Personal loan calculator Pakistan (personal financing)

What SBP's rules for personal financing say

• Tenor: A personal loan (personal financing) runs at most 4 years; financing for education paid to the institution may run longer.
• Unsecured limit: Unsecured (clean) borrowing on credit cards and personal loans together, from all banks combined, is capped at Rs 3 million per person. Credit cards and personal loans, clean plus secured, from all banks combined: at most Rs 7 million per person. For a prime customer the clean limit on credit cards and personal loans together may go up to Rs 7 million, of which personal loans at most Rs 4 million.
• 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.
• Before you sign: Before you sign, the bank must give you a Key Fact Statement (KFS) for the product: APR, monthly installment, total amount payable, other charges, early-payment terms and the SBP complaint link.
• APR: SBP's Annualized Percentage Rate: mark-up/profit paid for the period × 365 × 100 ÷ (outstanding principal × number of days). This calculator's APR adds your up-front fees to that yearly rate.
• Changes: The bank must notify you at least 30 days in advance of changes to terms and charges.
• Paying off early: You always have the right to repay early. Any early-repayment penalty may not exceed the bank's actual loss/cost — SBP sets no fixed percentage, so use the figure in your Key Fact Statement. See the early settlement calculator.

Islamic personal financing

Islamic banking institutions follow the same consumer-financing regulations (limits, tenors, down payment) as conventional banks. SBP's documents write "mark-up/profit" for both: the maths of the installment is the same.

Bikes and other goods on installment

Durable goods bought with bank financing (SBP's "consumer durables", e.g. personal computers) are hypothecated to the bank and follow the personal-financing rules: at most 4 years, within the 40% debt burden limit. SBP's rules do not mention motorcycles by name, so a bank may book a bike either as personal (consumer-durable) financing or under its own auto policy — ask which rules it applies. Installment plans from dealers or non-bank companies are outside SBP's banking rules.

SBP's debt burden limits in one minute

• Consumer financing: All consumer-financing repayments together should not exceed 40% of the borrower's net disposable income (SBP Prudential Regulations for Consumer Financing R-3, as amended by BPRD Circular Letter 29 of 2021).
• With a home: With housing finance, the housing installment plus all other consumer-financing obligations may not exceed 65% of net disposable income.
• Spouse's income: The bank may count a spouse's income in the debt-burden ratio when the spouse agrees and is recorded as co-borrower.
• Example: on a net disposable income of PKR 200,000 a month, all consumer installments together stay within PKR 80,000; with a home finance installment, everything within PKR 130,000.