Meezan Bank Car Ijarah — Installment Calculator
Estimate your monthly Meezan Bank Car Ijarah installment in PKR. Current SBP-linked rates, tenure rules. Free, no signup.
fin·calc is an independent, unaffiliated calculator — not endorsed by, sponsored by, or affiliated with Meezan Bank. "Meezan Bank" is used only to describe typical rates and terms; confirm actual terms directly with the bank.
Car Ijarah — an Islamic lease, not a loan
Meezan Bank does not lend you money to buy a car. Under Car Ijarah, the bank buys the vehicle itself and leases (rents) it to you for a fixed period, and you pay a monthly rental rather than interest. Because Meezan legally owns the car for the life of the lease, it — not you — carries ownership-related risks (such as total loss before insurance recovery) and insures the vehicle only through Takaful, the Shariah-compliant mutual-insurance alternative to conventional insurance, with a panel that includes EFU and Adamjee. Ownership transfers to you only at the end of the lease, once every rental has been paid, typically via a gift or a token sale price — unlike a conventional loan, where the car is yours (subject to the bank's lien) from day one. The structure is reviewed and approved by Meezan Bank's Shariah Supervisory Board, which sets out the separate rights and liabilities of the bank as owner and you as user under Islamic leasing principles.
| Term | Meezan Car Ijarah |
|---|---|
| Security deposit — locally assembled, salaried | Minimum 15% |
| Security deposit — locally assembled, self-employed | Minimum 25% |
| Security deposit — CBU/SUV/imported, salaried | Minimum 25% |
| Security deposit — CBU/SUV/imported, self-employed | Minimum 35% |
| Max tenure | Up to 7 years (Residual Value Ijarah: 1–5 years) |
| Max financing | PKR 10,000,000 |
| Processing charges | PKR 3,100 + FED (waived for Roshan Digital Account holders) |
These are the terms shown on Meezan Bank's own product page. The State Bank of Pakistan's auto-finance rules (BPRD Circular Letters No. 29 of 2021 and No. 19 of 2022) set a 30% minimum down payment, do not allow financing of imported vehicles, and cap tenure at 5 years for cars up to 1000cc and 3 years above 1000cc; where those rules are stricter, they apply to Islamic banks too, so expect the effective deposit to be at least 30%. Confirm the current terms with Meezan before applying.
Terms per Meezan Bank's Car Ijarah product page, as of September 2026 — confirm current deposit percentages, eligible models and any promotional offers directly with the bank.
Eligible vehicles, tenure and affordability rules
Car Ijarah covers new, locally assembled cars from brands such as Toyota, Honda, Suzuki and KIA, as well as used locally assembled and imported vehicles, for non-commercial use only. Meezan's Residual Value Ijarah variant, aimed at models like Pak Suzuki cars, needs a lower minimum deposit (from 30% on locally assembled vehicles under that variant's own terms) in exchange for a defined residual value at lease-end. Standard tenure runs 1 to 7 years, though most facilities are written for 1 to 5 years. Meezan also underwrites affordability directly: your monthly rental, including the Takaful premium, must not exceed 40% of your net monthly income, and the bank generally wants the rental to stay under half your net take-home pay. This is a different affordability test from the interest-based debt-burden ratios conventional banks like HBL, UBL or Bank Alfalah apply to their car loans. The State Bank of Pakistan's wider prudential rules for auto finance — the ban on imported-vehicle financing and the tenure caps by engine size — apply across the banking sector, Islamic windows included; see our Bank Alfalah Car Finance page for those rules in full rather than repeating them here.
Worked example
For example: a PKR 3,500,000 new, locally assembled 1000cc car for a salaried applicant, with the 30% minimum deposit the SBP rules require (PKR 1,050,000), leaves PKR 2,450,000 to lease. Using the calculator's own illustrative reference rental rate of 18% p.a. over the 5-year maximum for that engine size:
- Monthly rental: ≈ PKR 62,214
- Total rental cost over 5 years: ≈ PKR 1,282,834
- Total payable incl. deposit: ≈ PKR 4,782,834
This example uses an illustrative rate to show the mechanics — Meezan does not publish one fixed public rate, so enter your own car price, deposit, quoted rate and tenure in the calculator above for a figure based on your actual Ijarah offer. Remember the "interest" figure the calculator shows represents total rental cost, not riba.
Frequently Asked Questions
How is Car Ijarah different from a conventional car loan?
In Car Ijarah, Meezan Bank buys the car and leases (rents) it to you for a fixed period; you pay rent, not interest, and the bank, as owner, carries ownership-related risk and insures the car through Takaful rather than conventional insurance. Ownership transfers to you, usually as a gift or for a token price, only once the lease ends and every rental has been paid. A conventional loan lends you money at interest and the car is yours (subject to lien) from day one.
What down payment (security deposit) does Meezan Car Ijarah need?
For a new, locally assembled car it is a minimum 15% security deposit for salaried customers and 25% for self-employed customers. Imported or CBU/SUV vehicles need a higher minimum: 25% for salaried and 35% for self-employed applicants. The State Bank of Pakistan's auto-finance rules, however, require at least a 30% down payment and bar financing of imported vehicles, so in practice the deposit will be at least 30%.
What is the maximum tenure on Meezan Car Ijarah?
Up to 7 years overall, with the Residual Value Ijarah variant offered over 1 to 5 years at a lower minimum deposit. SBP rules cap auto-finance tenure at 5 years for cars up to 1000cc and 3 years above 1000cc, so the shorter limit applies in practice.
Does Meezan Car Ijarah use conventional insurance?
No. As the legal owner of the vehicle during the lease, Meezan Bank insures it only through Takaful, the Shariah-compliant alternative to conventional insurance, with panel providers such as EFU and Adamjee.
Sources
- Meezan Bank — Car Ijarah product page (structure, deposit, tenure, Takaful, fees) (accessed 24 September 2026)
- SBP — BPRD Circular Letter No. 29 of 2021 (auto-finance down payment, tenure and per-borrower cap) (accessed 24 September 2026)
- SBP — BPRD Circular Letter No. 19 of 2022 (revised tenure caps by engine size) (accessed 24 September 2026)
- The Express Tribune — SBP keeps policy rate unchanged at 11.5% (September 2026) (accessed 24 September 2026)