Personal Loan Calculator Pakistan: Installment, Interest and SBP Limits
Work out the monthly installment and total interest on a personal loan from any Pakistani bank, and check it against the State Bank's limits.
Borrowing Rs 1,000,000 over 3 years at 20% costs Rs 37,164 a month and Rs 337,889 in interest.
- Loan 74.7%
- Interest 25.3%
Year by year
| Year | You pay | Interest | Loan repaid | Still owed |
|---|---|---|---|---|
| Year 1 | Rs 445,963 | Rs 176,153 | Rs 269,810 | Rs 730,190 |
| Year 2 | Rs 445,963 | Rs 116,959 | Rs 329,004 | Rs 401,185 |
| Year 3 | Rs 445,963 | Rs 44,778 | Rs 401,185 | Rs 0 |
Shorter or longer
| Term | Monthly | Total interest |
|---|---|---|
| 1 year | Rs 92,635 | Rs 111,614 |
| 2 years | Rs 50,896 | Rs 221,499 |
| 3 years You are here | Rs 37,164 | Rs 337,889 |
| 4 years | Rs 30,430 | Rs 460,657 |
How a personal loan installment is worked out
Pakistani banks repay personal loans in equal monthly installments on a reducing balance. Each month part of the installment pays interest (or profit, for Islamic personal finance) on what you still owe, and the rest repays the loan. The installment depends on three things: the amount, the rate and the number of years. The year by year table under the calculator shows how the interest shrinks as the loan is paid down.
Banks price personal loans at KIBOR plus their own margin, and KIBOR moves with the State Bank’s policy rate. That is why the calculator asks for the rate on your quote. Ask two or three banks for a written quote and compare the monthly figure and the total interest.
What are the State Bank’s limits on personal loans?
Every bank follows the State Bank’s Prudential Regulations for Consumer Financing. The calculator checks your loan against them.
| Rule | Limit |
|---|---|
| Longest term | 4 years (loans for education, paid directly to the institution, can run longer) |
| All your loan installments together (personal, car, credit card) | No more than 40% of your monthly take-home income |
| Unsecured credit card and personal loan limits, from all banks together | Rs 3,000,000 |
| Credit card and personal loan limits with security, from all banks together | Rs 7,000,000 |
| Bank’s prime customers, unsecured | Up to Rs 7,000,000 in all, of which personal loans at most Rs 4,000,000 |
The Rs 3 million and Rs 7 million limits come from a 2020 amendment, and the 4-year term and the 40% rule from September 2021. Each bank can set stricter rules of its own.
Costs on top of the installment
- Processing fee. Charged once when the loan is approved, listed in each bank’s Schedule of Charges.
- Life insurance or takaful. Many banks add it to cover the loan if the borrower dies.
- Early settlement charge. Paying the loan off early can cost a percentage of what is left. Check it before you sign.
- Late payment charge. A missed installment adds a fee and is reported to the credit bureau.
Common questions
What is the maximum personal loan in Pakistan?
Without security, Rs 3 million in total across credit cards and personal loans from all banks together, under the State Bank’s rules. With security, such as a lien on savings or certificates, the combined limit rises to Rs 7 million. A bank’s prime customers can get up to Rs 7 million unsecured, of which personal loans can be at most Rs 4 million.
How long can a personal loan be in Pakistan?
At most 4 years. The State Bank cut the maximum from 5 to 4 years in September 2021. Loans for education that the bank pays straight to the school or university are the exception and can run longer. The calculator compares 1 to 4 years so you can see how the term changes the installment and the interest.
How much personal loan can I get on my salary?
Under the State Bank’s rule, all your loan installments together, including car loans and credit cards, should not be more than 40% of your monthly take-home pay. On Rs 200,000 a month that is Rs 80,000 in installments. Enter your pay and other installments in the calculator to see whether the loan you want fits.
Sources
State Bank of Pakistan: Prudential Regulations for Consumer Financing (2016) as amended by BPRD Circular Letter 26 of 2020 and BPRD Circular Letter 29 of 2021. No later change found in SBP’s circular index to October 2026. Checked 22 October 2026.