Almost all commercial banks in Pakistan whether Islamic conventional provide car finance in Pakistan.
But Meezan Bank as premier Islamic Bank stand out among all these banks with its distinguished car Financing facilities.
In case of conventional banking if car is damaged or stolen the installments continue to end but in Islamic banking in such a case installments end.
As a minimum down payment 30% is benchmark.
New and used both cars are available for Financing through Meezan Bank.
Both salaried and business persons can get car Financing through Meezan Bank.
The salaried persons may be either on contract or on permanent job holders.
Income of spouse can be club up to 50%.
Debt burden ratio is 40% means if you are earning Rs.100000 per month them you may get Financing with monthly installments of Rs.40,000.
State Bank of Pakistan has revised the policy for car finance tenure.
Now car Financing up to 1000cc will be for 5 years which earlier was for 7 years.
For above 1000 cc the tenure of cat finance is reduced from 5 to 3 years.
These restrictions will lower down the ratio of car Financing through Banks in Pakistan
As the tenure is less hence per month installments will be higher and many consumers who wish to get car loan will not be able to get the one.
It will be because their income could not bear the DBR that is 40% of their net income.
Further Meezan Bank will also bear the withholding tax on purchase of the car that is its competitive edge over the competitors.
Meezan bank is best in term of fast car Financing and providing best customer services in Pakistan.
Meezan bank is the most car loan providing bank in Pakistan.