Car loan banks in Pakistan: 19 banks offer car financing in November 2026, including Meezan Bank, HBL, MCB, UBL, Bank Alfalah, Bank AL Habib, Allied Bank, Faysal Bank, BankIslami and Bank of Punjab. Most charge 1-year KIBOR plus 2% to 5%, about 15% to 18% a year, while HBL and Meezan offer fixed rates. Several banks, mostly foreign and corporate banks, do not give car loans to individuals at all.
Last updated: 7 November 2026 by Ahmed. Each bank’s status was checked on its own website between 3 and 7 November 2026.
Want your exact instalment? Compare every bank side by side in our car loan calculator, or use the Meezan car loan calculator for Islamic Car Ijarah.
Car Loan Banks in Pakistan: Full List (November 2026)
| Bank | Product | Type | Cars financed | Pricing | Our guide |
|---|---|---|---|---|---|
| Meezan Bank | Car Ijarah | Islamic | New and used | Fixed 15% rental rate | Meezan car plan |
| HBL | HBL CarLoan | Conventional | New and used | Fixed, 14.50% for existing customers | HBL car loan |
| MCB Bank | MCB Car4U | Conventional | New and used | 1-year KIBOR + 4% | MCB car loan |
| UBL | UBL Drive | Conventional | New and used | 1-year KIBOR + 4.25% to 4.75% | UBL car loan |
| Allied Bank | Allied Car Finance | Conventional | New | 1-year KIBOR + 3% (ABL salaried customers) | – |
| Bank Alfalah | Alfalah Auto Loan | Conventional and Islamic | New and used | 1-year KIBOR + 3.5% to 4.5% (used: + 5%) | – |
| Bank AL Habib | Apni Car | Conventional | New | 1-year KIBOR + 3% to 4% | – |
| Faysal Bank | Faysal Islami Car Finance | Islamic | New | KIBOR + 4.5% (salaried, new car) | – |
| BankIslami | Auto Finance | Islamic | New, used and reconditioned | 6-month KIBOR + spread (not published) | – |
| Askari Bank | Ijarah and Auto Diminishing Musharakah | Islamic | New (Honda campaign running) | Not published | – |
| Habib Metropolitan Bank | HabibMetro Auto Finance / Sirat Auto Finance | Conventional and Islamic | New and used (local) | Fixed or 1-year benchmark + spread | – |
| Soneri Bank | Soneri Car Finance / Mustaqeem Car Finance | Conventional and Islamic | New and used (local) | Offer: 1-year KIBOR + 3% | – |
| JS Bank | JS CarAamad | Conventional | New | 1-year KIBOR + spread (not published) | – |
| Dubai Islamic Bank | DIB Auto Finance | Islamic | New and used | KIBOR-linked, reset every 6 or 12 months | – |
| MCB Islamic Bank | MICAR | Islamic | New and used (local) | Not published | – |
| Al Baraka Bank | Digital Auto Finance | Islamic | New | Not published | – |
| Bank of Punjab | BOP CarGar (and used car finance) | Conventional | New and used | KIBOR-linked, spread not published | – |
| Bank of Khyber | BOK Foree Car / Raast Car Ijarah | Islamic only (conventional loans discontinued) | New and used (local) | 1-year KIBOR + 2% to 5% | – |
| Sindh Bank | Auto Finance | Conventional | New | 6-month KIBOR + 3.5% to 4.5% (as listed on its page) | – |
Every one of these car loan banks in Pakistan follows the same State Bank rules, so the deposit, tenure and loan cap below apply to all of them. The difference is the spread over KIBOR, the insurance or takaful rate, fees and how quickly they approve.
Banks That Do Not Offer Car Loans Right Now
Not every bank is on the list of car loan banks in Pakistan.
Before you visit a branch, note that these banks do not offer car financing to individuals, or we could not find a current car finance product on their websites:
| Bank | Status |
|---|---|
| Standard Chartered Pakistan | No car loan product listed on its Pakistan website |
| Silkbank | No car loan product listed; offers personal loans and credit cards |
| Bank Makramah (formerly Summit Bank) | No car loan product listed |
| Citibank, Deutsche Bank, Bank of China, ICBC | Corporate banking only in Pakistan, no consumer car loans |
| National Bank of Pakistan (NBP) | Not confirmed: its Islamic Aitemaad Hamsafar Auto Finance page is old (2018) and mainly for NBP staff, government and armed forces employees. Ask your NBP branch. |
| Microfinance banks | Mainly small business and personal loans; car financing is not their standard product |
SBP Rules That Apply to All Car Loan Banks in Pakistan
- Minimum down payment: 30% of the car price.
- Maximum car financing: Rs 30 lakh per person from all banks together.
- Maximum tenure: 3 years for cars above 1000cc; 5 years for cars up to 1000cc (and locally made electric vehicles at some banks).
- Instalment limit: all your loan instalments together usually cannot exceed 40% of take-home income.
- Imported cars: new loans are for locally made or assembled cars.
Some bank pages still show older terms (for example a 15% deposit or 7-year tenure). Those are from before the State Bank tightened the rules; banks now apply the limits above.
Car Loan Banks in Pakistan: Monthly Instalment at Each Rate
| Pricing | Rate today | Rs 15 lakh, 3 years | Rs 20 lakh, 3 years | Rs 20 lakh, 5 years* |
|---|---|---|---|---|
| HBL fixed (existing customer) | 14.50% | Rs 51,631 | Rs 68,842 | Rs 47,057 |
| 1-year KIBOR + 3% (Allied, AL Habib, Soneri offer) | 15.92% | Rs 52,676 | Rs 70,235 | Rs 48,551 |
| 1-year KIBOR + 4% (MCB) | 16.92% | Rs 53,419 | Rs 71,226 | Rs 49,619 |
| 1-year KIBOR + 4.5% (Faysal, Alfalah longer tenure) | 17.42% | Rs 53,793 | Rs 71,724 | Rs 50,158 |
| 1-year KIBOR + 5% (used car at Alfalah) | 17.92% | Rs 54,168 | Rs 72,225 | Rs 50,700 |
The gap between the cheapest and the dearest of these car loan rates is about Rs 3,383 a month on a Rs 20 lakh, 3-year loan, or about Rs 1,21,774 over the loan. See car loan interest rates in Pakistan for how KIBOR changes your instalment.
Islamic or Conventional Car Loan Banks in Pakistan?
Islamic car financing (Ijarah or Diminishing Musharakah) is offered by Meezan, BankIslami, Faysal, Dubai Islamic, MCB Islamic, Al Baraka, Askari, Bank of Khyber and the Islamic windows of Alfalah, HabibMetro and Soneri. It is not automatically cheaper: most Islamic banks also price on KIBOR. Read Car Ijarah vs car loan for the real differences.
Car Loans for Overseas Pakistanis
Overseas Pakistanis can finance a car in Pakistan through Roshan Apni Car with a Roshan Digital Account. Banks offering it include Meezan Bank, Habib Metropolitan Bank and Bank of Punjab. Meezan’s version is explained in Meezan Car Ijarah for Roshan Digital Account.
Which Bank Gives Car Loan in Pakistan at the Lowest Rate?
If you are asking which bank gives car loan in Pakistan at the lowest published rate, it is HBL at a fixed 14.50% for existing customers, followed by the banks that give car loans at 1-year KIBOR + 3%: Allied Bank (for its salaried customers), Bank AL Habib (1 to 2 years) and Soneri Bank (current offer). Bank of Khyber starts at KIBOR + 2% for low-risk customers, but it finances only through Islamic products.
How to Choose Among Car Loan Banks in Pakistan
- Start with your own bank. HBL, MCB, UBL, Allied and AL Habib charge less to existing customers.
- Compare the total cost, not the rate alone. Add insurance or takaful, tracker, processing fee and early settlement charges.
- Fixed or variable? A fixed rate (HBL, Meezan) protects you if KIBOR rises; a variable rate falls if KIBOR falls.
- Check the city. The rules are the same across Pakistan, but some banks only process car loans in cities where they have auto finance staff.
- Ask for the Key Fact Statement and compare the APR.
Need help choosing? The Invest Pakistan compares banks for your car and salary and helps with the application. See our car financing consultation.
Related guides: Read our guides on car insurance in Pakistan and insurance in Pakistan.
Car Loan Banks in Pakistan: FAQs
Which banks give car loans in Pakistan?
In November 2026, 19 banks offer car financing, including Meezan Bank, HBL, MCB, UBL, Allied Bank, Bank Alfalah, Bank AL Habib, Faysal Bank, BankIslami, Askari Bank, Habib Metropolitan, Soneri, JS Bank, Dubai Islamic, MCB Islamic, Al Baraka, Bank of Punjab, Bank of Khyber and Sindh Bank.
Which banks do not give car loans in Pakistan?
Standard Chartered, Silkbank and Bank Makramah list no car loan product, and foreign corporate banks such as Citibank, Deutsche Bank, Bank of China and ICBC do not offer consumer car loans.
Which bank has the cheapest car loan?
HBL’s fixed 14.50% for existing customers is the lowest published rate. Among variable rates, 1-year KIBOR + 3% (Allied, Bank AL Habib and Soneri’s current offer) is the lowest, about 15.92%.
Are car loan rules different in each city?
No. State Bank rules on deposit, tenure and the Rs 30 lakh cap are the same across Pakistan. Only availability differs, because some banks process car loans only in certain cities, and registration fees differ by province.
Can I get a car loan for a used car?
Yes. Meezan, HBL, MCB, UBL, Bank Alfalah, BankIslami, HabibMetro, Soneri, Dubai Islamic, MCB Islamic, Bank of Punjab and Bank of Khyber finance used, locally made cars, usually at a higher rate.
This guide is for general information only and is not financial or tax advice. Rates change often, so confirm the latest figures with your bank before you invest.
Related Guides
- Car loan calculator (all banks)
- Meezan car loan calculator
- Car loan interest rates in Pakistan
- Meezan Bank car installment plan
- HBL car loan
- UBL car loan
- MCB car loan
- Car Ijarah vs car loan
- Alto on installment: all banks compared
- Car registration tax calculator (filer vs non-filer)
- Bank Alfalah car loan 2026
Sources
- State Bank of Pakistan: prudential regulations for consumer (auto) financing and KIBOR
- Pakera: KIBOR rates on 5 November 2026 (SBP data)
- Habib Metropolitan Bank: Auto Finance
- Soneri Bank: Car Finance
- JS Bank: CarAamad Auto Financing
- Dubai Islamic Bank Pakistan: Auto Finance
- MCB Islamic Bank: MICAR
- Bank of Khyber: Foree Car
- Bank of Punjab: CarGar Key Fact Statement
- Sindh Bank: Auto Finance
- BankIslami: Auto Finance
- Askari Bank: Car Finance (Ijarah and Diminishing Musharakah)
- Express Tribune: Al Baraka Bank launches Digital Auto Finance