Meezan Bank Car Ijarah: Islamic Car Financing Guide 2026
Meezan Bank, Pakistan’s first full-fledged Islamic commercial bank, offers car financing through its Ijarah unit — a Shariah-compliant, interest-free alternative to conventional auto loans.
Headquartered in Karachi, Meezan Bank began operations in 2002 as Pakistan’s first Islamic commercial bank. Its car financing product, known as Car Ijarah, is structured around Islamic leasing principles rather than interest-based lending.
How Car Ijarah Works
Car Ijarah operates as a car rental agreement. Under this structure, Meezan Bank purchases the vehicle and leases it to the customer for an agreed period, typically ranging from 3 to 5 years. Once the lease term ends, ownership of the car transfers to the customer, based on the initial security deposit paid at the start of the agreement.
The bank also offers a residual-value option, where the vehicle’s expected value at the end of the lease term — essentially what it would be worth when its useful lease life concludes — factors into the payment structure. A higher residual value generally results in a lower monthly rental, making it possible to finance a more premium vehicle at a more manageable monthly cost.
Key Features and Benefits
- Low monthly rental payments
- Rental payments begin after vehicle delivery, not in advance
- Fast processing and delivery turnaround
- Optional vehicle tracker service
- Security deposit as low as 30 percent
- Financing available for both new and used local vehicles
- Competitive insurance/Takaful rates compared to other banks
- No advance rental payments required in advance-booking cases
- Flexible tenure options ranging from 1 to 5 years
- Financing available from Rs. 100,000 up to Rs. 3,000,000
Eligibility Requirements
To qualify for Car Ijarah, applicants generally need to meet the following criteria:
- Be a salaried individual, self-employed professional, or businessperson
- Have a net take-home income exceeding three times the monthly rental amount
- Have at least two years of working, professional, or business experience
- Be employed with their current employer for a minimum of six months (for salaried applicants)
- Hold Pakistani citizenship
- Meet a minimum monthly net income requirement of Rs. 80,000
- Be at least 22 years old, with a maximum age at loan maturity of 65 for salaried applicants and 70 for self-employed applicants
Documents Required for Salaried Applicants
- Duly filled and signed leasing application form
- Copy of CNIC/NICOP/POC
- Recent passport-sized photographs
- A recent paid utility bill (electricity, gas, or water) for the residential address
- Original or certified copy of a recent pay slip or salary certificate
- Bank statements for the last six months
- Specimen signature card, signed and stamped by the applicant’s bank
- Copy of rental agreement, if applicable
Documents Required for Businessmen and Self-Employed Professionals
- Duly filled loan application form
- Copy of CNIC/NICOP/POC
- Recent passport-sized photographs
- Bank statements for the last six months
- Proof of profession or business
- Proprietorship letter
- NTN certificate
- Tax returns for the past two years
Self-employed professionals holding a relevant professional degree and valid membership in an applicable professional body may need to submit additional documentation. For proprietorships, partnerships, or limited companies, this can include a declaration of proprietorship, a certified partnership deed, Memorandum and Articles of Association, Form A and Form 29, a company profile, tax returns and assessment orders for the past two years, and a copy of the latest utility bill.
How to Apply
Interested applicants can visit their nearest Meezan Bank branch or call 111-331-331 for more information. Additional details are also available on Meezan Bank’s official website.
This guide is for general informational purposes only and does not constitute financial advice. Terms, rates, and eligibility criteria are subject to change — applicants should confirm current details directly with Meezan Bank before applying.
