Picture yourself driving down the roads of Dubai or Abu Dhabi in a new car, with Dubai’s sparkling skyline all around you. Owning a car in the UAE isn’t just about transportation; it’s about enjoying convenience, freedom, and adventure. Whether you live here or are an expat, getting your dream car is easier thanks to the many car loan options available from UAE banks. In today’s blog, you will learn everything about the best car loan in UAE, 2024, what to look for and how to apply for a car loan in UAE.
What is a Car Loan in UAE?
In the UAE, car loans are a popular way for residents and expats to easily buy new or used cars. Many banks offer these loans with good interest rates and flexible repayment plans. Knowing the different options of the best car loan in UAE and their terms can help you choose the best one.
Benefits of a Car Loan in UAE:
1. Easy Purchasing Procedure: Banks in the UAE can provide money up to 80% of your car’s value. They also offer quick approvals and require minimal documentation.
2. Lesser Financial Burden: Financing your car instead of paying a lump sum reduces financial strain. The cost is spread over several years, and competitive interest rates keep the interest low. This way, you get your car immediately, pay for it over time, and keep your savings intact for emergencies.
3. Flexible Tenures: Most car loan providers in Dubai offer flexible repayment terms of up to 5 years. You can select the tenure that best suits your financial situation.
4. Financing of Second-Hand Cars: Many banks offer loans for used cars, with competitive interest rates similar to those for new cars, reflecting the popularity of second-hand vehicles in the UAE.
5. No-Collateral Loans: Car loans in Dubai often require no additional collateral. The car is collateral, so you don’t need to put any other assets at risk.
6. Options for Type of Interest Rate: Car loans in the UAE can come with fixed or floating interest rates, giving you the flexibility to choose based on your preferences.
7. Improve Credit Score: Taking a car loan can diversify your credit portfolio and improve your credit score, especially if you make all your payments on time.
How to Get Car Loan in UAE?
Getting a car loan in the UAE is simple if you follow these steps:
1. Research and Compare
- Interest Rates: Compare rates from different banks to find the best deal.
- Loan Terms: Look for flexible repayment options.
- Additional Fees: Check for any hidden charges or processing fees.
2. Check Eligibility
- Age Requirement: You need to be between 21 and 65 years old.
- Salary Requirement: Banks typically require a minimum monthly salary between AED 5,000 and AED 15,000.
- Employment Status: You should have a stable job with a confirmed employment contract.
3. Gather Necessary Documents
- ID Proof: Emirates ID and passport with visa page.
- Income Proof: Salary slips, bank statements, and an employment certificate.
- Car Details: Proforma invoice from the car dealer.
- Insurance: Some banks may require proof of car insurance.
4. Submit the Application
- Online Application: Many banks offer online application facilities.
- In-Person Application: You can also visit the bank branch to submit your documents and application form.
5. Approval and Disbursement
- Approval Time: The approval process can take a few hours or days.
- Disbursement: Once approved, the car dealer pays the loan amount directly.
Top Banks Offering Car Loan in UAE:
Mentioned below are some of the top banks that are offering car loan in UAE with competitive interest rates and many benefits:
ADCB Car Loan:
Features:
- Interest rate: 1.99% flat p.a. (3.65% reducing for 12 months)
- Finance up to 80% of car value
- Up to AED 1.5 million finance amount
- Repayment tenure up to 60 months
- Quick approvals, simple documentation
Eligibility:
- Subject to bank approval.
Required Documents:
- Completed application form
- Valid passport, visa, Emirates ID, driving license
- Salary certificate (for salaried individuals)
- Trade license and bank statements (for self-employed)
- Quotation from the dealer
How to apply?
- Visit this page, scroll down and click “Apply Now”.
- Enter your basic information, such as the customer ID number if you are already a customer with the bank, your salutation, your full name, mobile number, email address, and your country.
- Click “Next”.
- Select your DOB, emirates of residence, and employment type and click “Submit”.
- The respective authorities will get in touch with you after they have received your details.
ADIB Car Finance:
Features:
- Profit rate: Starting from 1.99% p.a.
- Finance up to AED 1 million for UAE nationals, AED 500k for expats with salary transfer.
- Flexible repayment terms up to 60 months.
- Up to 210 days installment holiday.
- Low contribution and high coverage with ADIB motor Takaful protection
Eligibility:
- Minimum salary: AED 5,000.
- Age: 21-65 for UAE nationals, 21-60 for expats.
Required Documents:
- Valid passport, Emirates ID, and driving license.
- Car quotation, salary certificate, bank statements (3 months if not ADIB customer).
How to apply?
- Visit this URL.
- Scroll down and click on “Apply Now”.
- Fill in the form that will be given to you. It will ask you about the car you want, its price, downpayment, finance period, city, and car type. After you give all the information, it will calculate the monthly instalment amount you may need to pay once the loan is approved.
- If you are an existing ADIB customer, enter your account number and click “Continue”.
- Enter your name, mobile, email, employer name, monthly salary and IBAN.
- Read and agree to the terms and conditions on the screen and click “Continue”.
- The respective authorities will get in touch with you after they have received your details.
RAKislamic Auto Finance:
Features:
- Profit Rates: Starting from 2.89% flat rate per annum.
- Up to AED 1,000,000 as finance amount
- Tenure up to 60 months as payment options
- Quick and easy processing.
- 1% – 1.5%. Processing feed only
Eligibility:
- Age: 18 years and above
- Should be a UAE national and expat residents
- Salaried individuals: a minimum salary of AED 5,000
- Self-employed individuals: a minimum monthly turnover of AED 150,000
Required Documents:
- Valid ID, passport, Emirates ID, and driving license.
- Car quotation.
- Salary certificate and bank statements.
How to apply?
- Visit this URL.
- Click on “Apply Now” on the screen.
- Click on “call me back”.
- Enter your name, mobile, email address and monthly salary.
- Click “Submit”.
- The respective authorities will get in touch with you after they have received your details.
Emirates Islamic Bank- Green Auto Finance:
Features:
- Profit rates start at 2.49% for UAE Nationals and 2.65% for expatriates for new cars.
- Up to 5 years flexible payment period with a 60-day grace period.
- Quick approval and minimal documentation.
- Shariah-compliant Murabaha structure.
- Salary transfer is not mandatory.
Eligibility:
- UAE nationals and residents.
Documents Required:
- Salary certificate
- Bank statements(3 months)
- Valid passport with UAE residence visa,
- Security cheque
- Vehicle insurance
- Vehicle quotation
How to apply?
- Visit this URL.
- Click on “Apply Now” on the screen.
- To register your interest, specify whether you want to buy a new car or an old car and what time you prefer to be contacted. Once done specifying, click “Next.
- Enter your first and last name, mobile number, email address, emirate, company name and monthly salary.
- Agree to the terms and conditions and click “Submit”.
- The respective authorities will get in touch with you after they have received your details.
Mashreq CashIn Car Loan:
Features:
- Interest rate Starting from 3.19% flat p.a.
- Finance amount Up to AED 500,000.
- Get repayment tenure of up to 60 months.
- Simple and fast processing.
Eligibility:
- Minimum monthly salary: AED 7,000.
- It is not compulsory to be employed at an approved for loan eligibility
- Should be a “confirmed” employed or should be in the service for 6 months or more at the current company
Required Documents:
- Valid ID, passport, Emirates ID
How to apply?
- Sign in to the website; register yourself if you don’t have an account.
- Once you sign in, click “Apply now”.
- Please fill in your basic information, such as name, mobile number, and email address, and upload your Emirates ID.
- Choose your desired car and get quick loan approval.
Factors Responsible For Car Loan Interest Rates in the UAE:
Here are the key factors affecting car loan interest rates in the UAE:
Income Level
- Debt-to-Income Ratio: Higher ratios can lead to lower interest rates, while lower ratios may increase rates.
Credit History
- Credit Score: Good credit scores result in lower rates; poor scores can lead to higher rates or loan rejection.
Loan Tenure
- Duration of Loan: Shorter tenures usually have lower interest rates, while longer tenures tend to have higher rates.
Model and Age of the Car
- Car as Collateral: Newer and higher-value cars can get better loan terms since the car is collateral.
Important Things to Keep in Mind Before Applying for a Car Loan in UAE:
Before applying for a car loan, consider these key points:
Eligibility Requirements
- Age and Salary: Ensure you meet the age requirement (usually 21 and older) and check the specific salary requirements of different banks.
- Documents: Gather necessary documents like Emirates ID, passport, salary slips, and bank statements.
Loan Tenure
- Maximum Tenure: Check the maximum loan tenure available.
- Interest Calculation: Calculate the total interest over different tenures to find a balance between manageable monthly payments and total interest costs.
Comparison of Interest Rates
- Multiple Banks: Compare interest rates from several banks.
- Shortlist Options: Narrow down a few loan products and compare their rates based on your salary, credit score, and the car’s model and age.
Repayments
- Timely Payments: Ensure you can make timely payments to avoid repossessing your car.
- Repayment Schedule: Keep track of repayment dates and amounts.
Final Takeaway:
So that was all about the best car loan in UAE, 2024. Getting a car loan in UAE is easy if you know what to do. Compare interest rates, check eligibility requirements, and have your documents ready to find the best loan. You can find the right car loan if you prefer Emirates NBD for quick approval or Abu Dhabi Commercial Bank.
For more details, visit the banks’ official websites or talk to their representatives. This will give you the most accurate and current information about car loans in the UAE.Are you looking for used car loans in the UAE? Well, look no further. Here is our guide on how to get a used car loan in the UAE without any complications.
