In Algeria, multiple banks are offering auto credit options with different terms and conditions. The Banque Nationale d'Algérie (BNA) introduced its "Mourabaha Automobile" formula in early September, which finances up to 90% of a new vehicle's price, with a repayment period of up to 60 months. The BNA's financing option is available for vehicles produced or assembled locally. The bank's page on Facebook provides details on the financing option.
The Crédit Populaire d'Algérie (CPA) offers two distinct formulas: a conventional credit with interest and a Shariah-compliant financing option. The CPA's C'PLUS AUTO credit provides financing of up to 90% of the vehicle's price, with a maximum limit of 3,000,000 DA. The credit has a repayment period of 12 to 60 months, with a monthly installment capped at 30% of the borrower's net income. The bank requires a stable and regular income, with a minimum of 1.5 times the national minimum wage.
The CPA also offers a Mourabaha Véhicule financing option, which provides up to 90% financing for a new vehicle, with a maximum limit of 7,000,000 DA for cars and 1,000,000 DA for motorcycles. The repayment period ranges from 1 to 5 years, with a monthly installment capped at 30% of the borrower's net income. The bank requires a regular income of at least 30,000 DA. The CPA and other banks, such as the Banque de Développement Local (BDL) and the Banque Extérieure d'Algérie (BEA), have varying terms and conditions for their auto credit options.
The BDL offers a Mourabaha Véhicule financing option with up to 100% financing of the vehicle's TTC (all taxes included) price, with a maximum limit of 3,500,000 DA. The bank's margin is 8.5%, and the repayment period ranges from 3 to 60 months. The BDL requires a regular income of at least 1.5 times the national minimum wage and a maximum age of 65 years. The bank's financing option is available for vehicles produced or assembled locally.
The BEA's Mourabaha Automobile financing option provides up to 90% financing, with a repayment period of 1 to 5 years and a fixed margin of 7.5% per annum. The bank's financing option is available for vehicles produced or assembled locally. However, the BEA's website does not provide detailed information on its financing option. In January 2024, the bank's responsible for Islamic finance announced the financing option with a margin of 7.5% per annum.
Al Baraka Bank Algeria offers two financing formulas: "Sayarat Al Baraka" and a partnership with Stellantis El Djazaïr. The "Sayarat Al Baraka" formula provides financing of up to 90% of the vehicle's price, with a repayment period of 12 to 60 months. The bank requires a confirmed employment contract, a minimum income of 40,000 DA, and a maximum debt-to-income ratio of 30%. The partnership with Stellantis El Djazaïr offers financing of up to 80% of the vehicle's price, with a repayment period of 12 to 60 months.
The different banks' auto credit options have varying terms and conditions, including financing percentages, repayment periods, and required incomes. The BNA, CPA, BDL, BEA, and Al Baraka Bank Algeria offer Shariah-compliant financing options, while some banks also offer conventional credits with interest. Borrowers should review the terms and conditions of each bank's financing option to choose the one that best suits their needs.
Key points
- - The BNA finances up to 90% of a new vehicle's price, with a repayment period of up to 60 months.
