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?

No, we don't charge any penalties or fees for late payments. However, delays may impact your credit score. We believe in fair finance and do not seek to profit from late payments.

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.

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Are there any admin or documentation fees?

No, we do not charge setup or early settlement fees. The only fee is the 1 pound option to purchase at the end and it is already included in your final payment.

Are you Shariah compliant?

Yes. Our model is certified by Alhamd Shariah Advisory against AAOIFI standards.

Can I change cars during my term?

You must clear your balance first and submit a new application for the next car.

Can I finance an electric or hybrid car?

Yes, if the car meets our standard checks.

Can I refinance an existing car with Ayan?

Not at the moment. This is coming soon. Inshallah

Can non Muslims apply for Ayan’s Halal car finance?

Yes. Ayan is open to everyone who wants transparent car finance.

Do monthly payments include insurance or warranty?

Insurance is not included. You must have comprehensive cover from handover. Warranty is not included by default, but if the dealer puts it on their invoice we can include it in your finance.

Does Ayan have cars in stock?

No, this gives you freedom to choose from many dealers and find the car that suits you.

How does Ayan’s Halal car finance work?

Ayan follows Shariah principles with no riba and no gharar. We use Ijara wa Iqtina which is lease to own. We buy and own the car, you pay rent to use it, and when your term ends you may purchase the car through a separate sale step. All terms are clear, fixed, and asset based.

Is Ayan available across the UK?

Yes. Apply online, get approved quickly, and choose your car from more than 8,000 dealerships across the UK.

Isn’t Ijara wa Iqtina just hire purchase?

Under UK law Ijara wa Iqtina is treated as hire purchase, but Ayan’s structure is Shariah compliant. There is no interest and payments are for using a real asset, not for borrowing money.

What is the minimum and maximum I can finance for personal use?

Minimum 2,000 pounds and maximum 60,000 pounds, subject to status and affordability.

What types of cars can Ayan finance?

After you apply you will see the exact car requirements. As a reference we do not finance private sales, imported cars, or written off cars, and the car must be from a UK dealership.

Can I apply if I am not a UK citizen?

Apply to find out. You will need a UK address and the right to reside.

Can I apply if I am self employed or a company director?

Use our Business Finance product which is designed for self employed customers and company directors.

Can I apply if I have bad or limited credit history?

Apply to find out what we can offer. We look at affordability and recent behaviour as well as credit history.

Do I need a deposit and how much is it?

The deposit depends on your application and the car. As a guide it is usually around 5 percent of the car price.

How do I apply and what happens next?

Apply online. We start with a soft credit check that does not affect your score and show your approval and budget. If you proceed, you complete ID checks, add car details, and upload the dealer invoice. Once everything is in place we prepare paperwork and arrange payment to the dealer.

How quickly can I get my car?

After approval and once the dealer confirms everything, finance can complete the same day. In many cases it can be completed within a few hours of final documents.

What are the age requirements to apply?

You must be at least 21 years old and not older than 70 at the time of application.

Will applying affect my credit score?

The initial check is soft and has no impact. If you decide to sign the agreement we perform a hard check which may affect your score.

Are there mileage or age rules for the car?

Yes. The car must meet our age and mileage criteria at purchase. You will see the specifics during application.

Can I finance a car for business use such as private hire or taxi work?

Yes through Ayan Business Car Finance. Payments are weekly to match typical income cycles.

Can I include add ons like warranty?

Yes if the dealer includes them on the invoice.

Can I part exchange my old car?

Yes. Most dealers can take a part exchange. The dealer handles the trade in and we finance your new car once their invoice is confirmed.

Does Ayan inspect the car before purchase?

We verify the dealer and documents. We do not perform a physical inspection and rely on reputable dealers for quality and compliance.

Does the car need to come from a dealership?

Yes. We finance licensed UK dealerships only. We do not finance private sellers.

What if the dealer delays delivery?

We release payment when the car and paperwork are ready. Your funds are not sent until the dealer is ready to complete.

Who owns the car during my finance term?

Ayan owns the car during the term. You are the registered keeper and responsible for care. When you complete all payments and obligations, ownership transfers to you through a separate sale and transfer document.

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Are there late payment fees?

No, we do not charge fees or penalties for missing a payment. Missed payments can still affect your credit file so please contact us as soon as possible if you need help.

Are you FCA regulated?

Yes. Ayan is authorised and regulated by the Financial Conduct Authority.

Can I change my payment date?

Yes. Email support@ayan.co.uk and we will help with the change.

Can I settle my finance early?

Yes at any time with no early settlement fees. Settling early reduces the total rent you would otherwise pay.

Can I transfer my agreement to another person?

No, the agreement is personal to you. If you want a different car or owner you must clear the existing finance and submit a new application.

Do I have a cooling off or right to withdraw period?

Yes. You have a 14 day right to withdraw under consumer credit rules. If you withdraw you must repay any balance due for the car.

Do you offer payment holidays?

We do not offer payment holidays on regulated personal car finance. If you are struggling please contact us and we will work with you to find a suitable solution.

How do I make a complaint?

Email support@ayan.co.uk or call 020 3802 0292. If you are not satisfied you can escalate to the Financial Ombudsman Service.

What happens at the end of the agreement?

After you complete all payments and meet your obligations, legal title transfers to you through a separate sale and transfer step. The 1 pound option to purchase is already included in your final payment.

What happens if my car is stolen or written off?

If the car is a total loss, the insurer pays Ayan as owner. If the payout is lower than the outstanding balance you will not owe the difference unless the loss was due to negligence or misuse.

Does APR mean interest?

No, APR is a regulatory comparison figure. Ayan does not charge interest. Your payments are halal asset based rental profit.

How is Ayan’s Halal Car Finance?

We use Ijara wa Iqtina. You pay rent for using a real asset. Profit is earned through rental and not through lending money. There is no riba and no excessive uncertainty.

If it is Halal why do you check credit and affordability?

Responsible trade is part of Shariah. We check identity, commitments, and affordability to ensure you can meet payments without hardship.

What is the difference between Murabaha and Ijara wa Iqtina?

Murabaha is a cost plus sale where you own the car from day one and repay cost plus disclosed profit in instalments.

Ijara wa Iqtina is lease to own where Ayan owns the car during the term, you pay rent, and you may purchase at the end. Paying early reduces future rent.

Where can I view your Shariah certificate?

You can view it on our Shariah compliance page.

Who are your Shariah advisors and how often are audits done?

Alhamd Shariah Advisory certifies our model against AAOIFI standards. Reviews are carried out regularly and when new products are introduced.

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