Personal Loan Calculator — Pakistan 2026
Monthly installment on a Pakistani bank personal loan at a reducing or flat mark-up rate, total mark-up and APR including fees, debt-burden ratio and the maximum loan your salary supports under SBP rules, plus the saving from early settlement or a shorter term.
| Total mark-up | — |
|---|---|
| Total repaid incl. fees | — |
| APR (reducing-balance equivalent) | — |
| Debt-burden ratio | — |
| Maximum loan your salary supports | — |
| Mark-up in year one vs principal | — |
| Paying off after half the term | — |
| Same amount at 36 / 48 / 60 months | — |
In short
Pakistani banks price personal loans at 1-year KIBOR plus a spread — roughly 18–28% a year on a reducing balance in late 2026 — with clean loans capped at PKR 3 million and five years under SBP rules; PKR 1 million at 24% over 36 months costs PKR 39,233 a month and PKR 412,000 of mark-up, and banks keep installments within 40–50% of net salary.
Who this is for: Salaried borrowers comparing bank personal-loan offers, checking affordability and the real cost of flat-rate marketing.
Personal loans in Pakistan: KIBOR, spread and the flat-rate trap
Clean (unsecured) personal loans from Pakistani banks are repriced against KIBOR: the installment is set on a reducing balance at KIBOR plus the bank's spread, and on floating-rate products it resets each year. With 1-year KIBOR around 10–11% in late 2026, salaried customers see rates of roughly 18–28%; some products are marketed as a lower flat rate, which costs about 1.8 times as much as the same number on a reducing balance.
- SBP rules: the Prudential Regulations for Consumer Financing cap clean personal loans at PKR 3 million per borrower (higher for secured), limit tenure to five years and require the bank to check your total debt burden on the eCIB report.
- Costs beyond the rate: processing fee (1–2%, often capped at PKR 10,000–25,000), credit-life insurance (about 1% of the loan), late-payment charges and an early-settlement charge of 2–5% of the outstanding balance.
- Islamic alternative: Islamic banks offer personal finance as tawarruq or salary-based murabaha with a fixed profit rate — compare the APR the same way.
- Before you borrow: a running finance facility or a credit-card balance transfer at 2.5% a month is usually more expensive; a secured loan against a car, property or National Savings certificates is cheaper.
See also: Pakistan Car Loan / EMI Calculator, Pakistan Home Loan / House Financing Calculator, EMI / Loan Calculator — Any Currency.
Assumptions
- Reducing: standard amortisation at the annual rate ÷ 12; flat: (P + P × flat × years) ÷ months with the APR solved numerically.
- All-in APR adds (fee + insurance) ÷ loan ÷ years; DBR = (installment + other) ÷ net salary; maximum loan = 50% of salary less other installments amortised, capped at PKR 3 million.
- Early settlement = balance after half the term; saving = remaining installments − balance (before the bank's settlement charge).
Worked example
Installment PKR 39,233 a month; total mark-up PKR 412,383 (41% of the loan); total repaid with fee and insurance PKR 1,442,383 (about 25% a year all-in). Debt-burden 32.7% of salary — acceptable. In the first year PKR 212,800 of the PKR 470,800 paid is mark-up and only PKR 258,000 clears principal. Settling after 18 months leaves a balance of about PKR 588,000 and saves PKR 118,000 of mark-up before any charge. The same loan over 60 months costs PKR 28,768 a month but PKR 726,000 of mark-up.
Frequently asked questions
What is the interest rate on personal loans in Pakistan?
Roughly 18–28% a year on a reducing balance for salaried customers in late 2026 — 1-year KIBOR (about 10–11%) plus a bank spread — with lower rates for salary-transfer and premium customers and higher for self-employed borrowers.
How much personal loan can I get on a PKR 100,000 salary?
Most banks keep total installments within 40–50% of net salary — PKR 40,000–50,000 a month — which supports roughly PKR 1.0–1.3 million over 36 months at 24%, or up to the SBP PKR 3 million cap over 60 months for higher earners.
Is a 12% flat rate better than 22% reducing?
No — 12% flat over 36 months is about 21.2% APR on a reducing balance, so the two cost nearly the same; always compare APRs, and add the processing fee and insurance.
What is KIBOR?
The Karachi Interbank Offered Rate — the benchmark at which banks lend to each other, published daily by SBP; most consumer loans are priced as KIBOR plus a fixed spread and reset annually.
Can I repay a personal loan early in Pakistan?
Yes; banks charge an early-settlement fee (commonly 2–5% of the outstanding balance, sometimes waived after a lock-in period) and you save the remaining mark-up.
Does a personal loan affect my eCIB?
Yes — every bank loan and card is reported to the State Bank's eCIB; late payments stay on your record and reduce future borrowing capacity across all banks.
What is the maximum personal loan in Pakistan?
PKR 3 million for a clean (unsecured) loan under SBP prudential regulations, with banks setting lower limits based on salary multiples (commonly 10–20× net monthly salary).
Which bank has the lowest personal loan rate?
Rates track KIBOR, so the ranking changes monthly; salary-transfer customers of large banks and Islamic personal finance products are usually cheapest — compare the APR including fees.
People also ask
What is the interest rate on personal loans in Pakistan?
Typically KIBOR plus 10–15% for unsecured loans — around 25–35% a year in 2026 — lower for salary-account customers.
What salary is needed for a personal loan?
Most banks require PKR 30,000–50,000 net monthly salary and a filer status for larger amounts.
What is the maximum personal loan tenure?
Up to five years under SBP prudential regulations for unsecured consumer loans.
Is a personal loan Shariah-compliant?
Islamic banks offer personal finance via Murabaha/Tawarruq-style structures; conventional banks charge interest.
What is the DBR limit?
Total monthly instalments may not exceed 50% of net income for salaried borrowers under SBP rules.
Are there processing fees?
Usually 1–2% of the loan plus insurance; check the schedule of charges and the APR.
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