Electronic Vehicle Purchase Loan in AIBL : A New Banking Product to Support Environmental Sustainability in the Bangladeshi Transport Sector

Abstract

The growing demand for environmental sustainability and the growing demand for cleaner transportation call for the introduction of green finance products in the Bangladeshi market. This thesis investigates the feasibility and approach for Al-Arafah Islami Bank Limited (AIBL), being a Shariah-compliant commercial bank, to introduce a specific Electric Vehicle (EV) buying loan to the urban high-end customers. Since the transport industry in Bangladesh is among the highest emitters of greenhouse gases for the country, EV uptake is an economic and a call of the hour necessity.It will concentrate on empowering AIBL with a product strategy grounded in paradigms of sustainability, Islamic finance products in the form of Murabaha and Ijarah, and customer innovation. Exploratory qualitative case study research grounded in semi-structured interviews with bank officials and stakeholders, document analysis, and non-participant observation is used in this research. It employs the Technology Acceptance Model (TAM) of consumer behavior and considers regulatory context, risk drivers, and supply chain architectures necessary to succeed in commercializing EV loans. There is evidence to suggest that despite greater consumer demand for EVs, there are financial and infrastructure barriers to take-up. AIBL can become a green finance market leader by overcoming such limitations through Shariah-based finance of Evs, stakeholder dialogue, and smart marketing. The thesis contributes to the green banking literature and provides evidence-based policy recommendations to policymakers, financial institutions, and development partners to turn Bangladesh into a sustainable mobility country.