Buying personal car has always been a life milestone. it is easy for people who can pay those huge amount of money all at once to buy their dream car. But with latest technologies and less income resources, the cost of cars are too much rise, and making it extremely difficult the average individual to purchase their vehicle with only savings. Therefore, due to huge demand for financing both used and new cars, almost all banks in Pakistan offer car loans and many small registered finance companies are working, which enable you to purchase your car and pay off the car loan amount borrowed bit by bit through car loan installments. But some companies are scam you have to take care of this.
While taking loan one of the greatest car loan benefits in Pakistan is that the loan is secured against the car itself, so, you do not have to mortgage your property or other assets to get a car loan.
A good credit history including timely payments helps you obtain further loans in the future. Car loans, therefore, are a very safe and certain way of purchasing your own car.
Car Loan Procedure :
Car Financing process would differ from bank to bank, but generally it follows the same procedure. The process, documentation, and eligibility criteria are also mostly same for both new and used cars financing with little difference from bank to bank. Banks would normally require an applicant to meet certain eligibility criteria, produce documentation and give financial security for the purpose of initiating Car Financing.
Eligibility Criteria for Car Finance:
Eligibility criteria for Auto Finance would normally require one to be a citizen of Pakistan between the ages of 22 to 65. This age bracket differs from bank to bank with little differences. Applicant should have a steady source of income to afford the Car Installments. This source of income may include salary income, rental income, agricultural income or income from the business. Car Loan Calculator helps to determine monthly Car Installment.
Auto Finance Documents required:
Documents required would normally be passport size photograph, copies of National Identity Card, Bank statements for a certain past period (to ascertain the steady income), and salary certificates for salaried individuals. Additional documentation may also be needed from some other banks. This will widely depend on the source of income.
Once the eligibility criteria are met and documentation is in place, financing case is forwarded for further processing. This involves the verification of case. Pre-approval checks shall be established to ensure the financial stability to minimize the risk on bank’s end. Once the bank has approved this facility, the car is arranged and delivered to the customer.
Car Finance rate:
Car financing rates are currently varying between 17% to 21% depending on the term of financing and type of arrangement. For variable interest rates, it is varying between KIBOR+3% to KIBOR+5% depending on same variables.
Car Loan Bank list in Pakistan:
- Alfalah Car Loan
- HBL Car Loan
- MCB Car Loan Car4u
- AL Habib Bank Islamic Apni Car Finance
- Faysal Bank Car Finance
- Soneri Bank Car Finance
- JS Bank CarAamad
- Askari Bank Ask4car
- Bank Of Punjab Auto Financing
- Dubai Islamic Bank auto finance
- Allied Bank Limited ALLIED CAR FINANCE
- United Bank limited UBLDrive
Car loan calculator:
To calculate car loan visit
For compare car loan of different bank mawazna.com calculator is best to calculate visit calculator.
Pakwheels car loan calculator. which is also best with and updated rates to calculate.