Ayan | Frequently Asked Questions

Are there any hidden fees?

There are no hidden fees. When we give you the calculation of your total payments, you will see exactly how much our profit is, how much goes to insurance (where Ayan takes out the policy itself), road tax, and warranty, if it is applicable.

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You have full transparency of prices, because you choose the car from the dealership. Ayan can take out a policy through its trusted partner, with you as a named driver. Again, it’s all transparent, and you are encouraged to compare with alternatives.

Are there penalties for being late in making repayments?

We do not seek to profit from late payments. But to prevent misuse, and to adhere to Shariah principles, if a payment is overdue by 3 days without a valid reason, we may ask the client to make a payment to us that would be donated to a charity. This donation is made on the client's behalf and can be to a charity of their choosing, but has to be approved by our Shariah advisors.

Is it just rent-to-buy agreement?

A rent-to-buy is reasonably close, but a Shariah-compliant rent-to-buy agreement needs to have some additional essential elements. Please read the AAOIFI Standards 9 for more details.

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AAOIFI standards are internationally recognised Islamic finance principles used by Islamic banks worldwide.

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We are also fully certified by Shariah scholars. Please see our certificate here.

Is the financing halal?

It is. We provide halal car finance. Let us look at the basics of this contract from the Shariah perspective. We buy the car, own it, and rent it to you. Your payments are not interest payments; you are paying rent, similar to how you would rent your house.

As noted previously, your rental payments are calculated so that with every payment, part of it goes towards your car ownership. You have the right to purchase the vehicle from us at any time by paying the outstanding balance. In such cases, we will not charge you any future rent or termination fees.

At the end of the term, you can purchase the vehicle from us without any balloon payment. For Shariah compliance, the sale and transfer agreement is executed separately.

The contract we sign with you is called “Ijara wa Iqtina.” It is a Shariah-compliant hire-purchase agreement.

The bottom line is that, for us, being halal is not a marketing gimmick. It is a matter of internal principles – we either operate in a Shariah-compliant way or do not operate at all. Our services are open to everyone, and we want our clients to choose us not only because we are halal but also because we provide superior service.

What kind of cars do you have?

Whether you want electric, plug-in hybrid, or other fuel-type, whether you want a 7 seater or an executive car, any type of vehicle that is used for PHV, PCO or other business purposes is eligible for financing from us.

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We don’t carry an inventory ourselves, and that is actually better for you, because you have the widest choice – once we confirm the financing for you, you can choose a vehicle from any reputable dealership in the UK. You can negotiate the price directly with the dealership, knowing that you are at a position of strength with our financing behind you.

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And actually, since we don’t have to make upfront investment into the showrooms, the garages, the mechanics and the inventory, we don’t have all that overhead costs, and we pass those savings to you.

Who is Ayan?

We are Ayan Capital. We are set up here in the UK to provide Islamic financial services. Our services are built in a Shariah-compliant manner, but they are open to everyone.

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We have decided to start by serving the community of Private Hire vehicles, PCOs, and business drivers. These are hardworking, self-driven people who require a vehicle to work and earn a fair income.

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Our journey of providing Islamic finance products is not new. About a decade ago, we started in Central Asia. Our first financing, in 2014, was car finance. Today, with a team of over a thousand people, we serve two million customers and have been recognized by numerous international awards, alhamdulillah. Please click on the About us section to learn more about our Islamic fintech and banking operations in other countries.

How long does it take for me to get approved and get the car?

From the moment we receive a complete application we target to make a final decision within 2 business days.

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If our client is approved, they usually quickly find the car that they want us to purchase for them.

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From the moment the client tells us what car they have chosen, we target to complete all the paperwork and handover the keys for the client in another 1-2 business days.

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All in all if the client has made their mind on the car the entire process should take no more than 3-4 business days.

Are there any hidden fees?

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How much funding can you provide?

So far, on average,the value of cars we have financed was £30,000. For sole traders, we offer financing from £25,000 to £50,000 and more. This is aimed at business purposes like PHV, PCO, logistics, and delivery. For limited liability companies, there's no minimum financing limit, with support starting from as low as £5,000, and extending up to £50,000 and more.

How much is the deposit?

Depending on the approved credit limit and the credit score, the minimum deposit is 5% of the car price.

How much will I overpay for the car?

The total overpayment would depend on several factors - credit score, income level and driving history. Let’s assume the car's price is £27,000 and your deposit is 5% of this amount – £1350. We would finance £25,650. Over a 3-year term, the overpayment would range between £5,097 and £9,764.

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After 3 years, if there was no breach in the contract and your exercise your right to purchase, then the car becomes yours without any additional payment requirement. You’ve already paid for the car.

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Please note that this calculation excludes additional finance to cover insurance premiums or any other agreed services, and also depends on driving history, credit history, and income sources. You can start your application to determine exactly how much the overpayment would be in your case, and it won't take more than 5 minutes of your time.

Is there any mileage limit?

No, there are no mileage limits with Ayan Capital. The purpose of the Ijara wa Iqtina is for you to own the car in the end, if you choose. Since the car will ultimately be yours, if you exercise your right to purchase, we believe you should not have any limits on how much you could drive.

What if I want to buy out the car early?

Right from the start, we make things transparent. You'll receive a payment schedule detailing not just your payments but also the buyout price for your vehicle at any time during the contract. Imagine you pick a car worth £40,000, and you start off with a £2,000 deposit. That leaves £38,000 on us to finance. Decide to buy the car the very next day? The price was £40,000, you already paid £2,000, which will be used towards the purchase, and you would pay £38,000 for the car. We will not charge you for any future rent.

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You can buy the car at any point during the life of the Ijara contract. As you make your weekly payments, part of each payment goes toward securing your ownership of the car. Once the contract concludes and provided you've met all payment deadlines and you’ve exercised your right to purchase, we formalize the transfer of the car's ownership to you through a separate agreement. Your regular weekly contributions during the term of Ijara, along with your initial deposit, fully cover the car's total cost. Thus, if you've adhered to the payment schedule, you won't face any additional charges to exercise your right to purchase at the contract's end.

What if I want to return the car?

If you are thinking about ending your contract early, and you do not wish to purchase the car, you have options. You have the opportunity to find a buyer for the car – alternatively, we can help you find a buyer. If the car is sold for more than what you owe us, the surplus amount is all yours — it is the equity you have built in the car. But if it sells for less, you will need to cover the difference. And don't worry, we will never charge you any future rent.

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You can easily keep track of how much you owe Ayan at any time through your dashboard. It starts with the car's initial price and reduces down to match your deposit at the end of the contract. So, when the contract wraps up, we will simply settle your deposit against the car's price. No hassle, no extra payments—you are all set.

Whose name will be on the V5 form?

The V5 will be on your name. The V5 identifies the keeper of the vehicle, not the owner. Our ownership is specified in the invoice that we have paid and in the HPI check.

Can I use my own insurance?

Yes, you have the liberty to choose the best insurance for yourself. You can compare between the prices and select the best option that suits you.

Ayan does not provide insurance. Ayan collaborates with a regulated insurance broker, DCL. Ayan does not earn any commissions from this collaboration. Conversely, you may find that a policy we can take out with DCL and enter you as a named driver costs you less than other providers where you are the policyholder.

Will I keep or start getting No claim bonus (No claim Discount) with the insurance premium financed by Ayan?

Yes.

If Ayan takes out a policy via DCL with you as a named driver, Ayan can provide financing for the insurance premiums, along with the vehicle. Ayan provides financing only for business purposes, such as driving for Uber, Bolt, etc.

The total amount of financing provided by Ayan, including the insurance, has to be over £25,000 for Self-employed (Sole traders). There is no lower limit for limited companies.

You can also obtain insurance from other regulated insurance providers. However, in this case, Ayan might not be able to offer financing of the insurance premiums.

How does the transfer of ownership take place at the end of the rent period?

At the end of the rental period, if there is no breach of contract, the customer has the right to purchase the vehicle from us without any additional payment requirement. By the end of the contract term, the customer will have already paid for the car.

There is no final or balloon payment. The deposit (down payment) made by the customer at the start of the contract is applied as the sale price at the end of the term. Since the deposit is already paid, no further payments are required.

The transfer of ownership is executed through a Sale and Transfer Agreement, ensuring the customer becomes the legal owner of the vehicle once the Ijara wa Iqtina term is fulfilled. For Shariah-compliance reasons, this Sale and Transfer Agreement will be signed separately. The template of the Sale and Transfer Agreement is provided with the Ijara wa Iqtina Agreement.

How is the rental payment calculated within the Ijara va Iqtina framework?

Within the Ijara wa Iqtina framework, the rental payment is calculated based on the agreed-upon value of the asset (in this case, the car) and the rent period. Ayan first purchases the vehicle and then rents it to the customer. When we give the calculation of total payments, the customer will see exactly how much our revenue is, how much goes towards the car, insurance, and warranty, if it is applicable. With every payment, the customer builds equity in the car.

What happens if a customer wishes to end the rent and buy a car early?

Right from the start, we make things transparent. Customers will receive a payment schedule detailing not just payments but also the buyout price for the vehicle at any time during the contract.

Let’s assume, the customer picks a car worth £40,000, and starts off with a £2,000 deposit. That leaves £38,000 on us to finance. What if the customer decides to buy the car the very next day? The price was £40,000, the customer already paid £2,000, which will be used towards the purchase, and the customer would pay £38,000 for the car. We will not charge the customer for any future rent. In fact, as of the date of this writing, we would not earn any revenue in this particular situation – this should probably change in the future, but that is how it is right now.

The customer can buy the car at any point during the life of the Ijara wa Iqtina contract. As the customer makes weekly payments, part of each payment goes toward securing the ownership of the car. Once the contract concludes and provided the customer has met all payment deadlines, and has exercised their right to purchase, we formalise the transfer of the car's ownership to the customer through a separate agreement. Regular weekly contributions during the term of Ijara wa Iqtina, along with initial deposit, fully cover the car's total cost. The customer won't face any additional charges to exercise their right to purchase at the contract's end.

What is the difference between Murabaha and Ijara wa Iqtina?

The main difference between Murabaha and Ijara wa Iqtina is in the structure of the transaction and the timing of ownership transfer.

In Murabaha, the Islamic finance provider purchases the asset and immediately sells it to the customer at a marked-up price, with the customer assuming ownership right away. The customer then repays the finance provider in fixed installments over a set period, and the finance provider's profit remains fixed, regardless of whether the customer pays early or late.

In contrast, Ijara wa Iqtina operates as a rental agreement, where the finance provider retains ownership of the asset while renting it to the customer for a set term. At the end of the rental period, if the right to purchase is exercised, then, ownership is transferred to the customer under a separate Sale and Transfer agreement – a template of this agreement is attached to the Ijara wa Iqtina. The finance provider’s profit depends on the duration of the rent, making it more flexible for the customer if he/she chooses to pay off the asset sooner than originally planned.

What risks are involved, and what assurances does Ayan provide?

In the Ijara wa Iqtina, the Islamic finance provider would retain the risks related to ownership, while the customer bears responsibility related to the usage of the vehicle.

For instance, if something happens to the vehicle at the dealership before the customer has picked up the vehicle, and for some reason it was not insured, the customer has no responsibility to the finance provider.

Or to give another example, when the customer is using the vehicle, and a total loss even occurs, the insurance would provide a pay-out to the Islamic finance provider – however, even if that payout does not cover the amount owed by the customer to the Islamic finance provider, the customer would have no further liability to the finance provider, if the total loss was not caused by negligence or misuse of the customer.

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