Direct Lending and PETRONAS AutoExpert partner to introduce Shariah-compliant car service instalment plans in Malaysia

Direct Lending, a leading Malaysian digital lending platform today announced its partnership with PETRONAS AutoExpert, to introduce a Shariah-compliant, fully digital car service instalment plan to Malaysian car owners.

Through this partnership, PETRONAS AutoExpert has adopted the Buy Now Pay Later (BNPL) model, in line with its commitment to making their customers’ life simpler and better, whilst providing a competitive advantage to its chain of service centres. Available at all 55 PETRONAS AutoExpert centres nationwide, car owners will enjoy increased flexibility in managing their car service and repair expenses, by allowing payments to be spread over a maximum 12-month period. 

Mohd Zameer Zahur Hussain, Chief Executive Officer of PETRONAS Lubricants Marketing Malaysia Sdn Bhd said, “We believe this facility will help ease the financial stress typically associated with car maintenance, offering greater affordability and convenience for our customers. This strategic partnership is poised to increase customer loyalty, satisfaction, and long term support, enhancing their overall experience at  PETRONAS AutoExpert.” 

With just three easy steps, applicants can swiftly secure financing by filling in their details, submitting their identification card along with latest three months’ bank statements, and finalizing the process by making the first payment, setting up monthly payments and signing the financing agreement – all to be done digitally via smartphone. Customers of PETRONAS AutoExpert can apply for this instalment plan by scanning the QR code displayed at the participating service centres.

Following the partnership, PETRONAS AutoExpert will benefit from this innovative offering at no cost for a minimum period of two years. In addition, all PETRONAS staff members will now be able to enjoy a lower financing rate when using the instalment plan at any PETRONAS AutoExpert centres. This offering will also enable PETRONAS AutoExpert to receive the complete invoice amount upfront, fostering healthy cash flow and potential sales growth.

Offering BNPL solutions in harmony with Shariah

Nowadays, many car owners often cut back on maintenance expenses, mostly due to a shortage of cash, and not all car services and brands in the Malaysian market provide a flexible and easy BNPL approach. According to the latest Financial Stability Review by Bank Negara Malaysia (BNM), Malaysia has seen a steady growth of the BNPL model in 2022, with 44 per cent of users between the ages of 18 and 30. However, not all BNPL services are Shariah-compliant for three reasons: the presence of interests, the involvement of prohibited goods and the misalignment terms and conditions that do not adhere to Islamic permissibility standards.

Hui Yik Seong, Founder of Direct Lending said, “We are honoured to offer an instalment plan that adheres to Shariah principles, benefiting everyone, including valued customers of PETRONAS AutoExpert. This partnership aims to alleviate the financial burden of vehicle maintenance — worn or damaged components can be detrimental to the car’s performance, putting drivers, passengers and other road users at risk. We hope that by presenting a more inclusive and user-friendly option for Malaysians, we get to enhance their overall vehicle ownership journey with ease.” 

Direct Lending’s car service instalment plan is a Shariah-compliant financing facility fully endorsed by Amanie Advisors, a leading global Islamic Finance Advisory firm, ensuring its accessibility to all. As of 2023, the company has conducted over 130,000 financing eligibility evaluations.

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About Direct Lending

Direct Lending started in 2016 as a digital lending marketplace platform, enabling borrowers to find, apply and receive financing that best suits them safely and affordably. There are currently over 30 financing providers on its platform, from co-operatives, Bursa Malaysia-listed companies, licensed moneylenders, and credit communities. 

With the vision to provide a seamless financing experience for every hardworking adult, Direct Lending launched its first point-of-sales financing solution in late March 2022, a Syariah-compliant, fully digital auto service financing that enables car owners to obtain financing at a workshop to pay for their essential car repairs instantly. In December 2022, Direct Lending further expanded the business by offering financing to micro SME businesses. 

About PETRONAS AutoExpert

PETRONAS AutoExpert is a network of automotive service providers that offer high-quality products and top services to customers. Through expertise in Fluid Technology Solutions™, customers of Petronas AutoExpert service centre are assured of efficiency and attention from specially trained mechanics utilising the latest tools and technology to conduct vehicle inspection, engine diagnostics, oil changes and other services. Currently, a wide network of 55 outlets is spread throughout Malaysia.

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