How is the monthly rental different from interest?

The rental is the price of using an asset the bank owns, agreed in advance under a lease contract, rather than interest charged on money lent. CalcuPK does not simply rename interest as rent — the calculator models a lease with a security deposit, Takaful and an ownership transfer, matching the Ijarah structure Meezan publishes.

What security deposit does Meezan Car Ijarah require?

A minimum of 15% of the vehicle cost for salaried applicants, and around 25% for imported (CBU) or SUV vehicles, per Meezan's official product page. The deposit is part of the Ijarah arrangement rather than a conventional down payment on a loan.

What tenure and financing limit does Car Ijarah offer?

Standard tenure is 1 to 5 years, extendable to a maximum of 7 years, with net financing of up to about PKR 10 million. Longer tenures lower the monthly rental but increase the total rental paid over the lease.

Is the vehicle insured under Car Ijarah?

Yes, through Takaful — Islamic cooperative insurance — rather than conventional insurance, and Meezan includes free tracker installation and monitoring. Because the bank owns the vehicle during the lease, the Takaful arrangement is part of the product.

What happens at the end of the Ijarah term?

Ownership transfers to you, historically through a sale for a token amount or a gift, once all rentals are paid. This transfer is what distinguishes an Ijarah lease-to-own from a plain rental.

Does Car Ijarah follow SBP auto-finance rules?

Islamic auto financing operates within SBP's broader consumer-finance framework, and the same practical limits — such as the ban on financing imported vehicles — generally apply. The exact down-payment and tenure treatment can differ from a conventional loan, so confirm the specifics with Meezan.

How accurate is this Car Ijarah estimate?

The rental arithmetic is exact for the rate you enter, but Meezan quotes the actual rental to you individually and does not publish a fixed rate, so treat the figure as indicative. The product structure — deposit, Takaful, tenure and transfer — reflects Meezan's official page.

Are there special Car Ijarah products?

Yes. Meezan offers Roshan Apni Car for overseas Pakistanis through a Roshan Digital Account, and a Women First Car Ijarah variant, alongside the standard product. Terms can differ, so check the specific product that applies to you.

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

Free to useRuns in your browserEstimate — not an official bank quotation

Vehicle (optional preset)

Prices are indicative (reviewed 2026-07-22). Edit the price below to match your quote.

Vehicle price

Engine (cc)

Down payment: 30% (PKR 1,650,000)

Tenure (months)

Rental rate (% p.a.)

Tax status

Imported (CBU) vehicle— banks cannot finance imported cars under current SBP rules

Monthly income (optional, for affordability)

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 Car Ijarah instalment is calculated

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. On 3 September 2026, the 1-year KIBOR offer published by the State Bank was 12.19%. 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.

The SBP limits that bind Meezan Bank

30% minimum down payment, 3 years maximum tenure above 1000cc and 5 years up to it, a PKR 3,000,000 per-person cap across all banks, and no financing for imported vehicles. These are State Bank rules, identical at every bank, so they are not something Meezan Bank can waive. Why each limit exists, and the exemptions.

Car Ijarah rates and charges 2026

Meezan does not publish a rental rate. Car Ijarah is a lease quoted to each customer, so enter the rental rate Meezan quotes you.

Charges

Car Ijarah charges
Processing / documentation fee	Quoted by the bankSet in Meezan's Schedule of Service Charges, which blocks automated requests.
Late payment charge	Quoted by the bankUnder Ijarah a late payment is a charity undertaking rather than a bank fee — ask Meezan for the current terms.
Insurance / Takaful	The vehicle is covered by Takaful, Islamic cooperative insurance, not conventional insurance. Because Meezan owns the vehicle during the lease, the cover is part of the product rather than something you arrange.
Tracker	Free tracker installation and monitoring is included.

Source: Meezan Bank — Car Ijarah product page · read 2026-07-22. KIBOR from State Bank of Pakistan — key indicators snapshot (sbp.org.pk home page).

Car Ijarah monthly instalment by car model

A worked plan needs a rate, and Meezan Bank does not publish one for this product. Put the rate Meezan Bank quotes you into the calculator above and it will produce the same table for your own vehicle.

Car Ijarah eligibility 2026

Car Ijarah eligibility criteria
Minimum monthly income	Quoted by the bankNot published on the product page.
Age	Quoted by the bankNot published on the product page.
Maximum tenure	5 years up to 1000cc; 5 years above 1000cc
Maximum financing	85% of the vehicle's value
Financing limits	Up to PKR 10,000,000
Used vehicles	Quoted by the bankUsed Car Ijarah is offered; the age cap is not published.
Balloon / residual option	Quoted by the bankA Residual Value variant exists; the maximum is not published.

Meeting these does not approve you. Every bank also applies a debt-burden ratio test under the SBP prudential regulations, so an existing personal loan or credit-card limit can sink an application that clears the income floor comfortably.

Car Ijarah documents and how to apply

Meezan Bank does not publish its document checklist online. Expect the usual set: CNIC, recent photographs, proof of income, and six to twelve months of bank statements.

Meezan Bank product variants worth knowing about

Meezan Bank auto-finance product variants
Residual Value Car Ijarah	Lowers the monthly rental by leaving a residual at the end of the lease.
Used Car Ijarah	Ijarah on a used vehicle.
Roshan Apni Car Ijarah	For overseas Pakistanis through a Roshan Digital Account.
Women First Car Ijarah	A variant aimed at women applicants.

Car Ijarah vs a conventional car loan

The monthly numbers look similar. The contract does not, and the difference decides what happens when something goes wrong.

Car Ijarah compared with a conventional car loan
	Car Ijarah	Conventional loan
Who owns the car	Meezan, for the whole lease term	You, from day one; the bank holds a charge
What you pay	A rental for using the bank's asset	Markup on money you borrowed
Up front	A security deposit / advance rental	A down payment on your own purchase
If the car is destroyed	The owner's risk sits with the bank, covered by Takaful	Your asset, your insurance claim, your outstanding balance
Late payment	A charity undertaking under the Ijarah agreement	A late fee the bank keeps as income
At the end	Ownership transfers to you for a token amount or as a gift	The charge is released; you already owned it

CalcuPK models this as a lease with a deposit, Takaful and an ownership transfer — it does not simply rename interest as rent. Whether the structure satisfies you is a question for you and your scholar, not for a calculator.

Common mistakes with Car Ijarah

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.

Frequently asked questions

A lease. Under Ijarah, Meezan purchases the vehicle and leases it to you for an agreed monthly rental, retaining ownership during the term. This is different in contract from a conventional loan, where you own the car and pay markup on a debt. It is also not Diminishing Musharakah — it is a pure lease with ownership transfer at the end.

Advance tax note

Advance tax at registration is now a percentage of the vehicle's value by engine slab (filer 0.5%–12%), with non-filers paying more. The advance tax at registration is now a PERCENTAGE OF THE VEHICLE'S VALUE, selected by engine-capacity slab (filer 0.5%–12%), not the older fixed rupee amounts. Non-filers pay a multiple, reported as 3×. These figures were cross-checked across secondary FBR-card summaries but not verified against the primary FBR rate-card PDF, so they are editable. EVs and vehicles valued at Rs 5m+ may use a separate 3% basis. Confirm with FBR or a tax professional before relying on a figure.

Meezan Bank source

Meezan Bank — Car Ijarah product page

Last verified 2026-07-22. Car Ijarah is confirmed as Meezan's Islamic auto-financing LEASE (Ijarah), with a 15% minimum security deposit (25% for CBU/SUV), 1–5 year standard tenure (up to 7), net financing up to ~PKR 10m, Takaful cover and a free tracker, and token/gift ownership transfer at maturity — all from Meezan's official product page. The monthly RENTAL rate itself is quoted to the individual and not published, so enter the rate Meezan quotes you. This tool is an estimate, not an official Ijarah quotation.

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Who made this

Built and maintained by the CalcuPK Calculators Team. The finance engine is covered by an automated test suite. SBP prudential limits are verified against the primary BPRD circulars; advance-tax percentages are shown as editable because the primary FBR rate card does not state them in a machine-readable form.

Spotted an error? Email a correction or use our contact form.

Disclaimer

CalcuPK is independent and not affiliated with any bank or regulator. Results are estimates for planning only, not an official quotation. Rates, fees, Takaful or insurance, tracker charges and taxes are set by the bank and FBR and change frequently. Confirm with the bank and a tax professional before committing.