Ab Har Safar Shandar – with Allied Car Loan!
You no longer have to wait to buy your dream car because Allied Bank now offers car loan facility for its customers on low mark-up with flexible repayment options.
You are eligible for financing vehicle from Allied Bank if:
- You are Pakistani national
- You are 21 to 59 years old
- You are salaried individual working as permanent staff
- You are maintaining salary account with ABL for at least six months
- Your net monthly salary is Rs.40,000/- or more
- Your length of employment with current employer is minimum 03 years
Features & Benefits
- No hidden costs
- Financing up to Rs. 6 Million
- Highly competitive mark up rate
- Simple and easy documentation
- Facility of up to 80% of financing
- No Processing Fee in case of rejection of car loan application
- Easy and swift application processing with minimum turn around time
- Flexibility to Choose the Repayment Period up to 7 years. (12 to 84 months repayment)
Following basic documents are required to apply for car loan through Allied Car Finance:
- Last 06 months’ Bank Statement
- Copy of CNIC/NICOP/ Smart NIC
- 2 recent passport size photographs
- Last two months’ Salary Slip or Salary Certificate, clearly indicating gross and net salary with details of all deductions
- Complete and duly signed “Application Form” with signature verification from branch.
Frequently Asked Questions
Q: In which cities of Pakistan, Allied Car Finance is being offered?
A: Currently Allied Car Finance is being offered in the following cities:
Q: Which vehicles can be financed?
A: Any new locally manufactured car / semi commercial vehicle of the following Original Equipment Manufacturers (OEMs) can be financed:
- Indus Motor Company Limited
- Honda Atlas Cars Pakistan Limited
- Pak Suzuki Motor Company Limited
Q: What is the maximum financing amount that can be applied for?
A: Car loan can be availed up to PKR 6 Million subject to fulfillment of certain eligibility criteria.
Q: At what mark-up rate the financing will be offered?
A: Allied Car Finance offers car loan facility on low and affordable markup rates of up to 1 Year KIBOR + 4%.
Q: What is KIBOR?
A: KIBOR is Karachi Inter Bank Offer Rate given by State Bank of Pakistan on daily, weekly, monthly, and on 1, 2, and 3 yearly basis 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?
A: Currently ABL is offering car loan on floating / variable markup rate, in which interest rate changes on each loan anniversary.
Q: What are the minimum and maximum tenure for financing?
A: Financing can be availed for a period of minimum 1 year and maximum 7 years.
Q: How will I repay the financed amount?
A: Repayment of loan will be made in equal monthly installments for the term as per repayment schedule.
Q: How will I make the repayment of the financed amount?
A: Your monthly installments 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?
A: Minimum balance requirement is equal to the amount of total monthly installment as per repayment schedule plus amount of any charges, if applicable.
Q: Can I make balloon payments?
A: Yes, after completion of one year, two (2) balloon payments are allowed during the tenure of financing. Each balloon payment should be equivalent to monthly installments of 6 months. 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?
A: You can completely pay off your outstanding car loan amount before the maturity date. However, certain charges will apply as per prevailing Schedule of Charges (SOCs).
Q: What charges will I have to pay for partial or full prepayment?
A: Prepayment Charges will be applied as per prevailing Schedule of Charges (SOCs).
Q: Will I pay insurance premium directly to the insurance company?
A: 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 installments along with EMI.
Q: How do I get my vehicle insured?
A: 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?
A: The financed vehicle will be secured throughout the tenure of financing through Comprehensive Insurance of full value of the vehicle. Further tracker is a mandatory requirement of insurance cover.
Q: What is the security of the financing?
A: The financed vehicle will be hypothecated in favor 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?
A: Following payments will be required after acceptance of financing offer letter:
- Processing Fee
- 1st Year’s upfront Insurance Premium
Q: How much minimum Down Payment/Equity I will have to make?
A: You will need to make a minimum Down Payment/Equity of 20% of the price of the vehicle.
Q: Will I get any benefit if I make more down payment?
A: Yes, if you will make a down payment of 35% or more, your markup rate will reduce further.
Q: Will I still be charged Processing Fee if my car financing application is not approved?
A: 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?
A: 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?
A: 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?
A: Visit your nearest ABL Branch to apply for Allied Car Finance or dial 111-225-225.