The Pakistani banking sector has thrived by leaps and bounds in the last two decades. It has ventured from core banking activities to consumer financing and currently provides various types of consumer loans for different purposes. These include car loans, house loans, personal loans, and credit cards. Fierce competition between banks has led even the most conservative banks to open their counters for consumer lending. Even government-owned banks like the Bank of Punjab are offering several consumer loans with easy terms & conditions and at affordable rates. Bank of Punjab (BOP) is offering car loan facilities under their product Charger at affordable rates to salaried individuals and businessmen. You can procure brand-new locally assembled vehicles, import vehicles, or use vehicles through the Punjab Bank Car Loan. Let us look at some of the features of the Bank of Punjab Car Loan.
The eligibility criteria for availing car loan include the age of the applicant, Work experience, Salary or income of the applicant, clean ECIB/credit report, and your debt service ratio.
Salaried individuals between the ages of 21-60 are eligible for the car loan. For businessmen and Self Employed people, this age limit is 21-65.
If you are a salaried individual, you can avail the Bank of Punjab Car loan but you must have at least one year of experience if you are a permanent employee. For contractual employees, the required duration is two years. If you are a businessman, your business should be running for at least one year.
If you are a salaried individual, the minimum salary requirement for permanent employees is 30,000 per month. For contractual employees, the salary should be at least 40,000 per month. If you are a businessman, your business income should be at least 50,000 per month. Your salary/income has to be supported by your bank statement/ financial statements.
Banks not only look at your salary but also calculate your Debt Service Ratio or Debt Burden Ratio. The monthly installments of all your present loans including, personal loans, credit cards, housing loans, any other financial loans, etc are summed up together and then divided by your gross salary/gross income. The current criteria laid by the State Bank of Pakistan for the maximum Debt burden ratio is 40 %. This implies that you cannot avail of any loans if your debt burden ratio is already 40 %. To calculate your allowable credit limit for the Punjab Bank Car Loan, the bank will add the estimated installment of your car loan to your other monthly installments and then divide it by your gross salary/gross income.
Before everything else, banks will retrieve your eCIB report to check your credit history. The credit report provides information regarding any defaults that you may have done in the past one year and whether you have delayed your monthly installments. A clean eCIB is one of the most significant prerequisites for loan eligibility. Banks will not extend facilities to consumers who have defaulted or habitually delay their repayments.
The state bank of Pakistan has laid down certain regulations for the minimum allowable down payment. For vehicles with an engine capacity of 1000 CC or less, the minimum allowed down payment will be 20 %. For vehicles with engines larger than 1000 CC, the minimum allowed down payment is 30 %. You may have to increase your down payment if your debt burden ratio is not adequate. Down payment requirements may also vary for used and imported vehicles from bank to bank. Select your down payment from the drag-down menu of the Bank of Punjab Car Loan Calculator in Pakistan.
Credit tenure for different vehicles and different customers may vary but there are some requirements of the State Bank of Pakistan that every bank has to comply with. For vehicles that have an engine capacity of 1000 CC or less, the maximum allowed tenure is 7 years. While for vehicles that have engines larger than 1000 CC, the maximum allowed tenure is 5 years. The allowed tenure for used and imported vehicles may vary according to their year of manufacture and their condition. Select the tenure that suits you from the drop-down menu of the Punjab Bank Car Loan Calculator.
The Bank of Punjab Loan Calculator has a drop-down easy-to-use menu that is self-explanatory.
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