🇵🇰 Pakistan’s Most Complete Car Finance Tool

Car Loan Calculator
Pakistan 2026

Compare 24 banks instantly. Calculate monthly installments for Islamic & conventional car financing. Updated monthly with latest KIBOR rates.

1-Year KIBOR (March 2026): 10.89%  |  SBP Policy Rate: 12%
24 Banks Covered
Free No Registration
Updated Monthly
Islamic & Conventional

Quick Car Loan Calculator

Select bank · Adjust price & tenure · Get instant estimate

Monthly Installment
PKR
Indicative estimate
Select Bank
Vehicle Price PKR 3,000,000
PKR 500KPKR 15M
Tenure 3 Years
1 Year5 Years
Down Payment 30%
15%70%
Vehicle Type
Tax Filer Status
Financed Amount
PKR —
Down Payment
PKR —
Total Payable
PKR —
Compare all 24 banks side by side — find the lowest rate for your budget ⚖️ Compare All Banks
All Banks

24 Bank Calculators — One Platform

Click any bank to calculate your exact monthly installment with their current rates, fees, and eligibility criteria.

Meezan Bank
Islamic
Rate: KIBOR+4–5%
Max: PKR 3M · Tenure: 1–7 Yrs
Calculate ›
HBL CarLoan
Conventional
Rate: 13.99% Fixed
Max: PKR 10M · Tenure: 5 Yrs
Calculate ›
Bank Alfalah
Conventional
Rate: KIBOR+3.5–4.5%
Max: PKR 3M · Tenure: 3–5 Yrs
Calculate ›
UBL Drive
Conventional
Rate: ~14.5% Variable
Max: PKR 5M · Tenure: 5 Yrs
Calculate ›
MCB Car4U
Conventional
Rate: KIBOR+2%
Max: PKR 6M · Tenure: 5 Yrs
Calculate ›
NBP Hamsafar
Islamic
Rate: KIBOR+1.99%
Max: PKR 10M · Tenure: 7 Yrs
Calculate ›
Faysal Islami
Islamic
Rate: KIBOR+5–6%
Max: PKR 3M · Tenure: 5 Yrs
Calculate ›
Askari Ijarah
Islamic
Rate: Fixed (Ijarah)
Max: Varies · Tenure: 5 Yrs
Calculate ›
Bank of Khyber
Islamic + Conv
Rate: KIBOR+2–5%
Max: PKR 3M · Tenure: 5 Yrs
Calculate ›
Soneri Bank
Conventional
Rate: 14.50% Fixed
Max: PKR 3M · Tenure: 5 Yrs
Calculate ›
Allied Bank
Conventional
Rate: Variable
Max: PKR 5M · Tenure: 5 Yrs
Calculate ›
Habib Metro
Conventional
Rate: Variable
Max: PKR 5M · Tenure: 5 Yrs
Calculate ›
BankIslami
Islamic
Rate: Variable
Islamic Financing
Calculate ›
Dubai Islamic Bank
Islamic
Rate: Variable
Islamic Financing
Calculate ›
Al Baraka Bank
Islamic
Rate: Variable
Islamic Financing
Calculate ›
Bank Al-Habib
Conventional
Rate: Variable
Max: PKR 5M · Tenure: 5 Yrs
Calculate ›
JS Bank
Conventional
Rate: Variable
Consumer Car Finance
Calculate ›
Bank of Punjab
Islamic + Conv
Rate: Variable
Max: PKR 3M · Tenure: 5 Yrs
Calculate ›
Sindh Bank
Conventional
Rate: Variable
Consumer Finance
Calculate ›
First Women Bank
Conventional
Rate: Variable
Women-Focused Finance
Calculate ›
Samba Bank
Conventional
Rate: Variable
Consumer Car Finance
Calculate ›
Summit Bank
Conventional
Rate: Variable
Consumer Car Finance
Calculate ›
Silk Bank
Conventional
Rate: Variable
Consumer Car Finance
Calculate ›
⚖️ Compare All Banks
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See all rates in one table
Sort by lowest rate
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Current Rates 2026

Bank Car Finance Rates — Pakistan

Based on 1-Year KIBOR of 10.89% (March 2026). Rates are indicative — verify with bank before applying.

📊 Car Finance Rates — All Banks

Updated: March 2026
Bank Type Rate Type Effective Rate Min Down Max Finance Max Tenure Details
NBP Hamsafar Lowest Islamic Variable (KIBOR+1.99%) ~12.88% 15% PKR 10M 7 Years Calculate →
HBL CarLoan Conventional Fixed 13.99% 30% PKR 10M 5 Years Calculate →
MCB Car4U Conventional Variable (KIBOR+2%) ~12.89% 15% PKR 6M 5 Years Calculate →
Meezan Bank Islamic Variable (KIBOR+4%) ~14.89% 15% PKR 3M 7 Years Calculate →
Bank Alfalah Conventional Variable (KIBOR+3.5%) ~14.39% 30% PKR 3M 3–5 Years Calculate →
Soneri Bank Conventional Fixed 14.50% 30% PKR 3M 3–5 Years Calculate →
Faysal Islami Islamic Variable (KIBOR+5%) ~15.89% 30% PKR 3M 5 Years Calculate →
UBL Drive Conventional Fixed/Variable ~14.5% 30% PKR 5M 5 Years Calculate →
Askari Ijarah Islamic Fixed (Ijarah) ~15.5% 30% Varies 5 Years Calculate →
Bank of Khyber Islamic+Conv Variable (KIBOR+2–5%) ~13–16% 30% PKR 3M 5 Years Calculate →

What is KIBOR & Why Does It Matter?

KIBOR — Karachi Interbank Offered Rate — is the benchmark rate used by Pakistani banks to set car loan markups. Most banks price their auto financing as “KIBOR + a spread.” When KIBOR falls, your variable-rate installment falls on its anniversary. When KIBOR rises, it goes up.

The State Bank of Pakistan sets the policy rate (currently 12%), which influences KIBOR. Always check whether your loan is fixed or variable before signing.

10.89%
1-Year KIBOR
12.00%
SBP Policy Rate
30%
SBP Min Down (1000cc+)
PKR 3M
SBP Max Aggregate
Why Use This Calculator

Pakistan’s Most Complete Car Finance Tool

🏦

24 Banks in One Place

Islamic and conventional banks — all compared on one platform. No need to visit each bank’s website separately.

📅

Updated Monthly

KIBOR rates and bank markups are refreshed every month. You always see the latest rates — not outdated numbers.

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Islamic & Conventional

Separate calculators for Ijarah (Diminishing Musharakah) and conventional interest-based loans. Full transparency.

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100% Free

No registration. No hidden fees. No spam. Calculate as many times as you want — completely free.

How Car Financing Works in Pakistan (2026 Guide)

Car financing in Pakistan follows a straightforward structure: you pay a portion upfront (down payment or equity), and the bank finances the rest. You repay the financed amount plus markup in equal monthly installments over 1 to 7 years depending on the bank and vehicle type.

Banks calculate your monthly installment using the reducing balance method — meaning each month’s markup is applied to the outstanding principal, not the original loan amount. This is why your total markup paid is actually less than the face value of rate × principal × years.

Fixed vs Variable Rate — What’s the Difference?

A fixed rate stays locked for your entire tenure. Your installment is the same from month 1 to the final month — ideal for budgeting. HBL (13.99%) and Soneri Bank (14.50%) offer fixed rates.

A variable rate is linked to 1-Year KIBOR, which is published by SBP on the 1st of each month. Your installment is recalculated annually on your loan anniversary. If KIBOR drops, you save money. If KIBOR rises, you pay more. Most banks — including Meezan, Bank Alfalah, MCB, and Faysal — use variable rates.

Islamic Car Ijarah vs Conventional Car Loan

In a conventional loan, the bank lends you money at interest. You own the car from day one, but pay interest on the outstanding balance — which is considered Riba and is forbidden in Islam.

In Islamic Car Ijarah, the bank purchases the car and rents it to you (Ijarah) or enters a joint ownership arrangement with you (Diminishing Musharakah). Your monthly payment is rental, not interest. Ownership transfers fully once all rentals are paid. Meezan, Faysal, NBP Islamic, BankIslami, and Askari all offer Shariah-certified products.

SBP Rules You Must Know (2026)

The State Bank of Pakistan regulates car financing in Pakistan. Key rules: maximum aggregate auto financing per individual across all banks is PKR 3,000,000. Minimum down payment is 15% for locally assembled vehicles. Vehicles above 1000CC are generally restricted to a maximum tenure of 3 years. Used cars must not be older than a certain age at maturity (typically 9–12 years). Non-filers pay an additional 4% Advance Tax on vehicle cost at disbursement.

FAQ

Frequently Asked Questions

Most common questions about car financing in Pakistan — answered simply.

Which bank has the lowest car loan rate in Pakistan 2026?
Based on current KIBOR (10.89%), NBP Hamsafar at KIBOR+1.99% (~12.88%) and MCB Car4U at KIBOR+2% (~12.89%) offer the lowest effective rates. HBL CarLoan at 13.99% fixed is the best option if you prefer a fixed installment throughout the tenure.
What is the minimum down payment for a car loan in Pakistan?
SBP requires a minimum down payment of 15% for locally assembled new vehicles. However, most banks set their own minimum at 25–30% for salaried customers. For SUVs and vehicles above 1000CC, some banks require 30–35% minimum equity.
Can I get a car loan on PKR 30,000 salary?
Yes, but with limits. Banks use the Debt Burden Ratio (DBR) rule — your total monthly loan payments must not exceed 40–50% of your net income. On PKR 30,000 salary, your maximum installment would be PKR 12,000–15,000 per month. Soneri Bank’s minimum is PKR 25,000 for permanent salaried employees — one of the lowest in Pakistan.
What is KIBOR and how does it affect my car loan installment?
KIBOR (Karachi Interbank Offered Rate) is the benchmark rate published by SBP. Variable-rate car loans are priced as KIBOR + bank spread. Your installment is recalculated annually based on the prevailing KIBOR on your loan anniversary date. Current 1-Year KIBOR is 10.89% (March 2026).
Is Meezan Bank car loan halal and Shariah-compliant?
Yes. Meezan Bank Car Ijarah uses the Diminishing Musharakah model — a Shariah-certified joint ownership arrangement supervised by their Shariah Supervisory Board. Your monthly payment is a rental + unit purchase, not interest. Faysal Bank, NBP Islamic, Askari Ijarah, BankIslami, Dubai Islamic Bank, and Al Baraka also offer Shariah-certified car financing.
How long does car loan approval take in Pakistan?
Most banks process car loan applications within 5–10 working days after receiving complete documentation. Meezan Bank typically takes 5–7 days. HBL claims same-day processing in some cases. The process can be faster for existing customers with a good credit history.
What is the maximum car loan amount in Pakistan per SBP rules?
Per SBP Prudential Regulations 2026, the maximum aggregate auto financing limit for a single individual across all banks and DFIs is PKR 3,000,000. This means if you have a car loan at one bank, the combined balance of all your car loans cannot exceed PKR 3 million. This limit does not apply to NRP Roshan Digital Account holders on certain products.
Can Non-Resident Pakistanis (NRP) get a car loan in Pakistan?
Yes. Several banks offer car financing for overseas Pakistanis through Roshan Digital Account (RDA) schemes. Meezan Bank, HBL, and MCB all offer NRP car financing with higher limits (up to PKR 10 million in some cases). The car is delivered to a nominee or co-borrower in Pakistan. Documentation can usually be completed abroad.

Ready to Find Your Best Car Loan?

Use our calculators to compare all 24 banks — then apply directly through your chosen bank’s website.