Personal Loan Calculator Pakistan
Monthly instalment and total mark-up on a personal or salary loan in Pakistan for any amount, rate and tenure, with the year-by-year balance so you can see how much is interest.
Pre-filled from Searchable Data: 1-year KIBOR + 10% spread 21.01 (14 Sept)
How this is calculated
Instalment = P × r ÷ (1 − (1 + r)^−n), where P is the amount, r the monthly rate (annual ÷ 12) and n the number of months, the standard reducing-balance formula used by Pakistani banks for personal, salary and Islamic personal finance (where the "profit rate" plays the same role).
Unsecured personal loans in 2026 are priced at 1-year KIBOR (~12.3%) plus 8–14% depending on employer category and salary-transfer status, with a 1–2% processing fee plus FED deducted upfront. The year-by-year table shows how mark-up front-loads: most of the early instalments are interest.
Frequently asked questions
- What is the personal loan interest rate in Pakistan?
- Typically 18–28% per year in 2026: 1-year KIBOR plus the bank's spread, lower for salaried employees of approved companies and for customers who transfer their salary account.
- How much personal loan can I get?
- Banks usually lend up to 10–20 times net monthly salary, capped by SBP's debt-burden rule that total instalments stay under about 50% of net income.
- Is early repayment allowed?
- Yes, usually with a 2–5% early settlement charge on the outstanding balance; some banks waive it after half the tenure.
- Islamic personal finance: is it the same calculation?
- The instalment maths is the same; the structure is a sale (murabaha) or service (ijarah/tawarruq) with a fixed profit rate instead of interest.
Sources
- State Bank of Pakistan: KIBOR and consumer financing regulations: State Bank of Pakistan
Version 1.0.0 · reviewed 15 Sept 2026. Rates change with the Federal Budget and regulator notifications; we update this tool when they do. Confirm with the primary source before making financial decisions.