1. Introduction
An allied bank car loan allows you to finance up to 90% of the vehicle price, making it easier to afford a new or used car. Whether you’re eyeing a practical sedan or a luxurious SUV, Allied Bank’s customized plans cater to diverse needs. From competitive interest rates to flexible repayment terms, this loan product is designed to fit your budget and lifestyle.
Useful Tip: Before you apply, estimate your monthly budget to see how much EMI you can comfortably afford.
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2. Why Choose Allied Bank?
Allied Bank stands out due to its strong nationwide branch network, digital banking facilities, and customer-centric services. Key advantages include:
- High Financing Ratio: Up to 90% financing of the car’s value.
- Flexible Tenures: From 12 to 60 months.
- Quick Processing: Approval within 2–3 working days.
- Add-on Insurance: Gap insurance to cover depreciation.
Useful Tip: Leverage Allied Bank’s online pre-approval tool to get an estimate before visiting a branch.
3. Eligibility Criteria
To qualify for an allied bank car loan, applicants must meet the following:
- Pakistani national with a valid CNIC.
- Minimum age of 21 and maximum age of 60 at loan maturity.
- Minimum monthly income:
- Salaried: PKR 30,000
- Self-employed: PKR 50,000
- Employment/service period of at least 1 year.
Example: A 28-year-old teacher earning PKR 40,000 monthly easily qualifies under the salaried criteria.
Useful Tip: If self-employed, prepare proof of stable income, like tax returns and bank statements.
4. Required Documents
Gather the following documents to streamline your application:
- CNIC copy
- Salary slips (last 3 months) or bank statements (last 6 months)
- Employment certificate or business registration
- Vehicle pro forma invoice
- Utility bill for address verification
Useful Tip: Keep photocopies ready to avoid last-minute delays.
5. Application Process
Follow these steps for a hassle-free application:
- Pre-Approval: Use Allied Bank’s online tool to get pre-approved.
- Visit Branch: Submit your documents to the nearest branch.
- Loan Assessment: Bank evaluates credit history and income.
- Loan Offer: You receive a letter detailing interest rate and EMI.
- Disbursement: Funds are released directly to the car dealer.
Example: Mr. Khan used the online tool, got pre-approved, and completed his application within one day.
Useful Tip: Track your application status via Allied Bank’s mobile app to stay updated.
6. Interest Rates and Fees
Allied Bank offers competitive interest rates, usually between 11% to 15% per annum. Other charges include:
- Processing fee: 1% of loan amount
- Documentation fee: PKR 2,000
- Early settlement fee: 2% (if settled within first year)
| Charge Type | Amount |
|---|---|
| Interest Rate | 11% – 15% p.a. |
| Processing Fee | 1% of loan amount (min PKR 5,000) |
| Documentation Fee | PKR 2,000 |
| Early Settlement Fee | 2% of outstanding balance |
Useful Tip: Compare the effective APR (including fees) across banks to find the true cost of borrowing.
7. Repayment Options
Choose from these repayment schemes:
- Equal Monthly Installments (EMI): Fixed payment every month.
- Balloon Payment: Lower EMIs with a large final payment.
- Seasonal Installments: Suited for freelancers or those with irregular incomes.
Example: A freelancer might choose seasonal installments to align payments with peak income months.
Useful Tip: Always set up auto-debit to avoid late payment penalties.
8. Comparison with Other Banks
Compare Allied Bank’s car loan with offerings from HBL and UBL:
| Feature | Allied Bank | HBL | UBL |
| Financing Ratio | Up to 90% | Up to 85% | Up to 80% |
| Max Tenure | 60 months | 60 months | 48 months |
| Interest Rate (p.a.) | 11% – 15% | 12% – 16% | 13% – 17% |
| Processing Time | 2-3 days | 3-5 days | 4-6 days |
Useful Tip: If you need a longer tenure, Allied Bank’s 60-month plan can reduce your EMI burden.
9. Common Pitfalls and How to Avoid Them
- Ignoring Total Cost: Focusing only on interest rate without fees.
- Overextending Budget: Taking a larger loan than you can repay.
- Skipping Insurance: Not opting for gap insurance can leave you underinsured.
Useful Tip: Use an online loan calculator to factor in all costs before applying.
10. Frequently Asked Questions (FAQs)
Does Allied Bank finance cars?
Yes, Allied Bank provides car financing up to 90% of the vehicle price for both new and used cars.
Which bank car loan is best in Pakistan?
While best depends on personal needs, Allied Bank stands out for high financing ratios and flexible tenures.
Which is the best bank to get a car loan?
Consider interest rates, tenure, and fees. Many customers find Allied Bank offers a balanced package.
How can I get 0% interest on my car?
Zero-percent financing is rare in Pakistan. Occasionally, automakers run promotional campaigns with partner banks; watch for limited-time offers.
11. Conclusion
An allied bank car loan can make your vehicle purchase affordable and convenient. By understanding eligibility, documentation, interest rates, and repayment options, you can secure a loan that fits your financial situation. Use the tips and examples in this guide to navigate the process confidently and enjoy the freedom of the road.
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