How banks decide how much to lend
For salaried borrowers, Pakistani banks look first at the debt burden ratio (DBR): total monthly installments, including the new loan, as a percentage of net monthly income. State Bank prudential regulations cap DBR for consumer financing, and most banks work within roughly 40–50% for salaried customers. If your take-home is Rs 200,000 and the bank allows 40%, all your installments together can be up to Rs 80,000.
The calculator turns that maximum installment into a loan amount using the reducing-balance formula at your rate and tenure:
Maximum loan = maximum EMI × (1 − (1 + r)−n) ÷ r
Rough eligibility at 40% DBR and 16%
| Net income | Max EMI | 5-year loan | 20-year loan |
|---|---|---|---|
| Rs 80,000 | Rs 32,000 | Rs 1,316,000 | Rs 2,300,000 |
| Rs 120,000 | Rs 48,000 | Rs 1,974,000 | Rs 3,450,000 |
| Rs 200,000 | Rs 80,000 | Rs 3,290,000 | Rs 5,750,000 |
| Rs 300,000 | Rs 120,000 | Rs 4,935,000 | Rs 8,625,000 |
| Rs 500,000 | Rs 200,000 | Rs 8,224,000 | Rs 14,376,000 |
The second limit: financing ratio
Even if your income supports a large loan, banks finance only part of the asset's value. Car financing commonly requires at least 30% down payment, and housing finance is often up to 70–85% of the appraised value depending on the scheme. Enter the price in the calculator to see the likely financing and the down payment you need to arrange.
Other things banks check
- Credit history (eCIB): late payments on cards or loans reduce eligibility or raise your rate.
- Job stability: many banks want six months to a year with your current employer and confirmed (not probation) status.
- Employer category: government, multinational and listed-company employees often get better terms.
- Age: the loan usually has to end before 60–65.
- Car rules: limits on engine size and maximum tenure for auto financing apply under SBP regulations.
- Income proof: salary slips, bank statements, salary certificate; self-employed borrowers need tax returns.
How to qualify for more
- Close small loans or credit-card balances first.
- Add a co-borrower (spouse or parent) where the bank allows combined income.
- Choose a longer tenure for home loans, then prepay when you can.
- Become a tax filer; it helps documentation and avoids higher withholding on property and vehicles.
Once you have a figure, test installments in the loan EMI calculator and plan the transfer taxes with the property tax calculator.
Frequently asked questions
How much loan can I get on my salary in Pakistan?
Banks usually let total installments reach 40–50% of net income. At 40% DBR and 16% markup, Rs 200,000 take-home supports about Rs 80,000 a month in installments.
What is debt burden ratio?
Your total monthly loan installments divided by your net monthly income, shown as a percentage.
How much down payment is required for a car loan?
Typically at least 30% of the car price, subject to SBP regulations and the bank's policy.
Can my spouse's income be added?
Many banks allow a co-borrower for home finance, which increases eligibility.
Does a bad credit record affect eligibility?
Yes. Overdue payments reported on eCIB can lead to rejection or a higher rate.