Since the world has been progressing in different ways, new businesses and products are being launched. The need for going from place to place is essential and the acquisition of conveyance is much needed for everyone whether you are a businessman or a salaried employee. But the major problem any buyer usually comes across with is the lack of information about the premium details and having no any know-how of the installments to be paid for the dream car he or she wants to buy.
So here we will also provide a casual insight into the auto financing loan calculator schemes employed by well-known banks for instance, Alfalah Car Loan Calculator on Car Financing and HBL Car Financing Calculator. Also you can learn about how the loan is calculated and further processed keeping into consideration the religious aspects. Let’s start with the Islamic Bank Car Financing scheme which is one of the most prominent examples we can refer to.
Islamic Banking Car Financing based on the Sharia compliance for leasing vehicles is different from normal car financing. There are indeed multiple terminologies for a specific process and in this case, it is termed as Murabaha or at some places, Ijarah.
Different banks have the Auto Finance Calculation Software such as Bank Alfalah car loan calculator, HBL Car financing and Meezan car loan calculator have it on their website respectively where you can estimate by entering your tenure and budget and then you will be shown the estimated price.
The interface module presented by “Pakwheels” on their website, is indeed very helpful in determining what bank or auto dealer to contact because it shows a clear comparison from where you can choose your trusted bank or auto dealer. This specific car loan calculator takes the following parameters:
After the interested buyer puts in the abovementioned details, the names of banks and auto dealers are generated and are shown on the next screen from where, only task the buyer is left with is to choose the most trusted bank/auto dealer.
Mentioned below, is a general formula for car loan calculation. In this formula, the time period has been assumed as annual.
On Annual Payment Basis:
Interest (i X P)__
i= rate of interest
P=Principal Amount (the amount to be fully paid)
N= Number of Years/ Tenure of the vehicle
On Monthly Payment Basis:
Interest = ( i/12 X P )
(1-( 1+i/12)N X 12
The value generated from this formula is the actual annual rate for car loan installments. To make it more optimized, the principal value obtained is divided by 12, thus yielding the value of monthly installment. As the final word, this formula is being used by many organizations that deals in automobiles. Variations of this formula are being utilized and various packages are also being offered as leverage to convene the buyer attention.
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