The unreasonably high prices of cars in Pakistan have pushed the local consumers towards car finance. While some people can afford to pay at once, there’s a huge majority living in the same country who are unable to afford even a small car. To help and make it possible for everyone to buy a car, banks have enabled easy car loan services to entertain local buyers. While this may be true, not everyone is aware of how to apply for car loan in Pakistan. This article will help you figure out the easy and simple steps towards your successful car loan application.
How To Apply For Car Loan
It is important to mention that the car finance process varies from bank to bank. However, the basic requirements to fall eligible for a car loan are pretty much the same. Here, we have explained simple and generalized steps to apply for your car loan.
- First, you need to see if you are eligible for car finance. For this, you (applicant) should be a citizen of Pakistan between the age of 22 to 65.
- You should also have a steady source of income – Salary, Rental, Agricultural, or Business.
You need to have the following documents to apply for a car loan:
- Passport size photograph
- Copies of National Identity Card
- Bank statements for a certain past period (to ascertain the steady income)
- Salary certificates for salaried individuals
(Additional documents may be required depending upon the selected bank)
Verification & Finance Process
- Once you have submitted the required documents after assuring your eligibility, here’s what will happen:
- The bank forwards the financing case for verification and approval
- The financial status of the applicant is verified by the bank (The process may take from a few days to a few weeks time frame depending upon the choice of the bank)
- Once the case is approved, the bank will ask you to pay the upfront payments as per your case
- Upon successful completion and verification of the required upfront payment, the bank will arrange and deliver the car to the customer.
How Much Interest Do I Have To Pay In Car Finance?
Car financing rates vary from bank to bank. However, they currently stick between 17% to 21% depending upon the term of financing.