Search, compare and apply car loan in 3 steps

Step 01

Tell us your car loan requirements

Step 02

Compare car loan products offered by leading Pakistani banks

Step 03

Select & apply for the best suitable car loan of your choice

We cover the following banks offering car loans in Pakistan

Offering you better products, services and deals suited to your Car Loan needs

WHY COMPARE CAR LOAN WITH provides an impartial comparison service matching with your all car loan needs. The service is 100% free for consumers. We aim to help you by providing a wide range of car loan offers along with comprehensive information that can help you to choose the best product of your choice. You can contact us and we can work on your behalf to arrange a best car loan offer for you that will save your time and money.

About Car Loans

If you are looking to buy a new car or replace an old car, you may need to consider a car loan to make the payment. Cars cost a lot of money and commonly, many people do not have that kind of money in their savings to cover the cost. This is where a Car Loan can help you to pay for the vehicle.


Why You Should Always Compare Car Loans Before Getting One

There is a wide range of car loans available to you and that is why you need to find a product that meets your requirements.

Through comparing car loans on, you will be able to find out more information about the car loans available to you. This will include the interest rates, repayment costs each month and any other relevant information. Comparing loans is quick and easy but best of all, it enables you to make an informed decision.


Applying for a Car Loan

When the time comes to purchase a car, you may need additional finance to cover the cost and so, you will need to apply for a car loan. In order for your application to be accepted, you will be expected to meet a set criteria.

Car loans serve an important purpose but borrowing money should be done responsibly as you will need to ensure you can continue to meet the monthly payments.


When to Get Car Loan than any Other Loan Products?

It is common for a car loan to cost less than it would purchase a car using a credit card. As cars often cost a lot of money, borrowing it over a fixed period will ensure you pay as little as possible each month.

Car loans can come with a low APR, however, it is crucial to remember that a car loan will still cost you money and this means that you are at risk of defaulting if you fail to make payments. Therefore, you need to make sure that a car loan is right for you.


In Pakistan, car loans are priced on the floating mechanism, which means that bank charges the customer spread of a reference rate which is also known as the Karachi Inter Bank Offered Rate (KIBOR). For example, if the spread of a bank is 1% and the existing KIBOR rate is 3.35%, then the rate charged to the customer will be 4.35% (adding bank’s spread and KIBOR rate). Usually there is also additional application fee that is charged as well.

The qualification of age varies with bank to bank subject to their policies. However, in general, the individual must be 21 years old to avail the car loan in Pakistan. 

The time frame to avail car loan ranges from 1-7 years. It is dependent upon the customer’s demand and it repayment capacity that for how much time he/she can craft out the monthly installments from its income. Further, in how much time span he/she wants to make repayment of the borrowed amount.

You can compare car loans offered by multiple banks in just 3 steps at By furnishing the required information, you will be given with a list of car loan providers, loan offers along with comprehensive information including rates on offer and processing fee and other charges (if applicable). So that you can compare and choose the best offered car loan for yourself.  

Step 1 - Visit car loan page and press Compare Now button. Tell us your car loan requirements, this includes the following data

-       Select the city in which you reside and want to avail loan there in

-       Then choose which type of car you are applying for 

-       Select the Model Year and then which car make you are looking for   

-       Now opt the down-payment amount you want to pay in the realm of Car Loan along with loan period

-       Provide your source of income by choosing from the available options, including salaried class, self-employed professional and businessman

-       Now provide your monthly income and highlight the banks you currently maintain relationship with

Step 2 - Once you provide the above-mentioned information, the application will direct you to see the comparison table with all the car loans being offered by different banks in Pakistan. You can review all the details by using more info link. You can also compare various car loan offers through side by side comparison options.  

Step 3 - Now choose one that best meets your needs and then click on Apply Now button to proceed with your application.

What is Car Loan   

There was a time when the perception prevails that owing a car was a luxury as everyone couldn’t afford to have it. It was considered a huge milestone as the individual was taking out his saved money just to buy his / her dream car. However, with growing times and changing demographics, masses have realized that owing a car is not a luxury anymore, but a necessity. With the arrival of the car lenders in the market offering wide ranging car loans and car financing on easy installment plan for upto 7 years, make it easy for the majority to afford the car in Pakistan these days, which previously was the privileged of the elites only. Car loan has helped the masses to make their lives hassle free. Car loans are being offered to buy both new or a used car in Pakistan through both fixed and variable loan rates.

Early Settlement Fee 

The amount charged by the lender in the event of the full and final payment of the outstanding loan amount before the end of the loan period is called an early settlement fee.

Partial Settlement Fee  

Partial settlement fee is charged when you make a balloon payment apart from the regular schedule payment. This partial payment will lessen your outstanding balance and the new installment will be calculated against the new outstanding loan.  

Down Payment  

The percentage amount of the vehicle which is paid by the borrower to initiate the car loan is called down payment. the evaluation of the loan amount is being done after the exclusion of the down payment.


It is the percentage amount reduced from the original value due to use of vehicle. In Pakistan, depreciation is calculated by four different methods, which are as follows: straight-line depreciation method, declining-balance method, sum-of-the-years-digits and units of production method. Method of depreciation varies subject to the institution.

Salvage Value  

The estimated resale value of an asset after its useful life is called salvage value. Salvage value is calculated under straight-line depreciation method.   


The principal is the total amount you have borrowed from the lender excluding the interest amount and other fees.  


A lender is a party/person who agrees to give credit/loan to the lendee. A lender can be a bank, financial institution or any person.  

Credit History  

Credit history means record of all the credit you have borrowed from banks or any other lender. This credit includes: bank loan, auto loan, overdraft, bank guarantees and secured loans. Your credit history shows your payment record, which illustrate that how much regular you are with your repayment of borrowed money. Further to check, that whether or not you have defaulted on any loan. Moving along, if there is any loan that has been reschedule due to the financial barrier. All these things are shown in the credit history. This credit history report is maintained by the SBP under the name of Electronic Credit Information Bureau (ECIB). It is incumbent upon banks to report your credit history to SBP after regular intervals.

Late penalty Fee   

The amount charged to a person upon missing the regular monthly payment is called as late penalty fee.