How to Take a Loan at Albaraka Bank | Calculator Quote
Albaraka Bank is a multinational credit lending corporation that offers a great variety of financial products. This bank, based in Bahrain, has an important presence in fifteen countries; one of them is South Africa. We are going to concentrate in this article on the products offered to individuals such as vehicle loans and home loans.
2 Reasons to Use a Loan Calculator before asking for a Loan at Albaraka Bank
This Bank was set up with the mission of providing quality financial services all around the world. To reach this goal, this bank makes every effort to contribute to the community with ethical service and innovative solutions. There are many other credit providers in South Africa, though. Then, how do you know if Albaraka Bank is the way to go?
One way of knowing if a credit product is convenient for your personal financial situation is using loan comparator. You will not be able to find a calculator with this bank, but you can definitely take advantage of our loan comparison application online!
These are the two main reasons you should use a loan comparator before asking for a loan at Albaraka Bank or at any other credit lending institution:
- It allows planning ahead and in a smart way. A loan calculator allows you to simulate your loan: how much money you want to borrow and how many months you will pay it back. By entering this information on a calculator you will get the amount of money you would pay in installments. And here is when planning gets in the picture. Can you afford an installment of that amount? Wouldn’t it be wiser to ask for less money or to repay the loan in a longer-term? You’ll get your answers with a loan calculator.
- Also, if you use our loan comparator, for instance, you will be able to find the best offer. Does Al Baraka offer better conditions than other banks? What about the approximate rates? With a loan comparison application, you are going to be able to make a more informed decision as to what is the best option for you.
What are the Requirements for Albaraka Bank Loans for Personal Individuals?
At the very beginning of this article, we stated that we would concentrate on the financial solutions offered by this bank to individuals. Later on, we will discuss the two types of loans offered: car loans and home loans.
This provider can be a little stricter when it comes to the requirements they ask from their clients to qualify for the loans they offer. So, you need to know if you have all that it takes to be eligible to ask a loan at Albaraka. One of the reasons for this might be that this corporation works on the basis of the Sharia’s principles.
Below we list the documents requested by this leading credit lending provider for their loans offered to individuals.
- Proving you have a regular income: if you are an employee you will need to provide the bank with your last three payslips. In the event you are self-employed you will have to present your most recent Financial Statements and Income Tax Return.
- Presenting Bank Statements (the latest three)
- Giving the bank Statements of: personal income and expenditure, Personal Assets and Liabilities
- Your ID
- A service bill to verify your address (it cannot be older than 3 months)
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2 Types of Vehicle Finance you can Find at Albaraka Bank
As it has already been pointed out, this corporation operates all their business on the provisions of Islamic laws. So, the products you will find at this bank can be a little different than the ones offered by other financial corporations. However, they are perfect for those people who wish to do all their transactions in an Islamic compliant way.
Albaraka offers two types of car finance:
- Ijarah Financing: in this type of loan, the bank buys the car you choose and leases to you for a period that you agree to with the bank (from 12 to 60 months). When the agreement ends (after you pay all the lease installments), the car is donated to you through another agreement.
- Murabaha: in this case, the bank buys the car and sells it to you in installments at a term that you both agree. You will be the owner of the car when you finish paying your obligations.
With both types of financing, you will need to provide the bank a copy of your driver’s license —as well as all the documentation mentioned above—.
How do Albaraka Bank Home Loans Work in South Africa?
This bank offers property financing on the basis of Murabaha mode of transaction, which is a sale made in installments. Their aim is for you to become a homeowner at a shorter time period. They advertise themselves as offering a solution that will allow you to own a house much younger than you would with other banks.
Actually, one of the main benefits of this kind of loan is that you will know from the very start of your agreement when you will finish paying for your house, and that time period cannot be altered under any circumstance. Just as it was explained in the case of vehicle finance, you don’t become the owner of the house until you finish paying all the installments fixed in the agreement.
You will not be able to apply for Albaraka loans online; you will have to contact the bank over the phone or visiting one of their 13 branches in South Africa.
Are there Positive Reviews on Albaraka Bank Home Loans?
Since Albaraka Bank stands on the basis of Islamic loans and their home loans are offered under Murabaha, their loans are not interest-rate regulated. This specific characteristic makes many South African clients of Albaraka very happy with the bank. We were able to find many comments by satisfied customers saying that Albaraka absolutely respects this concept.
Also, Albaraka Bank has highly positive reviews in general. Many people praise this bank for having an outstanding customer care service. Moreover, it has very positive rates in terms of employee satisfaction: the people who work at Albaraka Bank are happy with how the bank treats them.
Albaraka Bank is a credit provider that operates on the mission of making a contribution to the community. Here we focused on the loans offered to individuals to access vehicles and houses.
Questions and answers
What is needed to apply for a loan of 300,000 rand if one does not have any credit? Please, can you assist?
First, it is important to know that Albaraka Bank offers financial help to buy either a car or a property: vehicle loans or home loans. Therefore, if you need 300,000 rand for a vehicle or a house without any credit, you need to comply with the following criteria: proof of regular income, recent bank statements, your ID, and a bill to certify your address. In case you are self-employed, you will need to present a financial statement and income tax return.
Hi, is it possible to get a debt consolidation loan? I have 60,000 rand in debt and I can't live a normal life.
Sadly, Al Baraka Bank does not offer a consolidation loan as this entity provides clients with financial programs to buy either a car or a property, and also to invest in a business activity. If you are looking for a consolidation loan of 60,000 rand, please try Absa Bank, which asks applicants to have a steady income deposited in a bank account.
I would like to know if I could obtain a loan of R850,000 to buy a house over 20 years/240 months. There is a house with separate entrance in a good area and I don't want to lose that bargain.
Al Baraka Bank offers clients the Home Finance program which helps to purchase their dream house. To obtain a loan of 850,000 rand with a repayment period of 20 years, you will be paying monthly instalments of around 7,130.80 rand with a deposit of 10% of the total value of the property. If you comply with all the necessary documentation, the bank will analyse your application and will determine if you can qualify or not.
I would like to apply for a home loan. Kindly advise how I go about this.
Albaraka Bank offers the possibility of financing your property through Murabaha, which consists of a property transaction based on a sale organised in instalments. The buyer and the seller agree on the period and terms of repayment. As a client, you will need to speak to a consultant, and after the bank's approval, you can start the application process.
Are your home loans interest free?
No, they are not. The interest rates are calculated according to the period you choose to repay which can reach up to 240 months. This decision is also based on your financial situation and affordability capacity. However, the instalments can be reviewed annually and the repayment period can be organised in fixed monthly instalments.
I'm 53 years old. I want to know if i can apply for a home loan.
Clients who are interested in requesting a home loan in Albaraka Bank only need to be over 18 years old. So, you can definitely apply for it. Consider as well that you need to comply with some other requirements such as a proof of income, last three-month playslips, a financial statement, an ID, a utility bill to check your residential address, a signed statement of personal income or expenditure, and last but not least, a certified document of personal assets and liabilities.
I want to get 10,000 loan for 5 years, how much I have to pay interest on it or much I have to pay monthly?
Interest rates are calculated on the basis of the term you choose to repay the loan at Albaraka Bank and your financial situation. All we can do is give you an example. So, for instance, if the term is set at 20%, for a loan of R10,000 over a 5-year period would mean installments of R200.
I'm a teacher, my monthly salary is 31 thousand. I have no house. I have house finance therefore I want to take loan can you help me????
I'm not sure you want to finance the purchase of a house or you need another type of loan. If what you are looking for is a home loan, you can find this product in Albaraka Bank. There are certain requirements you will need to comply with, such as presenting your latest salary receipts and bank statements.
My name is Sumaya and I am in need of assistance with regards to financing my studies. I am considering taking out a student loan. Will this be possible with Islamic banking?
Hi, Sumaya. Unfortunately at this time Albaraka Bank only offers loans to finance a house or a vehicle. At this time you will not be able to find a loan to cover for your studies with this bank. However, there are many other banks that do offer this kind of finance. Please check out our articles to find out more.
If I take a home loan of R300 000, what will my monthly payment be like and the period?
In order to find out the exact monthly payments as well as the period of your loan, you need to get in touch via telephone with Albaraka. They will discuss with you the product you need and which may suit you best. The terms for home loans can be of up to two hundred and forty months.
I was told that you had a low interest rate loan that would possibly assist me with the loss of my business and income due to Covid 19. Is this so? Kind regards
Albaraka Bank is offering more convenient rates to face the Covid-19 pandemia. If you have lost your business, then Albaraka can help you get a business loan to allow it to grow and booster it. It offers commercial property finance, asset and fleet finance, property development finance and trade finance. Some of these options don't require a deposit.
I am a pensioner and home owner. Am I able to make a loan against my property?
Albaraka provides different sort of loans but it does not seem to allow loans to be used against a property. At Albaraka, you can apply either for home finance or for vehicle finance. In the case of home finance, it requires from you a low deposit; there are not administration fees per month, installments remain fixed.
Slm. I am an alim, I work in Chile, South America for an Islamic organization. My monthly salary is around R45000 and I receive additional income ( around 30 to 40k ) from a business my family operates in South Africa. I want to finance my family house islamicly for R1.5m. I will be able to give a 10% deposit. How long exactly will the process take? Reason being that I need to know how long I will have to be in South Africa to complete the process.
The company, Albaraka Bank, does not provide specifications about the time these processes may take. In general, members of the bank take the time they need in order to process each particular client and situation. Before providing the loan, the company will assess your conditions and then give you the feedback, whether you have been approved or not.
Do you offer consolidation loans? Currently paying too many accounts, with high interest rates. Want to pay off existing accounts and loans and pay one installment and close all accounts
Al Baraka is not one of the banks that offer consolidation loans, saddly. As it’s been said, they can just finance the purchase of a property or a car for your business. A bank that do provide this service is Absa and they only request the applicant to have a salary received in a bank account to start the application.
What is the procedure of accessing loan?
The normal procedure to get the loan differs shortly according to the type of loan. However, Al Baraka’s procedure usually goes like this. You inform the bank about the item you need to buy along with your finance situation. Then, they buy that item and sell it to you at a reasonable price. Obviously, it’s compulsory that you submit proper documents to prove everything.
Assalamhualaikum, I don't bank with Albaraka bank. Can i get a personal loan? I’ve been working for 13 years at a law firm, i get paid every month in my bank account and I bank with Capitek. I do not receive payslip and that’s one of the requirements. So what can I do? Salaams
It’s absolutely mandatory to present a document proving you get regular salary so, if you can’t do this, your request won’t be approved. In your case, there are two possible solutions. One solution is to ask Capitec, as they can verify your income or, the other, try with a pawn loan. This loan requests you to present a security to be given the loan.
I need to know if the applicant does not qualify for the full bond amount, does Albaraka consider suretyship?
The moment you start negotiating the loan with the bank, in this case, Al Baraka Bank, they gather all the information they consider relevant to the application and terms for your loan. This means that when Al Baraka decides if you qualify or not for the loan amount you request, they had already taken into consideration any suretyship you may own. It’s important to point out there are several factors a bank pays attention to when issuing a loan like, for example, how responsible the applicant was on previous debts.
Can I apply for a personal loan with Albaraka Bank to pay debts and my studies?
The loans issued by Al Baraka are aimed to different kind of needs. To start, they help business grow and maintain afloat, specially. In these cases, Al Baraka will discuss with the client a package to cover what he or she needs. There are two other alternatives to take a loan to acquire a vehicle or to buy a house, but, unfortunately, they don’t offer study or personal loans.
Asalam alaikum ww. My name is Zaina, I would like to ask if I could be helped with a business start up loan. I have a business idea and, with the finance I can take this to a new level. Insha allah
Of course you can! This bank provides their clients with two special alternatives to get help for your business. One of them is called, Asset Based Finance and they can help you on the purchase of machinery or commercial vehicles, for example. With the other option, Trade Finance-Murabaha, the bank offers the client to buy the commodity needed and sell it to him or her following the Murabaha system.
Can I get a loan off 10 000 rand? And if I get it, what will the instalment be?
You can apply for that amount only if you are a South African citizen who is older than 18 years old. You also need to prove you receive regular income through bank statements and your wage confirmation and, finally your FICA documents. If you gather these requirements, get in contact with Al Baraka to discuss your alternatives. The amount of each instalment will be agreed according to the number of instalments you get to cancel the loan.
I am a student of agriculture non employment yet can i acquire the loan
If you dont have a payslip since you are not employed at the moment, you can still resort to another company, Standard Bank that does offer loans for students, regardless of the carreer they have chosen. In fact, those students that have selected a surety, can obtain a loan in the long term to finance their studies with no problem.
How can I pay for a loan?
By card, cash, chequebooks, etc
Is there a way to communicate on a holiday with the bank?
You can enter its website
Does the bank take debit card as a payment method?
Yes it does