms and Conditions 

• The entity must be registered and operating in the Kingdom of Saudi Arabia.
• The Length of Business should not be less than 24 months, according to the CR.
• Vehicle ownership must be registered in the name of Bank AlBilad for the entire duration of the lease.
• The customer's credit history must be free of any defaults or arrears at the time of application.
  

FAQ​s:

What is is Fleet Finance - IJARAH​?

It is a lease-to-own financing product designed for the business sector. Under this product, Bank AlBilad purchases a fleet of vehicles and equipment and leases them to businesses for fixed monthly payments tailored to their needs and creditworthiness. The business has the option to own the entire fleet at the end of the contract term or upon early repayment.

Is Fleet-Finance - IJARAH Sharia-compliant?

Yes, the Fleet Leasing product, structured as a lease-to-own, complies with the regulations and guidelines of the Sharia Supervisory Board approved by Bank AlBilad.

What are the benefits of Flee Finance Ijarah for companies?

 • Maintaining Cash Flow: Instead of paying large sums upfront for vehicles, the cost is spread over manageable installments.

• Capital Flexibility: Businesses can obtain financing with low down payments.

• Comprehensive Insurance Coverage: Comprehensive insurance is provided for all fleet vehicles throughout the contract period.

• Unified Agreement: Multiple vehicles can be combined into a single financing agreement.

Is having an account with Bank AlBilad required to approve a financing request?

No, a customer can apply for financing without an account with Bank AlBilad. However, opening a current account with Bank AlBilad is required to execute the contract and make installment payments after the request is approved.

What is the maximum financing amount?

The financing amount is up to SAR 10 million.

What are the available repayment periods?

Repayment periods range from 12 months to 60 months (1 to 5 years) depending on the type and size of the fleet and the customer's request.

How long does it take to process an application?

The processing time depends on the completeness of the data and the fulfillment of all required conditions and documents.

Does fleet financing include new and used vehicles?

Yes, lease financing includes new and used vehicles (from the official brand dealer).

Is the option of financing with a final payment available?

No, the option of financing with a final payment is not available.

Are there administrative fees?

Yes, an administrative fee of 1% of the financing amount (excluding VAT) is charged.

How is profit calculated?

Profit is calculated using the declining balance method, Whereby ​where it is distributed in installments based on the remaining financing balance.

Is early repayment possible?

Yes, early repayment is possible according to the regulations and terms approved by Bank AlBilad.

What is the difference between a financial lease and an operating lease for a fleet?

In a financial lease, the ultimate goal is for ownership of the fleet to transfer to the lessee company at the end of the contract, and the company typically bears the operating costs. In an operating lease, however, the company leases the vehicles for a specific period to benefit from them only and then returns them to the lessor without any intention of ownership​.​

Example of the annual percentage rate calculation mechanism:

• The Annual Percentage Rate (APR) is the ratio that shows the actual cost of financing as an annual percentage. It is usually higher than the nominal commission because it includes administrative fees and insurance expenses throughout the financing period.

• The table above is for illustrative purposes only, and the rate may vary based on the client's creditworthiness, the financing amount, and the repayment period.

• Terms and conditions apply​.​