Car finance terms differ more from bank to bank than most buyers expect: the down payment, how long you can borrow for a bigger engine, who qualifies, and which extra costs apply. This guide compares what Allied Bank, Bank Alfalah, BankIslami, HBL, Meezan Bank and UBL publish on their own websites, checked in October 2026. Where a bank’s pages disagree or leave a figure out, the guide says so instead of filling the gap. Rates change often, so use this to shortlist banks and confirm the details with the bank before you book a car.
Want to see your own numbers? Use our car loan EMI calculator to estimate the monthly instalment, total markup and fees at these banks.
Planning to buy a house instead? See our house finance comparison.
Rules That Apply Across Banks
Rs 3,000,000 combined cap. Bank Alfalah’s page states that, under State Bank of Pakistan regulations, the total auto financing one person holds across all banks and DFIs cannot exceed Rs 3,000,000 at any time. Meezan’s page states the same limit, and BankIslami, UBL and Allied list Rs 3 million as their maximum. The Roshan Digital Account car products covered below list higher limits.
About 30% down for standard customers. Allied Bank, Bank Alfalah (conventional), UBL, BankIslami (minimum customer equity) and Meezan (security deposit as low as 30%) all point to a minimum of about 30%. Some Islamic offers and the Roshan products list 15%.
Engine size changes the tenure. UBL, BankIslami and Bank Alfalah allow up to 5 years for vehicles up to 1000 cc and up to 3 years above 1000 cc. Allied lists a maximum of 3 to 5 years depending on engine capacity.
Imported cars: the banks disagree. BankIslami says imported vehicles cannot be financed as per SBP regulations. Meezan’s page mentions second-hand locally assembled and imported vehicles, and one Bank Alfalah page lists imported cars. If you plan to import, ask the bank to confirm in writing before you commit. If you are weighing an import, see our guide to checking a Japanese car’s model year before import.
Conventional Car Loans Compared
| Bank and product | Financing and down payment | Tenure | Eligibility (as published) | Rates and charges (as published) |
|---|---|---|---|---|
| Allied Bank, Allied Car Finance | Up to 70% of car price (minimum 30% down), up to Rs 3 million. Financing is limited to the listed or ex-factory price. | Minimum 1 year, maximum 3 to 5 years depending on engine capacity | Age 21 or older, at least 6 months of account relationship with Allied or any bank. Salaried: maximum age 59, at least 2 years employed. Self-employed: maximum age 64, at least 2 years in business. | 1-year KIBOR + 3% (salaried, Allied salary account), + 4% (salaried, other bank), + 4% (self-employed, Allied account), + 4.5% (self-employed, other bank). No processing fee if the application is rejected. |
| UBL Drive | Up to 70% of vehicle value. UBL’s FAQ document lists a 30% down payment and financing from Rs 200,000 to Rs 3,000,000. | 1 to 5 years up to 1000 cc, 1 to 3 years above 1000 cc. Vehicles up to 9 years old can be financed. | Salaried: CNIC holder, minimum gross salary Rs 35,000, age 21 to 60. Self-employed: minimum gross income Rs 50,000, age 21 to 70. | Floating: 1-year KIBOR + 4.25% (1 to 3 years) or + 4.75% (4 to 5 years) for existing customers, and + 4.75% or + 5.25% for new-to-bank customers. A further 1% applies to cases with any deviation. A fixed option exists, but its rates are not on the page. Residual value option up to 50%. Complimentary tracker services. |
| Bank Alfalah, Instant Auto Loan (pre-evaluated existing customers) | Minimum 30% down, Rs 200,000 to Rs 3,000,000, brand new locally assembled or manufactured vehicles. | 2 to 5 years up to 1000 cc, 2 to 3 years above 1000 cc | Individual account holder with a relationship of more than 1 year, minimum Rs 100,000 monthly average balance for the last 6 months, clean credit history, age 21 to 60. | Variable: KIBOR + 3.50% (2 years), + 4.00% (3 years), + 4.50% (4 to 5 years, up to 1000 cc only). Processing fee Rs 13,500 plus 16% FED, plus registration charges and first-year insurance. |
| HBL CarLoan | Financing up to 70% of the car’s value. | Not shown in the page text available; confirm with HBL. | Age 22 or older, Pakistani citizen residing in Pakistan or abroad with a stable, verifiable income. Non-resident Pakistanis with an HBL relationship can also apply. | No charge for the application form. Partial payment and early settlement are allowed. HBL phone banking: 111-111-425. |
Islamic Car Finance Compared
| Bank and product | Structure | Down payment or security deposit | Tenure | Key published terms |
|---|---|---|---|---|
| Meezan Car Ijarah | Ijarah (lease). The bank buys the car and rents it to you, then the car is sold at a token amount or gifted at the end. | Security deposit as low as 30% | 1 to 5 years | New locally assembled vehicles, and used cars (both locally assembled and imported, per Meezan’s page). Processing charges Rs 3,100 plus FED (15% to 16% by region). The bank bears withholding tax. Rentals start after delivery. Residual Value Ijarah is available with a 30% to 50% security deposit and a residual value of 60% (1 to 2 years), 50% (3 to 4 years) or 40% (5 years). |
| BankIslami Auto Finance | Diminishing Musharakah (joint ownership, you buy the bank’s share over time) | Customer equity 30% to 90% | 1 to 5 years up to 1000 cc, 1 to 3 years above 1000 cc | Financing Rs 500,000 to Rs 3,000,000 for locally manufactured new or used vehicles (up to 9 years old at financing, 12 at maturity). No minimum income requirement. Tracker is mandatory. Takaful rate listed at 1.49%, and the FAQ lists 1.5% to 2.8%. Rental is revised every six months. Early termination adds 5% to 8% of the outstanding unit price. The bank bears withholding tax. |
| Bank Alfalah Islamic Auto Finance | Ijarah | Standard 30%, as low as 15% in some offers | Bank Alfalah’s own pages differ: up to 5 years (up to 1000 cc) and up to 3 years above on one, and 1 to 7 years for new vehicles and 1 to 5 years for used on another. | No upfront Takaful or registration charges. No rentals before delivery. The bank bears withholding tax. Residual value option available. Confirm the current tenure with the bank. |
Car Finance for Overseas Pakistanis (Roshan Digital Account)
Several banks offer a separate “Roshan Apni Car” product for Roshan Digital Account holders. The vehicle is delivered to a nominee in Pakistan, and the limits are far higher than regular products. Read our Roshan Digital Account guide for how the account works.
| Bank | Limit | Security deposit | Tenure | Other published terms |
|---|---|---|---|---|
| HBL Roshan Apni Car | Maximum exposure Rs 10 million (no limit for lien-based) | 15% (0% for lien-based) | Not stated in the text available | Salaried: age 22 at start, up to 60 or retirement age. Self-employed: age 21 at start, up to 65 at maturity. Spouse, parents, siblings and children can be nominees. No fee to apply. The vehicle must be comprehensively insured through an HBL panel company. Contact: ebanc.roshanaccount@hbl.com or +92 21 111 555 425. |
| Meezan Car Ijarah (Roshan) | Net financing up to Rs 10 million, one vehicle only | 15% (25% for CBU or SUV) for salaried, 25% (35%) for self-employed | Up to 7 years | New locally assembled cars (Toyota, Honda, Suzuki and KIA are offered). Minimum applicant age 25. No processing charges, and documentation charges are paid at actual. Rentals are debited from the PKR Roshan account. Non-filers pay 4% advance tax on the cost of the vehicle. Fixed profit rates published: 22.26% (1 year), 18.96% (2), 18.40% (3), 18.00% (4), 17.08% (5), 16.75% (6), 16.50% (7), and 24.49% variable, excluding Takaful and tracker. Rates can be revised at disbursement. |
| Bank Alfalah Roshan Apni Car | Rs 200,000 to Rs 7,500,000 | 15% up to Rs 6,000,000, 20% above, 0% for lien-based | 2 to 7 years | Profit rate 1-year KIBOR + 1.00% standard, and SBP floor rate + 1.00% for lien-based. Age 21 to 65 or 21 to 70 at maturity depending on applicant type. Requires a Bank Alfalah Roshan Digital Account. Takaful through Alfalah Takaful, Adamjee Takaful or EFU General Takaful. |
| UBL Roshan Apni Car | Not stated in the document available | Not stated | Not stated | Needs a Roshan Digital Account in PKR. Lien-based option: you invest in Naya Pakistan Certificates or hold PKR balance equal to the financing, locked for the tenure. Non-lien option: based on income and remittances, and you must have sent at least three consecutive remittances to a family member in Pakistan. |
| Allied Bank Roshan Apni Car | Not stated | Not stated | Up to 7 years | Listed on Allied’s car finance page. Ask the bank for the full terms. |
Headline rates are not directly comparable: Meezan publishes fixed profit rates, while Bank Alfalah publishes a spread over KIBOR that moves with the market. Compare the total amount you will pay over the whole tenure.
Costs Beyond the Monthly Instalment
Processing and registration. Meezan charges Rs 3,100 plus FED. Bank Alfalah’s Instant Auto Loan lists Rs 13,500 plus 16% FED, and registration charges and first-year insurance are paid separately. BankIslami lists processing charges as per its Schedule of Charges. Allied charges no processing fee if the application is rejected.
Tracker and Takaful or insurance. BankIslami requires a tracker on every vehicle, installed by the bank, and says its cost is built into the monthly rental. UBL lists complimentary tracker services. Islamic banks cover the car under Takaful instead of conventional insurance.
Withholding tax. Meezan, BankIslami and Bank Alfalah (Islamic) say the bank bears the withholding tax on the purchase of the vehicle.
Advance tax for non-filers. BankIslami says non-filers pay 4% advance tax at the time of agreement, or whatever rate the government sets, and Meezan’s Roshan terms say 4% on the cost of the vehicle. The pages do not say that non-filers are refused. Read our tax filer guide to see how filer status is decided.
Late payment and early settlement. Islamic banks such as BankIslami and Meezan ask customers to pay a charity amount for late rental instead of a late fee. BankIslami adds 5% to 8% of the outstanding unit price on early termination. Bank Alfalah’s page says early repayment is available after six months of the facility, per its schedule of charges.
Islamic Versus Conventional Structure
Ijarah (Meezan, Bank Alfalah Islamic): the bank owns the car and rents it to you. At the end the car is sold for a token amount or gifted (Meezan), or you can buy it or return it (Bank Alfalah).
Diminishing Musharakah (BankIslami): you and the bank co-own the car, you pay rent on the bank’s share, and you buy that share in units until you are the sole owner.
Conventional (Allied, UBL, Bank Alfalah Auto Loan, HBL): a loan with markup, fixed or floating depending on the product.
The two types are priced differently, so compare the total payable under each instead of assuming one is cheaper.
Documents Banks Ask For
Salaried: CNIC, current salary slip or salary certificate, and six months of bank statements showing salary credits. BankIslami also asks for a signature specimen and an SBP undertaking, and UBL asks for two passport-size photographs.
Self-employed: twelve months of bank statements at UBL and BankIslami, proof of business (proprietorship letter, partnership deed or similar), NTN or tax returns, and a no-objection letter from partners where applicable.
How to Choose
Compare the total you will pay (down payment, every instalment and all fees), not just the monthly figure. Ask for the Key Fact Statement, which banks such as UBL and BankIslami publish for these products. Check whether the rate is fixed or floating, because a floating rate moves with KIBOR. Check your engine size, since tenure shortens above 1000 cc. Finally, check your credit record: Meezan’s page says negative payment history stays visible in the e-CIB report for two years after settlement.
Frequently Asked Questions
What is the maximum car loan in Pakistan?
For regular products, Bank Alfalah and Meezan state that financing from all banks combined cannot exceed Rs 3,000,000 per person. The Roshan products list higher limits: Rs 10 million at HBL and Meezan and Rs 7.5 million at Bank Alfalah.
What is the minimum down payment?
About 30% on the standard products above. HBL, Meezan and Bank Alfalah list 15% on their Roshan products, and Bank Alfalah lists 15% on some Islamic offers.
Can I get 5 years for a car above 1000 cc?
UBL, BankIslami and Bank Alfalah list a maximum of 3 years above 1000 cc. Allied lists a maximum of 3 to 5 years depending on engine capacity.
Can I finance an imported car?
The banks disagree, so ask for confirmation before you buy. BankIslami says imported vehicles cannot be financed, while Meezan’s page mentions used imported vehicles.
Can a non-filer get car finance?
BankIslami’s and Meezan’s pages say non-filers pay 4% advance tax. They do not say non-filers are refused.
Can an overseas Pakistani get car finance for a car in Pakistan?
Yes, through the Roshan Digital Account products at HBL, Meezan, Bank Alfalah and UBL, with delivery to a nominee in Pakistan. HBL’s regular CarLoan also lists non-resident Pakistanis who have a relationship with HBL.
Is Islamic car finance interest-free?
Islamic banks use rental or profit structures instead of interest, but the total cost still depends on the rental rate, so compare the amounts.
What This Guide Does Not Cover
This version covers Allied Bank, Bank Alfalah, BankIslami, HBL, Meezan Bank and UBL. Faysal Bank, MCB, Bank AL Habib, Askari Bank, JS Bank and others are not covered here, because their own pages were not checked for this version.
This guide reflects the banks’ own websites as checked in October 2026. Rates, offers and eligibility change often, so confirm every figure with the bank before applying. This is general information, not financial advice.
