Q: In which cities of Pakistan, Allied Car Finance is being offered?
A: Currently Allied Car Finance is being offered in the following cities: Lahore
Q: Which vehicles can be financed?
A: Any new locally manufactured car / semi commercial vehicle of the following Original Equipment Manufacturers (OEMs) can be financed: Indus Motor Company Limited
Honda Atlas Cars Pakistan Limited
Pak Suzuki Motor Company Limited
Q: What is the maximum financing amount that can be applied for?
Q: At what mark-up rate the financing will be offered?
A: Allied Car Finance offers car loan facility on low and affordable markup rates of up to 1 Year KIBOR + 4%.
Q: What is KIBOR?
A: KIBOR is Karachi Inter Bank Offer Rate given by State Bank of Pakistan on daily, weekly, monthly, and on 1, 2, and 3 yearly basis to all commercial banks of Pakistan so that they may charge interest to their customers on that basis.
A: Currently ABL is offering car loan on floating / variable markup rate, in which interest rate changes on each loan anniversary.
Q: What are the minimum and maximum tenure for financing?
A: Financing can be availed for a period of minimum 1 year and maximum 7 years.
Q: How will I repay the financed amount?
A: Repayment of loan will be made in equal monthly installments for the term as per repayment schedule.
Q: How will I make the repayment of the financed amount?
Q: What is the minimum balance that I am required to maintain in my ABL account in case of Direct Debit Authority?
A: Minimum balance requirement is equal to the amount of total monthly installment as per repayment schedule plus amount of any charges, if applicable.
Q: Can I make balloon payments?
A: Yes, after completion of one year, two (2) balloon payments are allowed during the tenure of financing. Each balloon payment should be equivalent to monthly installments of 6 months. 2nd balloon payment will be allowed after one (1) year’s gap from 1st balloon payment.
A: You can completely pay off your outstanding car loan amount before the maturity date. However, certain charges will apply as per prevailing Schedule of Charges (SOCs).
Q: What charges will I have to pay for partial or full prepayment?
A: Prepayment Charges will be applied as per prevailing Schedule of Charges (SOCs).
Q: Will I pay insurance premium directly to the insurance company?
A: No, you will need to pay first year’s Insurance Premium with the down payment to Allied Bank. For rest of the financing term, the insurance premium will be paid in installments along with EMI.
A: You will have the choice to select insurance company on the panel list of ABL at the time of applying for Allied Car Finance. ABL will arrange the insurance on your behalf from the selected insurance company on special corporate rate at actual.
Q: How the vehicle will be secured?
A: The financed vehicle will be secured throughout the tenure of financing through Comprehensive Insurance of full value of the vehicle. Further tracker is a mandatory requirement of insurance cover.
A: The financed vehicle will be hypothecated in favor of the Bank and lien will be marked with the respective Excise & Taxation Department.
Q: What payments I have to make after acceptance of Offer Letter?
A: Following payments will be required after acceptance of financing offer letter: Equity
1st Year’s upfront Insurance Premium
Q: How much minimum Down Payment/Equity I will have to make?
A: You will need to make a minimum Down Payment/Equity of 20% of the price of the vehicle.
A: Yes, if you will make a down payment of 35% or more, your markup rate will reduce further.
Q: Will I still be charged Processing Fee if my car financing application is not approved?
A: No, Processing Fee will only be charged after approval of your application and signing of Offer Letter.
Q: Will the bank pay/finance any amount over and above the listed / ex-factory price?
A: No, in accordance with the regulatory requirements, Allied Bank does not finance or pay any amount over and above the listed / ex-factory invoiced price.
A: No, the Bank will finance only the ex-factory price as mentioned above.