Direct Lending has announced a collaboration with PETRONAS AutoExpert to launch a fully digital car service instalment plan tailored for Malaysian car owners in accordance with Shariah principles.
This partnership introduces the Buy Now Pay Later (BNPL) model, aligning with PETRONAS AutoExpert’s commitment to enhance customer experiences and provide a competitive edge to its service centers.
This offering will be available across all 55 PETRONAS AutoExpert centers throughout the country, offering car owners greater flexibility in managing their vehicle maintenance expenses through a 12-month payment plan.
Mohd Zameer Zahur Hussain, CEO of PETRONAS Lubricants Marketing Malaysia Sdn Bhd, stated, “We believe this facility will help alleviate the financial pressures associated with car maintenance, providing enhanced affordability and convenience for our customers.
“This strategic partnership is poised to boost customer loyalty, satisfaction, and long-term support, thereby enriching their overall journey with PETRONAS AutoExpert.”
The application process for financing is streamlined into three simple steps: applicants provide their details, submit their identification card along with the latest three months’ bank statements, and finalize the process by making the initial payment, setting up monthly payments, and digitally signing the financing agreement through their smartphones.
PETRONAS AutoExpert customers can initiate the application by scanning the QR code displayed at the participating service centers.
Following the partnership, PETRONAS AutoExpert will benefit from this innovative offering for a minimum of two years without any associated costs. Moreover, all PETRONAS staff members can access a lower financing rate when utilizing the instalment plan at PETRONAS AutoExpert centers.
This solution enhances PETRONAS AutoExpert’s cash flow by allowing upfront receipt of the entire invoice amount, potentially fostering sales growth.
In line with Shariah principles, Direct Lending’s BNPL solution addresses the challenge of deferred maintenance due to financial constraints. The BNPL model has seen steady growth in Malaysia, particularly among users aged 18 to 30, according to Bank Negara Malaysia’s Financial Stability Review for 2022.
However, not all BNPL services align with Shariah standards due to factors such as interest, prohibited items, and non-compliant terms and conditions.
Hui Yik Seong, founder of Direct Lending, said, “We are proud to provide an instalment plan that adheres to Shariah principles, benefiting PETRONAS AutoExpert’s valued customers.
“This collaboration aims to ease the financial strain of vehicle maintenance, which, if overlooked, can impact a car’s performance and jeopardize safety on the roads. By offering a more inclusive and user-friendly solution, we aim to enhance Malaysians’ vehicle ownership journey.”
Direct Lending’s car service instalment plan is endorsed by Amanie Advisors, a prominent global Islamic Finance Advisory firm, ensuring its compliance with Shariah standards. As of 2023, the company has assessed eligibility for financing over 130,000 times.
