MCB car loan (MCB Car4U) costs 1-year KIBOR + 4% a year for MCB account holders and KIBOR + 4.5% for others. With 1-year KIBOR at 13.03% on 2 November 2026, that is 17.03% and 17.53%. A Rs 20 lakh loan over 3 years costs about Rs 71,335 a month for an account holder.
Last updated: 3 November 2026 by Ahmed.
This guide gives MCB Car4U instalment tables, the balloon (residual value) option, eligibility and how the MCB car loan compares with HBL, UBL and other banks. All numbers are calculated, not estimated. For your own figures, use our car loan calculator and choose MCB.
MCB car loan markup rate 2026
| Customer | Pricing | Rate today | Instalment on Rs 20 lakh, 3 years |
|---|---|---|---|
| MCB account holder | 1-year KIBOR + 4% | 17.03% | Rs 71,335 |
| Not an MCB account holder | 1-year KIBOR + 4.5% | 17.53% | Rs 71,834 |
The MCB car loan rate is variable. It moves with 1-year KIBOR, so if KIBOR rises by 1%, your rate becomes 18.03% and the instalment on Rs 20 lakh over 3 years goes up to about Rs 72,335. If KIBOR falls by 1%, it drops to about Rs 70,344.
MCB car loan instalment table (account holder, 17.03%)
| Loan amount | 1 year | 2 years | 3 years | 4 years* | 5 years* |
|---|---|---|---|---|---|
| Rs 10,00,000 | Rs 91,219 | Rs 49,457 | Rs 35,668 | Rs 28,871 | Rs 24,869 |
| Rs 15,00,000 | Rs 1,36,828 | Rs 74,185 | Rs 53,501 | Rs 43,306 | Rs 37,303 |
| Rs 20,00,000 | Rs 1,82,438 | Rs 98,913 | Rs 71,335 | Rs 57,741 | Rs 49,737 |
| Rs 25,00,000 | Rs 2,28,047 | Rs 1,23,642 | Rs 89,169 | Rs 72,176 | Rs 62,172 |
| Rs 30,00,000 | Rs 2,73,657 | Rs 1,48,370 | Rs 1,07,003 | Rs 86,612 | Rs 74,606 |
*4 and 5 years are only for cars up to 1000cc. Cars above 1000cc can be financed for a maximum of 3 years.
MCB car loan instalment table (non-account holder, 17.53%)
| Loan amount | 1 year | 2 years | 3 years | 4 years* | 5 years* |
|---|---|---|---|---|---|
| Rs 10,00,000 | Rs 91,456 | Rs 49,697 | Rs 35,917 | Rs 29,130 | Rs 25,138 |
| Rs 15,00,000 | Rs 1,37,185 | Rs 74,546 | Rs 53,876 | Rs 43,695 | Rs 37,708 |
| Rs 20,00,000 | Rs 1,82,913 | Rs 99,395 | Rs 71,834 | Rs 58,260 | Rs 50,277 |
| Rs 25,00,000 | Rs 2,28,641 | Rs 1,24,243 | Rs 89,793 | Rs 72,825 | Rs 62,846 |
| Rs 30,00,000 | Rs 2,74,369 | Rs 1,49,092 | Rs 1,07,751 | Rs 87,390 | Rs 75,415 |
MCB car loan balloon option (residual value)
MCB Car4U lets you keep up to 50% of the loan as a lump sum (balloon) paid at the end. Your monthly instalment falls, but you pay more markup because that part of the loan stays outstanding until the last month.
| Balloon | Paid at the end | Monthly instalment | Total markup |
|---|---|---|---|
| 0% | Rs 0 | Rs 71,335 | Rs 5,68,060 |
| 25% | Rs 5,00,000 | Rs 60,597 | Rs 6,81,492 |
| 50% | Rs 10,00,000 | Rs 49,859 | Rs 7,94,924 |
Example for a Rs 20 lakh MCB car loan over 3 years at 17.03%. A 50% balloon cuts the instalment by about Rs 21,476 a month, but plan how you will pay the Rs 10,00,000 at the end.
Worked example: Rs 40 lakh car
- Car price: Rs 40,00,000 (above 1000cc, so 3 years maximum)
- Down payment 30%: Rs 12,00,000
- MCB car loan: Rs 28,00,000 at 17.03%
- Monthly instalment: Rs 99,869
- Total markup: Rs 7,95,284
- First-year insurance at 2%: Rs 80,000
To keep this instalment within the 40% limit on loan payments, your monthly income should be at least about Rs 2,49,672.
MCB Car4U eligibility
- Age: 21 years minimum; up to 65 at the end of the loan for salaried people and 70 for self-employed
- Net income: Rs 40,000 a month or more
- Job: at least 6 months (salaried); business: at least 1 year
- Income from salary, business, agriculture, rent, remittances or deposits is accepted; spouse income can be clubbed
- Locally made new and used cars; financing up to 70% of the car value
Documents for an MCB car loan
- CNIC copy and 2 passport-size photos
- 6 to 12 months of bank statements
- Salary slip, or proof of business for self-employed applicants
MCB car loan vs HBL, UBL and Bank Alfalah
| Bank | Rate today | Instalment (Rs 20 lakh, 3 years) |
|---|---|---|
| HBL (existing customer) | 14.50% fixed | Rs 68,648 |
| MCB (account holder) | 17.03% | Rs 71,335 |
| Bank Alfalah | 17.03% | Rs 71,335 |
| UBL (existing customer) | 17.28% | Rs 71,584 |
| Allied Bank (ABL salaried customer) | 16.03% | Rs 70,344 |
MCB is in the middle of the market. Its strongest feature is the 50% balloon option. If a low fixed instalment matters more, compare the HBL car loan.
Related guides: Read our guides on car insurance in Pakistan and conventional banks.
Frequently asked questions
What is the MCB car loan interest rate?
1-year KIBOR + 4% for MCB account holders and + 4.5% for others: 17.03% and 17.53% with KIBOR at 13.03% (2 November 2026).
What is the instalment on a Rs 15 lakh MCB car loan?
Rs 53,501 a month over 3 years, or Rs 37,303 over 5 years (cars up to 1000cc only), for an account holder.
Can MCB finance a car for 7 years?
No, not for a normal car loan. SBP allows at most 5 years for cars up to 1000cc and 3 years above 1000cc. Longer terms apply only to Roshan Apni Car for overseas Pakistanis.
What is the minimum salary for an MCB car loan?
Net income of Rs 40,000 a month.
Does MCB charge a fee if my loan is rejected?
No. MCB says no processing fee is charged if the loan is not approved.
Related guides
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