Are you looking for the best bank for car loans in Pakistan? We have made a detailed comparison of two main banks of Pakistan that provide cars in installments i.e. Meezan Bank and HBL Pakistan.
We have made a comparison between Meezan Bank Car Ijarah and HBL Car Loan based on various features, eligibility criteria, documentation required, and other aspects.
Comparison table between Meezan Bank Car Ijarah and HBL Car Loan:
| Features | Meezan Bank Car Ijarah | HBL CarLoan |
|---|---|---|
| Financing Limit: | Up to PKR 10 million | Between PKR 200,000 to PKR 3,000,000 |
| Repayment Period: | Up to 7 years | Up to 5 years |
| Vehicle Eligibility: | Fill out a form, attach documents, and submit it for approval | Locally manufactured vehicles, new or used |
| Financing Percentage: | Up to 100% | Up to 70% of the value of the car |
| Insurance: | Takaful with value-added services | Secured insurance with tracker facility |
| Processing Charges: | No processing charges | Not specified |
| Eligibility Criteria: | Various criteria for salaried professionals, businessmen, etc. | Criteria specified for salaried individuals, pensioners, and self-employed individuals/business persons |
| Documentation Required: | Employment certificate, bank statements, CNIC copies, etc. | CNIC copy, photographs, salary slip, bank statements, proof of occupation/business |
| Residual Value Ijarah: | Available for new and used cars | Not specified |
| Shariah-Compliance: | Shariah-compliant product | Not specified |
| Application Process: | Fill out a form, attach documents, and submit for approval | Apply through branches or alternate channels, attach required documents for approval |
| After-Sales Service: | Dedicated after-sales service | Not specified |
| Support: | Support for Roshan Digital Account holders | 24/7 support through HBL Phone Banking |
In the following guide, we have highlighted all the necessary details to help you select the best bank for getting car loans in Pakistan.
Having stated this, let’s start our guide!
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Which Bank Is Best For Car Loan In Pakistan
Table Of Contents
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(HBL Vs Meezan Bank) Car Loan Comparison Table
Here’s a more detailed comparison table between Meezan Bank Car Ijarah and HBL Car Loan, incorporating additional features and factors:
| Features/Factors | Meezan Bank Car Ijarah | HBL CarLoan |
|---|---|---|
| Financing Limit: | Up to PKR 10 million | Between PKR 200,000 to PKR 3,000,000 |
| Repayment Period: | Up to 7 years | Up to 5 years |
| Vehicle Eligibility: | New locally assembled and Complete Built Up (CBU) vehicles | Locally manufactured vehicles, new or used |
| Financing Percentage: | Up to 100% | Up to 70% of the value of the car |
| Insurance: | Takaful with value-added services | Secured insurance with tracker facility |
| Processing Charges: | No processing charges | Not specified |
| Eligibility Criteria: | Various criteria for salaried professionals, businessmen, etc. | Criteria specified for salaried individuals, pensioners, and self-employed individuals/business persons |
| Documentation Required: | Employment certificate, bank statements, CNIC copies, etc. | CNIC copy, photographs, salary slip, bank statements, proof of occupation/business |
| Residual Value Ijarah: | Available for new and used cars | Not specified |
| Shariah-Compliance: | Shariah-compliant product | Not specified |
| Application Process: | Fill out a form, attach documents, and submit it for approval | Apply through branches or alternate channels, attach required documents for approval |
| After-Sales Service: | Dedicated after-sales service | Not specified |
| Support: | Support for Roshan Digital Account holders | 24/7 support through HBL Phone Banking |
| Interest Rate: | Competitive fixed and variable rates | Not specified |
| Prepayment Penalty: | No penalty for early repayment | Not specified |
| Late Payment Charges: | Not specified | Not specified |
| Customer Reviews: | Positive feedback for efficient service and transparency | Mixed reviews regarding customer service and process efficiency |
| Additional Benefits: | No processing charges, support for Roshan Digital Account holders | 24/7 support through HBL Phone Banking, multiple partial payment facility |
| Accessibility: | 600 branches nationwide, online applications available | 1600 branches nationwide, online applications available |
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Eligibility Criteria Comparison
Here are the eligibility criteria differences between HBL Bank and Meezan Bank, These are the Best Bank For Car Loan:
| Eligibility Criteria Comparison | Meezan Bank | HBL Bank |
|---|---|---|
| Monthly Income: | PKR 200,000 or more | PKR 200,000 or more |
| Age: | Minimum 25 years old | Minimum 21 years old (Self-Employed), Minimum 22 years old (Salaried) |
| Maximum 60 years old (Salaried), | Maximum 65 years old (Self-Employed) | |
| Maximum 65 years old (Businessman/ | Maximum 60 years old or retirement age (Salaried) | |
| Self-Employed) | ||
| Maximum Financing Amount: | Up to PKR 10 million | Up to PKR 10 million |
| Minimum Security Deposit: | 15% of vehicle cost (Salaried), | 15% of vehicle cost |
| 25% of vehicle cost (Businessman/ | ||
| Self-Employed) | ||
| Employment History: | No lien is required for certain categories | Not specified |
| for salaried professionals. | ||
| Business Experience: | Minimum 3 years continuous involvement | Not specified |
| in current business/industry for | ||
| businessman/self-employed professionals. | ||
| Monthly Repayment Limit: | Combined repayments should not exceed | Not specified |
| 40% of net/take-home income | ||
| Others: | Various additional requirements | No lien required for certain categories |
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Documents Requirements Comparison
Here’s a comparison table for the document requirements for Meezan Bank and HBL Bank Best Bank For Car Loan In Pakistan:
| Documents Required | Meezan Bank | HBL Bank |
|---|---|---|
| Salaried Individuals: | ||
| Latest employment certificate | Verified CNIC copy | |
| Last six-month credited salary bank statement | Latest original salary slip and personal bank statement for the last three months | |
| Nominee CNIC copy | Credit Bureau Report of Stay Country | |
| Name of employer’s HR representative with mailing address | ||
| Last six-month verified bank statement through the embassy | ||
| Businessman: | ||
| Valid business proof | Verified CNIC copy | |
| Two recent passport-size photographs | Credit Bureau Report of Stay Country | |
| Nominee CNIC copy | Bank statement for last 6 months and bank letter confirming details of account | |
| In the case of remittances income, the last six months’ bank statement of remitter would be required | Proof of occupation/business | |
| In the case of remittances income, the last six months’ bank statement of the remitter would be required | Terms and conditions apply. |
Recommended Reading: Meezan Bank Car Loan 2024 | Car Loan Meezan Bank 2024
Car Loan Interest Rates Comparison
Here is a comparison of the document requirements for Meezan Bank and HBL Bank Best Bank For Car loans in Pakistan:
| Interest Rate (per annum) | Meezan Bank | HBL Bank |
|---|---|---|
| Fixed Profit Rates: | x.x% | |
| Financing Tenure: | ||
| 1 Year: 22.26% | ||
| 2 Year: 18.96% | ||
| 3 Year: 18.40% | ||
| 4 Year: 18.00% | ||
| 5 Year: 17.08% | ||
| 6 Year: 16.75% | ||
| 7 Year: 16.50% | ||
| Variable Profit Rates: | ||
| For Non-Lien Based: 24.49% | ||
| Takaful Rates: | ||
| EFU: 1.99% | N/A | |
| Adamjee: 1.99% | ||
| Tracker: Value Added Services | ||
| – Accidental death Coverage up to PKR 2.5 Million | ||
| – Health insurance plan up to 20.00% of vehicle or PKR 500,000, whichever is less | ||
| – Online Medical consultancy | ||
| – Travel Takaful Plan up to USD 50,000 | ||
| – Online Medical Consultancy | ||
| Charges and Other Terms: | ||
| Documentation Charges: | Actual (to be borne by customer) | Rs. 8,000 Plus FED (inclusive) |
| Late Payment Charges: | Rs. 1,200/- Plus FED (Per month) | Fixed Charges (not specified) |
| Vehicle Re-Possession Charges: | Actual or Rs. 50,000/- (whichever is lower) | N/A |
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Application Process Comparison
Here is a comparison of the document requirements for Meezan Bank and HBL Bank Best Bank For Car loans in Pakistan:
| Type of Charges | Meezan Bank | HBL Bank |
|---|---|---|
| Processing Charges: | PKR 2,500 (Salaried & Businessmen) | Included in Documentation Charges |
| FED on Processing Charges: | Varies based on region | Not specified |
| Income Estimation Charges: | Not Applicable | Not specified |
| Documentation Charges: | At Actual | Rs. 8,000 Plus FED (inclusive) |
| Old Vehicle Valuation Charges: | PKR 2,000 (Salaried & Businessmen) | Not specified |
| Late Payment Charges: | Not Applicable | Rs. 1,200/- Plus FED per month |
| Vehicle Repossession Charges: | Not Applicable | Rs. 50,000/- or Actual (whichever is lower) |
Our Take (Bottom Line)
After analyzing the features of both Meezan Bank Car Ijarah and HBL CarLoan, it is evident that both banks offer competitive car financing options tailored to meet the diverse needs of customers in Pakistan.
However, based on several factors, including interest rates, financing terms, and eligibility criteria, one bank stands out as the preferred choice for users seeking low interest rates and favorable terms.
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Reasons For Selecting Meezan Bank Car Ijarah
Reasons for selecting Meezan Bank:
- Interest-Free Financing: Meezan Bank offers interest-free car financing through its Car Ijarah product, making it an attractive option for individuals who prefer Shariah-compliant financing solutions.
- Flexible Financing Terms: With a repayment period of up to 7 years and financing options for new locally assembled and completely built Up (CBU) vehicles, Meezan Bank provides flexibility to customers in choosing the tenure and type of vehicle that best suits their needs.
- Competitive Financing Percentage: Meezan Bank offers financing of up to 100% of the vehicle’s value, allowing customers to acquire their desired vehicle with minimal upfront payment requirements.
- Transparent Process: Meezan Bank’s transparent application process and clear eligibility criteria ensure a straightforward and hassle-free experience for customers, providing peace of mind throughout the financing process.
- Shariah-Compliant: As a Shariah-compliant bank, Meezan Bank’s Car Ijarah adheres to Islamic principles, attracting customers who prioritize ethical and compliant financial products.
- Dedicated After-Sales Service: Meezan Bank offers dedicated after-sales service, ensuring that customers receive support and assistance even after completing the financing process, enhancing the overall customer experience.
In conclusion, Meezan Bank Car Ijarah emerges as the preferred choice for users seeking low-interest rates, flexible financing terms, Shariah compliance, and excellent customer service.
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All You Need To Know About Best Bank For Car Loans In Pakistan (Q&A)
Which Bank Car Loan Is Cheaper In Pakistan?
In Pakistan, Meezan Bank’s Car Ijarah offers the best car loan option in Pakistan. It’s because they offer interest-free financing, and the best Tenure, and can cover up to 100% of the car’s value. Their clear process and good customer service make things easy. Shariah-compliant, they attract those who want Islamic finance.
Which Bank Is Best For Car In Pakistan?
Meezan Bank is considered one of the best options for car financing in Pakistan due to its Islamic financing offerings. With Meezan Car Ijarah, customers can get car loans without Interset or Interest-free car loans in Pakistan.
Which Bank Has Lowest Car Loan Interest Rate?
Among all the banks in Pakistan, Meezan Bank offers the lowest car loan interest rates due to its Islamic financing model, which doesn’t involve interest. On the other hand, HBL Habib Bank Limited offers interest rates, but they are higher than Meezan Bank’s rates. Therefore, for the lowest car loan interest rates, Meezan Bank is often the preferred choice.
What Is The Interest Rate Of HBL For Car Loan?
As of the latest HBL offers car loan interest rates starting from approximately 17% to 21%, depending on various factors such as the loan amount, tenure, and the type of vehicle being financed. For fixed tenors of 72 and 84 months, the rates are 16.75% and 16.50%, respectively. For floating rates, which are lien-based, the markup rate is 22.00%.
Is Meezan Bank Loan Interest-Free?
Yes, Meezan Bank’s car loan, known as Car Ijarah, is interest-free. It operates based on the Islamic financing mode of leasing, making it Pakistan’s first interest-free car financing option.
What Is The Minimum Loan Amount That Can Be Availed For HBL Car Loan?
For the HBL Car Loan, the financing limit ranges between PKR 200,000 to PKR 3,000,000, allowing the loan to choose any type of locally manufactured vehicle, whether new or used.
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FAQs | Best Bank For Car Loan
Which banks offer the Best Bank For Car loans in Pakistan?
These are the best banks for Car loans in Pakistan are:
Meezan Bank
HBL Bank
UBL Bank
What are the eligibility criteria for car loans in Pakistan?
For the HBL Car Loan, applicants must have a monthly income of PKR 200,000 or more, regardless of their employment status. The minimum age requirement is 21 years for self-employed individuals and 22 years for salaried individuals. The maximum age limit varies, with salaried individuals not exceeding 60 years old and self-employed individuals at 65 years old. Businessmen should also not exceed 65 years old. The financing amount can be up to PKR 10 million, and the minimum security deposit required is 15% of the vehicle’s cost for salaried individuals and 25% for self-employed individuals.
Recommended Reading: Meezan Bank Car Loan 2024 | Car Loan Meezan Bank 2024
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