Car financing calculator — car installment in Pakistan
Updated
How much car financing can I get in Pakistan, and for how long?
SBP lets banks finance at most 70% of a locally assembled car — at least 30% down — for at most 3 years above 1,000 cc or 5 years up to it, and never more than PKR 3,000,000 per person from all banks. A PKR 3,500,000 car above 1,000 cc with PKR 1,050,000 down over 36 months at an example 18% mark-up costs PKR 88,573 a month. On a PKR 5,000,000 car the PKR 3,000,000 cap raises the minimum down payment to PKR 2,000,000.
Official rule: Minimum down payment on auto financing: 30% of the value of the vehicle (all locally assembled vehicles, including up to 1,000 cc and local electric vehicles since BPRD CL 19/2022). (source, checked 2026-10-21)
- SBP minimum down payment
- PKR 1,050,000 (30.0%)
- Financed
- PKR 2,450,000
- Total mark-up/profit
- PKR 738,641
- Down payment + installments + fees
- PKR 4,238,641
SBP's limits come from its Prudential Regulations for Consumer Financing (as amended by BPRD Circular Letters 26 of 2020, 29 of 2021 and 19 of 2022), the Prudential Regulations for Housing Finance 2026 and the Business Conduct and Fair Treatment of Consumers framework (BC&FRF, 2025). Your bank's Key Fact Statement and its own credit review are what count.
Installments on this page follow the standard monthly formula on the reducing balance. Your bank counts mark-up or profit day by day between the actual payment dates and rounds each amount, so its own schedule can differ slightly. Only your signed offer and Key Fact Statement are binding.
Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.
SBP's car financing rules
- Tenor above 1,000 cc: Auto financing for a vehicle above 1,000 cc engine displacement runs at most 3 years.
- Tenor up to 1,000 cc: Auto financing for a vehicle up to 1,000 cc engine displacement runs at most 5 years.
- Down payment: Minimum down payment on auto financing: 30% of the value of the vehicle (all locally assembled vehicles, including up to 1,000 cc and local electric vehicles since BPRD CL 19/2022).
- Per-person cap: Auto financing from all banks together may not exceed Rs 3,000,000 per person at any time.
- Imported cars: New and used imported vehicles are not eligible for auto financing from banks.
- Used cars: Banks may not finance cars older than nine years; a car more than five and up to nine years old must be fully repaid by the time it is 12 years old.
- Price financed: Auto financing covers the ex-factory price (and listed extras) — never the premium charged by dealers or investors.
- Repossession: Before repossessing a financed vehicle the bank must serve at least 14 days' acknowledged notice.
- Mark-up: SBP sets no ceiling on the mark-up/profit rate of consumer financing. A fixed rate may not be raised during the tenor; a floating rate is a benchmark (KIBOR or another rate) plus a margin that may not be raised.
- Overseas Pakistanis: SBP's overseas car scheme Roshan Apni Car keeps its own regulatory treatment, communicated to the Roshan Digital Account banks — the car rules here are those for residents.
Islamic car financing
Islamic banking institutions follow the same consumer-financing regulations (limits, tenors, down payment) as conventional banks. The difference is the contract. In SBP's words: Ijarah (SBP): the owner of an asset transfers its usufruct (use) to another person for an agreed period and rent; ownership stays with the owner. Diminishing Musharaka (SBP spelling): co-ownership in which one co-owner buys the other's share in periodic installments. Murabaha (SBP): a sale in which the seller discloses the cost of the goods and the profit margin — not a loan on interest. Which mode your bank uses is in its offer; the down payment, tenor and Rs cap above are the same.
How the car installment (EMI) is calculated
Financed amount × r ÷ (1 − (1 + r)−n), with r = the yearly mark-up ÷ 12 and n = months, on the reducing balance — the same formula for conventional mark-up and Islamic profit. Your Key Fact Statement shows the bank's own figure.
Where to complain
- Your bank first, in writing. It must acknowledge the complaint and resolve it within SBP's time limits (card disputes within 45 working days at most).
- SBP's complaint portal Sunwai — sunwai.sbp.org.pk — also for Roshan Digital Accounts. Your Key Fact Statement carries the link.
- Banking Mohtasib Pakistan (the banking ombudsman) if the bank has not resolved your written complaint within 30 days — how to file.
Questions people ask
What is the car loan interest (mark-up) rate in Pakistan?
SBP sets no maximum. Car financing is usually priced as a benchmark such as KIBOR plus a margin, or at a fixed rate; the margin and a fixed rate cannot be raised during the tenor. Your Key Fact Statement shows the rate and the APR.
What is the minimum down payment for car financing?
In Pakistan, 30% of the value of the vehicle, for every locally assembled car including those up to 1,000 cc and local electric vehicles. If the price is high, the PKR 3,000,000 per-person cap makes the down payment larger.
How long can car financing run?
In Pakistan, at most 3 years for cars above 1,000 cc and 5 years up to 1,000 cc (BPRD Circular Letter 19 of 2022).
Can I get bank financing for an imported car?
No — in Pakistan, new and used imported vehicles are not eligible for auto financing from banks.
Is Islamic car financing different?
The same SBP limits apply — down payment, tenor and the per-person cap. The contract differs: Ijarah (a lease of the car's use for an agreed rent) or Diminishing Musharaka (joint ownership in which you buy the bank's share in installments), described in SBP's own terms on this page.