Loan For Purchase of a Taxi in India
Abdul Azeez Mohammed wrote:
I am from india. I am working as a driver, no one is helping me for purchase a taxi car, I request you to provide loan for taxi car, with this car I can maintain the 8 members of my family, I hope you will accept my request,
Mohammed Waseem answered:
Assalamu’alaikum Abdul Azeez,
We are not a financial institution and can not provide a loan. However, I can suggest you alternatives.
In a country like India, it is next to impossible to get an interest-free loan. It is only through personal contacts or friends that one can borrow money for a certain period, without paying interest.
I would suggest you to purchase a car on installment basis. Islamic scholars say that purchases made on installment basis are allowed as per the sharee’ah. You will need to pay a percentage of the cost as down payment and the rest would be payable periodically.
You can approach a company that sells taxi cars and enquire about such offerings. Just to quote an example, I am giving you information about Tata Indica, a car from Tata Motors. Considering that the price of the car is INR 500000 and you are paying a 10% downpayment, INR 50000, you maybe required to pay an EMI of INR 11000 a month (approximately) for the next 5 years. I used the Tata Motors EMI Calculator to get this result.
Alternatively, you can look to begin with a used car and purchase a new one later. There must be EMI options on used cars as well, you can check with a local dealer.
I hope it works out well.