How Long Does It Take to Get Car Financing in Pakistan?

Car financing in Pakistan is a popular option for individuals who wish to purchase a vehicle but cannot afford to pay the full amount upfront. Whether you’re looking to buy a new or used car, financing through a bank or financial institution can make the process more affordable. However, one common question is: how long does it take to secure car financing in Pakistan?

1. Pre-Approval Process: 1 to 2 Days

The first step in car financing is securing pre-approval from the bank or financial institution. The time it takes to get pre-approved largely depends on the financial institution, the documentation you provide, and your credit history. In general:

• Documentation: You will need to submit documents such as your National Identity Card (CNIC), proof of income, bank statements, employment details, and sometimes a down payment receipt.

• Credit Check: The bank or lender will conduct a credit check to assess your eligibility. If your credit history is clean, this process may take a day or two. However, if your credit history requires additional verification, it could take a bit longer.

Once you submit your documents and the bank processes the credit evaluation, you will usually receive an initial response within 1 to 2 business days.

2. Loan Approval Process: 2 to 7 Days

After you receive pre-approval, the next step is the final loan approval, which involves more detailed documentation verification. During this phase:

• Verification: The financial institution will review the car’s paperwork (for used cars), such as the vehicle’s title, registration, and other legal documents.

• Down Payment: You may need to make a down payment, which is typically around 20-30% of the car’s price. Once the down payment is confirmed, the loan agreement is finalized.

• Loan Sanction: Depending on the institution, this process can take anywhere from 2 to 7 business days. Some banks have quicker processing times, while others might take longer based on their internal verification procedures.

3. Car Delivery and Final Disbursement: 1 to 2 Weeks

Once the loan is sanctioned, the final step is the disbursement of the loan and the delivery of the vehicle.

• Payment to Dealer: The bank will pay the dealer directly, and you may need to sign a final agreement.

• Car Delivery: After the loan is disbursed and the paperwork is completed, the car is handed over to you. Typically, this process takes 1 to 2 weeks depending on the bank’s efficiency, the availability of the car, and whether the vehicle is a new or used model.

Factors Affecting the Timeline

Several factors can impact how quickly car financing is processed in Pakistan:

• Bank or Financial Institution: Some banks process applications faster than others, especially if they have streamlined procedures for car financing.

• Type of Car: Financing for new cars is generally quicker than for used cars, as used cars require additional verification of documentation and condition.

• Applicant’s Credit History: A strong credit history can speed up the approval process, while any discrepancies or outstanding debts can delay it.

• Down Payment: The quicker you can make the required down payment, the faster the loan will be processed.

Conclusion

In Pakistan, securing car financing generally takes between 1 to 2 weeks from the time of application to the final disbursement and car delivery. This timeline can be shorter or longer depending on the financial institution, the type of car, and your financial profile. To speed up the process, ensure all required documents are in order and be prepared for any additional steps that may be requested by the bank.