Honda City, Toyota Yaris and Corolla on Installment 2026: Down Payment and Monthly Plan

Financing a sedan in Pakistan works very differently from financing a small car, and many buyers only find out at the bank. Two State Bank rules do most of the damage: no one can be financed more than PKR 3,000,000 for cars across all banks, and cars above 1000cc can only be financed for three years. This guide shows what that means for the most popular sedans, using the makers’ listed prices on 4 November 2026.

Down payment and installment, model by model

The table applies both rules and uses the lowest indicative rate among the 24 banks we track, NBP Hamsafar. The down payment is the larger of 30% of the price and whatever is left after the PKR 3,000,000 cap.

Notice how quickly the down payment rises. On a City 1.2 or Yaris it is only a little above the 30% minimum. On a Corolla it is about half the price, and on a Civic well over half. Because the loan is capped, the monthly installment stops rising after a point: every car above about PKR 4.3 million has roughly the same installment, and the extra price is simply paid upfront.

Honda City 1.2 at every bank

The City 1.2LS, listed at PKR 4,737,000, is the most affordable sedan and the one most people ask about. With the minimum down payment of about PKR 1,737,000 over three years, the ten cheapest banks come out as follows:

Use the installment plan calculator for the full list of banks, a bigger down payment or a shorter tenure.

Why three years makes such a difference

Before SBP tightened the rules in 2021 and 2022, sedans could be financed over five or even seven years. Squeezing the same loan into 36 months raises the installment by roughly half compared with a five-year plan. That is why a City costs far more per month than a Cultus, even though the price gap is less than a million rupees: the Cultus, under 1000cc, still qualifies for five years. Our guide to SBP financing rules explains each limit.

Salary needed

With all loan payments limited to about 40% of net income, the City 1.2 on a three-year plan at the cheapest rate needs a net income of roughly PKR 252,000 a month if you have no other loans. Because the loan is capped, most sedans above the City need a similar income but a much larger amount of cash. The eligibility calculator works out both from your own figures.

Ways to make a sedan affordable

If the monthly figure is too high, a larger down payment brings it down directly. If the down payment is the problem, consider the City 1.2 or the Yaris rather than a Corolla or Civic, since they stay closest to the 30% minimum. Some buyers finance a small car instead and upgrade later; our Suzuki Alto installment guide shows how different the numbers look under the five-year rule. Finally, remember insurance on a sedan is charged on a much higher value, so add it before deciding; the car lease calculator includes insurance and tracker in the monthly total.

A note on the rules

A new auto policy has been discussed that could restore longer tenures and lower the minimum down payment for locally made cars. If that happens, sedan installments will fall sharply, and we will update the figures here and in every calculator. Until SBP changes its regulations, banks must apply the limits above.