Affordable Car Financing and Car Loans in Pakistan

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Why Choose PakWheels for Car Finance In Pakistan?

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Customer Service Representative

Experienced Representatives for Hassle-Free Process

Lowest Rates Guaranteed
Lowest Rates Guaranteed

PakWheels share lowest competitive rates from its partner banks

Coverage Plans
Coverage Plans

Customized coverage plans to meet your specific needs from partner banks

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Compare Rates

Get the Best Deal from Top Financing Banks of Pakistan

Car Finance Process

1 Apply for Car Financing on Pakwheels
2 Our Representative will Verify Your Details
3 Share Your Car Financing Request with Our Partner Banks
4 Our Partner Bank will initiate the Financing Process
5 Get Approved for Car Financing Loan

Advantages of Car Financing in Pakistan

  • Low Initial Investment

    Buy your dream car with a low upfront payment.

  • Tax Benefits

    Claim tax deductions on car financing used for business purposes.

  • Flexible Payment Options

    Customize payment options according to your financial needs.

  • Build Credit Score

    Timely payments can improve your credit score and future loan eligibility.

  • Hassle-Free Process

    Apply online, and our representative will initiate financing with partner banks.

  • No Need for Savings

    Get your desired car without saving up for years in easy monthly installments.

Best Car Financing Banks and Rates In Pakistan

Bank Names Financing Rate

*rate is inclusive of Kibor

Insurance Rate Processing Fee
23.93% 1.5% PKR 6,960
22.93% 1.29% PKR 8,000
23.93% 1.75% PKR 7,200
26.93% 2.5% PKR 5,000
24.93% 1.5% PKR 8,120
23.93% 1.99% PKR 11,600
21.93% 1.4% PKR 8,000

Affordable car financing in Pakistan

You can get your dream car on an affordable budget through extensive research about car financing procedures in different banks. We provide a user-friendly car finance calculator to customers for their new or used vehicles. In this way, car owners can plan their payments quickly and confidently. We simplify the process of auto finance, to purchase bank-leased cars at reliable rates in Pakistan. So, explore the convenience of auto financing today with our support!

Complete Guide to Apply for Car on Installment from anywhere

The vehicle owners can apply at the bank of their own choice. However, the documents that the banks may need can vary during the verification process. At PakWheels, our intuitive bank car finance calculator helps you compare the benefits, prices, interest rates, and insurance rates of different banks. The eligibility requirement/ criteria to apply for the loan varies from bank to bank. Furthermore, the general documents which you need to have for it are as follows:

  1.  2 copies of the ID Card
  2.  2 passport size pictures
  3.  6 months bank statement
  4.  6 months of account maintenance letter
  5.  Job letter of 6 months 
  6.  The record of one year of employment in a reputed organization/ business proof.

In case of foreign remittance, you need to have these documents:

  1.  2 recent pictures of the remittance receiver
  2.  CNIC copy of the receiver 
  3.  CNIC copy of remittance sender
  4.  Passport copy
  5.  Visa copy
  6.  Work permit
  7.  The last 12 months' bank statement in which the remittance is being transferred 
  8.  Account maintaining certificate along with the concerned CNIC number
  9.  Both bank letters and statements should be signed and stamped.

Therefore, you should choose the bank that best aligns with your needs. You can get car financing for your desired vehicle with the help of the best car financing banks in Pakistan. These include Faysal Bank Limited, MCB Islamic Bank, Dubai Islamic Bank, MCB Bank Limited, Al Barakah Bank Limited, and Bank of Punjab. We offer car financing in the case of both new and used cars.

How to use car finance calculator

The auto finance calculator in Pakistan has simplified the process of car financing for both used and new cars. On our website, we provide a car finance calculator for which you need to have some essential information. It is as follows:

  1. Select your city
  2. Make/model/version of your car.
  3. Select tenure 
  4. Select down payment.

Afterwards, the list of best banks for car loans in Pakistan is viewed on the screen. The monthly installment, initial deposit (down payment), and processing fee are displayed with the list of the banks. Each bank will have its markup rate and interest. So, you must do comprehensive research with the help of a car installment calculator before applying. 

Afterward, the car information, along with the request to fill in the personal and financial information of an applicant, is displayed on the screen. You need to verify your phone code. Upon confirming your request, the financing partner will assist you in getting a suitable offer. You can approve it to enjoy the ride of your chosen car. The different banks with financing and insurance rates are given in the above table.

Kibor rates of different banks in Pakistan

Kibor stands for Karachi Interbank's offered rate, which serves as a benchmark for interest rates in the company. The vehicle owners can stay updated about the Kibor rates by regularly visiting the official website of the State Bank of Pakistan. You can monitor these rates to seek and borrow money in this digital world.

However, cheap car financing banks in Pakistan are Faysal Bank Limited, MCB Islamic Bank, Dubai Islamic Bank, MCB Bank Limited, Al Barakah Bank Limited, Allied Bank, and Bank of Punjab. The Kibor rates of these banks are as follows:

Bank name

Kibor rate plus

MCB bank

Fixed rate of 22 %

Dubai Islamic Bank


Bank Al Falah

4 %

Al Barakah bank

5 %

Bank of Punjab (BOP)

21%. They provide financing on new cars only.

Faysal Bank

Kibor + 4.5 – 5.5 %

Allied Bank

Kibor rate of 3.5 _4 % for one year tenure


Which cities are included in the car financing? 

The cities in which we provide car financing are Lahore, Karachi, Islamabad, Rawalpindi, Faisalabad, Multan, Peshawar, Rahim Yar Khan, Bahawalpur, Sargodha, Gujrat, Sialkot, and Gujranwala. The local banks and lenders provide individuals with the option to obtain loans to purchase vehicles. It makes it more accessible for people to buy cars through manageable payment plans.

Disclaimer: Prices and Calculations might have slight variation depending on KIBOR or any other variable rates. Prices can be verified from respective bank(s)

Kibor Rate Today

6 Months 20.11%
12 Months 19.93%

KIBOR is used as a benchmark for consumer and corporate lending. Monthly Car Installments may vary depending on the Kibor Rate. Car Finance Prices can be verified through the Car Loan Calculator.

Car Finance FAQs

The minimum amount required for car finance is 35% as a down payment. Our user-friendly car loan calculator helps you to take a car on installments in Pakistan. You can compare the interest rate, insurance rates, markup, and varying Kibor rates of changing banks. It will help you to take a bank loan for car at a reliable price according to your budget.
The eligibility criteria for financing a car in Pakistan varies. For a salaried person, the applicant's age should be 22 years old or a maximum of 65 or less at the time of maturity. The maximum income of the salaried person should be RS 80,000. The salary of a self-employed individual should be RS 1,00,000. However, in the case of pensioner/remittance income, the minimum age should be 65 or less, with a salary of RS 1,00,000.
The minimum financing criteria for new and used cars is 1 year, and for the maximum, it is 5 years. If the car is up to 1000cc, the tenure should be 1 to 5 years for the model of 2016 and onwards. However, if the car is more than 1000cc, the plan should be 3 to 5 years for the car from 2016 onwards. However, Faysal Bank and Dubai Islamic Bank offer car financing for 9 years old vehicles as well, with a tenure of 3 years.
The documents for car financing vary on the type of employment in Pakistan. The general documents that we need are 2 passport-size pictures, a CNIC copy, an appointment letter, a bank account maintenance letter, and a letter with 6 months to 1 year of job experience. In addition, both bank letters and bank statements should be signed and stamped.
Islamic car finance is a type of financing that follows Shariah-compliant principles. It operates on the concept of Musharakah, where the bank and the borrower share the cost and profit of the car purchase.
Several banks offer competitive interest rates for car loans in Pakistan. It is recommended to compare the rates and terms offered by different banks before making a decision. Some of the popular banks for car loans include MCB Bank, HBL, and Faysal Bank.
The permissibility of car financing, also known as auto loans, in Islamic finance depends on the specific structure and compliance with Shariah principles. Islamic banks offer halal car financing options that adhere to Shariah guidelines, such as avoiding interest-based transactions and promoting profit-sharing models. It is important for individuals to seek guidance from Islamic scholars or experts to ensure compliance with Islamic principles in car financing.
The loan tenure and EMI (equated monthly installment) are inversely related. This means the longer you take to pay off the loans, the lower the amount in installments you will have to pay and vice versa.
The maximum down payment which the individual has to pay is 70%. Moreover, each bank has a varying policy, interest rate, and insurance rate. Furthermore, the vehicle owners' credit source and financial history play an important role in determining the maximum amount they can borrow.
No, we don't charge any additional charges for auto financing. However, you need to pay a significant upfront cost as a downpayment. It varies, ranging from maximum to minimum. The customers can choose the one suitable for them on the car loan calculator present on our website.
Yes, there are 1-7 years in which the vehicle owners have to repay the borrowed money to the banks. Moreover, the car finance limit is RS 50 lacs to 2 lacs. The minimum price of a car should be a minimum of 50 lacs or a maximum of 2 lacs.

The banks consist of car insurance services along with financing for both new and used cars. However, banks have varying insurance companies and types of insurance for car owners. It depends upon their needs and demands on which insurance they will choose.

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