Bank Alfalah car loan (Alfalah Auto Loan) is a variable-rate loan priced at 1-year KIBOR + 3.50% for 2 years, + 4% for 3 years and + 4.50% for 4 to 5 years. With 1-year KIBOR at 13.03%, that is 16.53% to 17.53% a year, or Rs 71,335 a month on a Rs 20 lakh loan over 3 years.
Last updated: 11 November 2026 by Ahmed.
All instalments below are worked out with the standard reducing-balance formula at Bank Alfalah’s published spreads and today’s KIBOR. To try your own car price and down payment, or compare Alfalah with other banks, use our car loan calculator.
Bank Alfalah car loan markup rates 2026
| Loan period | Brand-new car | Used car | Rate today (KIBOR 13.03%) |
|---|---|---|---|
| 2 years | KIBOR + 3.50% | KIBOR + 5% | 16.53% (used 18.03%) |
| 3 years | KIBOR + 4% | KIBOR + 5% | 17.03% (used 18.03%) |
| 4-5 years (up to 1000cc only) | KIBOR + 4.50% | KIBOR + 5% | 17.53% (used 18.03%) |
Source: Bank Alfalah Auto Loan markup rate page, checked 11 November 2026. Bank Alfalah uses the 1-year KIBOR fixing at the start of each month; for November 2026 that is 13.03% (SBP, 2 November 2026). If you choose to finance the insurance and registration instead of paying them upfront, Alfalah adds 1% to the markup.
The rate is not fixed. It is reset every year to the KIBOR of that time, so your instalment can rise or fall. On 10 November 2026 the 1-year KIBOR offer rate was 12.89%, a little lower than the November fixing. Compare this with the fixed-rate HBL car loan before you decide.
Bank Alfalah car loan instalment table
Monthly instalment for each loan amount and period, for a brand-new car at today’s rates. The loan amount is the car price minus your down payment.
| Loan amount | 2 years (16.53%) | 3 years (17.03%) | 4 years* (17.53%) | 5 years* (17.53%) |
|---|---|---|---|---|
| Rs 10,00,000 | Rs 49,217 | Rs 35,668 | Rs 29,130 | Rs 25,138 |
| Rs 15,00,000 | Rs 73,825 | Rs 53,501 | Rs 43,695 | Rs 37,708 |
| Rs 20,00,000 | Rs 98,433 | Rs 71,335 | Rs 58,260 | Rs 50,277 |
| Rs 25,00,000 | Rs 1,23,042 | Rs 89,169 | Rs 72,825 | Rs 62,846 |
| Rs 30,00,000 | Rs 1,47,650 | Rs 1,07,003 | Rs 87,390 | Rs 75,415 |
*4 and 5 years are allowed only for cars up to 1000cc. Cars above 1000cc can be financed for at most 3 years under SBP rules. For a used car or with deferred insurance and registration, a Rs 20 lakh, 3-year loan costs Rs 72,335 a month.
Alfalah auto loan instalments for popular Suzuki cars
Prices are Pak Suzuki’s official list (checked 11 November 2026). Down payment is the 30% minimum, or more where needed to stay within the Rs 30 lakh SBP cap. Instalments exclude insurance.
| Car (price) | Down payment | Loan | Period and rate | Monthly instalment | Salary needed* |
|---|---|---|---|---|---|
| Alto VXR (Rs 29,94,861) | Rs 8,98,458 | Rs 20,96,403 | 5 years, 17.53% | Rs 52,700 | Rs 1,31,751 |
| Cultus VXR (Rs 40,89,490) | Rs 12,26,847 | Rs 28,62,643 | 5 years, 17.53% | Rs 71,962 | Rs 1,79,906 |
| Cultus VXR (Rs 40,89,490) | Rs 12,26,847 | Rs 28,62,643 | 3 years, 17.03% | Rs 1,02,104 | Rs 2,55,259 |
| Swift GL (Rs 44,60,160) | Rs 14,60,160 | Rs 30,00,000 | 3 years, 17.03% | Rs 1,07,003 | Rs 2,67,507 |
*Salary at which the car instalment alone uses 40% of income, the most banks allow for all loan payments together. If you already pay other loans, you need more. Car prices may fall after the new auto policy; see car prices reduced in Pakistan and our full Alto installment plan comparison.
Worked example: Suzuki Alto VXR on a Bank Alfalah car loan
- Car price: Rs 29,94,861
- Down payment (30%): Rs 8,98,458
- Loan: Rs 20,96,403 for 5 years at 17.53%
- Monthly instalment: Rs 52,700
- Total markup over 5 years at today’s rate: Rs 10,65,615
- Processing fee: Rs 15,660 (Rs 13,500 + 16% FED)
- Registration tax: Rs 14,974 for a filer, Rs 44,923 for a non-filer
- Cash needed on day one: Rs 9,29,092 for a filer, plus first-year insurance and provincial registration fees
A non-filer pays Rs 29,949 more in registration tax on this Alto alone, and three times the filer rate on every car. Check your amount with our car registration tax calculator.
Balloon and residual value options
Bank Alfalah offers features most banks do not:
- Residual value (RV): up to 50% of the loan for a new car (40% for used) is left to the end, which cuts the monthly instalment. On the Alto loan above, a 50% RV brings the 5-year instalment down from Rs 52,700 to Rs 41,663, but you owe Rs 10,48,201 at the end. Only one RV loan per customer.
- Balloon payment: pay a lump sum equal to 6 instalments, up to twice during the loan, to reduce your later instalments.
- Deferred insurance and registration: these are added to the loan instead of paid upfront, at 1% extra markup.
- Vehicle replacement option and partial or full early settlement.
An RV loan only looks cheaper. You pay markup on the full amount for the whole period, and you need a plan for the final payment.
Bank Alfalah car loan eligibility and documents
| Applicant | Minimum income | Age at loan maturity | Experience |
|---|---|---|---|
| Salaried (private) | Rs 30,000 gross a month | 21 to 65 | 6 months (permanent), 1 year (contract) |
| Salaried (government) | Rs 30,000 gross a month | 21 to 60 | 6 months (permanent), 1 year (contract) |
| Self-employed / business | Rs 50,000 a month (bank statements) | 21 to 70 | 1 year in current business |
Bank Alfalah also accepts rental, agricultural and foreign remittance income, and a co-borrower’s income. The loan range is Rs 2 lakh to Rs 30 lakh, for locally assembled new and used cars only (no imported cars). Note that the bank’s own disclaimer quotes Rs 1,00,000 for business owners, so confirm at the branch.
Documents: application form, CNIC copy, two photos and the SBP declaration of existing loans; plus a salary slip or employment letter and 6 months’ bank statement (salaried), or 6 months’ bank statement (self-employed). Landlords need the rent agreement and title; remittance earners need proof of the remitter’s income abroad. To see which other banks may suit your profile, check our car loan banks list.
Instant Auto Loan on the Alfa app
Existing Bank Alfalah customers can apply through the Alfa app for an Instant Auto Loan with real-time approval. You need an account older than 1 year, a monthly average balance of at least Rs 1,00,000 over 6 months, a clean credit history and age 21 to 60. It is for new local cars only, at the same rates as the regular Bank Alfalah car loan.
Islamic option: Bank Alfalah Islamic Auto Finance
Bank Alfalah Islamic offers car Ijarah: the bank owns the car and you pay rent. The security deposit is at least 30%, the bank pays the takaful as owner, there are no upfront takaful or registration charges and no advance rental, and late-payment charges go to charity. Balloon payments are not allowed. Rental rates are not published, so ask for a quote and compare it with Meezan Bank car Ijarah on our Meezan car loan calculator. Our Car Ijarah vs car loan guide explains the real cost differences.
Bank Alfalah car loan vs other banks
Rs 20 lakh loan over 3 years, at the 1-year KIBOR of 13.03% (2 November 2026):
| Bank | Rate today | Instalment |
|---|---|---|
| HBL (existing customer) | 14.50% fixed | Rs 68,648 |
| Bank AL Habib (6+ month customer) | 16.53% | Rs 70,839 |
| Bank Alfalah | 17.03% | Rs 71,335 |
| MCB Car4U (account holder) | 17.03% | Rs 71,335 |
| UBL Drive (existing customer) | 17.28% | Rs 71,584 |
Bank Alfalah is in the middle of the pack. Its strengths are the RV and balloon options, used-car financing and the shorter 2-year rate. See all banks in car loan interest rates in Pakistan.
What if KIBOR changes?
| KIBOR move | Rate | Instalment on Rs 20 lakh, 3 years |
|---|---|---|
| -2% | 15.03% | Rs 69,360 |
| -1% | 16.03% | Rs 70,344 |
| No change | 17.03% | Rs 71,335 |
| +1% | 18.03% | Rs 72,335 |
| +2% | 19.03% | Rs 73,342 |
These figures assume the new rate applies for the whole loan. In practice the rate resets once a year, so the real change is a little smaller.
Common mistakes with a Bank Alfalah car loan
- Taking the 4.5% spread for 4-5 years when you could afford 3 years: the longer loan costs far more markup.
- Choosing deferred insurance and registration without checking the extra 1% markup cost.
- Planning on a 30% down payment for a car above Rs 42.86 lakh: the Rs 30 lakh cap forces a bigger deposit.
- Registering the car as a non-filer and paying three times the tax.
- Forgetting that the instalment can rise when KIBOR resets.
How to apply for an Alfalah auto loan
- Fix your car, down payment and period with the car loan calculator.
- Apply online through Bank Alfalah’s RAPID auto loan form, at any branch, or on the Alfa app if you are an existing customer.
- Submit documents and complete verification.
- After approval, pay the down payment, processing fee, insurance and registration (unless deferred). The bank pays the dealer.
- Instalments start after delivery.
Need help choosing a bank or getting your file approved? Our car financing consultation can help.
Bank Alfalah car loan FAQs
What is the Bank Alfalah car loan rate in 2026?
1-year KIBOR + 3.50% for 2 years, + 4% for 3 years and + 4.50% for 4 to 5 years on a new car. With KIBOR at 13.03% that is 16.53% to 17.53%. Used cars are KIBOR + 5%.
What is the monthly instalment on a Rs 20 lakh Bank Alfalah car loan?
Rs 71,335 a month over 3 years at 17.03%, or Rs 50,277 over 5 years at 17.53% (only for cars up to 1000cc), at the November 2026 KIBOR.
Is the Bank Alfalah car loan rate fixed?
No. It is linked to 1-year KIBOR and reset every year, so the instalment can change.
What salary do I need for a Bank Alfalah car loan?
At least Rs 30,000 a month for salaried people and Rs 50,000 for self-employed people. In practice your instalment must fit within 40% of income, so an Alto VXR on 5 years needs about Rs 1,31,751 a month.
Does Bank Alfalah finance used cars?
Yes, locally assembled used cars at KIBOR + 5%. For the residual value option the car must be no older than 3 years.
Does Bank Alfalah have an Islamic car loan?
Yes. Bank Alfalah Islamic Auto Finance is based on Ijarah, with a 30% minimum security deposit and takaful paid by the bank.
This guide is for general information only and is not financial advice. Rates change with KIBOR, so confirm the latest figures with Bank Alfalah before you apply.
Related guides
- Car loan banks in Pakistan 2026
- Car loan interest rates in Pakistan 2026
- HBL car loan 2026
- MCB car loan (Car4U) 2026
- UBL car loan (UBL Drive) 2026
- Meezan Bank car installment plan
- Tax on car registration in Pakistan