SBP policy rate at 11.5%: what it does to your loan installments
What happened
The State Bank of Pakistan's policy rate stands at 11.5%, with 1-year KIBOR around 11.83%. KIBOR is the benchmark most variable-rate consumer financing is priced against, so it's the number that actually reaches your installment.
Why it matters
Most car and personal loans in Pakistan are quoted as 'KIBOR + a spread'. When KIBOR moves, your installment on a variable-rate loan moves with it at the next reset. A fixed-rate product locks you out of both the risk and the benefit.
Who is affected
- Anyone on a KIBOR-linked car or personal loan
- Buyers deciding between fixed and variable financing now
- Savers, who see the flip side in deposit and savings rates
| SBP policy rate | benchmark | 11.5% | |
| 1-year KIBOR | benchmark | ≈ 11.83% |
How the benchmark reaches a car loan
Illustrative: a variable car loan priced at KIBOR + 3.0%
| Item | Before | After |
|---|---|---|
| Benchmark (1-yr KIBOR) | — | ≈ 11.83% |
| Indicative all-in rate | — | ≈ 14.83% |
| Rate type trade-off | Fixed = certainty | Variable = moves with KIBOR |
Illustrative estimate. Confirm the exact markup and reset terms with your bank before signing.
KIBOR and policy rates sourced from SBP monetary policy announcements.
Last verified: 26 July 2026 · About our data
Frequently asked questions
What is the SBP policy rate right now?
The State Bank of Pakistan's policy rate is 11.5%, per its latest monetary policy announcement. The 1-year KIBOR benchmark is around 11.83%.
How does the policy rate affect my car loan?
Variable-rate loans are usually priced as KIBOR plus a bank spread. When KIBOR changes, your installment adjusts at the next reset. Fixed-rate products stay the same regardless of KIBOR.
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