How to get a Car on Installment Without a Bank in Pakistan

If you’re living in Pakistan and dreaming of owning your own car, you may have encountered challenges due to strict banking rules and terms. However, there are alternative options available that can help you get your dream car without relying on a traditional bank. Private leasing companies offer car financing in instalments, freeing you from the hassles of high-interest rates and processing fees. This article aims to guide you in choosing between a bank loan and a leasing company and provides valuable information on applying for and getting approved for a car in instalments.

Why It’s Worth Contemplating an Installment Plan

In Pakistan, buying a car can be a significant financial undertaking. This is why many individuals seek financing options like installment plans to make car ownership more affordable. While the traditional approach involves borrowing from a bank, this may not be viable for those with low credit scores or those who don’t qualify for a bank loan. Private leasing companies offer car installment plans with more flexible terms and conditions. They often provide better rates compared to banks and are willing to accommodate higher-risk customers. Thus, opting for an installment plan from a private company can be an excellent alternative for those who don’t qualify for a bank loan.

Getting a car on installments is becoming increasingly popular, particularly among younger buyers who may have limited credit history or a less-than-ideal credit score. With private companies offering better rates and lenient loan terms, it’s now easier than ever for anyone to own a car through installment plans. Moreover, private companies allow for more negotiation opportunities with the seller, resulting in potential better deals for buyers. Regardless of your credit situation or the desire to avoid the complexities of dealing with a bank, private leasing companies can provide you with an affordable loan that meets your needs.

Process of Applying for an Installment Plan

If you’re considering obtaining a car from a private leasing company in Pakistan, follow these steps to apply for a car on installment without involving a bank:

  1. Research and Find a Reputable Leasing Company: Begin by conducting online research, reading reviews, and seeking recommendations from friends and family who have used private leasing services. This will help you identify reliable leasing companies that offer car financing on installments without a bank.
  2. Fill Out an Application Form: Once you’ve shortlisted potential companies, complete an application form provided by the leasing company of your choice. The form will require personal information such as your name, address, employment history, income details, credit score, and other necessary data to assess your eligibility. You may also need to provide additional documents like proof of residence, identification card, income proof, and bank statements for the previous six months.
  3. Background Check and Credit Score Review: After submitting the application form and accompanying documents, the leasing company will conduct a background check and review your credit score to determine your eligibility for the car on installment plan. They may request further documentation or information if needed.
  4. Approval and Contract Signing: Once your application is approved, you’ll receive a contract outlining the terms and conditions of the loan. Thoroughly read and understand the contract before signing it. Additionally, be prepared to make a down payment, usually around 20% of the total car cost, as required by the leasing company. Timely payments are crucial to avoid any penalties or fees associated with missed or late payments.

By following these steps, you can smoothly apply and soon be driving your dream vehicle.

What to Do If You Can’t Get an Installment Loan

If you’re unable to secure an installment loan through traditional banking methods or lack the necessary cash, there are alternative options to finance your dream car:

  1. Look for Private Financing Companies:
    • Explore private financing companies that specialize in car financing. These companies often offer lower interest rates and longer repayment terms compared to banks, making it easier to obtain the car you desire without straining your budget. Research each lender thoroughly to understand the terms and conditions and monthly payment obligations.
  2. Explore Dealerships Offering In-House Financing:
    • Many auto dealerships collaborate with lending institutions to provide customers with the opportunity to purchase a car on installment without relying on a bank loan. To qualify for these loans, you’ll likely need to provide proof of income and have a good credit score. This option is worth considering if you’re interested in purchasing a vehicle without a bank loan.
  3. Consider Peer-to-Peer Financing Platforms:
    • Peer-to-peer financing platforms like LendUpper, Prosper, BlockFi, Funding Circle, and Solo Funding connect individuals who want to borrow money with potential lenders. These platforms often offer lower interest rates than traditional lenders. However, it’s crucial to thoroughly research each platform and read the terms and conditions before entering into any agreement.

By exploring these alternative options and conducting thorough research, you can find a financing solution that aligns with your financial needs and helps you realize your dream of owning a car.

List of Top 12 Leasing Companies in Pakistan for Car Financing

If you’re seeking a car in instalments without involving a bank in Pakistan, consider these reputable leasing companies:

  1. Atlas Lease Limited
  2. First Habib Modaraba
  3. First Prudential Modaraba
  4. Grays Leasing Limited
  5. Natover Lease & Refinance Ltd
  6. Ibrahim Leasing Ltd
  7. Pak Gulf Leasing
  8. ORIX Leasing Pakistan Limited
  9. Pak Wheels Car Leasing
  10. Asian Leasing Corporation Ltd
  11. Paramount Leasing Limited
  12. Saudi Pak Leasing Co Ltd.

Pros and Cons of Getting a Car on Installment

Before deciding on a car financing option, it’s essential to weigh the pros and cons associated with getting a car on instalment:


  • Accessible Dream Car: Getting a car on installment allows you to own your dream vehicle without paying a lump sum upfront.
  • Lower Interest Rates: Private companies often provide installment plans at lower interest rates compared to other financing options.
  • Affordable Initial Down Payments: These plans typically have lower initial down payment requirements, making them more accessible to a wider range of buyers.
  • Flexible Monthly Payments: Installment plans offer flexibility in terms of monthly payments, allowing you to choose a payment schedule that suits your financial situation.


  • High-Interest Rates and Lengthy Contracts: Some installment plans may come with higher interest rates and lengthy contract lengths, leading to additional fees if the lease is terminated early or if you choose to purchase from another dealer after the contract expires.
  • Potential Extra Fees: Leasing or buying from dealerships might involve additional fees that can increase the overall cost of the vehicle.

Considering these pros and cons will help you make an informed decision about which financing option is best suited to your needs.

In conclusion, owning a car on instalment without relying on a bank is possible in Pakistan. Private leasing companies provide a viable alternative to traditional banking, offering flexible terms, better rates, and options for those who may not qualify for a bank loan. By following the outlined process, researching available options, and considering the pros and cons, you can find the ideal car financing solution that suits your needs and budget.

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