How to Apply for Shariah-Compliant Car Financing (Car Ijarah) in Pakistan
Shariah-compliant car financing lets you own a vehicle without paying conventional interest. Meezan Bank’s Car Ijarah is Pakistan’s first interest-free car financing product and remains the most established option. Here’s how it works and how to apply, verified as of August 2026.
How Car Ijarah Works
Car Ijarah is based on the Islamic financing concept of Ijarah (leasing). Instead of lending you money at interest, the bank purchases the vehicle and rents it to you for an agreed period. At the end of the term, the car is transferred to you at a token amount or gifted outright — no interest is ever charged, only rental payments.
Key Terms
- Eligible vehicles: new locally assembled/Complete Built Up (CBU) vehicles, and select used locally assembled cars
- Maximum financing: up to Rs. 10 million net financing amount
- Tenure: up to 7 years
- Security deposit / advance rental: minimum 15% of vehicle cost for salaried professionals; 25% for CBU/SUV vehicles; as low as 30% for used-car Ijarah
- Only one vehicle allowed per Ijarah facility
Other Banks Offering Islamic Car Financing
Meezan isn’t the only option — BankIslami’s Auto Musharaka and other Islamic banks/windows offer similar Shariah-compliant alternatives, typically using either the Ijarah (leasing) or Diminishing Musharakah (joint ownership) structure. Compare terms across a few before committing, since tenure, deposit requirements, and eligible vehicle lists vary.
How to Apply
- Visit Meezan Bank’s official Car Ijarah digital onboarding portal, or any Meezan branch
- Fill out the application and upload required documents (CNIC, income proof, bank statements)
- A dedicated representative will guide you through eligibility and terms
- For queries, email info.carijarah@meezanbank.com
Automakers periodically partner with Meezan and other Islamic banks for limited-time promotional discounts on specific models (Changan, Kia, Jetour, and others have run such offers) — check current manufacturer and bank announcements for active promotions, since these change frequently and are time-limited.
Roshan Digital Account Option
Overseas Pakistanis can access Meezan Car Ijarah financing for new locally assembled vehicles (Toyota, Honda, Suzuki, Kia) through their Roshan Digital Account.
Frequently Asked Questions
Is Car Ijarah really interest-free?
Yes — it’s structured as a lease (rental), not a loan, so no conventional interest is charged. You pay rent on the vehicle until ownership transfers at the end of the term.
Can I finance a used car through Car Ijarah?
Yes, Meezan offers Used Car Ijarah for locally assembled used vehicles, with a minimum security deposit as low as 30%.
What is the maximum tenure for Car Ijarah?
Up to 7 years, though your specific offer may vary based on the vehicle and your eligibility profile.
Are there manufacturer discounts available with Islamic car financing?
Yes — automakers periodically run limited-time promotional partnerships with Meezan and other Islamic banks, offering discounted rentals or free maintenance packages on specific models. These are time-limited, so check current announcements rather than relying on past promotional pricing.
Related: How to Get Car Financing in Pakistan
