Meezan Car Loan Calculator

Meezan Bank’s Car Ijarah is Pakistan’s benchmark Islamic car-financing product — instead of an interest-based loan, the bank buys the car and leases it to you; you pay monthly rentals until ownership transfers at the end. Meezan’s headline rental rate is currently 13.41% per annum (reducing-balance rental). Our free Meezan car loan calculator works out your monthly rental, total cost, and down-payment requirements — so you can compare the real price of your next Corolla, City, or Yaris.

How Meezan Car Ijarah Works

• Structure: Ijarah (Islamic leasing) — the bank owns the vehicle; you lease it. Shariah-compliant, AAOIFI/State Bank IB standards.
• Tenure: typically 1–7 years; longer tenure = lower monthly, higher total cost.
• Down payment: commonly 20–30% of the car price (bank’s policy; higher down payment = lower rentals).
• Rental rate: currently 13.41% p.a. on reducing balance — compare apples-to-apples with conventional banks’ markup, since the rental basis is effectively the same arithmetic.
• Insurance (takaful): required on the car, usually added into rentals or payable separately.
• Early settlement: possible with charges per the bank’s schedule — settling early usually saves rentals.

EMI / Rental Formula (Reducing Balance)

Monthly payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P = financed amount (price − down payment), r = annual rate ÷ 12, n = months. The same reducing-balance formula runs every bank’s car calculator — Islamic or conventional.

How to Use

1. Enter the car price.
2. Enter/confirm the rate (13.41% default; editable).
3. Set down payment % and tenure.
4. Click Calculate — monthly rental, total rentals, and total cost shown.

Example

Rs 6,000,000 car, 25% down (Rs 1,500,000), financed Rs 4,500,000 over 5 years at 13.41%: monthly rental ≈ Rs 103,000; total rentals ≈ Rs 6.18 million; total car cost ≈ Rs 7.68 million. A 3-year plan would lift the monthly but cut the lifetime cost — the calculator shows both.

Frequently Asked Questions

Is Meezan Car Ijarah halal?

Yes — it’s structured as Ijarah (leasing) with Shariah board oversight, not an interest loan. This is why many observant Pakistanis choose Meezan over conventional car finance.

What’s the difference between ijarah rental and loan EMI?

Ownership mechanics: the bank owns the car during the lease (takaful and some costs flow differently), while a conventional loan is a pure credit transaction. Monthly arithmetic (reducing balance) is near-identical — compare total cost, not labels.

What documents does Meezan need?

CNIC, proof of income (salary slips/employer letter or business proof), bank statements, and the car’s quotation/invoice. Details vary — the bank’s auto finance desk confirms.

Can I settle my car ijarah early?

Yes, with early-settlement charges per the schedule of charges. If you’ve got the cash, settling saves the remaining rentals.

Is insurance included?

Comprehensive takaful is mandatory on the vehicle for the lease term — it’s priced into your rentals or billed separately; confirm at disbursement.

Compare quotes side by side: try our HBL car loan calculator or MCB car loan calculator. More in Finance calculators and the Loans hub.