In order to understand which bank offers the best personal loan in Pakistan, you must first consider what they are and how they work.
Personal loan differs from other types of loans in that it has more flexible terms and can be paid back over a longer period of time—usually up to 5 years.
A personal loan is also typically cheaper than other types of loans, such as mortgages or car loans, because it has less stringent requirements and generally doesn’t require collateral.
If you want to get a personal loan and don’t know where to get it and which bank is best for you. Then there is a detailed review of the top 5 banks to get personal loan in Pakistan.
Top 5 Banks To Get Personal Loan In Pakistan | Private Loan Lenders In Pakistan
Table of Contents
- Top 5 Banks To Get Personal Loan In Pakistan | Private Loan Lenders In Pakistan
- What Are Personal Loans?
What Are Personal Loans?
For most of us, a loan is money we borrow. But that’s not quite true with personal loans. The distinction is minor but important:
A personal loan is unsecured, which means there isn’t collateral behind it. A bank will lend you money because they believe your income and expenses are enough to pay back that debt.
If you need financing and don’t have enough liquid cash available to do it—or if you have some sort of asset you can use as collateral—it might be better to apply for a home equity loan or line of credit instead.
List Of Top 5 Banks To Get Personal Loan (Recommended)
State Bank Of Pakistan (SBP)
The State Bank of Pakistan offers personal loans. The bank’s average processing time is three days and annual interest rates are between 15% and 19%.
An SBP card is required to qualify for a personal as well as a business loan. In addition, personal loans from banks can have variable interest rates, which means rates change based on market conditions.
Rates are higher with variable-rate loans than with fixed-rate ones but fixed-rate loans also come with a higher monthly payment amount.
However, most banks allow you to lower your payment by making extra payments or paying off your loan faster.
State Bank of Pakistan is one of Pakistan’s largest banks. It has 39 branches, 54 ATMs, and around 1,200 service outlets across Pakistan.
The most interesting thing about State Bank is that it offers no-frills personal loans.
If you don’t need something fancy with your loan—like a repayment plan option or a low minimum interest rate—you can apply with them and get your money quickly.
To qualify for a State Bank personal loan, you must be an adult with Pakistani citizenship (foreigners cannot take out personal loans).
You should also have been living in Pakistan for at least three years prior to applying and should have a clear credit history.
Note: The State Bank of Pakistan also offers business loans and personal loans via partner banks (such as MCB) around the country.
Muslim Commercial Bank (MCB)
MCB is one of the largest banks in Pakistan, and they have a variety of personal loan options available. Their loans range from PKR 500,000 to PKR 100 million, so there’s something for everyone.
The best thing about MCB is that they don’t just offer personal loans; you can also apply for business loans and car financing with them.
It’s worth noting that their car financing tends to be fairly expensive if you’re looking to borrow a large amount, so keep that in mind when comparing your options.
If you can get approval from MCB though, it’s definitely worth checking out! They offer strong customer service as well as straightforward repayment plans and flexible payment periods.
The best bank for personal loans in Pakistan. MCB has been very popular over the years and is one of the highest-grossing banks not only with regard to its profit but also with regard to its customer base.
It covers a whole lot of industries including educational loans, business loans, banking services as well as personal loan facilities which are most common among customers.
The interest rates at MCB range from 12% to 24% annually depending on your creditworthiness and payment history.
MCB is a good bank to go to if you need a personal loan. They have a fantastic interest rate of 19% which is one of, if not, the best in Pakistan.
Their loan length ranges from 12-36 months which works for most people and their repayment schedule is flexible as well.
The application process is simple and quick as long as you can provide all your income information along with some other necessary items.
All of your documents will be handled securely by MCB staff so rest assured that your information is safe during the application process.
If you decide to get an MCB personal loan, make sure you apply online or over the phone so that everything goes quickly and smoothly without any hiccups or complications along the way.
National Bank Of Pakistan (NBP)
The National Bank of Pakistan is the best bank when it comes to offering personal loans to its clients.
With a wide range of financial products and services, from consumer loans to credit cards, NBP has what you need to take control of your finances.
You can even apply for your loan online if you’re looking for convenience. As one of Pakistan’s leading banks, NBP offers all major conveniences at its touch-of-button locations throughout the country.
Best of all, their customer service is world-class; call them today and get yourself started on a lifetime debt-free track!
Not only do NBP personal loans come with a host of benefits, but they’re also from one of Pakistan’s most well-established financial institutions.
Plus, thanks to lower interest rates and longer loan durations than many competitors, it is easy to see why NBP personal loans are so popular.
With plenty of repayment options as well as flexible tenure periods on offer, an NBP personal loan could be just what you need to get that dream home or purchase your own car.
In addition, unlike many rivals, there is no collateral required when taking out an NBP personal loan. It really couldn’t be easier!
In order to maximize your chances of getting a personal loan, you need to find a bank that has a good reputation and is easy to work with.
While many people go with bigger banks that are more likely to give them more money, consider going with NBP; it’s one of Pakistan’s largest and most recognized private sector banks.
Not only does it have an excellent reputation, but it offers great rates (upwards of 12% on interest) and doesn’t demand collateral—meaning if you default on your payments, they won’t take away anything from you besides your money.
NBP offers personal loans with an interest rate starting at 16.3 percent and loan terms that range from one to five years.
Loan amounts are based on your monthly income (as determined by NBP) and can be as much as 1,000,000 rupees (about $9,600).
You must have a checking account with NBP or another bank NBP has a tie-up with. Loan approval is based on your repayment history, credit score, and employment status;
If you’re self-employed, a business plan must accompany your application.
While you’ll receive periodic statements during repayment, payments are due once every six months. Late payments may result in additional fees.
Habib Bank Of Pakistan (HBL)
Habib Bank Limited (HBL) is considered to be one of the best banks for personal loans in Pakistan. Because it has a long tradition and history of over 60 years.
HBL serves clients with a variety of products and services, including accounts, loans, credit cards, and more.
The services offered by HBL are designed to facilitate its customer’s easy access to banking facilities at all locations. It has 111 branches across major cities in Pakistan.
Its customer service representatives can assist clients by answering their queries 24/7 through phone or email support.
In addition, they have also incorporated mobile banking apps so that clients can have immediate access to their bank accounts through mobile devices wherever they may be.
JS Bank is one of the best banks for personal loans in Pakistan. The bank has a wide range of financial products, including home and vehicle loans, education loans, personal financing solutions, and more.
It also offers easy online banking services. Although, JS Bank’s interest rates are higher than some of its competitors.
However, it can be worth it to pay more if you are looking for a convenient way to secure a loan at a reasonable rate while saving time by conducting your business from home or the office.
In addition to its relatively high APRs (an average of 16.7 percent), you may also have to put down 20-25 percent upfront when securing financing through JS Bank.
One of JS Bank’s primary strengths is its pricing. The bank offers one of the best interest rates on personal loans, charging a flat rate of 9% for all loan amounts.
In addition, you will be charged a 0.5% processing fee and 3% government tax on your loan amount; however, if you repay your loan within 6 months, there is no processing fee to pay.
Overall, JS Bank offers some of the best rates on personal loans in Pakistan and customers are happy with how easy it is to qualify for these loans compared to other banks they’ve applied with.
Customer service can be hit or miss at times but overall reviews state that most people don’t have issues getting their questions answered over email or phone calls when needed.
Pros And Cons Of Getting Personal Loans
A personal loan is a great way to invest in your future, whether that means paying off student loans or making home improvements.
But, when you take out a personal loan from a bank, there are costs involved; interest rates, monthly payments, and application fees can all add up quickly.
Before taking out a loan for any purpose (even something as seemingly simple as paying off debt), weigh both your immediate and long-term expenses against your financial goals to make sure it’s truly worth it.
There’s nothing wrong with not having enough money—but make sure you really don’t have enough before applying for one of these loans!
It’s also important to read all contract details and make sure everything is clear before signing on any dotted lines.
There are various benefits of personal loans. These include quick turnaround times (totaling 3-7 days), high loan amounts, low-interest rates, and easy accessibility.
However, there are some disadvantages to taking out a personal loan, such as potential debt, repayment arrangements, and penalties.
When choosing your bank for a personal loan, research their policies to ensure you’re comfortable with any penalties or late fees associated with missed payments.
If you’re not sure which lender is best for you or how to get started with your application process, contact a bank employee.
They’ll be able to walk you through each step and make sure you end up at a bank that matches your needs and preferences. The first step is always going to be gaining clarity on what those needs are!
Personal Loan In Pakistan FAQs
Which bank gives personal loans at the lowest interest rates?
Meza Bank in Pakistan gives loans at the lowest interest rates through the car financing service IJARA (Leasing).
How much loan I can get if y salary is 50,000 (For 5 Years)?
You could get probably 1,000,000 to 1,500,000 Lakhs easily for 5 years if your salary is 50,000
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