How to get a car loan in Pakistan
See the step by step guide here!
In Pakistan, buying a car is the second-biggest financial decision that people take in their lives after property investment. It requires a lot of research that fits your budget and needs before finalizing any deal. However, you can also buy your desired car in easy installments by conveniently selecting from many available bank loan schemes proposing auto financing in Pakistan.
Almost all the leading banks are now offering auto financing in Pakistan. Considering the recent growth of the refurbished/imported cars sector, most banking institutions have started offering auto financing on used cars and brand new vehicles.
Process to apply for car loan
The procedure you need to undergo to apply for a car loan scheme varies from bank to bank. However, the documentation eligibility criteria for a car loan in Pakistan are mostly the same, with slight changes. You may notice the difference in auto loan rates depending on the duration of the installment plan you choose.
- Firstly, you need to have a Pakistani Computerized National Identity Card.
- Individuals falling in the age group of 22 to 65 can apply for a car loan. (age may vary from bank to bank)
- People with a steady source of income are considered eligible for auto financing.
Here is a list of documents you usually must submit when applying for car financing.
- Your passport size photograph.
- A copy of your (CNIC).
- Bank statements for a specific time (usually six months) to make sure that the applicant has a steady source of income
- Salary slips/certificates if an applicant is a salaried individual.
(Additional documents may be needed depending upon the bank you selected)
Verification and Finance Process
- Once you have submitted the required documents after ensuring your eligibility, here is what will happen:
- The bank forwards the loan case for verification and approval.
- The financial status of the applicant is confirmed by the bank (The process may take from a few days to a few weeks time frame)
- Once your case is approved, the bank will ask you to pay the upfront payments as per your case.
- Upon completing and verifying the required upfront payment, the bank will arrange and deliver the car to the customer.
Estimated auto loan rates
Let’s look at the table giving a general estimation of the auto loan rates depending on the duration of the installment plan, which usually varies from 1 year to 5 years. The amount here is believed to be PKR 10 lakh with a 15% down payment in the chart below.
Principal Amount: PKR 1,000,000
Down Payment (15%): PKR 1,50,000
Finance Amount: PKR 8,50,000
Before investing in any car loan scheme, you need to go over Pakistan’s current auto loan rates.
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