Good News Bank Car Loan Scheme Eligibility | Overview of Benazir Kafaalat Programme

Bank Car Loan Scheme Eligibility

The Benazir Kafaalat Programme, a key component of the Benazir Income Support Programme (BISP), was launched in 2008. It is the largest cash transfer initiative in Pakistan, designed to provide financial relief to the underprivileged, particularly women, amid economic hardships, food crises, and inflation. The programme aims to alleviate extreme poverty and empower women in line with Sustainable Development Goals (SDGs). Currently, BISP supports approximately 9 million families under this scheme, with quarterly stipends increasing from Rs. 3,000 to Rs. 8,500 per beneficiary.

Ehsaas 8171 Bisp News

Eligibility Criteria

Eligibility for the Benazir Kafaalat Programme is determined through a Proxy Means Test (PMT), assessed via the National Socio Economic Registry (NSER) survey. Families are categorized based on a PMT score, with the cut-off set at 32, though it is raised to 37 for families with differently-abled members. This score determines eligibility for receiving cash assistance.

Inclusion of Transgenders

Recent policy updates have included transgender individuals in the programme. They must secure a CNIC from NADRA with their gender identified as transgender. Eligible transgenders are exempt from the usual PMT cut-off restrictions, and once verified, they can receive cash assistance.

Disbursement and Verification

Cash assistance is disbursed through biometric verification at partner banks: HBL and Bank Alfalah. This process ensures secure and accurate payment to beneficiaries.

Next of Kin Policy

Purpose and Process

BISP’s Next of Kin policy allows the family of deceased beneficiaries to continue receiving support. Legal heirs can apply for this assistance by submitting necessary documentation, including the deceased’s CNIC and death certificate, at the nearest BISP Tehsil Office. Once processed, eligible family members receive the benefits.

Grievance Redressal Mechanism

Overview

To address complaints and issues, BISP has an active Grievance Redressal Mechanism. Beneficiaries can file complaints at local Tehsil offices or via the BISP help line (0800-26477). This system is integrated with partner banks to ensure quick resolution of issues.

Emergency Programs

Initiatives

BISP also manages various emergency relief programs, such as:

• Special Relief Package for the LOC region in AJ&K
• Emergency Cash Assistance for COVID-19
• Harnai Earthquake Relief
• Emergency Relief for Tirah Valley and Flood Affectees
• Subsidy for Wheat Seed Rabi 2022-23

New Initiatives

Future Programs

BISP is exploring new initiatives to enhance the impact of cash assistance, including:

• Financial Inclusion and Literacy Programs
• Hybrid Social Protection Program

Meezan Bank’s Car Ijarah

Introduction

Meezan Bank offers Car Ijarah, an Islamic financing product for purchasing vehicles without interest. This financing model operates under Ijarah (leasing) principles, where the bank buys the car and rents it to the customer. At the end of the lease period (1 to 5 years), the vehicle is either sold to the customer at a token amount or gifted.

Key Features

• Lowest Upfront Payment: Minimal initial payment required.
• Rental Payments: Begin post-vehicle delivery.
• Quick Processing: Fast approval and processing.
• Minimum Security Deposit: Starting at 30% of the vehicle cost.
• Tax Benefits: Withholding tax is covered by the bank.

Eligibility Criteria for Car Ijarah

For Salaried Individuals:

• Minimum Salary: PKR 30,000.
• Age: 21-65 years (Private Sector) or 60 years (Government Sector).
• Employment Status: Permanent (6 months experience) or Contractual (1 year experience).

For Self-Employed:

• Minimum Income: PKR 50,000 per month.
• Age: 21-70 years.
• Business Experience: Minimum 1 year.

General Eligibility:

• Must hold a Pakistani CNIC.
• Applicants should have consistent income from employment, business, rental income, agriculture, or remittances.
• Co-borrowers’ income may be considered.

Car Ijarah Product Features

Eligibility and Financing:

• Available for new locally assembled and Complete Built-Up (CBU) vehicles.
• Maximum financing up to PKR 10 million.
• Tenure: Up to 7 years.
• Minimum security deposit: 15% for salaried professionals, 25% for self-employed professionals.

For Roshan Digital Account Holders:

• Available for both local and foreign currency accounts.
• No processing charges; documentation and security charges apply at disbursement.

For Non-Filers:

• 4% advance tax on the vehicle’s cost applies.

Profit Rates and Takaful

Fixed Profit Rates:

• 1 Year: 22.26%
• 2 Years: 18.96%
• 3 Years: 18.40%
• 4 Years: 18.00%
• 5 Years: 17.08%
• 6 Years: 16.75%
• 7 Years: 16.50%

Variable Profit Rates:

• 24.49%

Takaful Rates:

• EFU and Adamjee: 1.99%, with additional coverage options.

Documentation Requirements

Salaried Individuals:

• Latest employment certificate.
• Last six months’ salary bank statement.
• CNIC copy of nominee.
• Credit bureau report.

Businessmen:

• Valid business proof.
• Last six months’ verified bank statements.
• CNIC copy of nominee.
• Credit bureau report.

Residual Value Ijarah

Overview: Residual Value Ijarah offers lower monthly rentals by allowing the customer to buy the vehicle at the end of the lease period or return it to the bank.

Special Offer:

• Vehicles: New locally assembled.
• Security Deposit: 30-50% of the vehicle cost.
• Residual Value: Reduces with the lease period.

Premature Termination:

• Allows purchasing the vehicle at a predetermined price or returning it.

How to Apply for Car Ijarah

Application Process:

1. Complete the customer application form.
2. Attach required documents.
3. Submit the form at any Meezan Bank branch.

Required Documents:

• Filled and signed application form.
• Pay slip or business proof.
• Last six months’ bank statements.
• Recent photograph.
• Specimen signature card.

Summary Table

This summary highlights the key aspects of the Benazir Kafaalat Programme and Meezan Bank’s Car Ijarah, providing a comprehensive overview of their features, eligibility criteria, and application processes.