UBL Drive Car Loan Calculator 2026
UBL Drive finances new and used locally made cars, including used cars up to 9 years old. Its rate depends on whether you already bank with UBL and how long you borrow for. The calculator picks the right rate as you change the tenure and shows exactly what you pay in the first installment.
- Checked against UBL sources, October 2026
- Rates updated 29 October 2026
- 1 year KIBOR 12.81%
Registration, token tax and any withholding tax are extra.
UBL Drive at a glance
| Markup | Floating, on 1 year KIBOR. Existing customers: + 4.25% up to 3 years, + 4.75% for 4 to 5 years. New customers: + 4.75% and + 5.25%. |
|---|---|
| Today's rate | With 1 year KIBOR at 12.81%, about 17.06% for an existing UBL customer on 3 years or less. |
| Financing | Rs 2 lakh to Rs 30 lakh, up to 70% of the car's value. |
| Down payment | At least 30%. Your first payment covers the down payment, processing fee and first year's insurance. |
| Processing fee | Rs 12,000 plus FED. |
| Tenure | 2 to 5 years up to 1000cc, 2 to 3 years above 1000cc. |
| Used cars | Locally made cars up to 9 years old, valued by UBL's approved appraisers. |
| Minimum income | Rs 35,000 gross salary a month. Rs 50,000 for self employed applicants. |
How UBL Drive works
UBL Drive is a conventional car loan for new and used cars made in Pakistan. UBL finances up to 70% of the car's value, between Rs 2 lakh and Rs 30 lakh, and you repay in monthly installments by direct debit, cheque or cash deposit, or online through UBL's app and internet banking.
Your first payment to UBL is bigger than people expect. It covers your 30% share of the car, the Rs 12,000 processing fee with FED, and the first year's insurance premium. Registration charges are on top. UBL also offers a residual value option, where you leave up to 50% to pay as a lump sum at the end to cut the monthly installment, and a complimentary tracker.
UBL car loan rates in 2026
UBL publishes floating rates linked to 1 year KIBOR. If you already bank with UBL, you pay KIBOR plus 4.25% for loans of up to 3 years and plus 4.75% for 4 or 5 years. New customers pay half a percent more: plus 4.75% and plus 5.25%. UBL adds another 1% if your case needs an exception to its normal policy.
With 1 year KIBOR at 12.81% and the SBP policy rate at 12.00%, an existing customer borrowing for 3 years or less would pay about 17.06%. The calculator applies the right spread when you change the tenure or customer type. Opening an account with UBL before you apply can save you around Rs 500 a month on a typical loan.
Down payment, tenure and SBP limits
UBL needs at least 30% down on every car, which is stricter than the SBP minimum of 15% for small cars. SBP rules also limit the loan to 3 years for cars above 1000cc and 5 years for smaller cars, and cap total car finance at Rs 30 lakh per person across all banks.
For used cars, UBL uses its own panel of appraisers to value the car, and the loan is based on that value rather than the price you agreed. If the valuation comes in lower, you will need a bigger down payment.
Who is eligible
UBL Drive is open to salaried people, self employed people including sole owners and partners, landlords with rental or farm income, people receiving remittances, and pensioners. Salaried applicants need a gross salary of at least Rs 35,000 a month and must be between 21 and 60. Self employed applicants need at least Rs 50,000 a month and can be up to 70.
Documents UBL asks for
- Copy of your CNIC and 2 recent passport size photographs
- Salaried: a current salary certificate showing your designation, length of service and salary breakup, verified pay slips, and 6 months of bank statements showing your salary
- Self employed: 12 months of business bank statements, tax returns or NTN, and proof of business
- Private limited companies: memorandum and articles of association and audited accounts
Worked example
Here is what a Rs 30 lakh car above 1000cc with 30% down over 3 years, as an existing UBL customer looks like at 17.06% 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 74,933 for 36 months |
| Total markup | Rs 597,604 |
| Processing fee (plus FED) | Rs 12,000 |
| Insurance, first year (estimate) | Rs 60,000 |
| Salary needed (40% rule) | Rs 187,334 a month |
Over the full term you would pay Rs 2,697,604 in total, of which Rs 597,604 is markup.
Frequently asked questions
What is the UBL car loan rate today?
For existing UBL customers it is 1 year KIBOR plus 4.25% for up to 3 years, or plus 4.75% for 4 to 5 years. New customers pay half a percent more. With KIBOR at 12.81%, that is about 17.06% for an existing customer on a short loan.
What is the UBL Drive processing fee?
Rs 12,000 plus FED, paid with your first payment along with the down payment and first year's insurance.
How much down payment does UBL need?
At least 30% of the car's value, because UBL finances up to 70%.
Does UBL finance old cars?
Yes. UBL Drive finances locally made used cars up to 9 years old, valued by UBL's approved appraisers.
What is the minimum salary for UBL Drive?
Rs 35,000 gross a month for salaried applicants and Rs 50,000 for self employed applicants.
Can I pay off UBL Drive early?
Yes, you can settle before the end of the loan, with charges as per UBL's schedule of charges at the time.
Sources
- UBL: UBL Drive product page
- UBL: UBL Drive FAQs (PDF)
- Business Recorder: SBP rules on car financing tenure, down payment and the Rs 30 lakh limit
LoanHissab is not linked to UBL. 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 UBL before you sign. Found something out of date? Tell us and we will fix it.