Buying a car can be a steep investment, and not everyone can afford to pay for it in cash. This is where car financing comes in – it allows individuals to purchase a car through a bank or financial institution, and pay back the loan in instalments.
Graana.com discusses some of the best car financing banks in Pakistan below.
List of Best Car Financing Banks In Pakistan
Following are the top car financing banks in the country:
Prime Minster Meri Gari Scheme
Pakistan’s government launched the Prime Minister Meri Gari Scheme 2023 to make it easier for everyone to own a car. Whether it’s for personal use, business, family, or even taxi work, this scheme offers car loans with lower costs.This decision aims to boost the auto industry, which creates jobs and contributes to Pakistan’s economy. To achieve this, the government lowered taxes and import fees for certain cars, especially smaller ones, making them more affordable for people with lower incomes. They’ve decided to skip charging customs and other fees on imported 850cc cars and even lowered the sales tax from 17% to 12.5%.This way, more people can choose cars over motorcycles, which helps both car companies and the overall economy. So, if you’ve ever dreamed of owning a car in Pakistan, the Prime Minister Meri Gari Scheme might just be your chance.
Meezan Bank Car Ijarah
Meezan Bank is a leading Islamic bank in Pakistan, which offers car financing services through its Car Ijarah product. Car Ijarah is a Shariah-compliant car financing product that allows individuals to purchase a car without any hidden charges.
The bank offers financing for both new and used cars, and the repayment period can range from one to seven years. Meezan Bank also offers competitive profit rates, and the processing fee is quite low compared to other banks.
Bank Alfalah Car Financing
Bank Alfalah is one of the largest investment banks in Pakistan, and it offers car financing services through its Car Finance product. The bank offers financing for both new and used cars, and the repayment period can range from one to seven years.
The profit rates offered by Bank Alfalah are competitive, and the processing fee is also relatively low. The bank also offers a fast and hassle-free application process, making it a popular choice for car financing in Pakistan.
Standard Chartered Auto Finance
Standard Chartered Bank is a multinational bank that offers car financing services through its Auto Finance product. It offers financing for both new and used cars, and the repayment period can range from one to seven years.
The bank also offers competitive profit rates and a low processing fee. Standard Chartered Bank has a strong presence in Pakistan, and its Auto Finance product is popular among individuals looking to purchase a car.
Habib Bank Limited Car Loan
Habib Bank Limited is one of the oldest and largest banks in Pakistan, and it offers car financing services through its Car Loan product. The bank offers financing for both new and used cars, and the repayment period can range from one to seven years.
The profit rates offered by Habib Bank Limited are competitive, and the processing fee is quite low compared to other banks. The application process is also quick and straightforward.
United Bank Limited Car Loan
United Bank Limited is one of the largest banks in Pakistan, and it offers car financing services through its Car Loan product. The bank offers financing for both new and used cars, and the repayment period can range from one to seven years. The profit rates are quite competitive, and only a minimal processing fee is included.
Faysal Bank Car Finance
Faysal Bank is a leading bank in Pakistan, and it offers car financing services through its Car Finance product. It offers financing for both new and used cars, and the repayment period can range from one to seven years. The profit rates are competitive, making it a top choice among interested buyers.
Dubai Islamic Bank Car Finance
Dubai Islamic Bank is a leading Islamic bank in Pakistan, and it offers car financing services through its Car Finance product. It offers financing for both new and used cars, and the repayment period can range from one to seven years. Its profit rates are also competitive, and the processing fee is much lower in comparison to other banks.
Frequently Asked Questions (FAQs)
Q: What is car financing?
A: Car financing is a type of loan that allows individuals to purchase a car by borrowing money from a bank or financial institution. The borrower then repays the loan amount with interest over a fixed period of time.
Q: What are the benefits of car financing?
A: It allows individuals to purchase a car without having to pay the full amount upfront, making it easier to manage their finances. It also provides an opportunity to build a credit history by making regular payments on time.
Q: What is the eligibility criteria for car financing in Pakistan?
A: The eligibility criteria varies from bank to bank, but generally includes factors such as income, employment status, credit history, and age.
Q: What documents are required for car financing in Pakistan?
A: The documents required depend on the specific bank, but generally include a copy of the applicant’s CNIC, proof of income, bank statements, and a copy of the vehicle registration papers.
Q: What is the interest rate for car financing in Pakistan?
A: The interest rate is usually different for each bank, but depends on factors such as the borrower’s creditworthiness and the loan amount. Generally, the interest rates range from 12% to 18%.
Q: What is the loan tenure for car financing in Pakistan?
A: The loan tenure ranges from one to seven years in general, depending on the bank and the borrower’s preference.
Q: What is the maximum loan amount for car financing in Pakistan?
A: The maximum loan amount for car financing in Pakistan varies from bank to bank, but usually ranges from Rs. 1 million to Rs. 5 million.
Q: What is the down payment required for car financing in Pakistan?
A: The down payment can also vary, but typically ranges from 15% to 20% of the car’s value.
Q: What is the process for car financing in Pakistan?
A: The process involves submitting a loan application along with the required documents to the bank. The bank will then evaluate them, and decide on the loan amount and interest rate. If approved, the borrower will sign a loan agreement and receive the amount.
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