FINAL REPORT

ON
Faysal Bank (Car Leasing)
SUBMITTED TO:

Prof. Ghulam Mustafa

SUBMITTED BY:

ShehrozAyaz (05)
SyedFahad (20)
UmairEjaz (16)

PROGRAM:

MBA (3rd Semester)

COURSE:

Financial Management

UNIVERSITY OF CENTRAL PUNJAB

1

Dedications
We dedicate this report to our parents and friends in recognition of their worth
and to our teachers who are guiding force for us and it is their effort and hard
work that showed us the path of success and prosperity which would be there
for us for the rest of our life.

Our thanks to all those who have generously contributed their theoretical
knowledge to this report including our teachers. Without their understanding
and support, completion of this work would not have been possible.

ACKNOWLEDGEMENT
2

In the name of Allah the praiseworthy, the passionate whose blessings

made it possible for us to complete this complex and painful task. It is a matter
of great enthusiasm and pleasure for us to complete a report in its real sequence.
It is all because of Almighty Allahs great guidance that made us so able. We
are cordially thankful to our respected Teacher Mr. Ghulam Mustafa
who provided us an opportunity to prepare this Project report and
whoseb e n e v o l e n t g u i d a n c e i n d i s c o u r s e a n d c o n s t a n t e n c o u r a g e m
e n t h e l p e d u s t o complete this project.

CONTENTS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Topics

Page

Introduction &History of Faysal Bank

Vision, Mission, Values, Strength, Innovations,
Teamwork
Integrity, Professionalism, Responsiveness,
Products and Services
Products; Services
Faysal Financing Departments

5
6

Faysal Car Finance

House Finance
Faysal Finance
Faysal Bank Credit Card customers
Car Leasing of Faysal Islamic Banking
Faysal Bank Car Financing Procedure
Eligible for Faysal Bank Car Financing
Requirements for salaried person
Conclusion

7
8
9
11
14
15
16
16
17
18
19
20

Reference

INTRODUCTION AND HISTORY OF FAYSAL BANK

4

Faysal Bank started operations in Pakistan in 1987, first as a branch set-up of

FaysalIslamic Bank of Bahrain and then in 1995 as a locally incorporated
Pakistani bank under the present name of Faysal Bank Limited.
Faysal Bank Limited was incorporated in Pakistan on October 3, 1994, as a
public limited company under the Companies Ordinance, 1984. Currently, the
Bank's shares are listed on the Karachi, Lahore and Islamabad Stock Exchanges.
Faysal Bank is engaged in Commercial, Consumer, Corporate and Islamic
Banking activities.
Faysal Banks footprint has expanded to over 245 branches, with combined
business assets of over PKR 250 billion, further strengthening its balance sheet
and placing it amongst the top ten banks in Pakistan. Faysal Banks ambition is
to provide par excellence service for its customers while meeting all their
financial needs
On January 1, 2002, Al Faysal InvestmentBank Limited, another group entity in
Pakistan, merged into Faysal Bank Limited whichresulted in a larger, stronger
and much more versatile institution. In fact it has the highest share capital
amongst private banks in Pakistan and is amongst the largest in terms of equity.
Faysal Bank Limited is a full service banking institution offering consumer,
corporate and investment banking facilities to its customers. The Banks
widespread and growing network of branches in the four provinces of the
country and Azad Kashmir, together with its corporate offices in major cities,
provides efficient services in an effective manner.
The majority shareholding of Faysal Bank Limited is held by Ithmaar Bank
B.S.C aninvestment bank listed in Bahrain.

Vision
Excellence in all that we do
5

Mission
To excel in providing innovative, value based banking solutions to meet
changing needs of customers and to strengthen the image of trust and reliability

Values
Our daily code of conduct is exemplified by eight core values:
Four threshold values values at the heart of our brand.
Four differentiator values values that set our brand apart.

Strengths
It resulted in a larger, stronger and much more versatile institution.
In fact it has the highest share capital amongst private banks in Pakistan.
The largest in terms of equity.

Innovation
We pioneer novel and more efficient ways to deliver solutions.
We are dedicated to a culture of improvement and modernization.
We stand for originality, in thought, in action and in belief.
Our Innovation: Our Strength.

Teamwork
We function as a team. Within functions, we cooperate.
Between functions, we collaborate.
Together, we aim for excellence and leadership in our chosen markets.

Integrity
6

We are recognized by our reliability, credibility and character.

We believe in ethical, honorable, time-proven principles of uprightness.
We stand for and abide by honesty, truth and transparency.

Professionalism
We are proficient and efficient in all that we do.
We provide banking services knowledgeably and skillfully.
We uphold regulatory obligations.
Our Professionalism: Our Competence

Responsiveness
We are receptive to the need for change and improvement.
We are proactive and anticipate our customers needs and wants.
We act quickly to modify, adjust or prepare for new realities.

Products and Services

We are a progressive bank striving to offer innovative products, easy
accessibility, quality service & convenience to our customers. We offer
customized financing solutions with flexible criteria and convenient loan
tenures. You can avail car, home and personal loans through our various
branches. We also offer a host of Corporate & Investment Banking Services to
our clients, which include financial and corporate advisory services, along with
a wide array of tools to help them achieve their goals

Products:
7

Deposit
Saving accounts
Rozana Munafa Plus Account
Faysal Moavin Account
Faysal Premium Account
Faysal Izafa Account
Mahfooz Sarmaya
FCY Savinsg Plus Account
Consumer Loans:
Car Loans
Housing Loans
Corporate & Investment Banking:
Corporate Financing
SME Finance
Trade Finance
Treasury & Capital Markets
Agricultural Financing
Cash Management Services

Services:
PocketMate Visa Debit Card
Travellers Cheques
Transfer of Funds
Safe Deposit Lockers
Non-Stop Banking

FAYSAL BANK FINANCING DEPARTMENT:

There are threedepartments of lease in faysal bank
Faysal Car Finance
Faysal Home Finance
Consumer Loan
Leasing or buying
This depends on a number of factors that are different for everyone.
Affordability, ease of payment and vehicle choices are important factors.

Facilities are offered under Faysal Car Finance

We offer installment based loans extended to individuals and Corporate/SME
clients for advance booking of the vehicle as well as ready delivery purchase of
the vehicle from authorized dealers.

Type of vehicle can be leased with Faysal Car Finance

We offer leasing against brand new and used locally manufactured and imported
vehicles.

Loan tenure options offered by Faysal Car Finance

Tenure of the facility is between 1 to 5 years. For semi -commercial vehicles,
the maximum tenure is 3 years.

Mark-up options does Faysal Car Finance offer

We offer variable mark-up rate which is linked to KIBOR.

Minimum loan amount offered under Faysal Car Finance

The minimum loan amount is PKR 100,000.

Co-borrower
Co-borrower must be a member of the immediate family i.e. spouse, parents and
children only.

Registrations of vehicle in my name during the facility tenure

No. Title of the vehicle will remain in Faysal Banks name throughout the
tenure of the facility.

Can I sell my vehicle or transfer the lease to a third person during

the facility period
No. This is a violation of the lease agreement and it should be avoided.

Credit history to avail Faysal Car Finance facility

Yes a good credit history is required to avail the facility.

Do I have the option of early settlement of my loan under Faysal

Car Finance? If yes, what is the cost associated with it
Yes, you have an option to pay off your loan at any time during the tenure
period with 5% charges on the outstanding principal amount.

Swap vehicles during my lease with Faysal Car Finance

No. You have to apply for a new facility after settlement of the existing facility.

Insurance included on my leased car

Faysal Car Finance arranges a comprehensive insurance coverage of vehicle
from insurance companies listed on our Banks panel.

Car upon maturity of tenure

Once the facility tenure is completed and you have settled the outstanding
amount, you will be issued a NOC (No Objection Certificate) along with a
clearance letter for transfer of ownership in your name.

10

Repossession
On non-payment of the monthly installments, the Bank holds a right to call back
the vehicle in accordance with the lease agreement.

Faysal Car Finance

Faysal Car Finance is the most flexible product designed to meet
customer needs.

Ab dream car bani reality!

Faysal Car Finance offers uniquely tailored financing of your car with the
lowest mark-up rate. Not only this, you can finance your car up to 5 years with
easy monthly installments. So apply today and get your dream car!

Features &Benefits:
Fast and hassle-free processing of application
Flexibility in selection of cars (locally manufactured as well as imported
vehicles)
Facility against brand new as well as used vehicle
Loan amount up to 90% of the value of vehicle
Loan tenure from 1 to 5 Years
11

 Co-borrower facility available

Comprehensive insurance coverage from reputed insurance companies
Early settlement option
Car Financing for locally manufactured new and used cars and imported
cars.
Car Financing up to five years
Down payment only 20% of the car value
Minimum documentation charges.
Fast processing.
Option to prematurely terminate the facility

Eligibility:
Now you can swiftly, easily and cost effectively owns a car if you are:
Valid CNIC / NICOP / POC
Aged between 21 and 60 years
Salaried, businessman or self-employed professional
Minimum net income of Rupees. 30,000/- per month*
A Pakistani National holding the New Computerized Identity Card
(NADRA)
Minimum 20 years of age at the time of financing.
A resident of Karachi, Quetta, Hyderabad, Lahore, Faisalabad,
Multan, Sialkot,Gujranwala, Bahawalpur, Rawalpindi, Islamabad,
Peshawar, Mirpur (AK), GujratorGujjar Khan.
A Businessman or Self-Employed with a minimum of one year
experience in thesame business and profession.
A Salaried person with at least two years employment history
*Varies as per segment/customer type

Documents Required:
Salaried:

Copy of CNIC / NICOP / POC

2 recent passport size photographs

12

Latest payslip / salary certificate from employer

Bank statement for the last 6 months

Duly filled loan application form

Businessman and Self-employed Professional:

Copy of CNIC / NICOP / POC

2 recent passport size photographs

Bank statement for the last 6 months

Proof of profession or business

Proprietorship letter

NTN certificate

Tax Returns of 2 years

Professional degree and valid membership of applicable professional

body (for SEP only)

Duly filled loan application form

Proprietors, Partnership Concerns or Limited Company:

Copy of CNIC / NICOP / POC

2 recent passport size photographs

Declaration of proprietorship, Certified Partnership Deed, Memorandum

& Article of Association, Form A & 29 and Company Profile

Bank statement for the last 6 months

Tax Returns and Assessment Order for the last 2 years

Copy of latest utility bill

Duly filed application form

Dreams made real with Faysal Bank Credit Cards

Faysal Car Finance offers discounted mark-up and lowest insurance rates
exclusively for Faysal Bank Credit Card customers
This offer is also applicable on all ex-RBS branded Credit Cards
13

Housing Finance:
Faysal Housing Finance gives you so much more than great
financing rates - We helpyou all the way to make your next move in
an easy and timely manner. Whether youwant to build a new home or
are in a hurry to move into a ready built house or just wantto renovate
your existing home or even transfer your existing expensive
mortgagefinance balance, it is time to come to us for help and advice.
We offer you the following

Housing Finance Packages:

Buy a Home
Build a House
Home Renovation
Balance Transfer Facility

Features:
Flexible repayment options
Option to partially or fully terminate the facility.
Financing tenor up to 20 years!!!
Fast processing.
Minimum processing charges
Enhancement option available
Financing available up to 80% of the market value of the property.

14

Eligibility:
A Pakistani Resident and National holding the New
Computerized Identity Card(NADRA) or Non-Resident Pakistani
holding a NICOP.
Aged between 25 to 60 years if you are a salaried person
and of 65 years if youare in business
In continuous employment for 3 years and at
l e a s t 1 y e a r w i t h t h e e x i s t i n g employer.
In business with at least 3 years of business or professional
experience
In business with at least 3 years of business or professional experience
Earning a net monthly income of Rs.30,000/- or more [spouses income
can alsobe combined with yours].

Faysal Finance:
Faysal Finance gives you an opportunity to liberate yourself from
financial anxieties andfulfill your dreams and aspirations in an easy
and affordable manner.

Eligibility:
You are eligible for Faysal Finance if:
A Pakistani National holding the New Computerized Identity
Card (NADRA).
Your age is between 21 to 60 years for salaried and 21 to 65
years for SEB/SEP.
Your minimum verifiable monthly income is Rupees.
15,000 for salaried and Rs. 25,000/- for SEB/SEP.

15

Car Finance special offer exclusively for Faysal Bank Credit

Card customers giving you:

Discounted mark-up

Lowest insurance rates

Free Accidental Death Insurance of Rupees. 500,000

Car Leasing of Faysal Islamic Banking:

Barkat Auto Finance based on Diminishing Musharakah
Barkat Auto Finance is based on Diminishing Musharakah, where you
participate with Barkat Islamic Banking in a joint ownership of your vehicle and
the Bank provides a certain amount of financing. You agree to a monthly
payment to the Bank of which one component is rent for use of the vehicle, and
the other is for you to increase your ownership of the vehicle. Once you have
made the full payment, which has been agreed upon, you become the sole
owner with a free and clear title to the vehicle.

Product Features & Benefits

Avail the financing of new, used and imported vehicle for personal use

Quick processing with minimum documentation

16

No Limit on financing amount starts from as low as Rs. 100,000 and

minimum equity requirement of as low as 20%

Multiple options for tenure up to 5 years

Installment repayment to start ONLY after delivery of the vehicle and no

processing fee until approval of financing

Built-in Takaful (Islamic Insurance) expense for the entire financing

tenure. The bank will arrange Takaful for the vehicle from a reputable
Takaful company and will facilitate you in claim processing

Maximum safety of your vehicle ensured through the tracker installation.

Faysal Bank Car Financing Procedure

Faysal Bank Car Financing offer excellent opportunity to right now get your
favorite car and drive it with honor because bank car leasing opportunity is
easiest way to pay the amount in five financial years also see online banking
benefits and personal banking.
Faysal Bank car leasing is totally flexibility and simple process and proudly
present affordable way to be made you owner of car.
Faysal bank is offering 5 years leasing plan ease of monthly payment
installments also the customer can plan the tenures if he wants to reduce the
payment yearly time frame.

Insurance Coverage
Faysal Bank offers complete insurance facility and coverage plan to cover full
risk against theft and any accident damage in the time of full duration of
installments with many packages and competitive rates.

17

Eligible for Faysal Bank Car Financing

The applicant and customer must be in the age bracket of 21 year to 60 year
Mentioned companies list of Faysal Bank and applicant must meet the
minimum income bracket of Rs. 30000 per month, for the contractual
employees must working from 3 years and currently active employee with
salary bracket of Rs. 50000
Other company employees are not in the approved list of the banks should have
one year continuos job status and current salary would be Rs. 4000.
For GOP employees for the continuous job of 6 months with income of
Rs.30000 per month.

18

Requirements for salaried person

Age bracket in the year 21 and 60 years
Approved Companies list and permanent staffs salary of Rs.30, 000/- per
month.
For Contractual Staff 3 years continuous job required with salary of Rs.50,
000/- per month.
Other than approved companies need 1 year continuous job with income of Rs.
40,000/- per month.
For GOP Employees 6 months continuous job with salary of Rs.30, 000/- per
month.

19

CONCLUSION
FAYSAL bank will remain an aggressive and innovative financial
institution and continueto adhere to the tradition of understanding its
customers needs and looking for new ways to serve them. Further
integration and productivity gains will result in strongerperformance
in terms of revenue as well as service quality in the coming years. The
strong leadership of Board and management and the relentless effort
of the staff at FAYSAL bank will be able to offer more superior
products and services to customers and to contribute more to
economic and social development of Pakistan while developing a
bigger future for it.

20

Reference

Faysal bank (Burket Market)

www.Faysalbank.com

www.scribd.com

21