Meezan Bank provides interest free car loan for a long time. Meezan Bank is one of the finest and award-winning banks in Pakistan. It is also the largest bank operating in Pakistan. Meezan Bank provides many services to people like car financing, electronics financing, Bike financing and solar financing.
Meezan Bank’s interest free car loan is a service in which you pay the total amount of the car in monthly installments with no interest rate. You can pay the total amount on an annual basis like from 1-5 or more years. Meezan bank calls it Meezan Car Ijarah.
In this initiative, you get locally assembled cars and not imported cars. Due to the current economic situation of Pakistan Meezan Bank has stopped financing imported cars because the imports are banned and it takes too long to import cars and deliver them to the customer. Meezan Bank purchases the car on your behalf and you just pay the amount in rentals to Meezan Bank. After you pay all your rent you can either sell the car or you can keep it.
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Meezan Bank Auto Finance
Meezan Bank’s auto finance includes financing of cars and bikes without any interest on the vehicle’s purchasing amount. You get different financing options from used to new cars and bikes. Auto financing by banks has made it easy to buy your dream car.
Meezan Bank Used Car Finance
Yes, Meezan Bank also finances old or used cars. They also finance old or used bikes. You can buy up to eight- or nine-years-old cars depending on your budget. Meezan Bank has shifted its focus towards used cars because, currently, new car prices are too much high and do not provide value. So, it’s not worth buying an expensive car with no value.
People also started using and buying used cars. Unfortunately, used cars also become very expensive but they provide value. The bank is focusing more on used cars. You will notice that your application will be approved quickly if you choose a used car. It is because the used cars are available locally, no shipment delays and they will be delivered to the customer quickly too.
Key Features of Meezan Bank Interest-Free Car Loan
When you purchase a car through the Meezan Bank car financing program you get a lot of benefits and features. Some of the key features of what you get in this car finance program are below.
- Lowest upfront payment among all the banks in Pakistan
- Pay your monthly rentals when you receive the car at your doors
- Quick approval Process, within 1-5 days.
- Minimum Deposit of 30% for new cars and 15% for used cars.
- Meezan Bank will pay the withholding Tax (WHT).
- Own the car after paying all the rentals or sell it
Growth of Car Financing
We have seen a steep growth in car financing in the past few years. Used car financing increased the most, due to inflation, import ban, shutdown of manufacturers and excessive taxation. This market will grow even more in the future and people will get benefit from it. Meezan Bank provides car financing with no interest rates and they say it is Shariah-compliant. Read more on Meezan Bank’s official website.
Who is Eligible for Meezan Bank Interest-free Car Loan?
Anyone with a valid Pakistani citizenship document. Overseas Pakistanis are also eligible to apply. Salaried Businessmen aged between 20 to 65 years.
Eligibility Criteria for Overseas Pakistani
- You can deposit security or advance amounts of a minimum of 15% and a Maximum of 50% of the total amount of the purchased car.
- Your data check & e-CIB should be clear and must not be a defaulter at the time of the application approval process.
- Overseas with Roshan digital account (any currency) are eligible.
- No processing fee for overseas applicants but they must provide security charges at the approval of their car loan application fully.
- Monthly rentals must be provided through direct debit from the Roshan Digital account.
- The vehicle will only be delivered to blood relatives.
- Maximum age should not be more than 70 years and 60 years for Salaried persons.
- The minimum age should be 25 years.
- Your age should not be more than 65 years at the time of completion of your car finance if you are a businessman or self-employed person.
- If you are a non-filer, then Pay a 4% tax.
Eligibility Criteria for Salaried Persons and Businessmen
State Bank of Pakistan has set some rules that should be followed by all the other banks. These rules are applied in the eligibility criteria below.
| Permanent employee: If you are a permanent employee then you must be working for 3 months in the current job. You should be having at least 2 years of continuous employment. | Minimum experience: You should be at least two experience with the current business you are in. |
| Contractual Employee: If you are a contract-based employee then you must be working for 6 months in the current job and have a 3 years continuous employment history. | Position: You should be the partner or director of the business you are attached to. |
| Net income: Income should be 2 times more than the monthly rentals of your car plus the monthly car rental. | Net Income: This should be more than times the monthly rental of your leased car. |
Documents Required for Meezan Bank Interest-Free Car Loan
These are the must-required documents for your approval. All banks require these documents before leasing any type of loan.
| Salaried Person | Businessmen |
|---|---|
| Latest employment certificate including the date of joining | Valid proof of your current business |
| Last six-month credited salary bank statement | Last six-month verified bank statement through the embassy |
| CNIC copy | CNIC copy |
| Name of employer’s HR representative with a mailing address | In the case of remittances income, the last six months’ bank statement of the remitter would be required |
| Credit Bureau Report of stay country | Credit Bureau Report of stay country |
Documents to get your Car through Meezan Bank
The process mentioned below is only for individuals in Pakistan.
- The car financing form was filled out completely and correctly, signed by the applicant
- Bring with you a copy of your latest Pay slip – For Salaried individuals
- Business Proof – such as a bank certificate confirming proprietorship, NTN, business Association letter or tax return, etc. is required – For businessman
- Bring a copy of your bank statement for the last six month
- One recent photograph
- Specimen Signature card preferably in the bank’s prescribed format
What if You want to Pay all the Rental at Once?
If you want to pay all the money or rentals at once and get free of the car finance program, you can terminate the agreement before time. When terminating you will be given the choice to buy the car by paying the agreed price at the time of agreement. You can find out more by visiting the Meezan Bank website or the nearest Meezan Bank branch.
Meezan Bank Interest-free Car Loan Shariah Compliant
According to Meezan Bank, this program is shariah compliant. It follows all the Islamic banking rules and finance rules. This leasing program has been approved by the Meezan Bank’s supervisory board. You can see the Fatwa and more information about Shariah compliance here.
Meezan Bank Car Finance Calculator
Meezan Bank provides a calculator for every of their leasing programs from cars and bikes to household essentials and all available electronics. You can use this calculator to find the monthly rentals and all other charges along with the total cost of the vehicle. You use this calculator to decide whether you should buy a new or used car. You can use the calculator by visiting Meezan Bank’s car Ijrah Page.
Student Finance and Loans
Meezan Bank does not provide student loans. Student loans can be provided with the help of the government which government supports the bank. Right now, the financial issues of our country are rising and the government cannot introduce any programs.
Application
You can fill out the form by visiting the bank or downloading it from the Meezan Bank website and attaching the required documents. Make sure you fill the form with the correct information. Apply only when you have all the required documents and you are eligible for the car loan.
How long does it take to get approved for an auto loan?
It takes only one week and sometimes only five days to get approved. The approval process for new cars takes time but your application for used cars will be approved in 5 days.
New or Used Car
New cars are too expensive and do not provide value if you have a low budget. Used cars can be good products but the hidden maintenance charges are a headache to many people. Use the car loan calculator to check the cost of both new and used cars and decide what you should buy.
| You should buy a Used Car? | You should buy a New Car? |
|---|---|
| When you have a low budget go with used cars. | When you have a high budget and are willing to pay more. |
| Check the model in which you are interested to buy and check the de-value rate of the car. | When you want to feel the technology and features of a new car. |
| When you want low registration costs. | You want a Warranty officially from the manufacturer. |
| You want lower monthly rentals. | When you don’t want to get in trouble with hidden maintenance and accidental charges. |
| If the selling value of the car is very low, then skip buying it because it won’t give value. You can check the selling value using the loan calculator. First, check the new car’s cost and then compare it with the cost of a used car of the same model. | |
Tips for Buying a Car
Buying a car is one of the best moments of our lives. We have compiled some tips for you to make it easy for you to buy a car. These tips are helpful for most people and if you are buying a car the first time then it will help you a lot.
Set your Budget
Setting up your budget is the first and most important thing to do. It will allow you to decide whether you should buy a new or used car. Budget will help you understand what car you need and afford.
Do your Research
Once you set your budget then you should start researching cars. You will make a list of cars that fall within your budget criteria. Then go to the Meezan bank website or branch and look do they finance the cars you have selected. Narrow down the list by selecting only those cars which fall under your budget.
Take a Ride
Take a ride in your car and feel the comfort and enjoyment. If you are satisfied with it then confirm your purchase. If you are buying you should take a ride, and check for damages and other maintenance issues. Take with you a car professional and analyze the car and make sure it is perfect for you.
Negotiate the Deal
Sometimes when you buy a used car, we can negotiate the deal. Don’t be shy of saying let’s negotiate the deal. It is your right to discuss the deal. Most people do negotiate and 70% of them successfully negotiate it.
Special Offers From Meezan Bank
Profit Rates
Bottom Line
Meezan Bank interest-free car loan is a perfect opportunity for people who want to buy a new or used car. It is a perfect opportunity for families and overseas Pakistanis. This program has many benefits and features that everyone should claim. The application process is easy. It is a Shariah-compliant program which means it is based on Islamic banking and financing. You can own a car within a few years by paying monthly interest-free rentals. So, grab the opportunity and purchase your dream car right now.
