PakWheels is making tools that help users in buying vehicles and calculate loan Payment for Auto Finance. Cars financing has been an attractive way to owning a car for people of Pakistan especially during the early 2000’s. Car installments were determined using the car financing rates. With the increase in the use of IT, online car loan calculator were launched by almost all the banks to calculate loan payments on the basis of current mortgage rates. Meezan Bank Car Financing Calculator, AlFalah Bank Car Financing Calculator and HBL car finance calculator are just few of them.
Used Car Financing:
Banks and other financial institutions were not very keen on offering financing arrangements for used cars until the recent growth of used cars sector, especially the imported cars. Most of the leading banks in Pakistan are now offering used/imported cars financing alongside the brand new cars financing. Some of the banks facilitating the used cars financing are Meezan Bank, Bank AlFalah, UBL and Faysal Bank.
Process of Cars Financing:
Although the car finance processing cycle 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 variation 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 the car financing.
Eligibility criteria 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 minor 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.
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 it is established that 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 the facility, the car is arranged and delivered to the customer. This will obviously include the upfront payments from the customer.
Car financing rates are currently varying between 17% to 21% depending on the term of financing and type of arrangement. For variable car finance interest rates, it is varying between KIBOR+3% to KIBOR+5% depending on same variables.
Car Loan Calculator Advantage:
One should refer to online car loan payment calculator like HBL car financing calculator, Al-Falah car financing calculator or Mezan Bank Car Financing Calculator to ascertain the car installment using the prevailing car financing rate. Key benefits of Car Loan Calculator: