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HBL Islamic TractorFinancing

A Shariah-compliant financing facility that caters to the cultivation & transportation needs of the farming sector comprising farmers who are engaged in Crop Production, Dairy, Livestock, Poultry Farming, Fisheries and self-employed agriculturists.

Product Features

  • Financing tenure - minimum 3 to maximum 5 years
  • Monthly/Quarterly/Half-yearly/Yearly payment options
  • Minimum equity – 10% of the quotation price of the tractor
  • Competitive rental rates
  • Rental rate will be fixed for the entire tenure of the facility
  • Per party limit of minimum Rs. 500,000 and maximum Rs. 5,000,000
  • No charges in case of early termination (However, actual loss can be recovered in case of termination prior to tractor delivery. In case of termination post-delivery, customer will undertake to purchase the tractor)

Eligibility Criteria

  • Applicant should be holder of valid CNIC
  • Applicant should be a farmer, cultivator of his/her own land and/or on lease basis
  • Applicant should be older than 18 years of age and should not exceed age of 65 years at the time of facility approval including the tenure of the facility
  • Applicant must be permanent resident of the Area for at least the last three years
  • Applicant must have telephone/cell phone at his residence
  • Applicant to provide acceptable collateral as per bank’s requirement
  • Applicant should have Clean eCIB with no current over-dues
  • Applicant should not be involved in litigation over property/land offered as security
  • Applicant must meet the bank’s as well as applicable regulator’s policies

How to apply

Applicant to provide

  • Original CNIC along with attested copy
  • Two recent passport size photographs of the applicant
  • Agricultural Passbook/other collateral documents
  • Either of the mentioned - Khasra Gardawari/Field Book Copy/Def Farm VIII/CNIC copy of References/Witnesses

Any other document as per Bank’s requirements, if any

Product Disclosure

All bank charges will apply as per the prevalent Islamic Schedule of Bank Charges.

Guiding Principle – Diminishing Musharaka

Islamic Tractor Financing Product is based on the Islamic mode of Diminishing Musharaka ‘DM’. DM is based on Shirkat-ul-Milk which means joint ownership in an asset. Under DM, ownership of the bank’s share is divided into units. The customer will purchase these units periodically until he/she becomes the sole owner of the asset. Since the customer will be using the asset, he/she will pay rentals against the utilization of the Bank’s share.