Tool
Car Loan Calculator Pakistan
Pick a car and see what each bank would charge you every month, cheapest first. Or start from your salary and find which cars you can afford. SBP's rules on down payment, loan size and loan length are built in, so the numbers are ones a bank can actually approve.
Cheapest bank, monthly instalment
Rs 69,621
HBL, fixed 11.99%, for 3 years
- Car price
- Rs 2,994,861
- Your down payment
- Rs 898,458
- Loan from the bank
- Rs 2,096,403
SBP limits that applied
- At least 30% down. For this car that is Rs 898,458.
- Total car loans from all banks together cannot pass Rs 3,000,000 per person.
- Longest loan: 5 years, because the engine is up to 1000cc.
- All your loan instalments together cannot pass 40% of your take-home pay.
- Imported cars, new or used, cannot be financed by banks.
| Bank | Rate used | Monthly | Total markup | Insurance a year | Extra over cash price |
|---|---|---|---|---|---|
| HBLHBL CarLoan, conventionalCheapest conventional | 11.99% fixedFixed 11.99% (promotion)Promotion with no end date shown | Rs 69,621 | Rs 409,937 | Rs 41,928 | Rs 535,721 |
| Meezan BankCar Ijarah, IslamicCheapest Islamic | 13.41% fixedFixed 13.41% for 3 years | Rs 71,051 | Rs 461,426 | Rs 59,598 | Rs 640,219 |
| Bank AL HabibAL Habib Apni Car, conventional | 16.18% variable1-year KIBOR 12.68% + 3.5%Variable, changes when KIBOR changes | Rs 73,890 | Rs 563,628 | Ask the bank | Rs 563,628plus insurance |
| Allied Bank IslamicAllied Aitebar Car Ijarah, Islamic | 16.68% variable1-year KIBOR 12.68% + 4%Variable, changes when KIBOR changesThis bank needs at least Rs 994,861 down, so we used that. | Rs 70,987 | Rs 555,544 | Ask the bank | Rs 555,544plus insurance |
| Bank AlfalahAlfalah Auto Loan, conventional | 16.68% variable1-year KIBOR 12.68% + 4%Variable, changes when KIBOR changes | Rs 74,409 | Rs 582,322 | Ask the bank | Rs 582,322plus insurance |
| Bank Alfalah IslamicAlfalah Islamic Auto Finance, Islamic | 16.68% variable1-year KIBOR 12.68% + 4%Variable, changes when KIBOR changesIndicative, from the bank's own calculator | Rs 74,409 | Rs 582,322 | Ask the bank | Rs 582,322plus insurance |
| Allied BankAllied Car Finance, conventional | 16.68% variable1-year KIBOR 12.68% + 4%Variable, changes when KIBOR changes | Rs 74,409 | Rs 582,322 | Ask the bank | Rs 582,322plus insurance |
| UBLUBL Drive, conventional | 16.68% variable1-year KIBOR 12.68% + 4%Variable, changes when KIBOR changes | Rs 74,409 | Rs 582,322 | Ask the bank | Rs 582,322plus insurance |
| UBL AmeenUBL Ameen Drive, Islamic | 16.68% variable1-year KIBOR 12.68% + 4%Variable, changes when KIBOR changes | Rs 74,409 | Rs 582,322 | Ask the bank | Rs 582,322plus insurance |
| UBLUBL Drive, conventional | 17.00% fixedFixed 17% for the whole loan | Rs 74,742 | Rs 594,326 | Ask the bank | Rs 594,326plus insurance |
| Bank Alfalah IslamicAlfalah Islamic Auto Finance, Islamic | 17.09% fixedFixed: 12.09% + 5% (bank's calculator)Indicative, from the bank's own calculator | Rs 74,836 | Rs 597,708 | Ask the bank | Rs 597,708plus insurance |
| MCB BankMCB Car4U, conventional | 17.18% variable1-year KIBOR 12.68% + 4.5%Variable, changes when KIBOR changes | Rs 74,930 | Rs 601,092 | Ask the bank | Rs 601,092plus insurance |
| Bank AL HabibAL Habib Apni Car, conventional | 17.68% fixedFixed: KIBOR 12.68% + 5%, locked at booking | Rs 75,454 | Rs 619,937 | Ask the bank | Rs 619,937plus insurance |
| Al Baraka BankAl Baraka CarSaaz, Islamic | 17.68% variable1-year KIBOR 12.68% + 5%Variable, changes when KIBOR changesIndicative, from the bank's own calculator | Rs 75,454 | Rs 619,937 | Ask the bank | Rs 619,937plus insurance |
Ranked by the instalment on your own down payment, so the order shows which rate is cheapest. Where a bank needs a bigger down payment, its row shows the figures with that bigger down payment.
Rate not published, ask the bank
- Dubai Islamic Bank, Dubai Islamic Auto Finance. Fixed and variable options, spread not published.
- JS Bank, JS CarAamad. 1-year KIBOR + spread, spread not published. Runs Changan discounts of Rs 150,000 to Rs 250,000.
- Bank AL Habib Islamic, Islamic Apni Car. Profit rate not published.
- BankIslami, AutoFinance. Priced on 6-month KIBOR, spread not published. Takaful 1.49% a year on the product page.
- HABIBMETRO, HABIBMETRO Auto Finance. Fixed and floating options, rate not published.
Not confirmed on the bank's own page
- Faysal Bank, Faysal Car Finance. Faysal's site blocked our reader, so we could not confirm a rate. Reported: KIBOR + 5% (salaried, new car), reported in a 2025 key fact statement we could not open.
- Askari Bank, Askari Ijarah Bis Sayyarah. The product page we read shows terms but no pricing. Reported: KIBOR + 2.5% (salaried), reported but not shown on the bank's page.
Rates were read from each bank's own page on 6 October 2026. 1-year KIBOR is 12.68% (SBP, 5 October 2026). Your final rate depends on the bank's approval. A variable rate resets when KIBOR changes, usually once a year. Processing fees, registration and tracker charges follow each bank's schedule of charges and are not included unless shown. Insurance is estimated on the full car price every year; the real amount usually falls as the car loses value.
How we worked out these numbers
We read each bank's car finance page on 6 October 2026 and took the rate it publishes for a new car. Where the rate is KIBOR plus a spread, we added the spread to 1-year KIBOR, 12.68% on SBP's site. 11 products have a rate we could read and are compared. Banks that do not publish a rate are listed under the table so you know to ask them.
The monthly instalment uses the reducing balance method that banks use: you pay markup only on what you still owe. A variable rate is shown at today's KIBOR, so treat it as the first year's instalment. It will change when the bank resets the rate.
Two rates come from the calculator code on the bank's own page rather than a printed rate table (Bank Alfalah Islamic and Al Baraka), and we label them as indicative. HBL's 11.99% is a promotion with no end date shown.
Small cars follow the same rules as big ones, except for loan length. SBP's Circular Letter 29 of 2021 brought in 30% down, the Rs 3m cap and the 40% income limit, but left cars up to 1000cc and local electric cars out. Circular Letter 19 of 2022 ended that: it applies those rules to all locally made cars, including up to 1000cc. So an Alto or Cultus buyer also needs 30% down and must stay within 40% of pay. A few bank pages still show the older 15% down payment or 50% income limit for small cars; we follow SBP. The only difference left is that cars up to 1000cc can be financed for 5 years instead of 3. Roshan Apni Car for overseas Pakistanis has its own rules and is not covered here.
Frequently asked questions
How much down payment do I need for a car loan in Pakistan?
At least 30% of the car's price, under SBP rules. On top of that, one person can borrow no more than Rs 3,000,000 for cars from all banks together. So for any car above Rs 4,285,714, your down payment is the price minus Rs 3,000,000, which is more than 30%.
How long can a car loan run?
Up to 5 years for a locally made car up to 1000cc, such as the Suzuki Alto, Every or Cultus. Every car above 1000cc is limited to 3 years. These limits come from SBP and apply at every bank.
How much of my salary can go to the car instalment?
All your loan instalments together, including the new car, cannot pass 40% of your take-home pay. If you earn Rs 150,000 a month and already pay Rs 20,000 on a personal loan, the most a car instalment can be is Rs 40,000.
Is a fixed or a variable rate better?
A fixed rate stays the same for the whole loan, so you know every instalment from day one. A variable rate is KIBOR plus the bank's spread and resets, usually once a year. If KIBOR falls, a variable loan gets cheaper; if it rises, it gets dearer. Fixed rates are often higher at the start for that certainty.
Is Islamic car finance cheaper than a conventional loan?
Not as a rule. Islamic banks use Ijarah or Diminishing Musharakah instead of interest, but the rental or profit rate is still priced off KIBOR, so the monthly figure lands close to conventional loans. Compare the instalment and total cost, which the calculator shows side by side.
Can I get bank finance for an imported car?
No. SBP rules say new and used imported vehicles are not eligible for bank auto finance. Only locally assembled or manufactured cars qualify.
Why is the bank's offer different from this calculator?
Your final rate depends on the bank's approval, your income and your account with them. KIBOR also moves, and processing, registration and tracker charges are added on the bank's own schedule. Use this to shortlist two or three banks, then ask each for a written quote.
Before you apply
Based on SBP's Prudential Regulations for Consumer Financing, BPRD Circular Letter 29 of 2021 and Circular Letter 19 of 2022, and bank and maker pages read on 6 October 2026. Estimates only. Your final rate depends on the bank's approval, KIBOR resets, and processing fees follow each bank's schedule of charges. Pakistan Era is not affiliated with any bank or car maker.