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Buying a new car has always been the dream of every person. But due to financial problems, most of us can not realize our dreams. But now this is not a problem at all. There are many banks that offer car financing services with minimum profit.
Here is the list of top 6 best car finance banks in Pakistan along with their interest rates and terms and conditions.
When choosing a bank for car financing, you should think at least twice. There are many reasons for this. Many people have not considered the terms and conditions of car finance and end up regretting it.
To protect yourself from all these mishaps, you should read the terms and conditions twice.
And most importantly, check the terms and conditions of your insurance.
Here is the list of the top 6 best auto finance provider banks in Pakistan. All these banks have fixed interest rates and low-profit margins. There are 11 banks offering auto finance services in Pakistan. But here we will talk only about the top 6 best banks.
Disclaimer: Rates and calculations may vary slightly depending on KIBOR or other variable interest rates. Rates can be obtained from the respective banks.
1: Dubai Islamic bank car finance
Dubai Islamic Bank Private Limited (DIBPL) is the #1 auto finance bank in Pakistan DIBPL is the #1 auto finance bank in Pakistan. The bank claims to offer world-class auto financing solutions that are fully Shariah-compliant.
The key advantages of Dibpl Auto Finance
- It offers the lowest premium rates compared to other banks.
- It has term plans ranging from 1 to 7 years.
- When booking a vehicle in advance, no monthly payment is required before delivery.
- Immediate delivery and pre-order option
- DIBPL finances up to 85% of the value of the vehicle.
- The minimum loan amount is Rs. 100,000 (Rs. 1 lakh) and the maximum loan amount is Rs. 5 million (Rs. 50 lakh).
- Available for new and used, domestic, imported, and reconditioned vehicles.
2: Faysal bank car finance
Faysal Bank is our second preferred bank for auto financing. Faysal Bank offers flexible and easily customizable terms to suit your individual needs.
They offer loans up to 90% with low-interest rates. Monthly payments are easy and loan terms are up to 5 years.
The most important advantages of Faysal Bank Auto Finance
- Fast and hassle-free processing of applications.
- Flexibility in dealing with domestic and imported vehicles.
- Purchase of new and used vehicles
- Financing up to 90% of the new price of the vehicle.
- Loan terms from 1 to 5 years.
- Comprehensive insurance coverage with reputable insurers.
- Possibility of advance reservation.
3: Bank alfalah car finance services
Bank Alfalah is considered one of the lowest interest rate car loan banks in Pakistan. Bank Alfalah is the third-best bank for car finance in Pakistan. Alfalah car finance is affordable and allows you to enjoy the car of your choice instantly with special offers customized financing options along with the benefits.
It also has the highest and fixed markup rates compared to other car loan providers.
The main advantages of Alfarah Auto Finance
- You can buy a new, used or imported car.
- You can pay monthly installments for up to 5 years for any new, used or imported car.
- With the option of fixed or variable interest rates, we adapt to any budget.
- You can pay as much as you want without worrying about a deposit.
- Peace of mind with generous insurance premiums.
- No cancellation fees when you replace your vehicle.
- Fast and straightforward application process with minimal documentation.
4: Askari bank car finance
Askari Bank Limited is one of the best car finance banks in Pakistan and ASK 4 Car is Askari Bank’s car leasing solution. With Askari Auto Finance Services (ASK 4 Car) you can finance any new or used car.
Main features of Askari ASK 4 Car financing
- Financing the purchase of a new car. New car financing: minimum 15%, maximum 60%.
- Used car financing. Minimum 30%, maximum 60%.
- Comprehensive and excellent insurance included.
- Used cars from Suzuki, Honda, Toyota, and Hyundai are available.
5: Bank of Punjab (CARGAR: auto finance services)/bop car finance
BOP’s leasing product is known as CARGAR Auto Finance. The bank promises minimal documentation and flexible repayments tailored to individual needs.
Both new and used cars can be financed at variable interest rates.
Key benefits of BOP CARGAR
- Minimum loan amount Rs. 100,000 – Maximum loan amount Rs. 7,50,000.
- Monthly installments should not exceed 50% of disposable income.
- Lease term 1 to 5 years.
- Insurance premium rate 3.50%.
- Financing options for new and used cars.
- Financing is also available for imported vehicles.
Other banks offering car financing services in Pakistan
- NIB Bank
- Burj Bank
- Soneri Bank
- Islamic Commercial Bank (MCB)
- Habib Bank Limited (HBL)
- United Bank Limited (UBL)
The process of car financing
The process for a car loan varies from bank to bank but generally follows the same steps. The process, documentation, and approval criteria are also virtually identical for new and used car financing and vary little from bank to bank.
Banks generally require applicants to meet certain eligibility criteria, complete documentation and provide a financial guarantee in order to initiate auto financing.
The eligibility criteria for car financing usually require the applicant to be a Pakistani national and between the ages of 22 and 65. This age group varies from bank to bank with some minor differences. Applicants must have a steady income to pay the installments for the car. This source of income can include employment income, rental income, farm income, or income from a business. A car loan calculator can help you determine your monthly payments.
The documents required are usually a passport photo, a copy of your ID card, bank statements for a certain period of time (to prove a steady income), and a salary statement for employees. Other banks may also require additional documentation. This will largely depend on your source of income.
If the criteria are met and the documentation is in order, the loan case will be forwarded for further processing. This is the review of the case. In order to minimize the risk to the bank, a financial stability check is performed prior to approval. Once the bank approves this facility, the car is arranged and delivered to you. Car leasing options are easier now that monthly payments can be calculated with a car financing calculator.
Interest rates for car financing currently range from 17% to 21%, depending on the term and type of contract. Variable interest rates vary between KIBOR+3% and KIBOR+5%.
6: Meezan bank car finance
- Meezan Bank’s car financing product and is Pakistan’s first Interest-free car financing. It is based on the Islamic financing mode of Ijarah (leasing).
- This product is ideal for individuals who want to get interest-free financing for acquiring locally manufactured /assembled vehicles.
- Meezan bank car finance calculator
Meezan Bank Car Ijarah Calculator
FOR IMPARTIAL ADVICE & INFORMATION ON Meezan Bank CAR Ijarah, USE THIS Car Loan CALCULATOR