| Particulars |
Bank’s Policy |
| Purpose |
Amidst rising car prices and record inflation, strong emergence of used car segment is the future of the auto industry. |
| Types of Vehicles |
All locally assembled/manufactured brand new/used vehicles |
| Age of Vehicle |
Used Car up to 4 years age.
Age will be determined from the date of invoice of the vehicle |
| Target market |
Only leasing to individuals |
| Tenor of Lease |
Up to 5years
Lease period for 1000CC below vehicles may be considered up to 3 years considering usable life of such brands. |
| Variable Pricing |
Ask side 1 year KIBOR plus + 4% spread |
| Market Value of the vehicle |
Upto 1000 CC: 20% LKM of Market Value (MV)
Above 1001 CC: 30% LKM of Market Value (MV) |
| Valuation of Used Vehicle based on following |
Evaluation report of PBA approved Evaluator OR
Evaluation form 3S Dealer OR
Evaluation from Digital Platforms i.e. Pak Wheels, OLX and Car First etc.
*any of the, b or c shall be considered as a valid valuation for used vehicles.
|
| Processing charges (Including FED) |
For Men Rs. 6,000/- per case
For Women Rs. 4,000/- per case |
| Value charges of vehicle |
As Actual |
| Vehicle Insurance |
Comprehensive insurance will be obtained through the insurance companies on bank’s panel as per Auto loan policy. |
| Payment |
Payment will be made to the dealer/ seller after transfer of the vehicle in favor of the Bank of Punjab. |
| BTF |
BTF is not allowed whereas Sales & Lease back is allowed in used car segment. |
| Title of vehicle |
Title of vehicle to be clear. In case of used vehicles, FSV shall be considered as the final value/ price of the vehicles, based on the evaluation reports of the bank’s approved evaluators. However due consideration shall be given to LKM in such cases to keep a balance.
Verification agencies will ensure proper vehicle checkup and will submit their verification report on the basis of fair judgment. |
| Basic required Documents |
Copy of valid identity document (CNIC/SNIC/NICOP)
Latest Salary slip (employer certificate, if salary slip is not provided by employer) in case of variation in salary additional supporting documents to be provided
One recent photograph
Bank statement for last 6 months |
| Lease Key Money (LKM) |
The minimum LKM to be deposited is 30% |
| Minimum Job/ Business Experience |
Permanent employee with minimum 1 year of job experience.
Contractual employees with 2 years of job experience |
| Debt Burden |
Should not exceed 40% of disposable income. |
| Minimum Monthly Gross Salary |
Permanent employee Rs. 30,000/-
Contractual employee Rs. 40,000/- |
| Age Requirement |
Age between 21 (at the time of application) and 60 Years or superannuation (whichever is earlier) |
| Debt Burden |
Should not exceed 40% of disposable income. |
| Vehicle Insurance & Tracker Cost |
First year insurance in full and minimum LKM. Total monthly rental / installment includes principal, mark-up and insurance amount.
Insurance charges as charged by insurance company |
| Security |
Vehicle shall be registered in the name of BOP as per lease/ loan agreement. Further the vehicle financed by the bank shall be properly secured by way of
hypothecation.
Comprehensive insurance of the lease/ loan/ financed vehicle. |
| Pre-Payment/ Early Termination/ Balloon Payment |
5% of principal outstanding against lease/ loan account. |
| Late Payment Penalty |
Re.1/- per thousand per day of installment amount from due date till actual payment. |