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

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.

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:

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%.

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.

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.

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?

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 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

How do I apply for Meezan Car Ijarah?

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

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.

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

Overseas Pakistanis with a Roshan Digital Account 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, Islamic vs conventional banking, car insurance in Pakistan, Money.