Car Financing in Pakistan - Bank Car Financing

Find The Best Car Finance Plans

Let PakWheels help you with car finance whether you are looking for a new car or used car. Calculate installments, compare banks and get connected to the best one with fastest processing times.

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Available Financing Solutions

PakWheels Car Financing: 

PakWheels is making tools that help users in buying vehicles and calculate loan Payment for Auto Finance. Online car loan calculator was launched by almost all banks to calculate loan payments on the basis of current mortgage rates. Meezan Bank Car Loan Calculator, AlFalah Bank Car Financing Calculator and HBL Car Loan Calculator are just few of them for calculating monthly installment on HBL Car Loan and Alfalah Car Finance.

Used Car Financing:

Banks and other financial institutions were not very keen on offering Car 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. Few banks are facilitating used Car Financing are Meezan Bank, Bank AlFalah, UBL and Faysal Bank, HBL through HBL Car Loan.

Process of Cars Financing:

Although the Car Finance processing 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 Car Financing

Eligibility criteria for Car Loan 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 Loan 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 the 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 Car Loan 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 loan calculator, Al-Falah Car Finance calculator or Mezan Bank Car Financing Calculator to ascertain the car installment using the prevailing car financing rate. Key benefits of Car Loan Calculator:

Yearly Installment Plan Calculation
Estimated Monthly Installment Calculation

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