# Meezan Car Ijarah: rental rates, down payment, eligibility and how it compares with a car loan

URL: https://which.pk/money/guides/meezan-car-ijarah/
Author: Ahtisham
Updated: 19 Oct 2026

## Summary

Meezan Car Ijarah is a lease: Meezan buys a local car, rents it to you for 1 to 5 years, then sells it to you. You put down at least 30%, and SBP caps car financing at Rs 30 lakh from all banks. Meezan's own calculator uses 15% for standard customers; the 13.90% to 14.37% rates it publishes are for Roshan Digital Account holders. A Suzuki Alto VXR over 5 years works out at about Rs 49,900 a month before takaful. Processing costs Rs 3,800 plus FED.

## Key facts

- Calculator rate (standard): 15% a year, 1 to 5 years
- Minimum deposit: 30% of the car's price
- Maximum financed: Rs 30 lakh, all banks
- Processing charge: Rs 3,800 + FED

Meezan Car Ijarah is a lease, not a loan: Meezan buys a locally made car, rents it to you for **1 to 5 years**, then sells it to you for a token amount. You pay **at least 30% down**, and SBP caps car financing at **Rs 30 lakh** from all banks. Meezan's own calculator prices standard customers at **15% a year**, as of October 2026. A Suzuki Alto VXR over 5 years comes to about **Rs 49,900 a month**, before takaful.

**Suzuki Alto VXR on Meezan Car Ijarah, 5 years:** About Rs 49,900 a month (Our calculation: Rs 29.95 lakh price in Meezan's calculator (19 Oct 2026), 30% deposit of Rs 8.98 lakh, Rs 20.96 lakh financed at the calculator's 15% standard rate. Takaful and tracker are extra. Rentals add up to about Rs 29.9 lakh.)

## What are Meezan Car Ijarah rates in 2026?

Meezan's Car Ijarah page publishes one rate table, and it sits in the **Roshan Digital Account** section. Its calculator uses a different default for everyone else:

| Tenure | Standard customer (calculator default) | Roshan Digital Account holder (fixed, published) |
|---|---|---|
| 1 year | 15% | 13.90% |
| 2 years | 15% | 14.09% |
| 3 years | 15% | 14.30% |
| 4 years | 15% | 14.34% |
| 5 years | 15% | 14.36% |
| 6 years | Not offered | 14.36% |
| 7 years | Not offered | 14.37% |

Rates from meezanbank.com/car-ijarah and the code of its Car Ijarah calculator, read 19 Oct 2026. Both exclude takaful and tracker, and Meezan says rates can be revised based on deposit and PKRV rates when the car is delivered. The page also shows an RDA variable rate of 11.74%.

**Ask the branch for your own rate:** The 15% is the default Meezan's calculator uses for every car in its list for standard customers. Meezan doesn't publish a rate table for them, so ask for the rate in writing before you pay the deposit.

## How much is the monthly rental? Worked examples

These use car prices loaded in Meezan's calculator on 19 Oct 2026 and the 15% standard rate (our calculation, before takaful and tracker). SBP rules set the limits: at least 30% down, at most Rs 30 lakh financed, and **5 years for cars up to 1000cc, 3 years above that**.

| Car (price in calculator) | Deposit | Financed | Tenure | Monthly rental |
|---|---|---|---|---|
| Suzuki Alto VXR (Rs 29.95 lakh) | Rs 8.98 lakh (30%) | Rs 20.96 lakh | 3 years | About Rs 72,700 |
| Suzuki Alto VXR | Rs 8.98 lakh (30%) | Rs 20.96 lakh | 5 years | About Rs 49,900 |
| Suzuki Cultus VXL (Rs 43.59 lakh) | Rs 13.59 lakh (31%) | Rs 30 lakh | 5 years | About Rs 71,400 |
| Toyota Yaris 1.3 GLI MT (Rs 48.29 lakh) | Rs 18.29 lakh (38%) | Rs 30 lakh | 3 years | About Rs 1,04,000 |

On the Cultus and Yaris, the **Rs 30 lakh cap** pushes the deposit above 30%. The Yaris is above 1000cc, so 3 years is the longest it can run.

Over 5 years, the Alto's rentals total about Rs 29.9 lakh, which is about Rs 9 lakh more than the amount financed. Meezan's calculator on its page lets you try other cars and deposits.

## What is residual value in Meezan Car Ijarah?

With **Residual Value Ijarah**, you agree to pay a set share of the price at the end to keep the car. In return, the monthly rentals are much lower. At maturity you can pay the residual value and keep the car, or simply return it to Meezan.

| Tenure | Residual value at the end |
|---|---|
| 1 or 2 years | 60% of the price |
| 3 or 4 years | 50% |
| 5 years | 40% |

It needs a deposit of 30% to 50%, and Meezan's current offer is for new, locally assembled cars. It isn't offered to Roshan Digital Account holders.

For the same Alto VXR with 30% down at 15% (our calculation, before takaful):

- **3 years, 50% residual:** about Rs 39,500 a month, then Rs 14.97 lakh at the end.
- **5 years, 40% residual:** about Rs 36,300 a month, then Rs 11.98 lakh at the end.

That is about Rs 13,500 a month less than ordinary 5-year Ijarah, but you owe a large lump sum at the end. Plan for it, or plan to return the car.

## Who is eligible for Meezan Car Ijarah?

| | Salaried | Businessmen and self-employed |
|---|---|---|
| Work history | Permanent: 3 months in current job and 2 years in total. Contract: 6 months and 3 years | 2 years in the current business; proprietor, partner or director |
| Income | Take-home pay more than 2 times the monthly rental (including takaful) | Same |
| Other loans | All monthly payments, including the rental, within 40% of take-home pay | 40%, or up to 50% for cars up to 1000cc |
| Spouse's income | Up to 50% can be added | Up to 50% can be added |
| Credit record | Clear eCIB and Data Check, no current default or overdue | Same |

For the Alto at about Rs 49,900 a month, the 40% rule means a take-home pay of about **Rs 1.25 lakh** if you have no other loans (our calculation).

Meezan also notes that, under SBP rules, a late payment, write-off or waiver stays on your [eCIB report](/money/guides/ecib-credit-report-pakistan/) for two years after you settle it. Check yours before you apply.

## Meezan Car Ijarah requirements: documents and charges

- Application form, filled in and signed
- Salaried: a recent pay slip or salary certificate
- Business: proof such as a bank certificate of proprietorship, NTN, a business association letter or a tax return
- Last six months' bank statements
- One recent photograph and a specimen signature card

| Charge | Amount |
|---|---|
| Processing (up front, non-refundable) | Rs 3,800 plus FED of 15% to 16% by region |
| Documentation | At actual |
| Old-car valuation | At actual |
| Income estimation (business) | At actual |

## How do I apply for Meezan Car Ijarah?

1. **Pick the car and run the numbers.** Use the calculator on Meezan's Car Ijarah page, then check the result against the 40% income rule.
2. **Fill in the application form.** It's available at any Meezan branch and on the Car Ijarah page.
3. **Attach the documents** listed above and submit them.
4. **Get approval.** Meezan says it takes 1 to 7 working days.
5. **Pay the deposit and wait for delivery.** Rentals start only after delivery. If the maker raises the price before then, you pay the difference.

## Is Meezan Bank Car Ijarah halal?

Meezan says Car Ijarah was designed under its Shariah Supervisory Board, and it links a fatwa on the page. Three features separate it from a conventional lease:

- **Ownership:** Meezan owns the car during the lease and carries the ownership risks; you carry the usage risks.
- **Theft or total loss:** if the car is stolen or completely destroyed, Meezan stops charging rent.
- **Late payment:** instead of a late fee, you undertake to pay an agreed amount to charity, which goes into a fund the bank keeps for that purpose. We couldn't find the amount on Meezan's page.

The car is insured through takaful only. Meezan also says it bears the withholding tax on buying the car.

## Meezan Car Ijarah vs a conventional car loan

| | Meezan Car Ijarah | Conventional bank car loan |
|---|---|---|
| Contract | Lease: you pay rent, the bank owns the car | Loan: you borrow and pay markup |
| Rate, October 2026 | 15% in the calculator for standard customers | 1-year KIBOR plus 2.5% to 4.5%, about 15.3% to 17.3% |
| Late payment | Agreed charity payment | HBL and MCB charge Rs 1,500 per late instalment |
| Car stolen or destroyed | No rent charged | Meezan says conventional leases keep charging rent until the insurance claim is settled |
| SBP limits | 30% down, Rs 30 lakh cap, 3 or 5 years | Same |

KIBOR was 12.75% on 12 October 2026. For the same Alto at a conventional 15.75% (KIBOR plus 3%), the 5-year instalment is about Rs 50,700, Rs 800 a month more than at 15% (our calculation). Rates move with KIBOR, so compare quotes on the same day. The bank-by-bank table is in our [car on installment guide](/money/guides/car-financing-pakistan/).

## Meezan Car Ijarah for Roshan Digital Account holders (Roshan Apni Car)

Overseas Pakistanis with a [Roshan Digital Account](/money/guides/roshan-digital-account-investment/) get different terms:

- Up to **Rs 1 crore** financed, for up to two new locally assembled cars
- Up to **7 years**
- Deposit from **15%** (25% for SUVs) if salaried, or 25% (35% for SUVs) for businessmen
- Fixed rates of **13.90% to 14.37%**, no processing charge
- Rentals by direct debit from your rupee RDA; the car is delivered to a nominee in Pakistan who is a parent, child, sibling or spouse
- Non-filers pay 4% advance tax on the car's cost at disbursement, Meezan says

## Used and imported cars

Meezan's page says it also leases used cars, both locally assembled and imported, from a deposit "as low as 30%". SBP's 2021 rules say new and used imported vehicles can't be financed by banks, so ask the branch in writing before you count on an imported car.

More guides: [Meezan Bank accounts](/money/guides/meezan-bank-accounts/), [Islamic vs conventional banking](/money/guides/islamic-vs-conventional-banking/), [car insurance in Pakistan](/money/guides/car-insurance-pakistan/), [Money](/money/).

## Questions people ask

### What is Meezan car Ijarah?

A car lease. Meezan buys the car and rents it to you for 1 to 5 years; rent starts after delivery. At the end, the car is sold to you for a token amount or gifted.

### What is residual value in Meezan car Ijarah?

A sum you agree to pay at the end to keep the car: 60% of the price on 1 or 2 years, 50% on 3 or 4 years, 40% on 5 years. It cuts the monthly rental, and at maturity you can pay it or hand the car back.

### Is Meezan Bank car Ijarah halal?

Meezan says the product was designed under its Shariah Supervisory Board and publishes a fatwa for it. The bank owns the car during the lease, charges no rent if it is stolen or destroyed, and sends late payments to charity rather than keeping them.

### How long does Meezan car Ijarah approval take?

Meezan says 1 to 7 working days after you hand in the application form and documents. Delivery can take longer, and any price rise before delivery is yours to pay.

### Can Roshan Digital Account holders get Meezan car Ijarah?

Yes, as Roshan Apni Car: up to Rs 1 crore for up to two new locally assembled cars, up to 7 years, deposits from 15%, and fixed rates of 13.90% to 14.37%. The car is delivered to a close relative in Pakistan.

## Sources

- [Meezan Car Ijarah (page and Car Ijarah calculator)](https://www.meezanbank.com/car-ijarah/), Meezan Bank (accessed 19 Oct 2026)
- [BPRD Circular No. 29 of 2021: Prudential Regulations for consumer financing (archived copy)](https://web.archive.org/web/20250619132327/https://www.sbp.org.pk/bprd/2021/CL29.htm), State Bank of Pakistan (accessed 13 Oct 2026)
- [BPRD Circular No. 19 of 2022 (archived copy)](https://web.archive.org/web/20250619133822/https://www.sbp.org.pk/bprd/2022/CL19.htm), State Bank of Pakistan (accessed 13 Oct 2026)
- [KIBOR rates, 12 October 2026](https://www.sbp.org.pk/assets/document/kibor-rates-12-october-2026.pdf), State Bank of Pakistan (accessed 13 Oct 2026)