Leading Malaysian digital lending platform, Direct Lending, has joined forces with Petronas AutoExpert to introduce an all-digital car service payment plan for Malaysian car owners. This plan is Shariah-compliant and fully digital, aiming to simplify the lives of customers and offer an edge to Petronas AutoExpert’s service centres.
This partnership brings the Buy Now Pay Later (BNPL) model into play, allowing car owners to space out payments for their car service and repair costs over a maximum of 12 months. This offering is available at all 55 Petronas AutoExpert centres across Malaysia, providing greater flexibility for managing expenses.
Applying for financing is made easy through three simple steps. Applicants need to provide their details, submit their ID card and three months’ bank statements, and complete the process by making the first payment, arranging monthly payments, and signing the digital financing agreement using their smartphone. Customers of Petronas AutoExpert can apply for this payment plan by scanning a QR code available at the participating service centres.
As a result of this partnership, Petronas AutoExpert will gain access to this innovative service for at least two years without any cost. Moreover, all Petronas employees will now have the opportunity to secure financing at a reduced rate when using this payment plan at any Petronas AutoExpert center. This offering will also enable Petronas AutoExpert to receive the full invoice amount right away, promoting healthy cash flow and potential sales growth.
In today’s times, many car owners often reduce spending on maintenance due to limited funds. Additionally, not all car services and brands in the Malaysian market offer a flexible Buy Now Pay Later (BNPL) approach. According to the recent Financial Stability Review by Bank Negara Malaysia (BNM), the BNPL model has been steadily growing in Malaysia in 2022, especially among users aged 18 to 30, making up 44% of users.
However, not all BNPL services are compliant with Shariah principles for three main reasons: they involve interest, include forbidden goods, and have terms and conditions that don’t align with Islamic standards of permissibility.
The car service installment plan offered by Direct Lending is in line with Shariah principles and has received approval from Amanie Advisors, a prominent global Islamic Finance Advisory firm, making it accessible to everyone. By 2023, the company has already assessed the eligibility for financing over 130,000 times.