If you are searching for the best bank for a car loan in Pakistan then you are at the right place, because after careful comparison of all the leasing options, Meezan Bank stands out as the best among all for getting a car on installment in Pakistan.
Now, here is a quick recap of the eligibility criteria to get a car loan from Meezan Bank:
- The maximum amount of a car loan: is Rs.10 Million (i.e 1 crore).
- Maximum loan tenure/limit: 7 years.
- Age limit:
- Maximum age limit: 60 years
- Minimum age limit: 25 years.
- Minimum downpayment:
- 15%-25% of the car value for salary persons.
- 25%-35% of the car value for self-employed/business persons.
- Meezan Bank Car Loan Interest Rate Details: Details are in the following Image.
In the following guide, we have discussed eligibility criteria, document requirements, and a step-by-step process to apply for a car loan from Meezan Bank in detail. So, let’s get started with our guide!
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Meezan Bank Car Loan Scheme | Car On Installment From Bank
Table Of Contents
- Meezan Bank Car Loan Scheme | Car On Installment From Bank
- Roshan Digital Account Holders Meezan Bank Car Loan Scheme
- Meezan Bank Car Loan Eligibility Criteria
- Document Requirements For Meezan Bank Car Loan
- Roshan Digital Account Customer Application Form
- Who is Eligible for Meezan Bank Car Loan?
- Meezan Bank Car Loan Features
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Roshan Digital Account Holders Meezan Bank Car Loan Scheme
What is Meezan Bank Car Ijarah?
Meezan Bank, a top bank in Pakistan, offers a best car loan program called Meezan Bank Car Ijarah. This program is best because it’s interest-free, meaning you don’t have to pay extra money on the loan amount. Instead of a traditional loan, it works like a lease.
Here’s how it works: Meezan Bank buys the car and then rents it out to you for a set period, usually 1 to 5 years. At the end of the lease, you can buy the car at a low price or have it gifted. It’s a great choice for anyone who wants a locally-made car without dealing with interest fees.
Meezan Bank Car Loan Details
EFU Value-Added Services:
- Rate: 1.99%
- Coverage: Accidental death coverage up to PKR 2.5 Million.
Adamjee Value-Added Services:
- Rate: 1.99%
- Coverage: None specified.
- Additional Benefits:
- Accidental death coverage up to PKR 2.5 Million.
- Health insurance plan covering up to 20% of the vehicle’s value or PKR 500,000.
- Online medical consultancy.
- Travel Takaful Plan covering up to USD 50,000.
Meezan Bank Car Loan Interest Rate
Fixed Profit Rates: These rates remain constant throughout the 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: These rates may change over time.
- For Non Lien Based: 24.49%
Note: Rates may change based on deposit and PKRV rate at the time.
Meezan Bank Car Loan Processing Charges
Salaried Individuals:
- Upfront processing charges: PKR 2,500
- Federal Excise Duty (FED) on processing charges: Varies from 13% to 16%, resulting in PKR 325 @13%
- Income Estimation Charges: Not applicable
- Documentation Charges: Charged at actual cost
- Old Vehicle Valuation Charges: PKR 2,000
Businessmen:
- Upfront processing charges: PKR 2,500
- FED on processing charges: Varies from 13% to 16%, resulting in PKR 325
- Income Estimation Charges: Charged at actual cost
- Documentation Charges: Charged at actual cost
- Old Vehicle Valuation Charges: PKR 2,000
Note:
- The charges mentioned above do not apply to Meezan Car Ijarah for Roshan Digital Account holders.
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Meezan Bank Car Loan Eligibility Criteria
Here are the Car Loan eligibility criteria for Roshan Digital Account Holders:
- Vehicle Financing: Meezan Bank offers easy financing for both new locally and imported vehicles.
- Financing: You can get a financing loan of up to 10 million PKR for your dream vehicle.
- Tenure: A maximum tenure period of up to 7 years, giving you time to pay back your vehicle loan.
- Deposits: Salaried professionals need to pay a minimum of 15% of the vehicle cost as a security deposit, while businessmen and self-employed professionals need to pay 25%.
- Credit Check: Your credit history will be checked to ensure no defaults or overdue payments.
- Roshan Digital Account Holders: This financing facility is available for all Roshan Digital Account holders, including those with foreign currency accounts.
- No Processing Charges: Unlike many other financing options, there are no processing charges. You only pay for documentation and security perfection charges.
- Payments: Monthly rentals can be paid directly from your PKR Roshan Digital Account through direct debit instructions.
- Nominee Option: You can nominate a blood relative residing in Pakistan to receive the vehicle on your behalf.
- Age Limit: Applicants must be at least:
- The minimum age requirement for applicants: is 25 years old.
- Maximum age for salaried professionals: 60 years.
- Maximum age for businessmen/self-employed professionals: 65 years.
- Employment/Business History:
- Salaried professionals require a minimum of 2 years of continuous employment history.
- Businessmen/self-employed professionals necessitate a minimum of 3 years of continuous involvement in their current business/industry.
- Financial Affordability: Your total monthly repayments, including the proposed Ijarah rental, should not exceed 40% of your net/take-home income.
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Document Requirements For Meezan Bank Car Loan
Documents Required for Meezan Bank Car Loan:
For Salaried Individuals:
1. The latest employment certificate shows your start date.
2. Bank statement for the last six months, showing your credited salary.
3. Copy of the nominee’s CNIC.
4. Contact details of your employer’s HR representative.
5. Credit Bureau Report from your country of residence.
For Businessmen:
1. Valid proof of your business.
2. Bank statement for the last six months, verified through the embassy.
3. Copy of the nominee’s CNIC.
4. Credit Bureau Report from your country of residence.
5. If your income comes from a transfer of funds, provide the last six months’ bank statement of the seller.
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Roshan Digital Account Customer Application Form
If you are a Roshan Digital Account holder Customer then you have to verify your account, as you see in this picture, than if your account is valid. Then you have to open the Application form and download or fill this form for the Car loan process.
Who is Eligible for Meezan Bank Car Loan?
Eligibility Criteria for Salaried Professionals:
Permanent Employees: Must have been in the current job for at least 3 months. Need a continuous employment history of at least 2 years.
Contractual Employees: Require a minimum of 6 months in the current job. Must have a continuous employment history of at least 3 years.
Income Requirements: Net take-home income should be at least double the monthly rental amount, inclusive of Takaful. Spouse’s income can be considered up to 50%.
Debt-to-Income Ratio: Total monthly payments, including proposed Ijarah rental, should not exceed 40% of net income.
Credit History: Both data checks and e-CIB should be clear.
For Self-Employed Professionals and Businessmen:
Minimum Experience: Require a minimum of 2 years of continuous involvement in the current business/industry.
Position: Must be a proprietor, partner, or director. The percentage of sharing/holding applies in the case of a partner or director.
Income Requirements: Net take-home income should be at least double the monthly rental amount, inclusive of Takaful. Spouse’s income can be considered up to 50%.
Debt-to-Income Ratio: Total monthly payments, including proposed Ijarah rental, should not exceed 40% of net income. However, up to 50% of net income will be allowed for locally manufactured vehicles of up to 1000 CC engine capacity.
Credit History: Both data checks and e-CIB should be clear, without any current defaults.
Meezan Bank Car Loan Features
Lowest Initial Payment: Start with the lowest upfront payment.
Rental Payment After Delivery: Begin rental payments after receiving the vehicle.
Fast Processing: Enjoy quick processing times for your convenience.
Minimum Security Deposit: Benefit from a minimum security deposit, as low as 30%.
W.H.T Covered: Meezan Bank covers the Withholding Tax (W.H.T) on vehicle purchases.
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Meezan Bank Car Loan Scheme For Residual Value Ijarah | Non-Roshan Digital Account holders
In a regular Ijarah model, you don’t have to pay any extra money to the bank once your lease period ends. But in the Residual Value Ijarah model, your monthly payments are lower because you agree to pay some extra amount to the bank if you want to keep the car at the end of the lease.
However, you also have the choice to return the car to the bank. This means you can get a car for lower monthly payments. This model works for both new and used cars, but it’s not available for Roshan Digital Account holders with Meezan Car Ijarah.
Car Loan Details
Special Offer for New or Used Vehicles:
Eligible Vehicles: This applies to all new local vehicles.
Period of Facility: Available for lease periods of 1, 2, 3, 4, and 5 years.
Advance Rent/Security Deposit:
- A minimum of 30% of the vehicle’s cost is required for local vehicles.
- A maximum of 50% of the vehicle’s cost can be deposited.
Residual Value (RV):
- RV percentages vary based on the lease period:
- 1 Year: 60%
- 2 Years: 60%
- 3 Years: 50%
- 4 Years: 50%
- 5 Years: 40%
Up-Front Costs: Rs. 2,500/- Plus FED required upfront.
Documentation Charges: Charged at actual cost.
Rentals Frequency: Monthly rentals payable through post-dated cheques or debit instructions.
Overall Financing Limit: The total auto financing limits from all banks/DFIs should not exceed Rs. 3,000,000/- at any given time.
Security Deposit and RV: A 30% security deposit with an RV value of up to 5 years is applicable for local car manufacturers or local vehicles.
Documents Required For Car Loan
Application Form: Complete and sign the application form provided by the bank.
For Salaried Individuals: Copy of recent pay slip/certificate.
For Businessmen: Business proof such as a bank certificate confirming proprietorship, NTN, business association letter, or tax return.
Bank Statements: Copy of bank statements for the last six months.
Photograph: Provide one recent photograph.
Specimen Signature Card: Submit a specimen signature card, preferably in the bank’s prescribed format.
Meezan Bank Car Loan Calculator
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All You Need To Know About Car Loans in Pakistan (Q&A)
Which Bank Has Lowest Interest On Car Loan?
Many banks in Pakistan offer Car loans like HBL, Meezan Bank, UBL, etc. Meezan Bank offers a unique car financing known as Meezan Car Ijarah, which is based on Islamic principles and does not involve interest. Meezan Bank offers car financing through the Ijarah (leasing) model, where customers lease the car from the bank for a specified period.
What Is The Minimum Down Payment For A Car Loan In Pakistan?
In Pakistan, the minimum down payment for a car loan differs depending on the bank and vehicle type. With Meezan Bank’s Meezan Car Ijarah program, for local vehicles, the minimum down payment is 30% of the vehicle’s cost, with a maximum of 50% allowed. Down payment requirements may differ among banks and financing programs.
Is Meezan Bank Really Halal?
Meezan Bank itself is a truly Halal and Riba-free banking institution. They offer various Islamic financial products, such as the Certificate of Islamic Investment, which operates on Mudarabah principles. Customers can invest their savings for periods ranging from 3 months to 1.5 years and earn Halal profit periodically. Meezan Bank’s commitment to Islamic finance principles and its range of Sharia-compliant products supports its claim of being a genuinely Halal banking option.
Which Car Loan Is Without Interest In Pakistan?
In Pakistan, Meezan Bank offers a car loan known as Meezan Car Ijarah, which is without interest. Instead of charging interest, Meezan Car Ijarah operates on Islamic principles of leasing. Customers lease the car from the bank for a specified period, paying monthly rentals, and at the end of the lease term, they have the option to purchase the car at a price or return it to the bank.
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FAQs | Car Loan | Meezan Bank Car Loan
What is a Meezan Bank car loan?
Meezan Bank offers car loans up to Rs. 10 million with an easy tenure of up to 7 years. Age limits range from 25 to 60 years. Down payment requirements vary for salaried and self-employed individuals. Interest rates are competitive, making it the best option for financing your dream car.
What is Meezan Bank Car Ijarah?
Meezan Bank’s Car Ijarah is a top choice in Pakistan for car financing. It’s interest-free and works like a lease. The bank buys the car and rents it to you for 1 to 5 years. In the end, you can buy the car at a low price or have it gifted. It’s perfect for those wanting a locally-made car without interest fees.
Who is eligible for a Meezan Bank Roshan digital account car loan?
Meezan Bank offers easy vehicle financing for both new locally and imported vehicles. Salaried professionals need a 15% deposit, while businessmen and self-employed professionals need 25%. Credit checks ensure no defaults, and the facility is available for Roshan Digital Account holders. No processing charges apply, and payments are made conveniently through PKR Roshan Digital Accounts. Applicants must be 25 or older, with a maximum age of 60 for salaried professionals and 65 for businessmen/self-employed professionals. Employment/business history requirements vary, and monthly repayments should not exceed 40% of income.
What is the main difference between Meezan Bank’s Car Loan Scheme for Residual Value Ijarah and Roshan Digital Account holders?
The main difference between Meezan Bank’s Car Loan Scheme for Residual Value Ijarah and Roshan Digital Account holders lies in eligibility and offerings. The Residual Value Ijarah scheme allows customers to opt for lower monthly rentals by agreeing to pay a sum to the vehicle at the lease’s end. Meanwhile, Roshan Digital Account holders, who are non-resident Pakistanis, can get car financing but are not eligible for the Residual Value Ijarah scheme.
What are Meezan Bank Car Loan Processing Charges?
For salaried individuals, Meezan Bank charges a PKR 2,500 upfront processing fee, along with a Federal Excise Duty ranging from 13% to 16%, resulting in PKR 325 at 13%. There are no income estimation charges, but documentation fees apply at the actual cost. Old vehicle valuation incurs a charge of PKR 2,000. Similarly, for businessmen, the processing fee is PKR 2,500, with FED charges and documentation fees incurred similarly.
Who is Eligible for Meezan Bank Car Loan?
Salaried professionals need 3 months’ employment for permanent roles and 6 months for contractual positions, with a 2-year work history. Their net income should be double the monthly rental, and total payments shouldn’t surpass 40% of net income. Credit checks are compulsory. For self-employed individuals and businessmen, 2 years in their industry is necessary, with income double the monthly rental. Spouse’s income can count up to 50%, and total payments shouldn’t exceed 40% of net income, except for local vehicles under 1000 CC, allowing up to 50%. Credit checks are mandatory.
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