List Of Banks That Provide Car Loans In Bangladesh

Due to Bangladesh’s appallingly inadequate public transportation system, owning a personal vehicle is no longer a luxury but a dire necessity. People frequently encounter transportation problems, such as unavailability, inappropriate vehicles, expensive transportation costs, and many more unforeseen scenarios, such as sexual harassment, pickpockets, etc., particularly in the capital city. So buy a car is necessity. But for low earned family buy a new car in hand cash is quite tough. Thankfully, a huge list of banks that provide car loans in Bangladesh is available now.

Several reputable scheduled banks in the nation are currently providing car loans in Bangladesh with simple terms. Car loans are one of the most widely used consumer loan products in the world.

In Bangladesh today, several banks are providing excellent car loan deals. We will list them down for you below and discuss the parameters you need to learn before taking out a bank loan.

How To Choose The Best Car Loans In Bangladesh?

You should keep the following factors in mind before taking out a car loan from any bank in Bangladesh:

• Interest rate: The liability increases with the interest rate. Depending on the bank’s policies, the interest rate on a car loan varies. You should choose the bank offering the most flexible interest rates. Each client’s EMI (Equated Monthly Installment) is determined separately based on factors including the total amount borrowed, loan term, interest rate, etc.
• Range of loan amount: Not every borrower is looking for the same amount of money. The banks typically give out car loans starting at around 3,000 BDT. Another important consideration while deciding on the top banks in Bangladesh for vehicle loans is the maximum loan amount. How much will you receive now for a car loan? There are variations in auto loan amounts between banks. According to our research, banks in Bangladesh often only authorized car loans up to a total of 40,000 BDT.
• Repayment tenure: The clients typically receive 5 to 6 years to repay their respective total loans, including interest, beginning after a minimum of 12 months. However, depending on the maximum age, the loan term may be shortened.
• Mortgage requirements: Some reputable scheduled banks in Bangladesh demand that their customers hold FDRs (Fixed Deposits) or any other type of property as a mortgage against the requested Car Loan. Choose a bank that has no requirement for a mortgage in their loan disbursement policy if you are not interested in getting the auto loan against the mortgage.

List Of Banks That Provide Car Loans In Bangladesh

For the convenience of their customers, almost all banks in Bangladesh offer a variety of credit or auto loan options. They provide a variety of appealing services to their clients at reasonable costs. Here we have listed some reputable banks that will offer you a good car loan deal:

1. BRAC Bank– Provides an interest rate of 10.25%, monthly installment of 85,481 BDT, and Total payable interest of 1,128,860.00 BDT.
2. United Commercial Bank– Provides an interest rate of 10.00%, monthly installment of 84,988 BDT, and total payable interest of 1,099,280.00 BDT.
3. Mutual Trust Bank– Provides an interest rate of 11.00%, monthly installment of 86,970 BDT, and total payable interest of 1,218,200.00 BDT.
4. Eastern Bank– Provides an interest rate of 10.99%, monthly installment of 86,950 BDT, and total payable interest of 1,217,000.00 BDT.
5. Standard Chartered Bank– Provides an interest rate of 11.0%, monthly installment of 86,970 BDT, and total payable interest of 1,218,200.00 BDT.
6. AB Bank– Provides an interest rate of 13.00%, monthly installment of 91,012 BDT, and total payable interest of 1,460,720.00 BDT.
7. Prime Bank– Provides an interest rate of 13.50%, monthly installment of 81,356 BDT, and total payable interest of 1,857,632.00 BDT.

How Do The Banks Approve Car Loans?

If certain requirements are met, banks are willing to offer car loans to deserving customers. Let’s talk about what the banks typically look for in a potential customer’s profile when they apply for a car loan.

• Before processing any application for a car loan, the banks in Bangladesh take into account several important parameters, including DBR. This factor is determined by dividing a person’s total debt (loans and expenses) by their income (monthly). DBR, thus, represents the excess of one’s liabilities over one’s income. Most banks favor prospective customers with lower DBR values. It appears that the likelihood of obtaining a car loan decreases as the debt burden ratio (DBR) rises.
• The minimum age requirement for loan applications is regulated by different bank policies. Some banks, such as Premier, South East, and AB, are willing to provide automobile loans to those who are at least 18 years old if the income profile is adequate. In general, banks feel comfortable providing auto loans for customers who are 25 years old or older.

Loan After Retirement Age

• After retiring from office, no one is permitted to seek a loan, under government policy. The retirement age in Bangladesh ranges from 60 to 65 years, depending on the specific corporate requirements. Typically, Bangladesh’s scheduled banks offer loans to potential customers who are 65 years of age or older. Before the car loan’s maturity, the age cannot be more than 65.
• Typically, Bangladeshi banks are ready to provide people who make good money with monthly auto loans. However, the lowest income threshold for potential clients varies for salaried individuals, professionals, independent contractors, business owners, and landlords.
• The work profile of the potential customers is given a lot of weight by Bangladesh’s scheduled banks while considering any application for a car loan. Different banks have different specifications. Depending on the type and status of the service or employment, a different amount of minimal work experience may be required. For example, job experience criteria are somewhat lenient for high-ranking government employees, well-known business owners, successful independent contractors, etc.
• Generally speaking, Bangladesh’s regulated banks offer car loans for both new and pre-owned vehicles that are on display. The model of the car shouldn’t be more than five years old while buying a reconditioned vehicle. Only a small number of organizations, including IPDC, approve used-car auto loans.

Final Words

A good car can elevate your social status while resolving your daily transportation dilemma. Many people in Bangladesh have long yearned to own their vehicles. And this dream can come true with a profitable car loan deal.

Vivid Auto Mobiles hope with their list of banks that provide car loans in Bangladesh can help you out in choosing the best loan deal for you to buy your dream car!