Meezan Car Ijarah Calculator 2026
Meezan Car Ijarah is the most popular Islamic car finance product in Pakistan. Use the calculator to see the monthly rental for the car you want, how much security deposit you need and the salary Meezan will look for. Then read how the product really works before you visit a branch.
- Checked against Meezan Bank sources, October 2026
- Rates updated 29 October 2026
- 1 year KIBOR 12.81%
Registration, token tax and any withholding tax are extra.
Meezan Bank Car Ijarah at a glance
| Structure | Ijarah (Islamic lease). Meezan owns the car during the lease and transfers it to you at the end. |
|---|---|
| Fixed rental rate | About 12.98% (1 year) to 13.29% (longest tenure) as reported in August 2026. Confirmed on the day of disbursement. |
| Security deposit | From 15% for salaried buyers of local cars. 25% for imported cars and SUVs, and for business people. 30% for used cars. |
| Tenure | Up to 5 years for cars up to 1000cc and up to 3 years above 1000cc under current SBP rules. |
| Financing limit | Rs 30 lakh in total car finance per person across all banks (SBP limit). |
| Processing charge | Rs 3,100 on Meezan's product page, with Rs 3,800 listed by recent comparison sites. Plus FED. |
| Takaful | From about 1.99% of the car's value a year through Meezan's panel takaful operators. |
| Income rule | Total monthly loan payments, including this rental, must stay within 40% of net income. |
How Meezan Car Ijarah works
Ijarah means lease. Instead of lending you money, Meezan buys the car itself and rents it to you for an agreed number of years. You pay a fixed monthly rental, and when the lease ends Meezan transfers the car to you, either by selling it for a token amount or as a gift.
Because Meezan owns the car during the lease, the risks of ownership stay with the bank. If the car is stolen or completely destroyed, the rental stops. The car is covered through takaful rather than conventional insurance, and if you pay late you are not charged interest. Instead you may be asked to give an amount to charity, which the bank does not keep.
Meezan also bears the withholding tax on the car purchase. If you are not on the active taxpayer list, Meezan's page says you pay advance tax of 4% of the vehicle cost at disbursement, so getting your tax filing in order before you apply can save you a large amount.
Meezan Car Ijarah rates in 2026
Meezan offers a fixed rental rate that depends on how many years you choose, and a variable option that moves with KIBOR. Comparison sites that published Meezan's rate sheet in August 2026 put the fixed rate at about 12.98% for one year rising to 13.29% for the longest tenure. The calculator above uses 13.29% so that your estimate is on the safe side.
When we checked Meezan's own Car Ijarah page in October 2026, its rate table had not been updated since the policy rate was above 20%, so it still showed rates of 16.5% to 22.26%. With the SBP policy rate now at 12.00% and 1 year KIBOR at 12.81%, those figures are out of date. Ask the branch for the current table and remember that the rate is only confirmed on the day the car is disbursed.
Takaful is charged on top of the rental. Meezan lists panel takaful from about 1.99% of the car's value a year, and a tracker package costs more. On a Rs 32 lakh car, 1.99% is roughly Rs 63,700 for the first year, which you should budget for alongside the deposit.
How much car can you get on Ijarah?
Meezan's page mentions net financing of up to Rs 1 crore, but for most buyers the State Bank's rules set the real limit. Under the SBP rules in force since 2022, one person can have no more than Rs 30 lakh of car finance from all banks combined. Cars up to 1000cc can be financed for up to 5 years with at least 15% down, while cars above 1000cc are limited to 3 years with at least 30% down. The calculator applies these limits when you pick the engine size.
You may have read that car loans of up to 7 years and Rs 1 crore are coming. That idea is part of a draft auto policy published in May 2026, and it was still a proposal when we checked. Until SBP changes its rules, plan around the current limits.
In practice, a Rs 32 lakh car above 1000cc needs at least Rs 9.6 lakh down, which is 30%. A Rs 50 lakh car needs at least Rs 20 lakh down so that the financed amount stays within Rs 30 lakh. Many buyers of 1300cc cars put down even more so that the rental fits comfortably within 3 years.
Who is eligible
Meezan asks applicants to be at least 25 years old. Salaried applicants must finish the lease by age 60 and business people by 65. Salaried people need at least 2 years of continuous employment, with 3 months in the current job if permanent or 6 months if contractual. Business people need at least 2 years in the same business.
Your net take home income should be at least twice the monthly rental including takaful, and all your monthly loan payments together must stay within 40% of net income. A spouse's verifiable income can be counted at up to 50%. Your credit report on eCIB must be clear with no current defaults or overdue payments.
Documents you will usually need
- Signed application form with one photograph and a specimen signature card
- Copy of your CNIC
- Latest pay slip or salary certificate, or proof of business for self employed applicants
- Bank statements for the last 6 months
- For business people, business registration or NTN and any other proof the branch asks for
Ending the lease early
You can end the Ijarah early by buying the car at its terminal value shown in your Ijarah schedule, which is the outstanding principal plus any residual value. Ask the branch for the exact figure before you decide, because it changes every month as you pay down the balance.
Worked example
Here is what a car priced at Rs 32 lakh, above 1000cc, with 30% down over 3 years looks like at 13.29% a year, using the same maths as the calculator above.
| Car price | Rs 3,200,000 |
|---|---|
| Your security deposit (30%) | Rs 960,000 |
| Amount financed | Rs 2,240,000 |
| Monthly rental | Rs 75,788 for 36 months |
| Total profit | Rs 488,358 |
| Processing charge (plus FED) | Rs 3,800 |
| Takaful, first year | Rs 63,680 |
| Salary needed (40% rule) | Rs 189,469 a month |
Over the full term you would pay Rs 2,728,358 in total, of which Rs 488,358 is profit to the bank.
Frequently asked questions
Is Meezan Car Ijarah really different from a car loan?
Yes. In a conventional car loan the bank lends you money and charges interest on it. In Ijarah, Meezan buys the car and rents it to you, so you pay rent for using an asset the bank owns. Ownership risks such as theft or total loss stay with the bank, and late payments go to charity rather than to the bank as extra income.
What is the minimum down payment for Meezan Car Ijarah?
For salaried buyers of locally assembled cars up to 1000cc, the minimum security deposit is 15%. SBP rules require at least 30% for cars above 1000cc. Meezan asks for more on imported cars, SUVs and used cars, and from business people.
Can I get Meezan Car Ijarah for 7 years?
Not under the current SBP rules, which limit car finance to 5 years for cars up to 1000cc and 3 years above 1000cc. A May 2026 draft policy proposed 7 year car loans, but it had not come into force when we checked in October 2026.
How much salary do I need for Meezan Car Ijarah?
Your total monthly loan payments, including the Ijarah rental and takaful, should stay within 40% of your net income, and your take home pay should be at least twice the rental. The calculator shows the salary you would need for the car and tenure you pick.
Does Meezan finance used cars?
Meezan's page mentions used car Ijarah with a minimum security deposit of 30%. Availability depends on the car's age and the branch, so confirm before you start shopping.
Who pays the withholding tax on the car?
Meezan says it bears the withholding tax on the vehicle purchase. Applicants who are not on the active taxpayer list pay advance tax of 4% of the vehicle cost at disbursement.
Sources
- Meezan Bank: Car Ijarah product page
- HalalWallet: Meezan Car Ijarah rate snapshot, August 2026
- 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 Meezan Bank. 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 Meezan Bank before you sign. Found something out of date? Tell us and we will fix it.