You no longer have to wait to buy your dream car because Allied Bank now offers car financing facility for its customers on low mark-up rate with flexible repayment options.
- Financing up to Rs. 3 Million
- Financing of up to 70% of car price
- Financing for upto 5 Years
- No hidden costs
- No Processing Fee in case of rejection of car financing application
- Competitive mark-up rate
- Simple and easy documentation
You are eligible to apply for car finance from Allied Bank if:
- You are a Pakistani National
- You are minimum 21 years old
- You have minimum 6 months of account relationship with ABL or any other bank
In case of Salaried Individual
- You are maximum 59 years old
- You are permanent employee
- You are employed for at least 2 years
- You have minimum net monthly salary of Rs. 40,000/-
In case of Self Employed Individual:
- You are maximum 64 years old
- You are in business for at least 2 years
- You have minimum net monthly income of Rs. 60,000/-
Following basic documents are required to apply for Allied Car Finance:
- Proof of income
- Last 06 months’ Bank Statement
- Copy of CNIC/ Smart NIC/NICOP
- 2 recent passport size photographs
- Complete and duly signed “Application Form”
Q: In which cities of Pakistan, Allied Bank Car Finance is being offered?
Currently Allied Car Finance is being offered in the following cities only:
- Lahore
- Faisalabad City
- Gujranwala
- Rawalpindi City
- Islamabad city
- Sialkot
- Karachi
- Hyderabad
- Sukaur
- Sahiwal
- Geographical coverage is not applicable on Roshan Apni Car.
Q: Which vehicles are eligible for ABL Car Finance?
Following types of vehicles can be financed:
- Brand New Vehicles (Locally Assembled/Manufactured)
- Used Vehicles (Locally Assembled/Manufactured)
Q: What is the maximum financing amount that can be applied for?
Car loan can be availed up to PKR 3 Million subject to fulfillment of certain eligibility criteria.
Q: At what mark-up rate the financing will be offered?
Allied Bank is offering Allied Car Finance at a competitive mark-up rate of upto 1 Year KIBOR + 3% (salary routed through ABL) and 1 Year KIBOR + 4% (salary credited in other bank) for salaried individuals and upto 1 Year KIBOR + 4% for self-employed individuals (relationship with ABL) and 1 Year KIBOR + 4.5% (relationship with other bank) or as per prevailing Schedule of Charges.
Q: What is KIBOR?
KIBOR is Karachi Inter Bank Offer Rate given by State Bank of Pakistan on daily, weekly, monthly, and on 1, 2, and 3 yearly bases to all commercial banks of Pakistan so that they may charge interest to their customers on that basis.
Q: Will it be a fixed mark-up rate or floating/variable mark-up rate?
Currently ABL is offering car loan on floating / variable mark-up rate, in which interest rate changes on each loan anniversary due to change in KIBOR, however, bank’s spread remains the same throughout the term of financing.
Q: What are the minimum and maximum tenure for financing?
Financing can be availed for a period of minimum 1 year and maximum 3 years or 5 years depending upon the engine capacity the vehicle and 7 years for Roshan Apni Car.
Q: How will I repay the financed amount?
Repayment of loan will be made in equal monthly instalments as per repayment schedule.
Q: How are the modes of repayment available?
Your monthly instalments will be deducted from your account maintained at ABL against your Direct Debit instructions or as the Bank may advise.
Q: What is the minimum balance that I am required to maintain in my ABL account in case of Direct Debit Authority?
Minimum balance requirement is equal to the amount of total monthly instalments as per repayment schedule plus amount of any charges, if applicable, on due date.
Q: Can I make balloon payments?
Yes, after completion of one year, two (2) balloon payments are allowed during the tenure of financing. Each balloon payment should be less than the amount of six monthly instalments. 2nd balloon payment will be allowed after one (1) year’s gap from 1st balloon payment.
Q: Can I repay the financed amount before the maturity of the financing term?
You can completely pay off your outstanding car loan amount before the maturity date.
Q: What charges will I have to pay for partial or full prepayment?
Prepayment Charges will be applied as per prevailing Schedule of Charges (SOCs).
Q: Will I pay insurance premium directly to the insurance company?
No, you will need to pay first year’s Insurance Premium with the down payment to Allied Bank. For rest of the financing term, the insurance premium will be paid in instalments along with EMI.
Q: How do I get my vehicle insured?
You will have the choice to select insurance company on the panel list of ABL at the time of applying for Allied Car Finance. ABL will arrange the insurance on your behalf from the selected insurance company on special corporate rate at actual.
Q: How the vehicle will be secured?
The financed vehicle will be secured throughout the tenure of financing through Comprehensive Insurance of the vehicle.
Q: What is the security of the financing?
The financed vehicle will be hypothecated in favour of the Bank and lien will be marked with the respective Excise & Taxation Department.
Q: What payments I have to make after acceptance of Offer Letter?
Following payments will be required after acceptance of financing offer letter:
- Equity
- Processing Fee
- 1st Year’s upfront Insurance Premium
Q: How much minimum Down Payment/Equity I will have to make?
You will need to make a minimum Down Payment/Equity of at least 30% or more of the price of the vehicle.
Q: Will I still be charged Processing Fee if my car financing application is not approved?
No, Processing Fee will only be charged after approval of your application and signing of Offer Letter.
Q: Will the bank pay/finance any amount over and above the listed / ex-factory price?
No, in accordance with the regulatory requirements, Allied Bank does not finance or pay any amount over and above the listed / ex-factory invoiced price.
Q: Will the Bank finance additional accessories?
No, the Bank will finance only the ex-factory price as mentioned above.
Q: What is the first step I need to take to apply for Allied Car Finance?
Visit your nearest ABL Branch to apply for Allied Car Finance or dial 111-225-225.
Pricing of Allied Car Finance
| Pricing | Minimum:
1YK+1.75% |
| Maximum:
1YK+5% |
Note: The pricing will be offered between the given range in accordance to different segments and other factors.
Disclaimer: This is an indicative calculation exclusive of insurance amount, final installment amount may differ.