In today’s fast pacing world, mankind is surrounded by technology. Either directly or in-directly to make our lives easier. Travelling on a car is one of them and getting a vehicle through car loans in Pakistan has become very easy these days. Car not only makes one’s life easy in terms of travelling from one place to another. Besides this, it also encourages one to complete multiple task in single go.
For instance, picking up children, doing grocery, visiting any other places, etc., all in one go. So, in current scenario, car is not a luxury rather it is a need and applying for a car loan in Pakistan will ease the burden of the individual. However, not everyone can afford car considering one’s financial status and liabilities he/she is holding up to.
There are different banks in Pakistan who can help you in getting your dream car by lending you money in the form of car loan. But before you apply for a car loan in Pakistan, it is advisable that you should do some homework against that car loan rates being offered. As it is said that “Knowledge is more powerful than money”- this holds true when you are about to do any financial decision.
A set of 8 questions regarding car loan can help you in saving more bucks on your car loan. Let’s have a look on these 8 fundamental questions one should know before applying for a car loan in Pakistan.
- What is the interest rate I’ll be paying on a car loan in Pakistan?
- How much amount will be financed by the bank?
- What will be my monthly installment?
- What will be the final price I have to pay for the bank?
- How much amount is to be paid under the umbrella of down payment?
- What will be the time period of the car loan?
- Minimum income level to avail a car loan in Pakistan?
- List of documents I need before applying for a car loan in Pakistan?
1- Interest Rate on a Car Loan in Pakistan:
Before applying for a car loan in Pakistan you must be well aware of the interest rates of different banks. Interest rate is the amount charged as a fee by the banks to the customer for a specific period for using their money, which was given to them in the form of loan. Bank can charge you with the higher or the lower interest rate depending upon the credit history of the customer.
If the consumer maintains the good credit history he will be given the loan on the lower interest rate. Likewise, if the customer does not possess a good credit history, he will be charged with higher interest rates.
Additional Reading: Getting a Used-Car through Car Loans in Pakistan
2- Amount Financed by the Bank:
Applying for a car loan in Pakistan isn’t an uphill task, condition applied you must be well aware of the procedures of the banks inside out. Before applying for the car loan, you should know the percentage of the amount financed by the bank. Different banks have multiple criteria to check the credit rating of your account and then finance your car loan. So, this thing should be kept in mind before applying for the car loan in Pakistan.
3- Monthly Installment:
After due consideration in every step, you have the clear idea of the monthly installment, you have to pay for the car loan. The bank asks for the small payment under the umbrella of down payment. After the down payment the bank schedule your remaining amount in the form of installments as per your decided time period. Either you want to repay the loan in 5 years or 7 years. After proper investigation of your monthly income and capacity to repay the car loan will be calculated on banks behalf, and then monthly installments will be calculated.
4- Final Price I have to Pay for Bank:
At times the bank sets lower interest rate for the car loan. But, irrespective of this the customer will be accompanied with the multiple charges by the bank. These include documentation, processing fee, late payment charges and so on. Before applying for the car loan in Pakistan you should discussed all the hidden charges the bank may charge you for that, so that it can help you to access the final payment of the car loan. For example, you can review the common charges and fees to be paid for a certain loan product at Mawazna’s car loan service.
5- Amount To Be Paid Under the Umbrella of Down Payment:
Applicants should not agree to the higher installment as it will put pressure on their monthly financial ending. It is advisable to the customers that they should refrain from option maximum years to pay the amount as it will increase the interest rate and so as the monthly installment. One can save itself from this hassle by going for the short tenure and maximum amount to be paid in the down payment.
6- Time Period of the Car Loan:
The maximum time period to pay back a car loan in Pakistan is 7 years. You can repay the money within 7 years for a new car. However, for a used car you can repay the amount in 5 years timeframe.
7- Minimum Income Level to Avail the Car Loan in Pakistan:
The minimum income level to avail the car loan in Pakistan should be PKR 20,000/-.
8- List of Documents Required to Apply for Car Loan in Pakistan:
Following is the list of documents you must require for the car loan in Pakistan:
– Original copy of CNIC along with the verified copy
– Two recent size passport size photographs
– Latest salary slips along with the personal bank statement of a minimum of last three months
– In case of s businessman, proof of a business.
In a nutshell, these questions help you in making an intelligent decision when choosing a best car loan in Pakistan. At Mawazna.com you can compare different car loans offered by leading Pakistani Banks and making the most out of it. Please visit our website to have a detailed view of the car loan products along with compreensive information that can help you to make well-informed decisions.
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