1).

BRAND NAME OF PRODUCT

The brand name for Prime Bank Car Financing Scheme is “Prime ear”.

All local assembled brand new

vehicles
Personal,
official

o Maximum Financing
a Minimum Financing Limit
Limit
20% of the ex-factory
price
3-5 years (36,48,60 monthly
installments payable in advance)

Purpose
Rs. 1,500,000

Rs. 100,000
a Down Payment:
Return insurance

a. Fii~ancing Period

~ Processing Fee o Insurance Rates

Rs. 3,000/.
(Includes \‘erification charges of Rs. 1,000/ which
are non refundable if the loan facility is rejected)
4 Days
1st year insurance premium to be received up-front
For remaining tenure, premium to be built into the
monthly instalments.
o Turn Around Time
3.25% & 4.75% of invoice ~va1ue of vehicle.
/
o internal Rate of
\
 This document provides guidance and is ~xc1usively for use by the staff members of Prime Commercial
Bank Limited. Authority for Exceptions rests with ~he Head Office.
1
0 Premium Financing : Maximum of Rs. 50,000

The premium amount over and above the invoice value of vehicle to be financed is fixed upto a maximum of
Rs. 50,000/. The percentage of premium amount will be deducted from the equity of 20% on price of vehicle,
thereby reducing the down payment.

The premium to be financed is biftircated for vehicle types as follows:

1. For vehicles from 800cc to 1000cc horsepowerMaximum of Rs. 25,000 premium
2. For vehicles above 1000cc Maximum of Rs. 50,000 premium

The above arrangement of premium financing is an optional facility, for customer and should only be
accepted at the request of customer in the application form. However, in all circumstances, the equity
percentage should not fall below 15% of price of vehicle.

As a mattei of risk evaluation, it should be discouraged to offei this option to walk-in customeis or new
customers having mediocre net worth and creditworthiness with their banks. The existing accountholders
and employees of reputable organizations should be preferred for this facility.

o Loan Transfer Facility : Allowed

If the customer has availed a vehicle loan facility from any other Bank or Leasing company during last 2
years at the then prevalent rates ranging between 15 to 20%, and repaying the rentals regularly, his loan/lease
facility may be transferred to our. Bank if he/she decides to terminate the facility from that bank. Prime Bank
will book the loan at the termination ~value subject to proven track record of the customer with that bank.

The equity in the above transaction will be nil, as the customer has repaid monthly installments in addition to
its initial equity deposited with that bank. The loan tenure should not exceed a maximum of 4 years. Under
the security documents, balance ~ansfer agreement will be signed by the customer in place of Agreement for
financing, on Mark-up Basis, alongwith the same set of remaining legal documents.

o Premature Termination : Allowed after at least 6 months of extending the loan facility along with 5% of the
outstanding balance as termination charges.
(Any exceptions on premature termination to be strictly obtained from Head office)

o Partial Prepayment : Allowed after at least 6 months of extending the loan facility, as per the Bank’s
policy subject to 5% charges of the pre-paid amount as pre-payment fee.
(Any exceptions on partial prepayments to be strictly obtained from Head office)
3). TARGET MARKET

The Bank’s target market for Car Financing Scheme~ is clearly defined as:

o Salaried Individuals; Private & Government sectors

o Corporate Employees
o Professional Individuals such as Doctors, Teachers, Architects, Engineers etc.
 o Self Employed Individuals (Businessmen & Businesswomen)
o Business Entities (Proprietorship, Partnership, Private/Public Limited Companies)

4). ELIGIBILITY CRITERIA

All salaried! self-employed businessmen and professional individuals are eligible to apply
for

Prime Car if they are:

• Pakistani National
• Aged between 25 years to 60 years (60 years at the time of maturity of loan)
• Earning a monthly take home income in excess of three times of monthly installment.

Salaried/Professional Individuals:
• Employed for at least 1 year with a reputable organization and presently a confirmed employee.
•Take home inonthly salary of minimum Rs. 20,000/.

Businessmen & Self-Employed

• Running own business or a partner or director in the business entity for at’ least 2 years.

Proprietorship/Partnership/Private/Public limited companies

• Business operational for a minimum period of 3 years with profitable financial statements
(Audited/Management Accounts).

5). LIST OF DOCUMENTS REQUIR1~D:

A complete list of documents required from each category of the customers is attached with
the loan application form.
Common Documents -

1. Two recent passport size photographs

2. Copy of National Identity Card
3. Bank Statement for last six months
4. Copies of Utility bills or mobile phone bills or credit card bills for last 3 months
5. Copies of Income Tax Returhs for last 2 years or Undertaking by the customer.
6. Copy of the Driving License (optional)

Salaried Individuals:

o Recent Salary Slip duly attested by the employer.

o Letter from employer, stating the date ofjoining of employee, designation, gross salary, net
salary & provident fund balance.
o Other regular income should falling short of the eligibility
support and evidence retained

For Business Class! Self Employed! Professional

o Evidence of income
o Bank Certificate stating applicant’s business duration and creditworthiness.
p Copy of rental / purchase agreement of the business premises.
 o Copy of Professional Degree (if applicable)
o Copy of Membership of evidence in case the applicant is a member of any professional
organization. (if applicable)
o Copy of partnership deed if the customer is a partner in a partnership firm.
o Copy of form A/29 if the customer is a director in a limited company.

For Proprietors! Partnership/Private Li~ñted Concerns

o Certificate of Incorporation
o Articles & Memorandum of Association
o Copy of Partnership Deed
o Audited! Management Accounts (if audited not available) for last 2 years
o Copies of Tax Returns of business concern for last 2 years

Documents such IIS NIC~, Utility Bills and Rental/purchase agreements should be checked in
original by thE bank official.

6). YERIFICATION
Verification Charges : Rs. 1,000

6.1 The charges of Rs. 1,000/ is fixed for all branches in Lahore, Central and Northern regions,
regardless of the actual charges payable to the verification agency by PCBL.

6.2 The verification charges have to be received from customer once he submits the signed application
form along with pertinent documents to Bank’s officer.

6.3 These charges are non-reftindable in case of rejection of loan request.

fhe verification agency would submit the report to the Bank within a time period from one clay to a
maximum of two days, lest there are irregularities during the verification process like the
unavailability of the customer, geographical distances of customer~s official or residential premises
or occurrence of any unforeseen events or public holidays.

In order to offer prompt services to the customers, the Bank may advise the verification agency to
fax the verification reports to the Bank as and when they are finalized and mail the original ones
later.

Documents to be provided to verification agency:

• Copy of completely filled and signed application form by the customer

• Copy of N.J.C. of customer
• Original Bank statement
• Specimen signatures of the customer

Any of the below documents on case to case basis:

• Salary slip/employer’s certificate (in case of salaried individuals)
• Copy of the partnership deed
• Copy of the rental deed (if required)
• Copies of the ta~ returns
• Income evidence
 Expiry of Verification Report:

The verification report’s authenticity will be relied upon for a period of one month, and will be
considered as expired thereafter. This condition applies when a customer du.e to any reasons whatsoever
has failed to avail the loan facility approved to him during one month from the official approval
announced to him. Henceforth, if the same customer applies for a different vehicle after a month or
wants to avail the already approved finance facility, it is advised that a fresh verification report to be
sought. The decision to obtain a fresh verification or use the previous one hinges on the credentials of
the customer and the officer’s comfort level with the customer or at the discretion of the Chief Manager.

7).

MATERIALS! PROCESSING OF APPLICATIONS

The application form comprising of all the relevant information to be ‘filled in by the customer and
loan agreement to be duly signed by the client would be a mandatory tool. The other stationery
pertaining to the processing and execution of~ loan applications are as follows:

1. Installment Calculation Sheet

2. Signature verification form
3. Request for Bank Statement’verification
4. Borrower’s Basic Fact Sheet
. Form for Balance Transfer Facility Details (in case of BTF request)
6. Regret Letter
7. Approval Checklist (Revised)
8. Offer/Acceptance Letter
9. Undertaking for Personal use of the Motor vehicle
10. Letter addressed to the previous Bank/Leasing for issuance of documents (for BTF loans)
ii. Form for Insurance details to arrange insurance policy of vehicle (to be obtained from branch
offices of approved insurance companies)
12. Purchase Order (Revised)
13. Delivery Order (Revised)
14. Disbursement Memo
1 5. Certificate in favour of the client anthorizing him to drive the vehicle.
16. Motor Registration Authority Letters for registration purposes. (to be obtained from the local
registration office)
17. Repayment Schedule

8). PROCESS FLOW:

The processing time from the receipt of a loan application to the disbursement is set out to
be three to four clays (3-4 days).

A detailed process flow entailing all the steps involved is as follows:

IDAY1:

~ Application form along with pertinent documents received by the Officer-Consumer Banking at
 Prime Commercial Bank Ltd.
~ Due diligence of documents attached with the application and assessment of its eligibility for
.

verification.
•~ Verification report to be sought regarding the customer’s official and residential details through
the services of appointed verification agency.
() ~ Incase of application by an account holder, the verification requirement is to be
decided by the Chief Manager, in light of the track record and relationship of the
customer with the Bank.
~ Incase of a new customer, the Officer Consumer Banking scrutinizes the documents,
evaluates the application prudently and counterôhecks the authenticity of the office
and residence telephone numbers by calling at the numbers ~irnished by the customer
in the application form.
•• If the attached documents with the loan application meet the eligibility criteria, the
Officer holds the file with himself and awaits the verification report.
~ If the loan amount is for Rs. 500,000 and above, the CIB report has to be essentially
obtained in compliance to the State Bank’s prudential regulations. Before seeking
approval, the requisition for CIB report is routed through the Credit Department, who
e-mails the data to the Karachi Office to obtain online CIB reports.
DAY2 & 3:

~ Whether the verification report is received on the 2’~ or ~rd day, the same process follows
thereafter as elaborated below. In case of a report being negative, the customer is informed
through verbal regrets on telephone or a regret letter is sent to him and the file is closed.

~. If the verification report is positive, the Officer compiles the approval file comprising of all the
documents obtained from the customer along with installment calculation sheet, verification
report, CIB report and prepares an Approval Checklist (specimen attached) signed by himself.
This file is forwarded to the Manager Operations for his recommendation, who subsequently
presents the file to the chief Manager for final
approval. (chief Manager Business Development in Group ‘~4” branches~

•~ The Chief Manager ensures that the documents marked on the checklist are attached in order
and must read the findings of the verification report. 1-le may raise any queries or identify any
discrepancies, which need to be redressed by the concerned Officer in Consumer Banking at
earliest and to the entire satisfaction of the Chief Manager upon which the final approval is
sanctioned by him.

1)AY4

•:• The Officer announces the approval of loan to the customer and requests him to fulfill the
documentation formalities on the same day.

•~ The documentation formalities mainly comprise; Acceptance of offer letter, Opening of non
checking current account, deposit of the total down payment, signing of loan agreement, placing
purchase order for booking or delivery order for immediate delivery of required vehicle from
the car dealer and arrangement of insñrance policy from one of the Bank’s approved insurance
companies.
•• First year insurance prernitim is’ received up-front by the client whereas for the remaining loan
tenure, the insurance premium at the depreciated values of the vehicle is built in the monthly
installment and the policy is arranged by the Bank itself under its contracts with the authorized
insurance companies.

•~ Issuance of Purchase order if the vehicle is not available in the market and customer wants to
book the vehicle. The Purchase Order is issued to the car dealer who gets the order form filled
and signed by the Bank against the vehicle to be booked.

•• The prevailing payment practice for all brands of vehicles is uniform these days except for the-
Toyota cars i.e 100% advance payment via pay order! demand draft has to be made to the
supplier along with the purchase order in order to book the vehicle.
For the booking of Toyota cars, the customer initially deposits only the processing
fee of Rs. 3,000/ and Rs. 100,000/ for booking of vehicle with PCBL, which
subsequently books the vehicle on behalf of the customer by issuing a D.D. of Rs.
100,000/ in favour of Indus Motor Co. Ltd. Thus, the customer remains legally
committed to PCBL and doesn’t have to deposit the total down payment before the
arrival of vehicle.

•~ When the vehicle arrives at the showroom, the dealer intimates its arrival to the Bank’s officer
and simultaneously to the customer, instructing them to take delivery of the vehicle at earliest.
Upon this intimation, the officer obtains The particulars of the vehicle from the dealer to
arrange the insurance. An insurance form comprising the details of vehicle is faxed to the
insurance company with an advice to conduct the pre delivery inspection of vehicle at the car
showroom and to provide the insurance covernote to the Bank.
For immediate delivery of the vehicle in the market at On-price,
available payment for premium above the any the extent of Rs. 50,000
invoice value upto be adjusted by deducting may also the customer’s
the same athount from written request. equity, upon his
•• If the desired vehicle is available and the customer is willing to pay the premium amount above the invoice
value from his own pocket, the officer obtains the particulars Of the vehicle from the dealer to arrange
the insurance. An insurance form comprising the details of vehicle is faxed to the insurance company
with an advice to conduct the pre delivery inspection of vehicle at the car showroom and tb provide the
insurance cover note to the Bank.
(C
•~ As soon the insurance cover note is received by the Bank through fax copy or original whichever is
quicker and convenient, the Officer ‘prepares Delivery Order (DO) and gets it signed by the Chief
Manager. The stamped and signed Deli~’ery Order should essentially be handed over to the customer and
acknowledgement of his receipt on a copy of the Delivery Order to be taken. In case, the customer is
unable to personally collect and receive the Delivery Order, prior instructions from him both verbal and
written in the form of authorization letter in favour of his nominated person to receive the D.O. must be
held. The Officer must thoroughly read the authorization letter and checks the name and NIC nuniber of
the authorized person: It is imperative to match the signatures of the customer in the Ie~ter to his
‘signature verification form attested by his Bank earlier.

> Subsequent to the complete fulfillment of above formalities, the disbursement is calTied out by consumer’
banking officer and cheque/demand draft is issued to the dealer in favour of the Supplier. The
disbursement should preferably be made the same day or otherwise in next 2 days essentially as per terms
with the dealer. 1-lowever credit of 2-3 days is extended by dealers under a routine practice.
Follow on Process

•:~ The dealer after receiving the payment, issues the original sale invoice of the vehicle directly
to the Bank, which then arranges the registration of the vehicle through its appointed
registration agency. Immediately after the delivery of vehicle, the dealer is asked to duly sign
and stamp the Delivery Acceptance FOrm, which is part of the security documents. The
registration charges of the vehicle have already been recovered from the customer as part of
tile total down payment at the time of signing tile loan agreement. In addition to the papers,
tile dealer delivers the duplicate key of tile vehicle to the Bank, which is also a n~andatory
security requirement.

~ The officer hands over tile original papers of the vehicle to tile Bank’s authorized
registration agent along with necessary forms and letter in favour of Motor Registration
Authority by tile Bank. The agent arranges the registration of tile vehicle in the name of the
customer with the Bank’s lien marked on it and delivers the original registration book along
with original papers to the Bank. The concerned officer at the Bank retains a copy of the
book in the customer file and hands over the original book to the customer by taking his
acknowledgement on the copy of book.

~ Repayment schedule of the finance facility is to be essentially furnished to the customer

after the approval of tile loan facility.

9). SECURITY DOCUMENTS (AFTER APPRO VAL)

The security documents of tile Car Loan are a set of legal papers, to serve as the security of the Bank
and a tool to be used against the defaulting customer during court proceedings, if that is the last
resort. A set of loan agreement of a car comprises the following documents:
(Attached for reference)

I) Accourit Opening F6i~m

This establishes anon checking account for tile customer.
A 2) Know Your Customer Form (KYC)
3) Car Financing Account
 // 4) a., Agreement for financing Motor Vehicle on Mark up Basis Or
4) b. Balance Transfer Facility Agreement
5) Letter of Hypotliecation of Motor Vehicle
6) Irrevocable Power of Attorney
7) Authorization to take possession of Motor Vehicle.
8) Delivery Acceptance Form
9) Open Transfer Letter
10) Demand promissory Note
11) Document Checklist for Disbursement

10). SECURITY:

The vehicle itself is the security, which will be hypothecated in favour of the Bank and a lien will be
marked with the registrar. Apart from vehicle being the primary security itself, supplemented by the legal
documents listed under Security Documents, the asset is secured by strict compliance of following
measures:

10.1 Registration of the vehicle in the name of customer under lien by the Bank.
10.2 Comprehensive Insurance Policy.
10.3 Original Sale Invoice and papers vetted by Motor Registration Authority
10.4 Post Dated Cheques as per the repayment schedule for the entire loan term.
10.5 Duplicate Key of the car to be kept with Bank.
10.6 Incase of Pre-Approved Customers, IlTevocable Standing Instructions addressed to Prime Bank for
deduction of outstanding amount from the account of the customer/post-dated cheques for the amounts
corresponding to the installments.

11). CREDIT LIMITS

The Chief Managers of the branches would be delegated approval limits to sanction car loans up to a
limit of Rs. 1.5 million without seeking. prior approval from Head office that will subsequently endorse
the proposals.

• Chief Manager Business Development For “A” group branches

• Chief Manager For “B” group branches
• Branch Manager For “C” group branches

Approval limit: Rs. 1.5 Million

(For both the existing accountholders of the Bank & new customers)

It is recommended that while extending repeat loan facility to the same customer, an interval of at least 3
to 6 months should be maintained to observe the repayment behaviour of the client and extend another
facility on the basis of his previous track record with the Bank.

Discretionary Powers of Chief Manager.

 Authority to waive the verification condition in case of an existing account holder of Bank or case-
to-case basis.
 o Authority to reduce the 5% premature termination charges by 1-3%, subject to very strong credentials
and excellent repayment behavior of the client.
o Exception approval to be obtained from the I-lead Office for any deviations from the prescribed
guidelines in the manual e.g. age limit above 60, lack of proof of income, discrepancies in the documents
submitted by the customer, inability to fully comply to the eligibility criteria, premature termination
before the stipulated time period of 6 months etc.

Approval in absence of Chief Manager

For Lahore Branches The approval of car financing applications rests with the Manager Operations in the
absence of the Chief Manager and a post facto approval to be obtained from the Chief Manager after
he resumes office.

For Central & Northern Branches : The approval of car financing applications rests with the Regional Heads
of the respective region in the absence of the Chief Manager of any branch
~( / under that region.
12). LATE PAYMENT CHARGES

As per Bank’s prevalent schedule of charges. (Currently Rs. 100/- per day will be charger! after
one week from the due date in case of delay in payment of the installment.)

13). CHEQUE RETURN CHARGES

As per Bank’s prevalent Schedule of Charges.(CulTently Rs. 200/- per returned cheque will be

charged as cheque returning charges.)

14). INSTALLMENT DUE DATE

5th and 20th of each month

14.1For loan disbursed from t1~ to 10th, the next installment shall become due on th of each
25 5

month till the maturity of the loan tenure.

14.2For loan disbursed from 1 1th to 75~’ the next installment shall become due on 20th of each month till the
maturity of the loan tenure.

(Convenience of customers in selecting one of the above due dates for repayment of installments
should be given due weightage)

15). MODE OF REPAYMENT OF FINANCE

Through post dated cheques of monthly installments for the entire loan tenure, to be received in
advance at the time of disbursement.

16). COMPREHENSIVE INSURANCE

 The vehicles to be financed must be comprehensively insured from one of the Insurance Companies
on the approved panel of the Bank. The insurance policy should essentially bear complete
particulars of the vehicle (Client’s name and address, v~hic1e’s Engine & Chassis Nos. & its
Registration number. Thus, a comprehensive insurance policy entailing the above details, along
with Premium Paid Receipt are ought to be obtained before the final disbursement.

( In cases, where the vehicle is being booked against 100% advance payment of invoice value to the
supplier, the insurance policy will be issued without the registration number but duly comprising
other particulars such as engine and chassis numbers of the vehicle, along with Insurance Premium
paid Receipt.

The Bank has enlisted the following two insurance companies on its approved panel for the
insurance of vehicles under the Bank’s Car Financing Scheme:

1). Shaheen Insurance Company Limited Insurance Premium Rates

• 3.25% without tracker

• 3.0% with tracker

2). EFU General Insurance Company Limited

• 4.75% without tracker

• 4.0% with tracker
For Toyota Corolla 2.OD -

• 4.00% with tracker

• not insured without tracker

For 4X 4 vehicles.: 6.5%

Selection of Insurance Company
1)Low ~sk Customeis & ~~ Shaheen Insuiance Company Ltd
Vehicles up to 1000cc
2).High Risk Customers + EFU Geheral Insurance Co. Ltd
Toyota Coiolla 2 OD & ________

Vehicles above 1000cc

Payments to the outsourced agencies and Insurance Companies

Payments to the insurance, verification and registration companies by the Prime Bank. These companies will
open accounts at the branches to enable transfer of their payables to each company during a mutually
settled date of each month and a consolidated payment of all the branches would be credited to the
account of each company.

17). REGISTRATION OF VEHICLES

— 17.1 Ii~e vehicle would be registered in the name of the borrower and account~ofnan~) co~?rime
Commercial Bank Limited.
17.2 Registrations of the financed to be outsourced through PCBL’s appointed professional registration
agency or through dealer. The registration charg~ would be borne by the client and received from him in
advance, prior to the final delivery of vehicle.
17.3Authority.
A letter to ascertain
Photocopies of the
the enforcement Of Bank’s
registration book lienevidence
with the should be
ofdispatched to the Registration
the Bank’s lien should be obtained and kept on record.

17.4 The concerned officer must see the Bank’s name on the bOok in original before handing over the
book to the customer.

17.5 The paynient to this ag’ency would be made after receipt of original registration book with the
Bank’s lien marked on the book and “Hire Purchase “ stamp on it.

18). MONITORING

18. 1 Due date diary should be maintained in the system or on registers with the consumer banking
officers and the relevant Post Dated Cheques should be promptly logged in clearing for installment
recovery.
18.2 In the event of any installment cheques returned unpaid, the borrower should be immediately
contacted or telephoned and requested to arrange for the installment payment.

18.3 If the borrower cannot be reached within three days on telephone, a 7 day notice be issued.

18.4 In case of 60 days overdue installment, repossession notice of the vehicle should be initiated.

19). RESPONSIBILITIES OF THE OFFICER CONSUMER BANKING FOR CAR

FINANCING OPERATIONS

1 Generate Business.
2 Meet the targets assigned
3 Prudent scrutiny of the documents furnished by the customer.
4 Due diligence in evaluation of the Loan Applications and their recommendation to the Approving
Authorities.
5 Prudent documentation of the credit and legal papers with the assistance of the processing officers.
6 Keep a constant co-ordination with the Head Office and reporting of daily business activity and recovery
position and other matters relating to Car Financing.
7 Monitoring of the disbursed 1~ans by following up with the customers fr regulth~ installments recovery.
8 Maintain a congenial environment at the office and uphold the Bank’s image and reputation.
20). NON-ELIGIBLE (NO-GO AREAS)

1) Lawyers
2) People belonging to media (actors, actresses, celebrities, singers)
3) Film! drama production houses
4)Rent a car companies.
5) Public transportafion
 General

CIB Report: To be obtained for financing ab6ve RS. 500,000/ through online reporting at your branch or
through Head Office.

Brand name for Prime Bank Car Financing Scheme is “Prime

Ca?’

Features

a. Purpose

For Borrower’s personal use only.

b. Eligible Vehicles

All local assembled brand new vehicles

ii. All foreign assembled brand new vehicles

iii. All local assembled used vehicles, not older than 1 year (date to be checked from the sale
invoice issued by manufacturer)

iv. All foreign assembled used vehicles, not older than 5 years (date to be checked from the
original import papers of vehicles)
PROCESSING FEE
Processing fee will be charged as per the approved schedule of charges, which is
inclusive of verification charges and stamps for charge documentation.

Verification charges to be received in advance with the receipt of application from the
customer and are noil refundable in case of refusal of loan facility.

For the processing of used cars applications, any external agency charges for
evaluation of the used car shall be charged at actual to the customer and will be non
refundable in case of refusal of loan request.

h. Turn Around Time

Turn around time for each application from the time of receipt till the time of its
approval is 4 working days.

Comprehensive insurance policy of vehicle in the name of customer &

Prime Bank as sole beneficiary is a mandatory requirement of Bank’s Car

Financing Scheme.

Insurance criteria for car finance is described as under:

Insurance coverage must be obtained on the full price* of vehicle.

* Full price is the sum of borrower’s equity and bank’s financing amount

ii. 1St year insurance premium to be received up-front

 iii. For the remaining tenures, premium to be built into the monthly installments at
depreciated value of car as follows:
nd year
2 — 90%

3~ year

4 th year
85%

80%

with the previous bankileasing company. The loan tenure to be

approved
by Prime Bank should not exceed a maximum of 4 years for loan
transfer.

Under the charge documents, “Balance Transfer Agreement” will be

signed by the customer in place of Agreement for financing on Mark-
up Basis, along with the set of charge documents (As Appendix 2).

Other documents to be used for BTF are as follows:

BTF Form to be filled in by applicant for processing of application.

2. Letter addressed to the transferring bank at the time of disbursement. (Annexure 4 &

10)
Ic. Premature Tennination

Premature termination or early settlement is allowed after at least 6

months of extending the loan facility, along with 5% of the
outstanding balance as termination charges, or as advised by the
Head Office.
 Premature terminations before the stipulated period of 6 months
and/or termination charges below 5% of principal outstanding
require prior approval from the Head of Consumer Banking Division.
Partial Prepayment

Partial Prepayment (balloon payment) is allowed after at least 6 months of extending the
loanfacility, subject to 5% charges of the pre-paid amount as pre-payment fee, or as advised
by the Head Office.

Partial Prepayment before the stipulated period of 6 months andlor charges below 5%
requires prior approval from the Head of Consumer Banking Division.

Preamble
At a time when retail or consumer banking is the mainstay of every
financial institution, it becomes imperative that products tailor made to
the requirements of the customers be formulated and offered in the
market. No financial offering, whether a liability or an asset product,
can survive in the long run, if it does not take into account specific
customer needs. The idea of consumer financing in Pakistan has
gained momentum as both the consumers as well as commercial
banks have responded favourably.

At present consumer financing being undertaken by the banks can be

divided into a few core categories comprising financing of consumer
durables, office equipment, automobiles, and housing. Most of the
financial institutions are more actively involved in car financing as
compared to other consumer finance products.

Declining interest rates and increased auto financing through banks,

leasing companies and Mudarabas have played a vital role to boost
up the auto sales like never before. In turn, it has helped enhance the
overall auto production because financing make up over 45 per cent
of total car sales today.
Banks enjoying an unprecedented liquidity find auto loan a highly
receptive market offering attractive returns in a comparative short
period of time. The availability of easy credit and the falling interest
rates have made financing a viable option for many. The base of auto
credit has witnessed an expansion never dreamt possible before
allowing the banks to find a lucrative market to invest the excess
liquidity.

In line with Prime Bank’s vision for a modernized banking and to

introduce innovative products in the market, the Bank has placed
greater emphasis on Consumer Banking with the launch of its first
consumer finance product of Car Financing Scheme, under the brand
name of “Prime Car”.

“Prime Car” Procedures Manual explicitly covers all functional,

operational, accounting, security, and monitoring aspects of Car
Financing Scheme, giving proper guidance at the branch and Head
Office levels.

The manual is the first step towards progress and strengthening of

consumer banking products in the bank’s environment.