# Credit card installment plans in Pakistan: 0% markup offers and processing fees by bank

URL: https://which.pk/money/guides/credit-card-installment-plans/
Author: Hassam
Updated: 18 Oct 2026

## Summary

A credit card installment plan in Pakistan costs 24% a year plus Rs 1,200 at HBL, 29% plus Rs 1,000 or 2% at UBL and 39% plus Rs 1,200 or 3% at MCB, per their July to December 2026 schedules. Standard Chartered charges 42% and Bank Alfalah 35.23% to 40.74%. On Rs 100,000 over 12 months the extra cost is roughly Rs 14,700 to Rs 25,400. 0% markup plans cover partner products only, and fees can still apply.

## Key facts

- HBL: 24% a year + Rs 1,200
- UBL: 29% APR + Rs 1,000 or 2%
- MCB: 39% APR + Rs 1,200 or 3%
- 0% plans: Partner products only; fees can apply

A credit card installment plan in Pakistan costs **24% a year plus Rs 1,200** at HBL, **29% plus Rs 1,000 or 2%** at UBL and **39% plus Rs 1,200 or 3%** at MCB, as of their July to December 2026 schedules. That is cheaper than leaving the purchase on your card at up to 44%. "0% markup" plans exist, but only on partner products, and a processing fee can still apply.

**Extra cost on Rs 100,000 over 12 months:** HBL ~Rs 14,700 · UBL ~Rs 18,400 · MCB ~Rs 25,400 (Our estimates: equal monthly payments with markup on the reducing balance at each bank's listed annual rate, plus the processing fee, before FED. Rates as of the July to December 2026 schedules.)

## How much does a credit card installment plan cost at each bank?

The table uses each bank's own schedule of charges or key fact document for 2026.

| Bank | Plan | Markup (a year) | Processing fee | Minimum and tenure | Early payoff |
|---|---|---|---|---|---|
| HBL | HBL Installment Plan (HIP) | 24% | Rs 1,200 per plan | Not stated | 6% of remaining principal |
| UBL | Lite Instalment Plan (LIP) | 29% APR | Rs 1,000 or 2%, whichever is higher | Rs 5,000; 3 to 36 months | Rs 1,000 or 5% |
| MCB | EasyPay / I-Plan | 39% APR (3.25% a month) | Rs 1,200 or 3%, whichever is higher | Rs 25,000; 3 to 36 months | Rs 1,200 or 6% |
| Standard Chartered | Aasan Instalment Plan | 42% (3.5% a month) | Up to card APR | Not stated | Rs 1,000 or 5% |
| Bank Alfalah | Step-by-Step (SBS) | 35.23% to 40.74%, by tenure | Booking fee, amount not confirmed | Rs 3,000; 3 to 36 months | Not confirmed |

UBL's July to December 2026 schedule lists LIP at **29% APR**, but a separate table in the same schedule shows **31.23% to 36.74%** for retail installment plans, depending on tenure. The schedule doesn't say which figure includes the booking fee, so ask UBL for the total you will repay.

Fees other than markup carry Federal Excise Duty (FED). HBL's schedule puts it at up to 16%.

Bank Alfalah's website blocked our checks, so its figures come from its July to December 2026 schedule of charges PDF and its card page as we read it on 15 October 2026.

## How does a credit card installment plan work?

You buy on your card first, then ask the bank to split the amount into equal monthly payments.

For UBL, call **111-825-888** to book LIP on any retail purchase of Rs 5,000 or more. UBL lets you pick 3, 6, 12, 18, 24, 30 or 36 months.

## Are 0% markup installment plans really free?

Not always. Banks run 0% markup deals with partner shops and brands, separate from their ordinary plans:

- **HBL** advertises 0% markup on selected products for up to 36 months, but says the markup-free period varies by product.
- **UBL** advertises 0% markup on more than 1,000 products from its partner merchants.
- **MCB** EasyPay Alliance offers 0% markup on selected brands, such as Honda, Samsung and Apple, through promotions.

None of these pages states the processing fee for the 0% deal. Ask for the fee in rupees, add the FED, and compare the total with the cash price.

**Ending a plan early costs extra:** If you pay off a plan early, banks charge a fee: 6% of the remaining principal at HBL, Rs 1,200 or 6% at MCB, and Rs 1,000 or 5% at UBL and Standard Chartered, whichever is higher. Pick a tenure you can keep.

## Can I get an installment plan without a credit card?

Yes, at Meezan Bank, which offers Shariah-compliant financing rather than card installments. **Meezan Consumer Ease** gives you a limit of **Rs 35,000 to Rs 1,000,000** to buy durable goods, including electronics, smartphones and motorbikes, through its MeezanSouq app.

- Tenures: 3, 6, 12, 18 or 24 months.
- Down payment: 5% to 50% of the market price.
- Processing fee: **Rs 2,200** in Meezan's July to December 2026 schedule, plus documentation charges. The product page still says Rs 1,800, so we follow the schedule.
- The monthly installment can't exceed 35% of your net monthly income. Salaried applicants need a gross salary of at least Rs 25,000.

For a phone without a card, see [mobile on installment](/money/guides/mobile-on-installment/), which covers Samsung's Qist Bazaar plan and JazzCash.

## How do I use a credit card installment plan on Daraz?

Choose Easy Installments (EMI) at checkout and pay with a partner bank's credit card. Daraz's terms set a minimum of **Rs 10,000** per order and one item per EMI order. Conversion can take up to **7 working days**, and if you cancel the order you must call your bank to cancel the plan.

Daraz's rate table is undated, so we don't quote it. Check the bank's own rate at checkout.

## Which card should I use for installments?

If you already have a card, compare that bank's plan with the cash price before you buy. If you're choosing a new card partly for installments, HBL's 24% was the lowest rate in the schedules we checked. See [credit cards in Pakistan compared](/money/guides/credit-cards-pakistan-compared/) for fees and limits, and [how to apply for a credit card](/money/guides/how-to-apply-for-credit-card/).

MCB, for one, reports all loans, card balances included, to SBP's eCIB. A missed installment can show on your [ECIB credit report](/money/guides/ecib-credit-report-pakistan/).

More guides: [HBL credit cards](/money/guides/hbl-credit-cards/), [UBL credit cards](/money/guides/ubl-credit-cards/), [MCB credit cards](/money/guides/mcb-credit-cards/), [iPhone on installment](/money/guides/iphone-on-installment/), [Money](/money/).

## Questions people ask

### Is a 0% credit card installment plan free?

Not always. 0% means no markup, but banks can still charge a processing or booking fee, and fees carry FED. Ask for the fee in rupees and add it to the price before you compare.

### Can I convert a purchase I've already made into installments?

Yes at most banks. UBL converts retail purchases of Rs 5,000 or more by phone on 111-825-888, Bank Alfalah Rs 3,000 or more and MCB EasyPay Rs 25,000 or more.

### Which bank has the cheapest credit card installment plan?

Of the schedules we checked, HBL's is cheapest at 24% a year plus a Rs 1,200 fee, as of July to December 2026. On Rs 100,000 over 12 months that is about Rs 14,700 extra, against about Rs 25,400 at MCB.

### Is there a credit card installment plan with no processing fee?

We found none in the 2026 schedules: HBL, UBL, MCB and Meezan all list a processing or booking fee. We couldn't confirm the fee on 0% partner deals, so ask the bank before you buy.

### What happens if I pay off an installment plan early?

You pay a fee. HBL charges 6% of the remaining principal, MCB Rs 1,200 or 6% of the outstanding balance, UBL Rs 1,000 or 5% and Standard Chartered Rs 1,000 or 5%, whichever is higher.

## Sources

- [HBL Schedule of Bank Charges, July to December 2026](https://www.hbl.com/assets/documents/Schedule_of_Bank_Charges_for_July_to_December_2026_%E2%80%93_English.pdf), HBL (accessed 15 Oct 2026)
- [Easy Installment Plan](https://www.hbl.com/personal/cards/credit-cards/hbl-installment-plan), HBL (accessed 18 Oct 2026)
- [UBL Schedule of Charges, July to December 2026](https://ubldigital.com/portals/0/Pdf/UBL-SOC-July-to-December-2026.pdf), UBL (accessed 18 Oct 2026)
- [UBL Credit Card (Lite Installment Plan)](https://ubldigital.com/Loans/Cards-Products/UBL-Credit-Card/UBL-Credit-Card-Product), UBL (accessed 18 Oct 2026)
- [MCB Schedule of Bank Charges, July to December 2026](https://www.mcb.com.pk/assets/documents/SOBC-July-December-2026-English.pdf), MCB (accessed 16 Oct 2026)
- [MCB Classic and Gold Credit Card](https://www.mcb.com.pk/personal/cards/credit-cards/classic-gold-credit-card), MCB (accessed 18 Oct 2026)
- [MCB Credit Card Summary Box, July to December 2026](https://www.mcb.com.pk/assets/documents/Credit-card-Summary-Box-1-July-to-Dec-16-Sep-2026-Font-11-English.pdf), MCB (accessed 16 Oct 2026)
- [Most Important Document, credit cards and personal finance](https://av.sc.com/pk/content/docs/CCPL_MID.pdf), Standard Chartered (accessed 16 Oct 2026)
- [Schedule of Charges, conventional, H2 2026](https://av.sc.com/pk/content/docs/pk-conventional-schedule-of-charges-english-h2-2026.pdf), Standard Chartered (accessed 16 Oct 2026)
- [Schedule of Charges, July to December 2026 (conventional)](https://prodbaf.blob.core.windows.net/data/Schedule%20of%20Charges%20July%20-%20Dec%202026%20(conventional).pdf), Bank Alfalah (accessed 15 Oct 2026)
- [Visa Platinum Credit Card](https://www.bankalfalah.com/personal-banking/credit-cards/visa-platinum-credit-card), Bank Alfalah (accessed 15 Oct 2026)
- [Meezan Consumer Ease](https://www.meezanbank.com/consumer-ease/), Meezan Bank (accessed 18 Oct 2026)
- [Schedule of Charges, July to December 2026](https://www.meezanbank.com/wp-content/themes/mbl/downloads/home-downloads/SOC-ENG-Jul-Dec-2026.pdf), Meezan Bank (accessed 18 Oct 2026)
- [Terms and Conditions for Daraz Easy Installments (EMI) Plans](https://www.daraz.pk/wow/i/pk/payment-partners/emi-terms-and-conditions/), Daraz (accessed 18 Oct 2026)