Bank Alfalah Car Loan Calculator 2026
Bank Alfalah Auto Loan finances new and used locally made cars from Rs 2 lakh to Rs 30 lakh. Its markup depends on how many years you choose, so the calculator updates the rate automatically as you change the tenure. See your installment, the cash you need up front and the salary Alfalah will look for.
- Checked against Bank Alfalah sources, October 2026
- Rates updated 29 October 2026
- 1 year KIBOR 12.81%
Registration, token tax and any withholding tax are extra.
Bank Alfalah Auto Loan at a glance
| Financing | Rs 2 lakh to Rs 30 lakh for new and used locally assembled cars. Imported cars are not financed. |
|---|---|
| Markup | Variable, linked to 1 year KIBOR: KIBOR + 3.5% for 2 years, + 4% for 3 years and + 4.5% for 4 or 5 years. |
| Today's rate | With 1 year KIBOR at 12.81%, about 16.31% on a 2 year loan, rising with tenure. |
| Tenure | 2 to 5 years for cars up to 1000cc, 2 to 3 years above 1000cc. |
| Residual value | Pay up to 50% (new car) or 40% (used car) as a lump sum at the end to lower the installments. |
| Minimum income | Rs 30,000 gross salary a month. Rs 50,000 for self employed applicants. |
| Age | 21 to 65 at maturity for private sector employees, 60 for government employees, 70 for self employed. |
| Early payment | Partial or full settlement allowed before the end of the loan, with charges as per Alfalah's schedule. |
How Bank Alfalah Auto Loan works
Bank Alfalah pays the dealer and you repay the loan in equal monthly installments. Alfalah finances new and used cars that are made or assembled in Pakistan, from Rs 2 lakh up to the SBP limit of Rs 30 lakh. Imported cars, new or used, are not financed.
Alfalah offers a few useful options. With residual value you leave up to half of the loan for a single payment at the end, which brings the monthly installment down a lot. You can make a balloon payment equal to 6 installments up to twice during the loan. And if you want, insurance and registration can be spread over the loan instead of paid up front, which lowers the cash you need on day one but adds 1% to the markup.
Bank Alfalah car loan rates in 2026
Alfalah's markup is variable and linked to 1 year KIBOR. It depends on the tenure: KIBOR plus 3.5% for 2 years, plus 4% for 3 years and plus 4.5% for 4 or 5 years. The KIBOR used is the rate on the 1st of the month when your loan is booked, and the rate is reset every year on the loan's anniversary.
With 1 year KIBOR at 12.81% and the SBP policy rate at 12.00%, a 2 year loan comes to about 16.31%. The calculator applies the right spread automatically when you change the number of years. If Alfalah quotes you something different, type it into the rate box.
Because the rate resets every year, your installment can rise or fall with KIBOR. The shorter the loan, the less this matters, which is one reason many buyers of 1300cc cars choose 2 or 3 years.
Down payment and SBP limits
Alfalah's page does not set its own minimum down payment, but SBP rules do. You need at least 15% down for cars up to 1000cc, with up to 5 years to repay, and at least 30% for cars above 1000cc, with a maximum of 3 years. Total car finance from all banks is capped at Rs 30 lakh per person, so on a more expensive car the down payment has to cover everything above that.
A draft auto policy published in May 2026 suggested 7 year car loans of up to Rs 1 crore, but it was still a proposal when we checked in October 2026.
Who is eligible
Alfalah accepts a wide range of applicants: salaried people, professionals, business people, and those with steady income from rent, farming or remittances, including housewives and retirees. Salaried applicants need a gross salary of at least Rs 30,000 a month, 6 months of work experience if permanent or a year if on contract, and must finish the loan by 65 in the private sector or 60 in government service. Self employed applicants need at least Rs 50,000 a month, a year in their current business, and must finish by 70.
Note that the calculator section of Alfalah's page mentions Rs 1 lakh for business people, so confirm the income figure that applies to you.
Documents Alfalah asks for
- Signed application form, copy of CNIC and 2 passport size photographs
- SBP undertaking listing your existing loans and monthly commitments
- Salaried: latest salary slip or employment letter and 6 months of bank statements
- Self employed: 6 months of bank statements
- Rental income: a rental agreement valid for at least 3 more months, the property title and 6 months of bank statements
- Remittances: proof of income abroad, the remitter's passport and visa, and 6 months of remittance records
Worked example
Here is what a Rs 30 lakh car above 1000cc with 30% down over 3 years looks like at 16.81% a year, using the same maths as the calculator above.
| Car price | Rs 3,000,000 |
|---|---|
| Your down payment (30%) | Rs 900,000 |
| Amount financed | Rs 2,100,000 |
| Monthly installment | Rs 74,672 for 36 months |
| Total markup | Rs 588,203 |
| Processing fee (estimate, plus FED) | Rs 10,000 |
| Insurance, first year (estimate) | Rs 60,000 |
| Salary needed (40% rule) | Rs 186,681 a month |
Over the full term you would pay Rs 2,688,203 in total, of which Rs 588,203 is markup.
Frequently asked questions
What is the Bank Alfalah car loan rate today?
It is 1 year KIBOR plus 3.5% for 2 years, plus 4% for 3 years and plus 4.5% for 4 or 5 years. With KIBOR at 12.81%, a 2 year loan is about 16.31%.
Does Bank Alfalah finance used cars?
Yes, locally made used cars are financed. For the residual value option, a used car must be no more than 3 years old.
Can I finance an imported car with Bank Alfalah?
No. Alfalah's Auto Loan does not finance imported vehicles, new or used.
What is the minimum salary for a Bank Alfalah car loan?
Rs 30,000 gross a month for salaried applicants and Rs 50,000 for self employed applicants, subject to your other loan payments fitting within 40% of income.
What is residual value in a car loan?
Residual value means leaving part of the loan, up to 50% for a new car, to be paid in one lump sum at the end. Your monthly installments are much lower, but you need that lump sum ready when the loan ends, or you can sell or refinance the car.
Is Bank Alfalah's car loan rate fixed?
The rates on Alfalah's page are variable. They are linked to 1 year KIBOR and reset every year on the loan's anniversary.
Sources
- Bank Alfalah: Auto Loan product page
- State Bank of Pakistan: KIBOR rates
- Business Recorder: SBP rules on car financing tenure, down payment and the Rs 30 lakh limit
- ProPakistani: draft auto policy proposing 7 year car loans (May 2026, not yet in force)
LoanHissab is not linked to Bank Alfalah. We checked these details against the sources above in October 2026. Rates, fees and rules change often and your offer depends on your own profile, so always confirm the final terms with Bank Alfalah before you sign. Found something out of date? Tell us and we will fix it.