Hi everyone! I hope you are all doing well. Welcome back to another blog. This article will discuss the topic in detail “Interest-Free Solar Systems”. Meezan Bank has recently taken a commendable step by offering a range of enticing benefits to its customers while strictly adhering to Sharia principles. One such noteworthy initiative is their innovative solar panel financing program, which allows customers to embrace the power of renewable energy in a financially feasible manner. With this program, customers can now enjoy the advantages of solar panels through flexible payment plans and reasonable prices.
Through this visionary program, Meezan Bank ensures that electricity bills are significantly reduced by 50% once the solar panels are installed. This not only promotes a sustainable energy source but also provides long-term cost savings for the customers. What sets this program apart is its compliance with Shariah principles, allowing customers to install solar panels without any interest charges.
By introducing this Sharia-compliant solar panel financing program, Meezan Bank demonstrates its commitment to environmental sustainability and Islamic financial practices. It not only enables customers to harness the benefits of renewable energy but also promotes responsible banking in line with the values and beliefs of its customers.
Eligibility Measures
Salaried Individual (Permanent Job)
- Nationality: The applicant must be a Pakistani citizen with a valid national identity card and permanent residency.
- Applicant’s Age: The minimum age requirement is 20 years, and the maximum age limit is 60 years for program eligibility.
- Co-applicants Age: The co-applicant should not exceed 75 years of age.
- Employment Status: Applicants must have a permanent job.
- Income: The applicant’s minimum salary should be one lakh.
- Job Tenure: Applicants must have been continuously employed for at least two years.
- Taxpayer Status: Applicants must have received tax receipts for the past year and possess an NTN number.
- References: At least two certificates of reference will be required.
- Meezan Bank Account: If the applicant does not currently have an account with Meezan Bank, one will be opened for the financing offer.
Salaried Individual (Contractual Job)
- A minimum monthly gross salary of PKR 200,000 is required.
- You must have worked at your current employer for at least 3 years and have a total work experience of 5 years.
- The employment contract should be directly with the company; contracts with third parties are not eligible.
Business Individual
- Nationality: Pakistani
- Age: The applicant must be an adult and a permanent resident of Pakistan, holding a CNIC.
- Age of Applicant: The applicant should be between 30 and 65 years old at the time of financing maturity.
- Age of Co-applicant: The co-applicants age should not exceed 75 years.
- Income: The minimum monthly gross income should be PKR 500,000.
- Business Tenure: The applicant must have a minimum business tenure of 5 years.
- Income Assessment: Income assessment will be based on bank statements, audited accounts, tax returns, etc.
- Tax Compliance: The applicant must be an active taxpayer with an NTN number.
- Credit Checks: The bank will conduct credit checks through bureau verification and verify the applicant’s residence and office/business place.
- References: Two references are required.
- Financing for Flats: Financing for flats/apartments is not available.
- Account in Meezan Bank: It is mandatory for the applicant to have an account in Meezan Bank. If the applicant does not have an account, one will be opened for the purpose of offering financing.
- Maximum Debt Burden Ratio (DBR):
- 30% for applicants new to the industry or with a credit history of less than 12 months.
- 35% for customers with an established credit history of 12 months or more.
Pensioners
- The applicant must be a Pakistani national, an adult, and a permanent resident, holding a CNIC.
- The maximum age of the applicant should be 70 years at the time when the financing matures.
- The co-applicant should be within a maximum age limit of 75 years.
- The applicant should be retired and receive a monthly gross pension of at least PKR 100,000.
- The income assessment will be based on the pension book and bank statements. If the applicant is still working and will retire during the financing period, additional documents will be required from the employer.
- The applicant must be an active taxpayer with an NTN number.
- The bank will conduct credit checks through bureaus and verify the applicant’s residence and office/business place.
- Two references will be required.
- Financing for flats or apartments is not available.
- For customers with an established credit history of 12 months or more, the maximum DBR is 4.
- It is mandatory for the applicant to have an account with Meezan Bank. If the applicant doesn’t have an account, one will be opened for them to offer financing.
Product Details
- Financing will be provided based on the Islamic concept of Musawamah.
- Monthly installments will be unequal.
- Premium customers will receive a special discount.
- The financing tenure can range from a minimum of 12 months (1 year) to a maximum of 60 months (5 years).
- The allowed capacity for financing is from 1KW to 1000KW.
- The financing amount can be as low as PKR 100,000 and as high as PKR 2,500,000.
- The security collateral required includes an HPA on the solar panel and three cheques.
- The applicant must own the property where the solar system will be installed.
- If the property is owned by an immediate family member, the house owner(s) will become co-applicants.
- If there are multiple owners of the property, each owner will become a co-applicant.
- In the case of a co-applicant, no income requirement will be imposed on the co-applicant.
- The down payment for an on-grid system depends on the credit history: for a credit history of 12 months or more, the down payment can be between 15% and 50%, and for a credit history of less than 12 months, the down payment can be between 30% and 50%.
- For an off-grid system without net metering, the down payment should be a minimum of 30% and a maximum of 50%.
- After the execution of the Musawamah contract, the risk and reward will be transferred to the customer.
- Therefore, any damage, loss, malfunction, or after-sale services will be the responsibility of the financing customer and the selected energy partner of the bank.
Costs Involved
| Type of Charges | Chargers |
| Processing Charges | PKR 5,000 + FED |
| Documentation charges | At Actual |
| Late payment charges | Nil |
| Meezan Energy Partner survey charges | At Actual (if any) |
| Termination | Can be terminated anytime by paying the remaining installments |
| STR Fee | PKR 1,000 |
Application Procedure
- To apply for your request, visit the nearest Balance Bank branch.
- You can also obtain all the information by calling the helpline at 111-331-331 or 111-331-332.
- Obtain a quotation from Solarjee Partner in association with Meezan Bank.
- Submit a signed application form with a copy of your CNIC (National Identity Card) and a recent electricity bill.
- You will receive a form, which can be acquired from the bank or downloaded online.
- Fill out the form and submit it at your nearest Balance Bank branch.
- To get the complete list of approved energy partners, visit the given link.
Requirements
General Documents
- Property ownership evidence
- Recent electricity bill
- Application form
- Copy of CNIC
- One photograph
- Signature verification form
- Financial Declaration
- Meezan Bank’s approved Solar Vendor offers a valid quotation.
Salaried Applicants
- Pay slip
- Employment Letter
- DOJ Evidence
- Employment status Evidence
- Bank statement
- Audited financials and letters from the company
Self-employed businessman applicants
- Sole Proprietorship
a. NTN
b. Bank proprietorship letter
c. Tax returns - Partnership
a. Partnership deed
b. Certificate of the registrar of firms, if registered firm.
c. 6 months bank statement - Limited Companies
a. Memorandum of Articles
b. Association of Articles
c. Certificate of Incorporation
d. Latest Form-A
e. Latest Form-29
f. Audited Financials
g. 6 months bank statement (of the company or the applicant director).
Pensioner Applicants
- Copy of pension book/certificate
- Bank statements
FOR MORE VISIT OUR OFFICIAL WEBSITE.