by In a move designed to boost electric mobility in Pakistan, Bank Islami Auto Finance has unveiled a special 0% financing offer on Inverex Xio EVs—available for a limited period on one‑year tenors. This initiative, underpinned by Islamic financing principles, aims to make electric vehicle ownership more accessible for Pakistani consumers.
🏦 Key Offer Features
- Profit Rate: 0% — customers pay no profit on the financed amount.
- Takaful Insurance: A nominal 1.25% takaful charge applies.
- Financing Model: Structured on the Diminishing Mushārakah model, the bank and customer co-own the vehicle initially, with ownership gradually transferring to the customer via installments.
- Financing Amount: Up to Rs 2 million, strictly for brand-new Inverex EVs.
- Tenure: Limited to one year
- Bank Islami Unveils 0% Short-Term Auto Finance for Inverex EV.
⚙️ Conditions & Eligibility
- Mandatory Features: Installed bank-approved tracker and ongoing takaful insurance via Bank Islami partners.
- Equity Contribution: Borrowers must contribute 30–90% of vehicle value depending on eligibility and risk profile.
- Applicant Criteria: Pakistani citizens aged 18–65 (salaried) or up to 70 (self-employed), providing valid CNIC, proof of income, and bank statements for credit evaluation.
🔋 About the Inverex Xio EV
Launched earlier in 2025, the Inverex Xio is Pakistan’s most affordable electric hatchback, priced between Rs 3.5 million to Rs 5.2 million across its three variants. With range options of 140 km, 220 km, and 320 km per charge, and a claimed running cost of just Rs 4 per km, it has quickly become a standout in Pakistan’s evolving EV landscape.
Inverex is also promoting flexible installment plans under its “Drive Your Xio Home in Just Rs 10.5 Lacs” campaign, offering 3- and 5-year tenure options with manageable monthly payments.
🧾 How This Aligns with Pakistan’s Green Vision
This move aligns well with recent government efforts to push electric mobility forward. In June 2025, the Sindh government announced tax exemptions and support for green-energy investments at the launch of Inverex’s Karachi showroom. Plans include mandatory EV infrastructure in new buildings and deployment of charging stations along highways.
💡 Pros & Considerations
✅ Benefits
- Attractive 0% rate with minimal takaful cost—rare in auto finance offerings.
- Shariah-compliant structure, free from conventional interest charges.
- Quick vehicle ownership within one year, under a transparent partnership model.
- Strong support ecosystem—charging policies, government facilitation, and growing EV infrastructure.
⚠️ Limitations
- Short tenor: only a one-year option may require pacing or refinancing for lower down-payments.
- High equity requirement: up to 90%, depending on customer profile.
- Brand-new EV only: limited to the Inverex Xio model, not extending to used vehicles.
🧾 Real-World Notes
Pakistan’s auto financing market is evolving. Islamic banks claim “0% interest” plans, but users on forums like Reddit highlight the importance of understanding takaful and rental structures, noting that markup may still exist—even if productively labeled otherwise.
✅ Final Thoughts
Bank Islami’s 0% short-term auto finance for the Inverex Xio EV offers a rare opportunity to buy into Pakistan’s electric mobility vision with minimal financing burden. The one-year, diminishing mushārakah structure makes ownership straightforward—while remaining Shariah-compliant.
For urban drivers or environmentally-conscious consumers looking for cost-efficient, clean transport, this offer could be compelling—especially with the Xio’s low operating cost and rising support infrastructure. However, prospective buyers should carefully assess their ability to meet equity requirements and complete payments within the one-year window.
