Meezan Car Ijarah calculator
Meezan Car Ijarah is an Islamic lease, not a loan: Meezan buys the vehicle and leases it to you for a monthly rental, with ownership transferring for a token amount at the end of the term. It needs a minimum 15% security deposit (about 25% for imported or SUV vehicles), runs 1 to 5 years (up to 7), covers the car through Takaful with a free tracker, and finances up to about PKR 10 million. This tool estimates the rental — Meezan quotes the actual rate.
| Calculator | Meezan Bank Car Ijarah |
|---|---|
| Type | Islamic lease (Ijarah) |
| Method | Installment on financed amount × rate × tenure, reducing balance |
| SBP rules | 30% down · 3yr >1000cc / 5yr ≤1000cc · PKR 3m cap · no imported |
| Advance tax | Value-based by engine slab, filer vs non-filer |
| Last verified | 2026-07-22 |
Prices are indicative (reviewed 2026-07-22). Edit the price below to match your quote.
Monthly rental
PKR 102,001
Meezan Bank · Car Ijarah
Maximum tenure: SBP caps auto-finance tenure at 3 years (36 months) for this engine capacity (above 1000cc). You entered 60 months.
Reduce the tenure to 36 months or fewer.
Maximum exposure: The financed amount (PKR 3,850,000) exceeds the SBP per-person auto-finance cap of PKR 3,000,000.
Increase the down payment so the financed amount is at most PKR 3,000,000.
- Vehicle price
- PKR 5,500,000
- Down payment
- PKR 1,650,000
- Financed amount
- PKR 3,850,000
- Total rental cost
- PKR 2,270,087
- Total repayment
- PKR 6,120,087
- Processing fee
- PKR 38,500
- Advance tax (filer)
- PKR 110,000
First-year cash needed ≈ PKR 1,900,501
Down payment + processing fee + advance tax + first rental. Registration, tracker and Takaful/insurance are extra.
An estimate, not an official bank quotation. Rates, fees and taxes change — confirm with the bank and FBR. Nothing is uploaded; the calculation runs in your browser.
How the calculation works
The monthly rental is the level payment that recovers the financed amount over the lease term at the agreed rental rate, computed on a reducing balance.
Installment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
- P = financed amount (price − down payment)
- r = annual rental rate ÷ 12
- n = tenure in months
Meezan Bank prices this product off a benchmark plus a spread. As of 2026-07-17, 1-year KIBOR was about 11.88% (SBP). A floating rate resets periodically, so your installment can change over the term.
How Car Ijarah is structured
- Ijarah is an Islamic LEASE (not Diminishing Musharakah): the bank purchases the vehicle and leases it to you for a monthly rental. Ownership stays with the bank during the term — this is not a loan with interest renamed as rent.
- Security deposit / advance rental is a minimum of 15% of the vehicle cost for salaried applicants, and around 25% for imported (CBU) or SUV vehicles.
- Standard tenure is 1 to 5 years, extendable up to a 7-year maximum, with net financing up to about PKR 10 million.
- The vehicle is covered by Takaful (Islamic insurance), not conventional insurance, and Meezan includes free tracker installation and monitoring.
- At the end of the Ijarah term, the vehicle is sold to you for a token amount or gifted, transferring ownership.
- Early termination is governed by the Ijarah agreement, not a conventional prepayment-penalty formula — check the specific terms.
SBP rules this calculator applies
- Minimum down payment: 30% for most vehicles (small local cars and local EVs exempt).
- Maximum tenure: 3 years above 1000cc, 5 years up to 1000cc.
- Exposure cap: PKR 3,000,000 per person across all banks.
- Imported vehicles: not eligible for bank auto financing.
Source: SBP — BPRD Circular Letter No. 29 of 2021 and No. 19 of 2022 (Prudential Regulations for Consumer Financing, auto). View circular. Confirmed against SBP's primary BPRD circulars: 30% down payment, tenure 3 years above 1000cc / 5 years up to 1000cc, PKR 3m per-person aggregate cap, imported vehicles ineligible, and exemptions for locally-assembled vehicles up to 1000cc, local EVs and Roshan Apni Car. No SBP circular repealing or relaxing this regime was found for 2026, but a fresh 2026 reaffirmation was not located either — re-check sbp.org.pk circulars. The DBR is shown at the base 50%; a reported tightening to 40% could not be confirmed against the primary regulation.
Common mistakes
- Treating Car Ijarah as a conventional loan — it is a lease with different rules.
- Assuming the 15% deposit applies to imported or SUV vehicles, which need about 25%.
- Expecting conventional insurance — the vehicle is covered by Takaful.
- Entering a rental rate as fact — Meezan quotes it individually.