Eligibility Criteria to Avail Car financing:

Pakistani nationals residing in Karachi, Lahore, Islamabad/ Rawalpindi,

Sialkot, Gujrat, Gujranwala, Hyderabad and Faisalabad.
If you are a salaried person your age must not be less than 22 years or
more than 65 years.
If you are a businessman or a self-employed professional your age
must not be less than 21 years or more than 70 years.
A businessperson should be the sole proprietor/ partner/ or a director
of reputed business company.
Have a minimum take home income of Rs.25,000 per month.
RELEVANT SBP PRUDENTIAL REGULATIONS AND BANK'S POLICY ON
HOME LOANS:
The maximum tenure of the auto loan finance shall not exceed
seven years.
Leasing: 3 to 7 years
Financing: 1 to 7 years

The banks/DFIs shall ensure that the vehicle remains properly

insured at all times during the tenure of the loan.
You would be required to undertake a comprehensive insurance cover for the
vehicles cost in favor of the Bank. Adamjee and EFU are the insurance
companies we work with.
A detailed repayment schedule should be provided to the
borrower at the outset. Where alterations become imminent
because of late payments or prepayments and the installment
amount or period changes significantly, the revised schedule should
be provided to the borrower at the earliest convenience of the
bank/DFI but not later than 15 days of the change. Further, even in
case of insignificant changes, upon the request of the customer,
the bank/DFI shall provide him revised repayment schedule free
of cost.
You may request to make an early full prepayment at any
time. You will be charged as follow on the amount being

prepaid:
8 % in 1st year
5% in 2nd year
3% in the subsequent years
In case of partial prepayment the amount should be equal
to or greater than 6 monthly installments. You are allowed
to prepay twice in 12 months.
While allowing auto loans, the banks/DFIs shall
ensure that the minimum down payment does not
fall below 10% of the value of vehicle.
Down payment after the approval of loan
20% down payments

The vehicles to be utilized for commercial purposes shall not

be covered under the Prudential Regulations for Consumer
Financing. Any such financing shall ensure compliance with
Prudential Regulations for Corporate/Commercial Banking or
Prudential Regulations for SMEs Financing. These regulations
shall only apply for financing vehicles for personal use
including light commercial vehicles also used for personal
purposes.
The financing of vehicles for personal use comes under the consumer
financing.

The banks/DFIs desirous of financing the purchase of used

cars shall prepare uniform guidelines for determining the
value of the used vehicles. However, in no case the bank/DFI
shall finance the cars older than five years.
The bank offers the best solutions for car leasing and financing for both new
and used cars. They follow a proper procedure for determining the value of
used vehicles.

SBP Regulation: Total monthly

installment should not exceed 50%
of net disposable income.
The housing finance facility
shall be provided at a
maximum debt-equity ratio of
85:15.
MCB Bank policy: Debt to equity ratio to be as per Banks
requirement.
MCB Bank policy: Maximum loan tenure is 20 years.
Banks/DFIs shall either engage professional expertise or
arrange sufficient training for their concerned officials to
evaluate the property, assess the genuineness and
integrity of the title documents, etc.
MCB Bank policy: The collaterals are evaluated by banks approved
evaluation agencies.
Banks/DFIs are encouraged to develop floating rate products
for extending housing finance, thereby managing interest rate
risk to avoid its adverse effects. Banks /DFIs are also
encouraged to develop in-house system to stress test their
housing portfolio against adverse movements in interest rates
as also maturity mismatches.
MCB Bank policy: Floating rate are extended for home finance which
is re-priced on first working day of each year. The spread would,
however, remain constant while the change in KIBOR shall affect the
pricing
Home Financing
EXTRACT OF RELEVANT SBP REGULATIONS AND BANK'S POLICY ON
HOME LOANS