Best Bank for Car Loan in Pakistan

Buying a new car is a huge milestone in everyone’s life. However, high inflation has raised the cost of cars so much in Pakistan that it has become almost impossible for a common person to buy a car for himself. For these people, banks provide a good option to buy a car on installments with lowest interest rates. If you have made up your mind about buying a car on installments through a bank loan, you must have proper guidance to make sure you get the best possible. In this article, I have listed the best banks for car loans in Pakistan so that you can buy your car on easiest terms and not feel burdened throughout the tenure. One thing to keep in mind while taking a loan from the bank to buy a car, is that you are going to be in this for a long run so make sure you have some backup money in case you are faced with an emergency. Also, make sure to check their insurance terms. 

Calculations and prices mentioned here might be slightly different based on KIBOR or any other variable rates. Make sure you verify the prices from the respective bank.

Best Bank for Car Loan in Pakistan

Faysal Bank:

Faysal Islamic Car Finance works on the principles of Diminishing Musharakah. This is a medium and long term financing product, where the Bank and the customer jointly purchase an asset and create joint ownership in the asset. The Bank rents out its share in the asset to the customer while the customer periodically purchases units of ownership in the asset from the Bank. After purchase of all the units, the customer becomes the sole owner of the asset. Some of the key features of Faysal Islamic Car Finance are:

• Fast and Hassle-free application process
• Flexibility in selection of cars (locally manufactured as well as imported vehicles)
• Facility against brand new as well as used vehicle
• Financing amount up to 85% of the value of vehicle
• Financing tenure from 1 to 7 years
• Partial Prepayment facility available
• Co-Partner facility available
• Early settlement option
• Takaful coverage from reputable Takaful Companies on FBL Panel
• Trackers will be installed in vehicles for maximum safety.
• Installments start after vehicle delivery
• No processing fee until financing approval
• Up to 9-year old vehicle can be financed
• Property rental Income can be considered as primary income or additional to the basic income

Eligibility Criteria:

• Citizen Ship: Pakistani
• Income:
  Salaried: Minimum PKR 30,000
  Contractual: Minimum PKR 50,000
  SEB/SEP: Minimum PKR 40,000

• Age Limit: Salaried (Min 21 Years and Max 65 Years at the time maturity)
  SEB/SEP (Min 21 Year and Max 70 Years at the time of maturity)

Dubai Islamic Bank

Dubai Islamic Bank has a scheme named Roshan Apni Car which is Pakistan’s first Digital Islamic car financing. Dubai Islamic Bank customers can apply for Islamic car financing for their loved ones in Pakistan completely digitally and Riba Free through the use of their Roshan Digital Account -RDA.

You can apply for Islamic car financing with Dubai Islamic Bank Roshan Digital Account mobile App or web portal. You can track Privilege Markup Rates, and dedicated delivery time by manufacturers. Some of the main features of Dubai Islamic Bank are:

• Financing facility for new locally assembled vehicles.
• Tenor option from 1 to 7 years.
• Maximum vehicle is up to 3 vehicles.
• Minimum age limit of the applicant is 21 years
• Preferred pricing and special takaful rates.
• Maximum age limit of the applicant at the time of maturity should not exceed 65 years
• If the applicant has availed other financing facilities, all monthly repayments combined, including proposed rental, should not exceed 50% of net / take home income. ( not applicable on lien based)
• Both data check & e-CIB should be clear and must not have default / overdue at the time of case approval
• Beneficiary is mandatory (blood relative – father / mother, son / daughter, brother / sister or spouse residing in Pakistan) of the applicant.
• The facility is available for all Roshan Digital Account holders including foreign currency account holders.
• In case of PKR account – 100% Lien / pledge equivalent to Net Financing Amount (NFA) will be marked on applicant’s Roshan Digital Account or Islamic Naya Pakistan Certificate till the maturity of the Auto Finance facility
• In case of Foreign Currency Account -110% Lien / pledge equivalent to Net Financing Amount (NFA) will be marked on applicant’s Roshan Digital Account or Islamic Naya Pakistan Certificate till the maturity of the Auto Finance
• Monthly Rentals are to be paid through direct debit instructions from PKR Roshan Digital Account

Bank Alfalah

Bank Alfalah has an Auto Loan scheme which allows you to get your dream car while offering privilege markup rates, exclusive insurance rates with value added features, flexible financing limit, and financing tenure from 2 to 7 years. You can choose a locally assembled/manufactured new or used car. It gives a residual value option to lower your installment. Some of the key features of Bank Alfalah Auto Loan are:

• Affordable markup rates to choose from
• Residual value option to lower your instalment
• Partial Payment Option Available
• Option to Defer Insurance & Registration charges
• Flexible Down payment 
• Zero charges on Car replacement option
• Flexible financing tenure
  • 2 to 7 years (vehicles up to 1000 CC)
  • 2 to 5 years (vehicles above 1000 CC)

 

Eligibility Criteria:

• Pakistani National Identity Card Holder
• Salaried Individuals:

• Minimum Gross Salary: PKR 30,000/-

• Age:
  • Minimum 21 Years to 65 Years at time of loan maturity for Private Sector Employees and 60 Years for Government Sector Employees
• Job Status:
  • Permanent: Currently employed, with total employment experience of 6 months.
  • Contractual: Currently employed, with total employment experience of 1 year.

 

• Self Employed Businessmen/Professionals/Others:

• • Minimum Gross Income: PKR 50,000/- per month (Assessed on Bank Statement or Documentary Evidence)
• Age:
  • Minimum 21 to 70 years at time of loan maturity
• Business Status:
  • Minimum 1 year in current business.

Askari Bank Limited

Askari Bank Limited finances your car with its Ask4Car scheme. It finances new, used as well as imported vehicles. The terms for availing Ask4Car by Askari Bank Limited are:

• Tenure of loan: 1 to 7 years
• Minimum age of the applier: 21 years
• Maximum age till maturity of loan: 62 years (Salaried) and 65 years (SEB/SEP/Pensioner)
• Minimum Salary/Income:
  • Permanent Employees: PKR 25,000/-
  • Contractual Employees: PKR 40,000/-
  • Pensioners: PKR 50,000/-
  • SEB/SEP (Branch Customers): PKR 40,000/- Average Balance
  • SEB/SEP (Non Branch Customers): PKR 65,000/- Average Balance
• Minimum Employment:
  • Salaried: Overall 1 year & 6 months with current employer
  • SEB/SEP (Branch Customers): 1 year in same profession
  • SEB/SEP (Non Branch Customers): 1 year in same business/profession 
• Finance Amount (Subject to DBR): PKR 200,000/- to PKR 20 Million
• Minimum Equity Requirement:
  • New/Used/Imported (<=1800cc) – 20%
  • Used/Imported (>1800cc) – 30%
• Mark-up Rates:
  • Salaried: 
    • Branch Customer: 1 year KIBOR + 4%
    • Non-Branch Customer: 1 year KIBOR + 5%
  • SEB/SEP:
    • Branch Customer: 1 year KIBOR + 4.5%
    • Non-Branch Customer: 1 year KIBOR + 5%
• Used/Imported Vehicle: All segments: 1 year KIBOR + 5%

UBL 

UBL gives unparalleled car loans under their product called UBL Drive. It is the best possible financing solution to get your dream car. It provides convenient offerings and flexibility of payments to buy a car. Some of the key features of UBL Drive are:

• Quick processing and minimal documentation
• 15% minimum down payment
• Option for fixed or variable rates
• 1-7 years financing available for all New & Used (Local), and Imported Cars

The UBL auto leasing model will be based on lease finance agreement, where the bank purchases the car and rents it out to the customer for a certain period, agreed at the time of the contract.

Another product by UBL called Auto Loan Zero Prepayment Penalty Plan in which the customers who intend to avail car loan facility a second time from UBL Drive with their existing car loan plan under this variant can readily apply with a rebate facility.

Eligibility Criteria:

Salaried Customers:

• Age Criteria: 21 – 60
• Job Status: Permanent only
• Salary Income: PKR 35,000/ month
• Length of Employment: Min 3 months

SEB/SEP:

• Age Criteria: 21 – 70
• Job Status: N/A
• Salary Income: PKR 50,000/ month
• Length of Business: 1 year

Bank of Punjab

Bank of Punjab Cargar (Auto Financing) is assisting the small and large businessmen, salaried individuals in fulfilling their desire of having a car of their own, by helping them to purchase local/ imported new or used vehicles at a very minimum documentation and flexible financing options with low down payment. You can buy a car through BOP CarGar if you are a salaried individual, self employed businessman or Self Employed Professionals.

You can apply for all unregistered local or foreign manufactured/assembled vehicles. Some of the key features of BOB CarGar are:

• Depending upon your requirement, BOP CarGar Auto Leasing ranges from 1 year to 5 years.
• The minimum LKM to be deposited is:
  • For local vehicles: 20%
  • For Imported/ used vehicles: 30%
• The customer will have to pay one time processing fee which is non refundable. The processing fee is PKR 6,000/- for a car and PKR 1,500/- for a motorcycle.
• The monthly installment should be deposited in the BOP Account on or before 5th of every month.
• Total monthly rental will include principal, markup and insurance amount.
• Down payment will include processing documentation charges, first year insurance premium, minimum lease key money and other taxes/ duties applicable by government.

Eligibility Criteria:

Salaried Individual:

• Age: 21 – 60 years
• Employment: 
  • Permanent Employee: minimum 1 year
  • Contractual Employee: 2 years
• Salary Account (with /without BOP): Maintain salary account with BOP or any other bank
• Salary:
  • Permanent Employee: PKR 30,000/month
  • Contractual Employee: PKR 40,000/month

Self Employed Professionals/ Businessmen (SEP/SEB)

• Age: 21-65 years
• Job: Minimum 1 year in current business
• Income: PKR 50,000/ month and duly supported by financial statement/bank statement.