Frequently Asked
Questions.
Clear answers about halal car finance and how our service works.
Whether you're exploring Sharia-compliant car finance for the first time or getting ready to apply, we've brought together answers to common questions.
Learn about Islamic finance structures, eligibility, credit checks, vehicles, costs and the support available through SCF.
Here To Help You Understand Your Options.
Understanding Halal Car Finance.
The principles and structures behind Sharia-compliant vehicle finance.
1. What is halal car finance?
Halal car finance refers to vehicle finance arrangements structured around recognised Islamic financial principles, including the prohibition of Riba (interest).
These arrangements may use leasing or asset-sale structures rather than a conventional interest-bearing loan. The exact contractual terms depend on the finance provider.
2. How is halal car finance different from conventional finance?
The main distinction is the contractual structure. Conventional finance may involve lending money and charging interest.
Sharia-compliant vehicle finance can instead involve a provider owning and leasing an asset or selling it at an agreed price.
That does not mean finance is free of commercial cost. Rental payments or disclosed profit may apply.
3. What is Ijara car finance?
Ijara is a lease-based Islamic finance structure. A finance provider owns the vehicle and permits the customer to use it under agreed rental terms and conditions.
Depending on the agreement, there may also be a defined arrangement for transferring ownership at the end of the term.
SCF currently introduces customers to an Ijara-based product. The precise rental, ownership and end-of-term conditions are set out by the finance provider.
4. What is Murabaha and do you currently offer it?
Murabaha is a cost-plus sale structure in which a finance provider buys an asset and resells it at an agreed price that includes a disclosed profit.
Murabaha is not currently available through SCF. We include information about it to help customers understand Islamic finance structures.
5. Do I have to be Muslim to use Sharia Car Finance?
No. Our services are open to Muslims and non-Muslims.
Anyone interested in exploring the available Sharia-compliant vehicle finance options may contact our team, subject to the finance provider's eligibility requirements.
Applications, Eligibility & Credit.
What to expect when making an enquiry or applying for finance.
6. Who can apply for finance?
Our finance services are intended for UK residents aged 18 or over.
Eligibility depends on the finance provider's requirements, including factors such as identity, residency, income, creditworthiness and affordability.
Finance is subject to status and provider criteria.
7. Will checking my eligibility affect my credit score?
An initial soft credit search does not affect your credit score and is not visible to other lenders as a credit application.
A formal finance application may involve a hard credit search by the finance provider. This is recorded on your credit file and may affect your credit score.
We'll explain the relevant stage of the process before progressing your application.
8. Can I apply if I have a poor credit history?
You can discuss your circumstances with our team. However, a history of missed payments, defaults, CCJs or other adverse credit information may affect eligibility.
Our current finance providers apply their own credit and affordability criteria, and we cannot guarantee approval or suitable finance options.
We will not suggest that a decline means you will necessarily qualify elsewhere.
9. How long does a finance application take?
Processing times vary depending on the finance provider, the application details and any further information or documents required.
Some applications may receive an initial decision quickly, while others require additional assessment.
We do not guarantee approval within 24 or 48 hours. An initial decision also does not necessarily mean the vehicle purchase is ready to complete.
10. What information will I need to provide?
We may ask for contact details, your circumstances, income and employment information, financial commitments and details of the vehicle you're interested in.
The finance provider may require additional identity, income, affordability or supporting documents.
We'll explain what information is needed at the relevant stage and how it should be submitted.
Vehicles, Dealers & Sourcing.
How we help customers find cars and work with motor dealers.
11. Can I finance a used vehicle?
Used vehicles may be eligible for finance, subject to the finance provider's vehicle criteria.
Factors may include the vehicle's age, mileage, condition, value and the supplying dealership.
Please send us the vehicle details so we can help establish whether it meets the relevant requirements.
12. Can I choose my own dealership?
Yes. You can tell us about a vehicle you've found at a UK motor dealership.
The supplying dealer and vehicle must satisfy the applicable finance provider's requirements. Not every dealer or vehicle will necessarily qualify.
Our team can help check relevant details.
13. What if I haven't found a car yet?
That's fine. You can contact us before choosing a vehicle.
Tell us about your preferred make, model, budget and other requirements. Our team can help search for suitable cars through UK motor dealers.
14. Is your vehicle sourcing service free?
Our vehicle sourcing assistance is provided without an additional sourcing fee for customers arranging finance through SCF.
That does not mean the finance agreement itself has no cost. Finance charges, any applicable broker fees and dealership or third-party charges are separate matters.
Any relevant charges should be explained before you proceed.
15. Can I buy a car from a private seller?
The current finance process is designed around purchases through suitable UK motor dealers.
Private sales are not part of the standard arrangements we currently offer.
If you're uncertain whether a seller or dealership is suitable, speak to our team before committing to a purchase.
Deposits, Payments & Fees.
Understanding the financial commitments before proceeding.
16. Do I need to pay a deposit?
Deposit requirements depend on the product, vehicle, applicant circumstances and finance provider.
We cannot promise that every customer will qualify for a particular deposit percentage or a no-deposit arrangement.
Our team can discuss the requirements applicable to your enquiry.
17. How much will my monthly payments be?
Your payments depend on the vehicle price, deposit or initial payment, agreement term, product structure and the finance provider's offer.
We do not provide a guaranteed monthly repayment figure from the vehicle price alone.
Any proposed rental or instalment amounts must be considered alongside the total payable and all contractual terms.
18. Is there any interest or profit charged on halal finance?
Sharia-compliant finance is structured to avoid prohibited interest (Riba).
However, Islamic finance is not necessarily cost-free. Depending on the structure, the provider may receive agreed rental payments or a disclosed commercial profit.
You should review the provider's agreement to understand the full cost and your obligations.
19. Does SCF charge a fee?
The applicability and amount of any SCF broker administration fee depend on the terms communicated for your application, including any promotional waiver.
We will explain any applicable broker fee before you agree to proceed.
The free vehicle sourcing service is separate from any applicable broker fee. Dealership and finance provider charges may also be relevant.
20. Does SCF receive commission?
Yes. As a credit broker, SCF may receive commission from the finance provider if finance is arranged.
We introduce customers to a limited number of finance providers. Our role, commission arrangements and any financial incentive will be explained during the customer journey.
We will disclose applicable commission amounts and seek informed consent in accordance with our regulatory arrangements.
About SCF & Customer Support.
Who we are, how we support customers and where to find further information.
21. Is Sharia Car Finance a lender?
No. Sharia Car Finance Ltd is a credit broker, not a lender.
We introduce customers to selected finance providers and assist with relevant stages of the application process.
The finance provider, not SCF, decides whether to offer finance and on what terms.
22. Is Sharia Car Finance regulated?
Sharia Car Finance Ltd is an Appointed Representative of ITC Compliance Limited, which is authorised and regulated by the Financial Conduct Authority.
ITC Compliance Limited's FCA Firm Reference Number is 313486. Sharia Car Finance Ltd's Appointed Representative Reference Number is 1048191.
You can find more information on our Regulatory Information page.
23. What happens if my application is declined?
If a finance provider declines your application, we can explain the next steps and discuss what information may be available to you.
A decline does not automatically mean another provider will accept you.
We will not submit applications to additional finance providers without explaining the relevant process and obtaining any required consent.
24. How can I contact SCF or raise a complaint?
You can contact our team by telephone, email or WhatsApp.
Telephone: 03300 570447
Email: hello@shariacarfinance.co.uk
WhatsApp: 07824 109783
If you are unhappy with our service, please refer to our Complaints Procedure for information about how to make a complaint and the process that applies.
Sometimes It's Better To Have A Conversation.
Real people. Personal support.
Every customer's circumstances and vehicle requirements are different. If you haven't found the answer you're looking for, our team is available to discuss your enquiry.
Your Car. Your Values.
Our Support.
Whether you're exploring halal car finance for the first time or have already chosen a vehicle, our team is here to discuss your requirements.