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Auto Loan Car Financing in Pakistan
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Auto Financing by banks hit an all-time high

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Auto financing by banks hit an all-time high of Rs297.5 billion in Pakistan. As consumers’ hunger for owning a vehicle increased apparently due to availability of the financing. Auto financing in Pakistan is available at low interest rate in spite of the Covid-19 pandemic related financial risks.

Car financing by banks rise up by Rs86.5 billion or 41% over the first 11 months (Jul-May) of fiscal year 2021 to Rs279.5 billion in May 2021 compared to Rs211.11 billion at the end of June 2020, Pakistan’s central bank reported the other day.

The significant cut in the benchmark interest rate created such huge demand for auto financing. This cut calculated at by 625 basis points during March-June 2020 to 7% till today. Banks have passed on the benefit of the rate cut to auto consumers. This has made the auto financing products more attractive.

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