Best Car Loan Financing Banks in Pakistan (Plans Compared)

Finding the best car loan financing banks in Pakistan can significantly impact your purchase decision. In 2024, several banks stand out for their competitive offerings. For those seeking low interest rates and affordable instalment plans, options like Meezan Bank, Al Faysal Bank, and Bank Alfalah offer attractive solutions. Many of these institutions provide loans without requiring a down payment, making them accessible to a wider range of customers.

Additionally, Faysal Bank Limited, MCB Islamic Bank, Dubai Islamic Bank, MCB Bank Limited, Al Barakah Bank Limited, and Bank of Punjab are also notable for their cheap financing options.

In this guide, we’ll discuss the top car financing institutions of Pakistan, what interest rates they offer and their repayment plan.

The Best Car Loan Financing Banks in Pakistan

Here are the top institutions in Pakistan to get a car loan from:

Bank/Car Finance Plans	Key Features	Why Choose This Car Insurance?
Meezan Bank (Car Ijarah)	– Shariah-compliant financing based on Ijarah (leasing). – Interest-free financing. – Flexible tenure of 1 to 5 years. – Low security deposit (as low as 30%).	Ideal for those seeking an Islamic, interest-free financing option with flexible payment terms and no interest charges.
HBL (CarLoan)	– Financing up to 70% of the vehicle’s value. – Choose from new or used locally assembled vehicles. – Multiple partial payment options. – 24/7 support via Phone Banking. – Extensive branch network with over 1600 branches.	Offers a hassle-free, flexible loan process with high financing limits, and comprehensive customer support.
Bank Alfalah (Auto Loan)	– Choose between new or used cars. – Affordable markup rates. – Residual value option to lower installment. – Flexible tenure up to 5 years for vehicles up to 1000 CC, and up to 3 years for vehicles above 1000 CC. – Zero charges on car replacement. – Option to defer insurance and registration charges.	Perfect for those who want flexibility in payment and loan structure, especially with the residual value and deferment options.
Bank AL Habib (Roshan ApniCar)	– Shariah-compliant auto finance for RDA holders. – Financing for brand new, used, and imported vehicles. – Loan disbursement and installment through Roshan Digital PKR Account. – Down payment between 15-45%. – Takaful and tracker included.	Designed specifically for non-resident Pakistanis with an RDA, offering secure and Shariah-compliant financing with flexible options.
Faysal Islamic (Car Finance)	– Based on Diminishing Musharakah (Shariah-compliant). – Financing up to 70% of vehicle value. – Tenure of up to 5 years for vehicles up to 1000 CC. – Partial pre-payment and co-partner facility available. – Takaful coverage and tracker installed for safety.	An excellent choice for those looking for Islamic financing with flexible ownership terms and the ability to partially pre-pay loans.

1. Meezan Bank – (Interest-Free Car Financing Option)

Car Finance Product: Meezan Car Ijarah | Interest Rate: Interest-free | Downpayment/Deposit: 15% for Govt Salaried Person & 25% for Non-Salaried/Self-Employed | Repayment Period: 1 to 5 Years | Maximum Financing: PKR 10 Million (1 Crore)

Meezan Car Ijarah (Riba-Free) is an innovative auto financing solution offered by Meezan Bank, Pakistan’s first interest-free car financing product based on the Islamic mode of Ijarah (leasing). This financing option is designed for individuals seeking an interest-free method to acquire locally manufactured or assembled vehicles.

How Car Ijarah Works

Under the Car Ijarah agreement, Meezan Bank purchases the vehicle and leases it to the customer for a period ranging from 1 to 5 years. The rental payments commence after the delivery of the vehicle. At the end of the lease term, the customer has the option to purchase the vehicle at a nominal token amount or receive it as a gift. The minimum security deposit required is as low as 30%.

Eligibility Criteria

Certainly! Here’s the information organized into a table format for both Salaried Professionals and Self-Employed Professionals:

Category	Salaried Professionals	Self-Employed Professionals
Permanent Employees	Minimum of 3 months in current job with at least 2 years of continuous employment history.	–
Contractual Employees	Minimum of 6 months in current job with at least 3 years of continuous employment history.	–
Businessmen	–	The position must be Proprietor, Partner, or Director (percentage of sharing/holding will be considered).
		Position must be Proprietor, Partner, or Director (percentage of sharing/holding will be considered).
Income Requirements	Net take-home income must exceed twice the monthly rental (inclusive of Takaful).	Net take-home income must exceed twice the monthly rental (inclusive of Takaful).
	Spouse’s verifiable income can be clubbed up to 50%.	Spouse’s verifiable income can be clubbed up to 50%.
	Total monthly payments (including proposed Ijarah rental) should not exceed 40% of net/take-home income.	Total monthly payments (including proposed Ijarah rental) should not exceed 40% of net/take-home income.
		For locally manufactured or assembled vehicles up to 1000 CC engine capacity, up to 50% of net/take-home income can be allowed.
Credit Check	Both data check and e-CIB should be clear with no current defaults or overdue payments at the time of approval.	Both data check and e-CIB should be clear with no current defaults or overdue payments at the time of approval.

2. Habib Bank Limited (HBL)

Car Finance Product: HBL CarLoan | Interest Rate: Low | Downpayment/Deposit: Upto 35% | Repayment Period: 5 Years | Maximum Financing: PKR 3,000,000 (30 Lakhs)

HBL offers a flexible and hassle-free car financing facility, allowing you to own your dream car with financing up to 70% of the vehicle’s value. This facility supports both new and used locally assembled vehicles. With a financing limit ranging from PKR 200,000 to PKR 3,000,000 and a repayment period of up to 5 years, HBL provides an accessible way to fund your car purchase.

How It Works

The HBL Car Loan provides financing up to 70% of the value of your chosen car, whether new or used, from any locally manufactured model. The loan offers flexible repayment options that extend up to 5 years, allowing you to manage your budget effectively. Secured insurance is included with the loan, featuring a tracker facility for added peace of mind.

Additionally, HBL offers the convenience of multiple partial payments to fit your financial situation. With access to over 150 eligible dealers, you have a wide range of car brands and models to choose from. Applications can be submitted at any of HBL’s 1600+ branches or through alternative channels. The bank also provides 24/7 customer support via HBL Phone Banking and dedicated after-sales service to ensure a smooth experience.

You can use our HBL CarLoan calculator to find out how much you need to pay when financing a car from HBL.

Eligibility Criteria

Category	Criteria
Salaried Individuals	– Must be a Pakistani citizen. – Age: 22 years or older at the time of loan application, up to a maximum of 60 years or retirement age, whichever is lower. – Minimum monthly income: PKR 35,000.
Pensioner Individuals	– Must be a Pakistani citizen. – Maximum age of 70 years at the time of loan maturity. – Must have a pension account relationship with HBL. – Minimum monthly income: PKR 35,000.
Self-Employed Business Persons/Professionals	– Must be a Pakistani citizen. – Age: 22 years or older at the time of loan application, up to a maximum of 70 years at the time of loan maturity. – Minimum monthly income: PKR 35,000.

3. Bank Alfalah

Car Finance Product: Bank Alfalah Auto Loan | Interest Rate: 3.50% to 5% (depends on financing period) | Downpayment/Deposit: Can be made in monthly instalments | Repayment Period: 2 to 7 Years | Maximum Financing: PKR 3,000,000 (30 Lakhs).

Bank Alfalah’s Auto Loan empowers you to be in control when purchasing your ideal car. Whether you’re eyeing a new or used locally assembled vehicle, this auto loan offers the flexibility to design your payment plan according to your needs. With competitive markup rates and a variety of options to manage your loan, Bank Alfalah ensures that financing your car is both accessible and convenient.

How It Works

The Bank Alfalah Auto Loan provides the flexibility to choose between new or used locally assembled/manufactured vehicles. You can benefit from affordable markup rates and take advantage of the residual value option to reduce your monthly instalments.

Partial payments are allowed, offering further ease in managing your finances. Additionally, the loan includes the option to defer insurance and registration charges, and there are no charges for car replacement. The financing tenure is also flexible, with a minimum of 2 years and a maximum of 5 years for vehicles up to 1000 CC, while for vehicles above 1000 CC, the tenure ranges from 2 to 3 years.

Eligibility Criteria

Category	Criteria
Salaried Individuals	– Must be a Pakistani National Identity Card Holder. – Minimum gross salary: PKR 30,000. – Age: 21 to 65 years at loan maturity for Private Sector employees, and up to 60 years for Government Sector employees. – Job Status: For permanent employees, currently employed with a total employment experience of at least 6 months; for contractual employees, currently employed with at least 1 year of total employment experience.
Self-Employed Businessmen/Professionals/Others	– Must be a Pakistani National Identity Card Holder. – Minimum gross income: PKR 50,000 per month, assessed based on bank statements or documentary evidence. – Age: 21 to 70 years at loan maturity. – Business Status: Must have at least 1 year in the current business.
Customer Segments	– Salaried individuals, including government/semi-government employees and employees of the armed forces. – Professionals such as Chartered Accountants, Consultants, Doctors, etc. – Self-employed individuals, proprietors, partners, and family business owners. – Landlords, housewives, and retired individuals with consistent rental income or foreign remittances.
Income Sources	– Employment (permanent/contractual). – Business (partnership/proprietorship). – Rental income. – Agricultural income. – Remittances from abroad. – Co-borrower’s income (in the case of a co-borrower).

4. Bank Al Habib

Car Finance Product: Roshan Apni Car | Interest Rate: SBP Floor+1.0% | Downpayment/Deposit: 15-45% depending upon the variant of vehicle | Repayment Period: 5 Years | Maximum Financing: PKR 3,000,000 (30 Lakhs).

Bank AL Habib introduces the Roshan ApniCar (Auto Finance) facility, specifically designed for individuals holding a Roshan Digital Account (RDA) at Bank AL Habib Limited. This loan allows non-resident Pakistanis to purchase a vehicle for their spouse, parents, children, or siblings residing in Pakistan. Whether you’re looking to finance a brand-new, used, or imported vehicle, the Roshan ApniCar loan offers a tailored solution to meet your needs.

How It Works

The Roshan ApniCar facility enables RDA holders at Bank AL Habib to finance the purchase of a car for their loved ones in Pakistan. Eligible vehicles include brand-new, used, and imported cars. The financing amount is linked to a down payment ranging between 15% to 45%, depending on the vehicle’s variant.

The facility is available to salaried individuals, self-employed professionals, and business individuals with a minimum of two to three years of work experience. The monthly instalments and disbursement of the loan are managed through the Roshan Digital PKR Account, ensuring a seamless transaction process. The vehicle can be registered in the name of the borrower or their immediate family members who reside in Pakistan.

Eligibility Criteria

Category	Criteria
Salaried Individuals
Income Requirements	– Minimum gross monthly income: Equivalent of DHS 10,000 for those employed in Gulf countries, or USD 3,000 for those employed in non-Gulf countries.
Age	– Minimum age at application: 25 years. – Maximum age at loan maturity: 60 years.
Work Experience	– Regular salaried individuals: Minimum 2 years with the current employer. – Contractual salaried individuals: Minimum 3 years of experience.
Supporting Documents	– Latest 3 months’ salary slips. – Latest employment certificate with joining date. – Last six months’ bank statement. – Contact details of HR and bank.
Non-Salaried Individuals
Income Requirements	– Minimum gross monthly income: Equivalent of DHS 10,000 for those employed in Gulf countries, or USD 3,000 for those employed in non-Gulf countries.
Age	– Minimum age at application: 25 years. – Maximum age at loan maturity: 65 years.
Work Experience	– Self-employed professionals and business individuals: Minimum 3 years in the same profession or professional setup.
Supporting Documents	– Valid proof of professional setup, license, or registration certificate. – Last six months’ bank statement. – Contact details of business association/licensor and bank.

5. Faysal Bank

Car Finance Product: Faysal Car Finance | Interest Rate: 23% Kibor rate | Downpayment/Deposit: 15% of vehicle value | Repayment Period: 5 Years | Maximum Financing: 70% of the value of the vehicle

Faysal Islamic Car Finance offers a Shariah-compliant vehicle financing solution based on the principles of Diminishing Musharakah. This medium- to long-term financing product allows both the Bank and the customer to jointly purchase a vehicle, with shared ownership. Over time, the customer buys out the Bank’s share, eventually becoming the sole owner of the vehicle. The product is designed to provide flexible, hassle-free financing options for both new and used cars.

How It Works

Faysal Islamic Car Finance operates on a straightforward and customer-friendly model. The application process is quick and hassle-free, allowing for easy selection of locally assembled or manufactured vehicles. The Bank provides financing for up to 70% of the vehicle’s value, with flexible tenure options based on the type of vehicle: up to 5 years for vehicles up to 1000 CC and up to 3 years for those above 1000 CC.

Additional features include the option for partial pre-payment, co-partner facility, and early settlement. Takaful coverage is provided by reputable companies on the FBL panel, and a tracker is installed in the vehicle to ensure maximum safety. Installments only begin after the vehicle has been delivered, and there are no processing fees until financing approval. Financing is available for vehicles up to 9 years old, and property rental income can be considered as primary or additional income.

Eligibility Criteria

Category	Requirements
Salaried Individuals	– Fully completed and signed application form. – Current salary slip. – Clear and visible copy of CNIC. – Two recent passport-size photographs. – SBP undertaking filled and signed. – Six months’ bank statement where salary is credited (original, stamped, and signed by the bank). – Employment certificate. – Copy of the latest utility bill.
Business/Self-Employed	– Fully completed and signed application form. – One-year business proof (Copy of NTN or other authentic business proof). – Clear and visible copy of CNIC. – Two recent passport-size photographs. – SBP undertaking filled and signed. – Six months’ bank statement (original, stamped, and signed by the bank). – Professional degree and valid membership of the applicable professional body (for SEP only). – Copy of the latest utility bill.

FAQs

1. Can I apply for car financing if I already have an existing loan in Pakistan?
   Yes, most banks allow you to apply for car financing even if you have existing loans, subject to meeting their debt-to-income ratio requirements.
2. Which car models available in Pakistan are eligible for financing under these plans?
   Generally, locally assembled, manufactured, or even imported vehicles are eligible, but each bank has a specific list of approved models.
3. Is it possible to refinance my current car loan with any of these banks in Pakistan?
   Yes, several banks in Pakistan offer refinancing options, allowing you to transfer your existing car loan to them under new terms.
4. Can I choose a used vehicle for financing with all the banks operating in Pakistan?
   Yes, most banks provide financing for used vehicles, though the vehicle’s age and condition may affect eligibility and terms.
5. Which banks in Pakistan offer Shariah-compliant car financing options?
   Banks like Meezan Bank, Bank AL Habib, and Faysal Bank offer Shariah-compliant car financing options under Islamic banking principles.
6. Can I pay off my car loan early without incurring any penalties from these Pakistani banks?
   Some banks allow early settlement without penalties, but it’s important to confirm the specific terms with your chosen bank.
7. Is it mandatory to get Takaful or insurance coverage through the bank, or can I choose my provider in Pakistan?
   While banks often offer in-house Takaful/insurance, you may have the option to choose your own provider, depending on the bank’s policy.