Consumer financing kicked off in Pakistan in the last 20 years when people experienced a growth in their disposable income and a reduction in the discount rate. Consumer financing comprises credit cards, personal loans, house loans, and auto loans. All these sectors have witnessed exponential growth during the last two decades. Many banks are offering vehicle loans with numerous features. Al Habib Bank Car Loan Calculator is also offering highly competitive car loans for consumers. Bank Al Habib car loan is being offered to salaried individuals and the business class at low rates and with convenient terms & conditions. With vehicles becoming expensive day by day, one may think that consumer financing will slow down, however, the exact opposite is happening. This is primarily because vehicles are a basic necessity and people have started relying more on banks for procuring vehicles instead of buying them outright with hard cash.
Using the Bank Al Habib Loan Calculator?
Customers can use the online Bank Al Habib loan calculator to estimate their monthly auto loan instalment. It is an easy and step-by-step calculator which everyone can use. You can find this calculator on the bank’s official website. Let us see how you can benefit from this calculator.
Step 1: Select your customer status
The first drag-down menu is for selecting your customer account status. i.e if you are an existing account holder of Bank Al Habib. Usually, the auto loan approval process is convenient for existing account holders of the same bank and many loan process formalities will already be complete if you are an account holder. Select your status from the drop-down menu and move to the next step.
Step 2: Select Car Make
From the next drop-down menu select the car you want to be financed through the Al Habib car loan. For example, if you want to finance a Suzuki car or a Toyota car, simply select your preference from the menu.
Step 3: Select Model
Using the Al Habib bank car loan calculator, select the model that you want to finance. For example, if you selected Suzuki then select the model of the Suzuki car you want from the next menu. The calculator will automatically fill in the latest price of the car that you have selected.
Step 4: Select the Vehicle Type
Bank Al Habib car loan can be availed for both new as well as used vehicles. The terms and conditions such as tenure and down payment will be different for both. If you have selected ” New Vehicle” from the menu you will move to the next step for selecting a down payment. However, if you have selected “Used Vehicle”, you will first enter the value of the used car in the next menu.
Step 5: Select the percentage of down payment
Whether you have selected a new or a used vehicle, you will use the next drop-down menu of the Bank Al Habib Loan Calculator to select the amount you are willing to contribute. i.e the down payment. The minimum amount of down payment that is allowed depends on the latest regulations of the State Bank of Pakistan. For brand new locally assembled vehicles with a capacity of 1000 CC or lower, the minimum allowed percentage is 20 %, while for cars that are above 1000 CC it is 30 %. For used vehicles, the minimum down payment may vary from bank to bank depending on the make, model, and manufacturing year of the vehicle.
Step 6: Select the term of the loan
The next thing to be identified is the term or tenure of the Al Habib car loan you intend to avail yourself of. As per SBP regulations, the maximum tenor a consumer can avail for a brand new vehicle that is 1000 CC or lower, is seven years. For vehicles that are larger than 1000 CC, the maximum permitted tenor is 5 years. For used vehicles, the tenor depends on their year of manufacturing.
Step 7: Select the Tracker/Insurance option
From the next drop-down menu of the Al Habib bank car Loan calculator, you have to select the insurance option with or without a tracker. The insurance rate is just slightly higher if you select a tracker. We suggest selecting the option of “With tracker” so that your vehicle is safe and insured.
Step 8: Select the mark-up Type
The last option is selecting the mark-up type. You can choose a variable rate for your loan or a fixed rate. The former is slightly higher than the latter but does not change throughout the tenure of the loan. Variable-rate is slightly lower but will keep on changing according to the prevailing discount rate. In our opinion, this does not make much difference but if you expect that the discount rate will follow an increasing trend in the coming years, then selecting a fixed rate is more advisable.
The last step- Press calculate
When you have made selected all the options for your bank Al Habib car loan, simply hit the “calculate” button and the Bank Al Habib Loan Calculator will show you the results. It will provide you with your required upfront payment (down payment + insurance premium), processing fee, vehicle price, and finance amount. It will also provide you with an RPS (Repayment Schedule) for the entire tenure of your loan. The RPS gives you an idea of what your monthly instalment will be and also provides you with a break-up of your monthly instalment. Please note that the calculator does not mention registration charges, withholding taxes, or delivery charges. These charges are usually met by the customer through his own pockets.
