Buying a car for sale in Karachi through bank financing is a popular option for those who want to spread out payments over time instead of paying the full amount upfront. Several banks in Pakistan offer car financing options for both new and used cars, with varying interest rates, loan tenures, and eligibility requirements.
This guide highlights the top banks offering car loans in Karachi, their key features, and how to apply.
1. Meezan Bank – Car Ijarah (Islamic Auto Financing)
Meezan Bank offers Shariah-compliant car financing under the Car Ijarah scheme, following the Ijarah (leasing) model.
Key Features:
- No interest (Riba-free) financing
- Down payment: 15% – 50% of car value
- Loan tenure: 1 to 7 years
- Available for new and used cars
- Monthly rentals remain fixed throughout the tenure
- No late payment penalties
Eligibility:
- Minimum salary requirement: PKR 40,000 per month
- Age: 22 – 60 years (for salaried individuals), 22 – 65 years (for business owners)
- Must have at least six months of employment or one year of business history
2. Bank Alfalah – Auto Loan
Bank Alfalah offers conventional and Islamic car financing with flexible repayment options.
Key Features:
- Down payment: 20% – 50%
- Loan tenure: 1 to 5 years
- Covers both new and used cars
- Competitive interest rates based on tenure and customer profile
- Quick approval process
Eligibility:
- Minimum salary requirement: PKR 50,000 per month
- Age: 21 – 60 years (salaried), 21 – 65 years (self-employed)
- Must be employed for at least 6 months (for salaried) or in business for at least 2 years
3. HBL – Car Loan
HBL’s auto financing program provides financing for new, used, and imported cars.
Key Features:
- Down payment: 15% – 50%
- Loan tenure: 1 to 7 years
- Available for new, used, and imported cars
- Competitive markup rates
- Early settlement option available
Eligibility:
- Minimum salary requirement: PKR 40,000 per month
- Age: 22 – 60 years (salaried), 22 – 65 years (self-employed)
- Minimum 6 months employment (salaried) or 2 years of business history (self-employed)
4. MCB – Car Loan
MCB offers auto financing for locally assembled and imported cars, with the option of financing both individuals and businesses.
Key Features:
- Down payment: 15% – 50%
- Loan tenure: 1 to 7 years
- Financing available for new, used, and imported cars
- Minimum financing amount: PKR 300,000
- Prepayment option available
Eligibility:
- Minimum salary requirement: PKR 50,000 per month
- Age: 21 – 60 years (salaried), 21 – 65 years (self-employed)
- Must be working for at least 6 months (salaried) or in business for at least 2 years
5. UBL – UBL Drive
UBL Drive provides flexible auto financing for individuals looking to buy new or used cars.
Key Features:
- Down payment: 20% – 50%
- Loan tenure: 1 to 5 years
- Fixed and variable interest rates available
- Can be used for locally manufactured, used, and imported cars
- Online application process available
Eligibility:
- Minimum salary requirement: PKR 40,000 per month
- Age: 21 – 60 years (salaried), 21 – 65 years (self-employed)
- Must have 6 months of employment or 1 year of business history
6. Faysal Bank – Auto Loan
Faysal Bank provides both conventional and Islamic car financing options for new and used cars.
Key Features:
- Down payment: 20% – 50%
- Loan tenure: 1 to 5 years
- Available for both new and used cars
- Quick approval process
- Islamic financing option (Faysal Islamic Auto Finance) available
Eligibility:
- Minimum salary requirement: PKR 40,000 per month
- Age: 21 – 60 years (salaried), 21 – 65 years (self-employed)
- Must have 6 months of employment or 1 year of business history
How to Apply for a Car Loan in Karachi?
1. Choose a Bank and Loan Type
Compare interest rates, down payment requirements, and tenure options from different banks before selecting the best option.
2. Check Eligibility
Make sure you meet the income and employment/business history requirements before applying.
3. Gather Required Documents
Most banks require the following documents:
- CNIC copy
- Salary slips or bank statements (last six months)
- Employment proof (for salaried individuals)
- Tax returns or business documents (for self-employed individuals)
4. Submit Application
Visit the nearest bank branch or apply online (if available). Some banks also offer pre-approval for car loans.
5. Get Loan Approval and Take Delivery of Your Car
Once the loan is approved:
- Pay the down payment
- Sign the loan agreement
- The car is registered under your name but remains mortgaged with the bank until full payment is made
Final Thoughts
Car financing is an excellent way to buy a car in Karachi without paying the full price upfront. Many banks offer competitive financing options for new and used cars, making it easier for buyers to afford a vehicle within their budget.
When choosing an auto loan, compare interest rates, down payments, loan tenures, and processing fees to ensure you get the best deal. If you prefer Islamic car financing, options like Meezan Bank and Faysal Bank Islamic Auto Finance provide interest-free leasing models.