# Car loans in Pakistan reach Rs 407 billion in September, a 22nd straight monthly rise, even as car sales fall 12%

Source: Searchable (https://searchable.pk/news/auto/car-loans-in-pakistan-reach-rs-407-billion-in-september-a-22nd-straight-monthly)
Type: News article
Author: Searchable Editorial
Published: 18 Oct 2026
Updated: 18 Oct 2026
Retrieved: 18 Oct 2026

> Banks lent Rs 13.7 billion more for cars in September while assemblers sold fewer vehicles than a year ago. Here is what that means if you are financing a car now.

**Car loans in Pakistan rose to Rs 407 billion in September 2026, up from Rs 393.3 billion in August**, according to State Bank of Pakistan (SBP) data [reported by Dawn](https://www.dawn.com/news/2037908/auto-loans-rise-despite-sales-slump). That is Rs 13.7 billion more in a single month, about 3.5%, and the 22nd month in a row that outstanding auto financing has grown.

The lending rise came in a month when fewer cars left the showrooms. Assemblers sold 15,104 cars, SUVs, pickups and vans in September, 3% fewer than in August and 12% fewer than in September last year. Across the first quarter of the fiscal year (July to September) sales were 50,480 units, still 19% higher than a year earlier.

## The numbers

| | Figure |
|---|---|
| Outstanding auto loans, September 2026 | Rs 407 billion |
| Outstanding auto loans, August 2026 | Rs 393.3 billion |
| Monthly increase | Rs 13.7 billion (about 3.5%) |
| Consecutive months of growth | 22 |
| Car, SUV, pickup and van sales, September | 15,104 (down 3% on August, down 12% on a year ago) |
| Sales, July to September | 50,480 (up 19%) |
| SBP policy rate | 11.5% (held on 14 September) |

## Why loans are up when sales are down

A car loan is drawn when a car is delivered, and many buyers book months ahead, so lending can keep rising after showroom sales slow. Banks also count the whole outstanding book, so the figure grows whenever new loans outpace repayments.

Mohammed Sohail, chief executive of Topline Securities, told Dawn that auto financing is "likely to rise, but more slowly, amid uncertainty over the new auto policy and rising borrowing costs." A Topline report went further, saying the SBP "may raise the policy rate by 50bps" to guard against inflation and external shocks. A banker who handles car loans told the paper he expects demand to pick up from November with new models and brands on the market.

## What it means if you are buying on finance

Most car loans in Pakistan are priced at KIBOR plus a bank margin, and KIBOR has edged up in recent weeks. You can follow the latest readings on our [KIBOR page](/data/kibor-1y) and the [SBP policy rate page](/data/sbp-policy-rate).

Before signing, run three checks:

1. **Work out the full cost.** Put the price, down payment, tenure and rate into our [car loan calculator](/tools/cars/car-loan-calculator) to see the monthly instalment and the total interest you will pay.
2. **Count the taxes and fees.** Registration tax, token tax and insurance are on top of the instalment; our [car registration tax calculator](/tools/cars/car-registration-tax-calculator) and [token tax calculator](/tools/cars/token-tax-calculator) give the figures for your province.
3. **Ask whether the rate is fixed or floating.** A floating rate moves with KIBOR every year or six months, so a 50 basis point rise in the policy rate would feed into your instalment.

The SBP's next monetary policy meeting is the next date to watch for anyone with a floating-rate car loan.

## Frequently asked questions

**How much are car loans in Pakistan in September 2026?**

Outstanding auto financing reached Rs 407 billion in September 2026, up from Rs 393.3 billion in August, according to SBP data reported by Dawn.

**Are car sales in Pakistan rising?**

September sales of 15,104 units were down 12% on a year earlier, but July to September sales of 50,480 units were up 19%.

## Sources

- Auto loans rise despite sales slump (Dawn): https://www.dawn.com/news/2037908/auto-loans-rise-despite-sales-slump
- State Bank of Pakistan statistics (State Bank of Pakistan): https://www.sbp.org.pk/ecodata/index2.asp

How to cite: "Car loans in Pakistan reach Rs 407 billion in September, a 22nd straight monthly rise, even as car sales fall 12%", Searchable, 18 Oct 2026, https://searchable.pk/news/auto/car-loans-in-pakistan-reach-rs-407-billion-in-september-a-22nd-straight-monthly