Bank AL Habib Personal Loan & Cash Finance
Bank AL Habib offers two distinct borrowing products: Cash Finance, secured against your own deposits, and the unsecured Personal Finance Facility — which differ in fees and minimum loan amounts.
Part of PakFinHub's Bank AL Habib coverage — see the full bank overview.
- Last Verified: Sep 2, 2026
- Official SOC Data
- Updated Regularly
Bank AL Habib runs two distinct consumer lending products often searched under the same "personal loan" umbrella: Cash Finance, a secured loan against your own deposits, and the separately-priced Personal Finance Facility. They are not interchangeable, and the bank hasn't published identical detail for both — here's exactly what's confirmed for each.
Two Different Products — Don't Confuse Them
Bank AL Habib runs two separate consumer lending products that sound similar but aren't: Cash Finance is a secured loan against your own deposits or securities — the bank is lending against collateral you already hold with them. Personal Finance Facility is priced and structured separately in the bank's fee schedule, without the same deposit-backing requirement described for Cash Finance. If a specific eligibility detail below isn't listed, that's because the bank hasn't published it for that product — confirm directly with your branch rather than assuming the other product's terms apply.
Cash Finance — Secured Loan Against Deposits
| Detail | Terms |
|---|---|
| Structure | Secured personal loan against your PKR deposits or securities (or foreign currency deposits) |
| Minimum financing amount | Rs 50,000 |
| Maximum financing amount | Up to 90% of PKR deposit/securities encashment value; up to 85% against Foreign Currency Deposits |
| Who can apply | Pakistani citizens; salaried, business, or self-employed individuals with satisfactory credit history |
| Processing Fee | Rs 2,500 |
| Lien Marking Charges (other than BAHL) | Rs 500 |
| Late Payment Charges | Rs 500 (up to 1 year) / Rs 600 (up to 2 years) / Rs 700 (up to 3 years) / Rs 1,000 (over 3 years) |
Product description sourced from Bank AL Habib's own marketing copy ("hassle-free secured personal loan") and its Personal Banking page; fee figures from the official Schedule of Bank Charges, effective July 1 – December 31, 2026.
Cash Finance — What It Actually Costs (Markup Rate)
| Financing Amount & Type | Markup Rate |
|---|---|
| Up to Rs 5 million, against your own bank deposits — Running Finance | 2.00% over your deposit's own profit rate |
| Up to Rs 5 million, against your own bank deposits — Term Finance | 1.50% over your deposit's own profit rate |
| Up to Rs 5 million, against government securities/FCY deposits — Running Finance | 2.00% over 3-Month KIBOR |
| Up to Rs 5 million, against government securities/FCY deposits — Term Finance | 1.50% over 1-Year KIBOR |
| Above Rs 5 million — Running Finance | 1.50% over 3-Month KIBOR |
| Above Rs 5 million — Term Finance | 1.25% over 1-Year KIBOR |
In plain terms: the smaller your loan (up to Rs 5 million) and the more directly it's secured against your own bank deposit rather than government securities, the higher the spread you pay over the reference rate — but larger loans (above Rs 5 million) actually get a lower spread, since the bank is taking on relatively less risk per rupee lent at that scale. "Running Finance" (an overdraft-style revolving facility) consistently costs more than "Term Finance" (a fixed-schedule loan) at every tier.
Markup structure is publicly documented but wasn't yet on this page — added here from Bank AL Habib's own published Cash Finance pricing methodology. Confirm the exact current reference rate (your deposit's declared profit rate, or the latest 3-Month/1-Year KIBOR) with your branch before relying on this for a specific quote, since KIBOR moves periodically.
Personal Finance Facility — Fees
| Detail | Charge |
|---|---|
| Processing Fee | Rs 3,000 |
| Prepayment | Nil |
| Partial Prepayment Fee/Charges | Nil |
| Late Payment Charges | Rs 1,400 per late installment |
| Litigation / Legal Charges | At actual |
| Legal Documentation / Agreement Stamping | At actual |
Eligibility, minimum income, and maximum loan amount for the Personal Finance Facility specifically are not published in the bank's fee schedule or its general web pages the way Cash Finance's terms are — this is a genuine gap in what's publicly available. If you need those specifics, ask your relationship branch directly rather than assuming they mirror Cash Finance.
Fee figures from Bank AL Habib's official Schedule of Bank Charges, effective July 1 – December 31, 2026.
Free early repayment
Both products carry no prepayment or partial-prepayment charge — you can pay off early without a penalty.
Late payment scales with time
Cash Finance's late-payment charge increases the longer the account stays overdue — Rs 500 in year one rising to Rs 1,000 past three years.
Documentation costs are variable
Legal and stamp duty charges on both products are billed "at actual," meaning the real cost of documentation, not a fixed published amount.
Ready to explore Bank AL Habib Personal & Cash Finance Guide?
Verify current rates, terms, and eligibility directly with Bank AL Habib before applying — this page is independent, sourced, and kept current, but the bank's own site is the final word on live terms.
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