Being a car owner is frequently more of a need than a luxury in the fast-paced world of today. Car finance offers many people a practical way to buy a car without having to make a large down payment. Meezan Bank and Askari Bank provide competitive car finance solutions in Pakistan. In order to assist you in making an informed choice, this article compares the features, perks, eligibility requirements, and application procedures of Askari Car Finance vs Meezan Car Loan in great depth.
Meezan Car Loan
Meezan Bank is well-known for providing financial products that adhere to Shariah, and their car loan, referred to as Meezan Car Ijarah, is no different. The foundation of Meezan Car Ijarah is the Islamic concept of Ijarah, or leasing, in which the bank buys the vehicle and leases it to the client for a predetermined monthly payment.
Characteristics and Advantages
Shariah Compliance:
Meezan Car Ijarah fully abides by Islamic precepts, guaranteeing that there is neither Gharar (uncertainty) or Riba (interest) in the financing procedure.
Flexible Tenure:
Depending on their preferences and financial situation, customers can select a financing duration from one to seven years.
Extensive Selection of Vehicles:
To meet the needs of a diverse clientele, Meezan Car Ijarah provides financing for both new and used cars up to five years old.
Simple Installments:
Customers’ budgeting is made easier because the monthly rental cost is predetermined and fixed.
Residual Value Option:
Customers can choose to buy the car at a nominal residual value at the conclusion of the Ijarah period.
Fast Processing:
Meezan Bank guarantees that clients will receive their cars without needless delays by providing a quick and effective processing time.
Qualifications
Age:
Candidates must be between the ages of 21 and 65.
Income:
A minimum of PKR 40,000 must be earned each month.
Employment:
Eligible candidates include salaried persons with a minimum of two years of continuous employment as well as self-employed professionals and business owners with a minimum of two years in the current firm.
Credit History:
It’s essential to have a good credit history free of significant defaults.
Askari Auto Finance: Traditional Loan Option
Askari Bank provides Askari Car Finance, a traditional auto loan solution made to accommodate a range of consumer demands. For anyone who would rather use a traditional banking technique, this solution is perfect.
Important Askari Auto Finance Features
Conventional Financing:
Askari car finance uses a traditional banking approach to offer simple auto loan choices free from the particular restrictions associated with Shariah compliance.
Flexible Tenure:
Financing tenures ranging from one to five years are available to customers, enabling them to customize their repayment plans.
Down Payment:
Usually, a minimum down payment of 20% of the car’s worth is needed. To lessen the burden of monthly installments, customers might choose to make a larger down payment.
Options for Vehicles:
Askari Auto Finance is offered for both new and old automobiles, including those that are imported and produced locally.
Fixed and Variable Rates:
The bank provides clients with the ability to choose an interest rate plan that best suits their financial needs by offering both fixed and variable rate alternatives.
Comprehensive Insurance:
To guarantee that the car is shielded from a variety of hazards, the bank offers comprehensive insurance coverage for the financed vehicle.
Fast Processing:
Askari Bank prioritizes speedy processing times in order to deliver prompt approvals and payments.
Age:
The candidate must be between the ages of 21 and 60.
Income:
You must have a reliable, consistent source of money. The car’s price and loan amount determine the minimal income requirement.
Credit History:
The approval of a loan depends on a positive credit history.
Comparing the Financing Models of Askari Car Finance and Meezan Car Ijarah
Meezan Car Ijarah:
Designed to comply with Shariah regulations, this financing option is based on Islamic leasing principles.
Askari Auto Finance:
Traditional lending program, ideal for clients accustomed to conventional banking procedures.
Flexibility in Tenure
Meezan Car Ijarah:
Provides a seven-year term extension.
Askari Vehicle
Financing: Five years is the maximum term.
Requirement for Down Payment
Meezan Car Ijarah:
A 15% down payment is required at least.
Askari Car Financing:
A 20% down payment is usually required for Askari Car Financing.
Options for Vehicles
Both new and used cars, including those that are imported and locally produced, are financed by both banks.
Coverage
Meezan Car Ijarah:
Guarantees Shariah compliance by offering Takaful.
Askari Auto Finance:
Provides all-inclusive traditional insurance.
