Vehicle Financing · UIF
UIF Auto Financing
Co-Founder & CEO, HalalWallet
Facts are re-verified against UIF's published materials; this page updates when the provider's terms, rates, or coverage change.
Full halal auto financing for new and used vehicles in MI, IL, OH, and TX, using a hybrid Partnership-Installment Sale structure: a Joint Purchase Agreement appoints you as UIF's buying agent, then converts into an installment sale. Finance $10,000-$150,000 on new vehicles (up to 72 months) and $10,000-$100,000 on used, from dealerships or private parties, including lease buyouts. Title is in your name at closing with UIF as lien holder, approval runs 24-48 hours, and early payoff collects only principal plus profit earned to date - remaining unearned profit is forgiven.
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What is the UIF Auto Financing?
Full halal auto financing for new and used vehicles in MI, IL, OH, and TX, using a hybrid Partnership-Installment Sale structure: a Joint Purchase Agreement appoints you as UIF's buying agent, then converts into an installment sale. Finance $10,000-$150,000 on new vehicles (up to 72 months) and $10,000-$100,000 on used, from dealerships or private parties, including lease buyouts.
- Contract structure: Hybrid Partnership–Installment Sale.
- Published profit rate: Example: 7.79% profit rate / 8.069% APR ($45,000 financed, 72-month term, 760+ credit, new vehicle).
- Available in 4 states.
- Shariah oversight disclosed: Formal Board (fatwa published).
- HalalWallet Index grade for UIF in Vehicle Financing: A.
- Verified against UIF's published materials on 2026-09-29.
Source: HalalWallet (halalwallet.us)
Key facts
- Structure
- Hybrid Partnership–Installment Sale
- Maximum amount
- $150,000
- Minimum down payment
- 5%
- Terms
- 24 months, 36 months, 48 months, 60 months, 72 months
- Minimum credit score
- 620+
- Published profit rate
- Example: 7.79% profit rate / 8.069% APR ($45,000 financed, 72-month term, 760+ credit, new vehicle)
- Late fee policy
- Flat $15 late fee if payment is not received within 10 days of the due date (may vary by state law); all late fees are donated to charity per faith-based requirements
- Vehicle types
- New, Used
- Financing purposes
- Purchase, Lease buyout
- Availability
- 4 states
- Shariah oversight
- Formal Board
- Shariah board
- Sheikh Nizam Yaqubi, Abdulbari Mashal, Mufti Abdullah Ebrahim Nana, Hussein Hamed Hassan
- Provider founded
- 2006
- Last verified
- 2026-09-29
Facts are taken from UIF's published product materials and were last verified on 2026-09-29. Fields the provider does not publish are omitted rather than estimated.
Our take
UIF runs one of the only true halal auto purchase programs in the country - not a conversion or a refinance, but financing for the car you're actually buying, from a dealer or a private seller, under a hybrid Partnership-Installment Sale structure its Sharia board signed off on. Pricing is transparent by halal standards (a published APR example, flat $349 fee, $15 charity-donated late fees), and early payoff forgives unearned profit. The footprint is the catch: MI, IL, OH, and TX only, personal-use vehicles only, and no refinancing of existing loans yet. If you live in those four states, this is the benchmark for halal car financing.
Strengths
- One of the very few dedicated halal auto financing programs in the U.S. (available in MI, IL, OH, and TX)
- The only faith-based vehicle finance program built on a hybrid Partnership–Installment Sale structure (per UIF) - a Joint Purchase Agreement converting into an installment sale
- Flat $15 late fee (not a percentage) with all late fees donated to charity per the Sharia board
- Buy from dealerships or private parties, including lease buyouts
Watch-outs
- Personal-use cars & SUVs only - no commercial vehicles, and no refinancing of existing vehicle obligations yet
- Strict delinquency timeline: credit reporting at 30 days past due, collections and possible repossession after 60 days (15-day redemption window after repossession, varies by state)
- Available in only 4 states (MI, IL, OH, TX)
Is the UIF Auto Financing halal?
UIF's vehicle program is a hybrid Partnership–Installment Sale, and it carries its own signed fatwa (published December 2021) from UIF's independent Sharia Supervisory Board - Sheikh Nizam Yaqubi (chairman; veteran of more than 40 Shariah boards including the Dow Jones Islamic Index), Dr. Abdulbari Mashal (AAOIFI Governance and Ethics Board member since 2015), and Mufti Abdullah Nana. The sequence keeps the transaction a genuine sale: you and UIF sign a Joint Purchase Agreement appointing you to shop and negotiate as UIF's agent; on approval, UIF sells you the vehicle under a Motor Vehicle Installment Sale Contract at a disclosed profit, and you take title with UIF as lien holder. Because UIF's return is sale profit rather than interest on a loan, early payoff collects only principal plus profit earned to date - remaining unearned profit is forgiven outright, not rebated at discretion. The fee handling follows the board's rules: the flat $15 late fee (after a 10-day grace period) is donated to charity in full, and the one-time $349 processing fee is disclosed inside the APR figure, which is why the quoted APR runs slightly above the profit rate. UIF is a fully accredited AAOIFI member, publishes all seven of its product fatwas plus a June 2024 independent Shariah audit, and operates as a faith-based subsidiary of University Bank insulated from its parent's conventional business.
Shariah oversight disclosed by UIF
Sharia Supervisory Board chaired by Sheikh Nizam Yaquby. Board reviews/approves UIF programs; fatwas + audits published.
HalalWallet reports the Shariah documentation a provider publishes. We do not issue certifications; consult a qualified scholar for a personal ruling.
What you get
- No prepayment penalty
- New (2025–2026): $10,000–$150,000, up to 72 months, 90% max LTV
- Used (2021–2026): $10,000–$100,000, up to 72 months (0–2 yrs old) or 60 months (3–5 yrs old), 90% max LTV
- Used (2017–2020): $10,000–$75,000, up to 48 months, 90% max LTV
- Purchase and lease buyout financing (refinance option coming soon)
- Buy from dealerships or private parties
- $349 processing fee (included in APR calculation)
- Approval within 24-48 hours of submitting application, proof of income, and driver's license
- Customer takes title to the vehicle at closing with UIF as lien holder
- ACH autopay via Pre-Authorized Transfer Agreement at closing (strongly encouraged); first payment due 30 days after closing
- Sell or pay off early anytime - only principal plus profit earned to date is collected, remaining unearned profit is forgiven
- Transparent payment schedule at closing showing base price payment, profit portion, and remaining installment balance
Cost and terms
Published example: $45,000 financed over 72 months at a 7.79% profit rate = 8.069% APR = $784.39/month minimum (760+ credit, new vehicle, up to 95% LTV) (verified 2026-08-05). The $349 processing fee is included in the APR calculation; flat $15 late fee after a 10-day grace period, donated to charity; no prepayment penalty; 5% minimum down.
Terms published: Up to 72 months (6 years).
How it compares
Other vehicle financing providers we list in the U.S., ordered by HalalWallet Index grade.
| Product | Structure | Shariah oversight | Availability | Grade |
|---|---|---|---|---|
| UIF Auto Financing (this page) | Hybrid Partnership–Installment Sale | Formal Board | 4 states | A |
| IjaraCDC Auto Financing | Ijara | Formal Board | all 50 states | A |
| Jafari Credit Union Auto Financing | Qard Hasan | No Public Review | Texas | — |
| SP ZeroFinance Sharia-Compliant Auto Financing | Ijarah & Murabaha | Third-Party Certified | Florida | — |
| Bank of Whittier RF Automobile Financing (New Cars) | RF (Riba Free) financing, LARIBA discipline | Third-Party Certified | all 50 states | B |
Other UIF products
- Renovation Financing
Home Financing · Musharakah
- Home Financing
Home Financing · Musharakah
- Construction Financing
Business Financing · Istisna (construction)
- Savings Account
Bank Accounts · Mudarabah
- Deposit Account
Bank Accounts · Mudarabah
- Commercial Real Estate Financing
Business Financing · Musharakah
Where it's available
UIF lists the Auto Financing as available in 4 states.
Availability may vary by product and can change; verify with UIF before applying.
Frequently asked questions
Is the UIF Auto Financing halal?
UIF's vehicle program is a hybrid Partnership–Installment Sale, and it carries its own signed fatwa (published December 2021) from UIF's independent Sharia Supervisory Board - Sheikh Nizam Yaqubi (chairman; veteran of more than 40 Shariah boards including the Dow Jones Islamic Index), Dr. Abdulbari Mashal (AAOIFI Governance and Ethics Board member since 2015), and Mufti Abdullah Nana. Contract structure: Hybrid Partnership–Installment Sale. Shariah oversight disclosed by UIF: Formal Board. UIF publishes a fatwa or Shariah certificate for this product. HalalWallet reports what the provider documents; we do not certify products.
How does the UIF Auto Financing work?
Full halal auto financing for new and used vehicles in MI, IL, OH, and TX, using a hybrid Partnership-Installment Sale structure: a Joint Purchase Agreement appoints you as UIF's buying agent, then converts into an installment sale. Finance $10,000-$150,000 on new vehicles (up to 72 months) and $10,000-$100,000 on used, from dealerships or private parties, including lease buyouts.
What does the UIF Auto Financing cost?
Published example: $45,000 financed over 72 months at a 7.79% profit rate = 8.069% APR = $784.39/month minimum (760+ credit, new vehicle, up to 95% LTV) (verified 2026-08-05). The $349 processing fee is included in the APR calculation; flat $15 late fee after a 10-day grace period, donated to charity; no prepayment penalty; 5% minimum down.
What are the minimums for the UIF Auto Financing?
As published by UIF: minimum down payment 5%; minimum credit score 620+. Confirm current requirements with UIF before applying.
Where is the UIF Auto Financing available?
UIF lists this product as available in 4 states. Availability can change and may differ by state; verify directly with UIF.
What are the alternatives to the UIF Auto Financing?
In the same category we also list IjaraCDC Auto Financing (HalalWallet Index A), Jafari Credit Union Auto Financing, SP ZeroFinance Sharia-Compliant Auto Financing. Compare every option side by side on our Halal Auto Financing hub.
When was this UIF product information last verified?
HalalWallet last verified the UIF Auto Financing details against UIF's published materials on 2026-09-29. Rates, fees, and availability can change after that date.
How to use this comparison: HalalWallet is an independent educational comparison platform - by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider - their quote is final.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-09-29
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