Car Loan Calculator Pakistan 2026 (All Banks)

This car loan calculator shows your monthly instalment for HBL, MCB, UBL, Bank Alfalah, Bank AL Habib, Allied Bank, Faysal Bank and Askari side by side. It uses today’s 1-year KIBOR, each bank’s published spread and the State Bank of Pakistan’s car finance rules.

Enter the car price, your down payment and the loan period. You get the instalment, total markup, cash you need upfront, a year-by-year schedule and what happens if KIBOR moves.

✓ Checked on 3 November 2026: 1-year KIBOR 13.03% (SBP, 2 Nov 2026); HBL and Allied Bank results match their own calculators to the rupee

1. Car and down payment

Down payment: . SBP minimum is 30%, and total bank financing is capped at Rs 30 lakh.

2. Bank and rate

Banks quote about 1.4% to 2.5%. First year is paid upfront.

Optional. MCB and Bank Alfalah allow up to 50%.

3. Can I afford it? (optional)

SBP lets banks take up to 40% of your income for all loan payments together.

Instalment a monthRs 0

Car loan instalment at every bank

Same car, same down payment, same period. Banks are sorted from the lowest monthly instalment. Your selected bank is highlighted.

BankRate a yearInstalmentTotal markupProcessing feePay upfront

“Pay upfront” = down payment + first-year insurance + processing fee (where the bank publishes it). Registration, token tax and tracker charges are extra.

What if KIBOR goes up or down?

Most car loans in Pakistan are on a variable rate: 1-year KIBOR plus a fixed spread. When the bank resets your rate, your instalment changes.

1-year KIBORYour rateInstalmentChange a month

Year-by-year repayment schedule

YearYou payPrincipalMarkupLoan left

Car loan markup rates in Pakistan (November 2026)

From each bank’s own website and Key Fact Statement. With 1-year KIBOR at 13.03%, “KIBOR + 4%” means 17.03% a year.

BankMarkup rateProcessing feeMin. income
HBL CarLoanFixed for the whole loan: 15.50% new to bank, 14.50% existing customer, 13.50% repeat car loan customer (HBL calculator). HBL also advertises an 11.99% campaign rate.Rs 13,000 incl. FEDRs 35,000
MCB Car4U1-year KIBOR + 4% (MCB account holders), + 4.5% (others)Not publishedRs 40,000
UBL DriveExisting customers: KIBOR + 4.25% (1-3 years), + 4.75% (4-5 years). New: + 4.75% / + 5.25%Rs 14,000 + FEDRs 35,000
Bank AlfalahKIBOR + 3.5% (2 years), + 4% (3 years), + 4.5% (4-5 years); used cars + 5%Rs 13,500Rs 30,000
Bank AL Habib6+ month customers: KIBOR + 3% (1-2 years), + 3.5% (3 years), + 4% (4-5 years). Others + 0.5%Not published—
Allied BankKIBOR + 3% (ABL salaried customers), + 4% (other salaried)Not publishedRs 40,000
Faysal Bank (Islamic)KIBOR + 4.5% (salaried, new car), Diminishing MusharakahRs 12,000Rs 30,000
Askari Bank12-month KIBOR + 3% (salaried). Offer page dated 2024: confirm with bankNot published—
BankIslami6-month KIBOR + spread (spread not published), reset every 6 monthsAs per schedule—
Bank of PunjabFixed or variable; spread not publishedRs 6,000 incl. FED—
Meezan BankCar Ijarah, see our Meezan car calculator——

SBP car loan rules in 2026

  • 30% minimum down payment. Banks can finance at most 70% of the car’s value.
  • Rs 30 lakh cap. Your total car financing from all banks together cannot be more than Rs 3,000,000 at any time.
  • Loan period. Up to 3 years for cars above 1000cc and up to 5 years for cars up to 1000cc.
  • 40% debt burden. All your loan payments together can be at most 40% of your monthly income.
  • Local cars only. Imported new or used cars cannot be bank financed. Roshan Apni Car (for overseas Pakistanis) keeps its own rules.

How the car loan calculator works

  1. Financing. Car price minus down payment. If that is above Rs 30 lakh, the down payment is raised so financing is exactly Rs 30 lakh.
  2. Rate. Variable banks: 1-year KIBOR + the bank’s spread for your period and customer type. HBL: its fixed rate.
  3. Instalment. Standard reducing-balance formula: EMI = L × i ÷ (1 − (1 + i)−n), where i is the monthly rate and n the number of months. Most banks use i = rate ÷ 12. HBL uses rate ÷ 365 × 360 ÷ 12, exactly as in its own calculator.
  4. Balloon. If you keep a balloon (residual value), that part is paid at the end, so the monthly instalment is lower but total markup is higher.
  5. Upfront cash. Down payment + first-year insurance + processing fee.
Example: A Rs 45 lakh car with 40% down needs Rs 27 lakh financing. At HBL’s 14.50% fixed rate for an existing customer over 3 years the instalment is Rs 92,675 a month, the same figure HBL’s own calculator shows.

Key facts

13.03%1-year KIBOR (offer) on 2 November 2026, the base for most car loans.
Rs 30 lakhMaximum car financing per person from all banks together.
30%Minimum down payment set by the State Bank of Pakistan.
3 yearsLongest loan for cars above 1000cc. Up to 1000cc: 5 years.

Car loan guides

HBL car loan 2026Fixed rates, instalment table, fees and eligibility. MCB car loan (Car4U)KIBOR + 4% pricing, balloon option and monthly instalments. UBL car loan (UBL Drive)Rates for existing and new customers with worked examples. Car loan interest rates 2026Every bank’s markup rate compared, with instalments. Meezan car calculatorIslamic car Ijarah rentals for popular models. Car Ijarah vs car loanIslamic vs conventional financing: which costs less.

Related: see the banks that give car loans in Pakistan, the Meezan Bank car installment plan, the Alto installment plan at all banks, and more free finance calculators.

Related: Banking with ABL? Use the Allied Bank car loan calculator for Allied Car Finance pricing, or check car loan eligibility in Pakistan (salary, age and documents) before you apply.

Frequently asked questions

How is a car loan instalment calculated in Pakistan?

Banks use the reducing-balance (annuity) formula. The financed amount, the yearly markup rate and the number of months give a fixed monthly instalment. Each month part of it pays markup on the remaining loan and the rest reduces the loan.

Which bank has the lowest car loan rate in Pakistan?

It depends on your period and whether you already bank there. With KIBOR at 13.03%, Bank AL Habib (KIBOR + 3% for 1-2 years for existing customers) and Allied Bank (KIBOR + 3% for its salaried customers) are among the lowest published variable rates. HBL’s fixed 13.50% to 15.50% protects you if KIBOR rises. Use the comparison table above for your own numbers.

What is the maximum car loan I can get?

Rs 30 lakh from all banks together. The bank can also finance at most 70% of the car’s price, and your total loan payments cannot be more than 40% of your income.

Can I get a 5-year car loan for a 1300cc car?

No. Since May 2022 SBP allows a maximum of 3 years for cars above 1000cc. Five years is allowed only for cars up to 1000cc.

Is a fixed or variable rate better?

A fixed rate keeps your instalment the same for the whole loan. A variable rate (KIBOR + spread) is usually reset once a year, so your instalment rises if KIBOR rises and falls if it falls. See the KIBOR table above to judge the risk.

What costs do I pay apart from the instalment?

The down payment, first-year insurance (about 1.4% to 2.5% of the car price), a processing fee (Rs 6,000 to Rs 14,000 at most banks), plus registration and token tax. Later insurance premiums are usually added to your instalments.

Can I pay off my car loan early?

Yes. Banks charge an early settlement fee, for example 5% of the outstanding amount at HBL after delivery. Bank AL Habib allows two free partial prepayments a year. Check your Key Fact Statement.

This car loan calculator is for general information. Your bank’s final offer depends on your income, credit history and the KIBOR on your approval date. Always check the Key Fact Statement before signing.

Sources

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