“What is HBL’s car loan interest rate?” and “what is Meezan’s markup rate?” are among the questions people search for most before they apply. The answer is rarely one number, because most banks quote a spread over KIBOR, some quote a fixed rate, and a few do not publish a rate at all. The table below brings them together and converts every quote into an approximate annual rate using 1-Year KIBOR of 10.89%, as of November 2026.
| Bank / product | Quoted rate | Approx. today |
|---|---|---|
| NBP Hamsafar | KIBOR + 1.99% | 12.88% |
| MCB Car4U | KIBOR + 2% | 12.89% |
| Bank Al-Habib Car Finance | KIBOR + 2.5% | 13.39% |
| HBL CarLoan | 13.99% Fixed | 13.99% |
| BOK Car Finance | KIBOR + 2–5% | 14.39% |
| ABL Car Finance | KIBOR + 3.5% | 14.39% |
| Bank Alfalah Auto Loan | KIBOR + 3.5–4.5% | 14.39% |
| UBL Drive | ~14–17% | 14.50% |
| Soneri Car Finance | 14.50% Fixed | 14.50% |
| Meezan Bank Car Ijarah | KIBOR + 4–5% | 14.89% |
| First Women Bank Car Finance | ~15% | 15.00% |
| Habib Metro Car Finance | ~15% | 15.00% |
| Sindh Bank Auto Finance | ~15.5% | 15.50% |
| Askari Ijarah Bis Sayyarah | Fixed (Ijarah) | 15.50% |
| JS Bank Car Finance | ~15.5% | 15.50% |
| Samba Bank Car Finance | ~15.5% | 15.50% |
| Al Baraka Car Finance | ~15.5% | 15.50% |
| DIB Auto Finance | ~15.5% | 15.50% |
| BankIslami Car Finance | ~15.5% | 15.50% |
| BOP Apna Car | KIBOR + 5–6% | 15.89% |
| Faysal Islami Car Finance | KIBOR + 4–6% | 15.89% |
| Summit Bank Car Finance | ~16% | 16.00% |
| Silk Bank Car Finance | ~16% | 16.00% |
The “approx. today” column is what we use in our calculators. For KIBOR-linked products it is KIBOR plus the bank’s usual spread; where a bank quotes a range, we use a typical point in that range; where a bank does not publish its rate, the figure is an indicative estimate in line with similar banks, marked with “~” in the quoted column. Our methodology page explains the sources.
Reading the quoted rate
A quote such as “KIBOR + 3.5%” means your rate is today’s 1-Year KIBOR plus 3.5 percentage points, reset once a year. A quote such as “13.99% fixed” stays the same for the whole loan. They are not directly comparable: a variable rate that is lower today can end up higher if KIBOR rises, and the opposite if it falls. Our guide to KIBOR and fixed vs variable rates shows how much each percentage point is worth on a typical loan.
Banks also price individual customers. The rate you are offered can differ from the published one depending on your income, employer, existing relationship with the bank and credit history. Existing salary account holders are often offered a lower spread, so it is worth asking your own bank first.
Why the cheapest rate is not always the cheapest loan
At the time of writing, NBP Hamsafar has the lowest indicative rate. But the total cost of a car loan includes more than the rate. Banks charge a processing fee, sometimes a documentation charge, insurance or takaful for the full term at the bank’s panel rates, a tracker with a yearly fee, and an early settlement charge if you pay off before the end. A bank with a slightly higher rate but cheaper insurance and no settlement charge can cost less overall, especially if you might repay early. Ask each bank for its key fact statement, a one-page summary that SBP requires banks to provide, and compare the total amount payable rather than the headline rate.
How much the difference is worth
On a PKR 2.1 million financed amount over five years, the gap between a rate of 13% and one of 16% is roughly PKR 3,300 a month, or about PKR 200,000 over the term. On a three-year loan for a bigger car the monthly gap is similar and the total somewhat smaller. Put your own car into the installment plan calculator to see the exact amounts at every bank side by side, or use the comparison table to filter by Islamic or conventional.
Islamic banks: rental rate, not interest
For Islamic banks the figure in the table is a rental or profit rate under Car Ijarah or Diminishing Musharakah, not interest. It is benchmarked to KIBOR and reviewed in the same way, which is why Islamic and conventional rates sit close together.
How often rates change
KIBOR moves daily and follows the State Bank’s policy rate decisions, which are announced several times a year. Banks change their spreads less often. We review every bank’s rate monthly; if you see a different rate on a bank’s website or in a branch, the bank’s own figure is the one that counts, and we would be grateful if you told us so we can update the table.
Leave a Reply