Vehicle / Auto / Car Basics



How a Vehicle Loan Is Helpful to you?

A car loan is money given to you in order to purchase a car. You can use that money to purchase a new or a used car. In either case the car is held as collateral and you have the ability to pay back your loan in monthly installments over a period of time that can be as long as five years.

Almost every back offers benefits with these loans that include car accessories, working out subsidized prices with the manufacturer, insurer, and dealer. Be sure when getting a vehicle loan to negotiate a good for yourself and get providers to compete for your business.

Eligibilty Criteria & Documentation



Eligibility for Car Loans in UAE

For those wanting a Dubai car loan, they have to be eligible first. You are only eligible to get a vehicle loan if:

You are of a certain age, make a certain amount of money a year, and are steadily employed.

The minimum age limit to apply for a car loan is 21 years of age whether you are self-employed or a salaried individual.

The maximum is different though. You can apply for a car loan if you are up to 60 years of age when the loan reaches maturity if you are a salaried employee, and if you are self-employed you have until you are 65 years of age instead.

You must also have a minimum income depending on the model AED 5000 to AED 6000 per annum for select models, and AED 6000 for others.

You must also be employed. You should have been employed for more than two years, and your current employment is over a year if you are a salaried individual.

For self-employed individuals business stability should be over three years

Documentations Required for Car Loans in UAE

Even if you are eligible for car loans in UAE, you still must present certain documents to express your proof of residency, age, and employment. Without the right documents you cannot get approved for a car loan by any lender.

You should provide them with your latest salary slips, and the Form 16 of the last two years.

If you are self-employed you should present the Income Tax Returns of the last two financial years.

Partnership firms, societies, and companies must also present them with Income tax returns of the last two years and a complete financial report.

Other documents that you must always present include Identification, proof of signature, and proof of address.

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Featured Products


Bank
Offered forProfit/InterestMin. Salary AEDMax. Amount AEDUpfront FeeKey FeaturesRating

New Car 4.25% Interest 5000 500000 1.00% ADCB New Car Loan offers
50 Touch Points will be earned for every AED 1000 of loan amount;
Free for Privilege Club & Excellency Clients

Used Car 5.25% Interest 5000 500000 1.00% ADCB Used Car Loan offers
50 Touch Points will be earned for every AED 1000 of loan amount;
Free for Privilege Club & Excellency Clients

New Car 3.99% Interest 5000 750000 1.00% ADIB New Car Finance offers
Finance repayment period up to 60 months

New Car 3.99% Interest 5000 750000 1.00% ADIB New Car Finance offers
Max age of cars including Finance period is 8 years

New Car 3.99% Interest 10000 250000 1.00% Arab Bank PLC New Auto Loan offers
1% early settlement fee;
loan repayment period of up to 48 months;
arrangement fee of 1%

Used Car 4.25% Interest 10000 150000 1.00% Arab Bank PLC New Auto Loan offers
1% early settlement fee;
loan repayment period of up to 48 months;
arrangement fee of 1%

New Car 8.00% Interest 10000 500000 1.00% CBD New Tam-Wheel offers
Interest rate is calculated at a reducing balance

Used Car 10.00% Interest 10000 500000 1.00% CBD Used Tam-Wheel offers
Interest rate is calculated at a reducing balance

New Car 4.75% Interest 5000 Unlimited 1.00% Dubai Bank New Auto Finance offers
Approval in 48 hours from application;
No early settlement fee;
unlimited finance amount

Used Car 5.00% Interest 5000 Unlimited 1.00% Dubai Bank Used Auto Finance offers
Approval in 48 hours from application;
No early settlement fee;
unlimited finance amount

New Car 3.99% Profit 3000 250000 1.00% DIB Al Islam New Auto Finance offers
Finance repayment period of up to 72 months;
If salary is not transferred then a minimum salary of AED6000 is required

Used Car 5.00% Profit 3000 250000 1.00% DIB Al Islam New Auto Finance offers
Finance repayment period of up to 72 months;
If salary is not transferred then a minimum salary of AED6000 is required

New Car 3.99% Profit 3000 250000 1.00% DIB Johara New Auto Finance offers
This finance is available for Ladies only;
If salary is not transferred than a minimum salary of AED6000 is required;
Special profit rates on new and used vehicles;
No minimum age on driving license;
No restriction on drivers age;
Car registration renewal service;
Special rate on insurance from SALAMA;
Free RAC in case of breakdown;
Special rates on film coating from Auto Guard

Used Car 5.00% Profit 3000 250000 1.00% DIB Johara New Auto Finance offers
This finance is available for Ladies only;
If salary is not transferred than a minimum salary of AED6000 is required;
Special profit rates on new and used vehicles;
No minimum age on driving license;
No restriction on drivers age;
Car registration renewal service;
Special rate on insurance from SALAMA;
Free RAC in case of breakdown;
Special rates on film coating from Auto Guard

New Car 19.00% Profit 3500 75000 2.50% Dunia Money Car Cash In offers
Fast processing;
loan repayment of up to 60 months;
5% early settlement fee;
2.5% arrangement fee

New Car 13.00% Profit 7000 75000 2.50% Dunia Finance Dunia Car Cash In offers
Fast processing;
loan repayment of up to 60 months;
5% early settlement fee;
2.5% arrangement fee

New Car 13.00% Profit 7000 75000 2.50% Dunia Finance Dunia New Car Loan offers
Wide dealership network;
Repayment period up to 5 years

Used Car 13.00% Profit 7000 75000 2.50% Dunia Finance Dunia Car Loan offers
Offer is applicable on Used Cards purchased through certain car dealers

New Car 3.99% Profit 5000 250000 2.50% Emirates Islamic Bank Intaleq Finance for Expats offers
Free EIB Account;
Pre-approved Credit Card;
Salary transferring customers will not pay any Upfront fees

New Car 3.99% Profit 5000 500000 2.50% Emirates Islamic Bank Intaleq Finance for UAE National offers
Free EIB Account;
Pre-approved Credit Card;
Salary transferring customers will not pay any Upfront fees

Used Car 4.99% Profit 5000 250000 2.50% Emirates Islamic Bank Intaleq Used Car Finance offers
Free EIB Account;
Pre-approved Credit Card;
Salary transferring customers will not pay any Upfront fees

New Car 4.50% Profit 18000 250000 2.50% Emirates NBD FD New Auto Loan offers
Includes a pre - approved Emirates NBD Skywards Card;
loan repayment of up to 72 months;
arrange fee fixed at AED 500

Used Car 5.25% Profit 5000 250000 2.50% Emirates NBD FD Used Auto Loan offers
Includes a pre - approved Emirates NBD Skywards Card;
loan repayment of up to 72 months;

New Car 4.50% Profit 5000 250000 500 AED Emirates NBD New Staggered Installment Plan offers
Ability to start with lower installments in the initial period of the loan and then gradually increase the installments in the latter parts of the tenor

Used Car 5.25% Profit 5000 250000 1% Emirates NBD Used Staggered Installment Plan offers
Ability to start with lower installments in the initial period of the loan and then gradually increase the installments in the latter parts of the tenor

New Car 4.50% Profit 5000 250000 500 AED Emirates NBD Packed New Auto Loan offers
Complimentary Salik Card (with AED 50 loaded);
Free Annual Registration renewal;
Roadside Assistance;
Free Credit Card for the first year;
Free Bank Account

Used Car 5.25% Profit 5000 250000 1% Emirates NBD Packed Used Auto Loan offers
Complimentary Salik Card (with AED 50 loaded);
Free Annual Registration renewal;
Roadside Assistance;
Free Credit Card for the first year;
Free Bank Account

New Car 3.99% Interest 10000 400000 1% First Gulf Bank First New Auto offers
Loan repayment period is up to 60 months. Salary should be transferred for three consecutive months and be a confirmed employee

Used Car 3.99% Interest 10000 300000 1% First Gulf Bank First Used Auto offers
Loan repayment period is up to 60 months. Salary should be transferred for three consecutive months and be a confirmed employee

New Car 4.75% Interest 7500 250000 1% HSBC New Car Loan offers
Premier customers can get up to AED500000 car loan amount and an interest rate of 4.25%;
Advance customers get an interest rate of 4.50%;
Preferential rates on V-KOOL window tinting

Used Car 5.50% Interest 7500 250000 1% HSBC Used Car Loan offers
Preferential rates on V-KOOL window tinting

New Car 13.00% Profit 7500 250000 400 AED HSBC Vehicle Finance offers
HSBC Amanah Current Account - with waived minimum balance for the duration of the finance;
Advance customers get a discount of 0.25% on the profit rate;

New Car 4.75% Interest 5000 500000 1% Mashreq New Car Loan offers
Early settlement fee of 1%;
maximum loan amount of AED 500000;
finance repayment period of up to 48 months

Used Car 4.99% Interest 5000 500000 1% Mashreq Used Car Loan offers
Early settlement fee of 1%;
maximum loan amount of AED 500000;
finance repayment period of up to 48 months

New Car 4.50% Interest 7000 350000 0.5% NBAD New Motari offers
Customers not transferring a salary should have a minimum monthly salary of AED10000

Used Car 4.75% Interest 7000 350000 0.5% NBAD Used Motari offers
Customers not transferring a salary should have a minimum monthly salary of AED10000

New Car 5.25% Profit 5000 400000 1% Noor Islamic Bank New Auto Finance offers
Early settlement fee of 1%;
maximum finance amount of AED 400000;
finance repayment period of up to 60 months

Used Car 3.99% Profit 5000 400000 1% Noor Islamic Bank Used Auto Finance offers
Early settlement fee of 1%;
maximum finance amount of AED 400000;
finance repayment period of up to 60 months

New Car 5.00% Interest 5000 250000 1.5% RakBank New RAKauto Loan offers
Free RAKBANK Credit Card;
Option to defer up to 10 installments;
Insurance finance;
Rust proofing finance;
Finance service and maintenance contracts

Used Car 6.50% Interest 5000 250000 1.5% RakBank Used RAKauto Loan offers
Free RAKBANK Credit Card;
Option to defer up to 10 installments;
Insurance finance;
Rust proofing finance;
Finance service and maintenance contracts

New Car 16.00% Profit 5000 390000 1% Standard Chartered Saadiq New Auto Finance offers
1% early settlement fee;
loan repayment period of up to 48 months;
arrangement fee of 1%

Used Car 16.00% Profit 8000 250000 1% Standard Chartered Saadiq Used Auto Finance offers
1% early settlement fee;
loan repayment period of up to 48 months;
arrangement fee of 1%

New Car 4.50% Interest 5000 390000 1% Standard Chartered New Auto Loan offers
1% early settlement fee;
loan repayment period of up to 48 months;
arrangement fee of 1%

Used Car 5.50% Interest 8000 250000 1% Standard Chartered Used Auto Loan offers
1% early settlement fee;
loan repayment period of up to 48 months;
arrangement fee of 1%

New Car 5.00% Profit 12000 250000 1% Sharjah Islamic Bank New Car Finance offers
Flexible repayment period of up to 60 months

Used Car 5.75% Profit 12000 250000 1% Sharjah Islamic Bank Used Car Finance offers
Flexible repayment period of up to 60 months
Interest Rates & Fees



Interest rates and Fees

When taking out car loans in UAE remember that there are three different types of vehicle loan rates in UAE.

Interest Rates

The fixed interest rate means that throughout the time that you pay back your loan the interest rates do not change. These rates vary from bank to bank, and you should compare them to find the best rates available to you. Variable interest rates on the other hand do not remain fixed, and they continue to change throughout the time you pay off your loan. The terms and conditions of these interest rates are decided by an agreement between both you and the borrower as well.

Variations with Interest

Adjustable interest rates are ones where the lender requires you to pay a lower interest rate for a certain amount of time. After that time period is over the rate increases in accordance to the rate agreed upon by you and the lender. If you want to take out a car loan in Dubai be sure to visit different banks and find out the best deal you can get from them based off of the different vehicle loan rates in UAE they provide and how they compare to other banks near you.

Service Charges

There are a number of additional charges that you have to pay when taking out a vehicle loan. These are service charges and include processing fees, stamp duties, Charges for late monthly payments, bouncing a check charges, statement of account charges, and a charge on issuance of credit report. It is possible that even more charges be placed depending on your bank, and the situation.

Tips & Tricks



Tips & Tricks

Tips & Tricks

 

When to Apply for a Vehicle Loan

You should consider a few things when you want to avail for a car loan. Remember that interest rates are a crucial factor. In Dubai the interest rate can vary between 8% -16%. Do a proper study and realize how much you will actually be paying a month, and try to get the best deal you can.

How to get the best deal

Make sure you have a good credit history as well. If you have bad credit then you may not be eligible to get a loan, and even if you are eligible the interest rates may be much higher than for someone with good credit. Study the market as well before applying for a loan this will help you find the car that you are planning to purchase, and you can get more options that are suitable to your price range.

If you do have a bad credit history you may have to get a Guarantor. This is a third person who can assume liability in case you default in payment. This can be avoided for those that have a good credit history.

Credit History Matters

If you have a poor credit history, don’t have a stable job, or believe there are times when you won’t be able to make your monthly payments. Do not get a car loan. Although it may be beneficial to have a vehicle if you are unable to pay your debt it can have a negative effect on you and your credit.

Unless you have a guarantor that you are sure can make your payments when you default on your loan. You are liable for all of the charges placed against you.

Legal Action Taken for Avoiding Car Loan Payments

When you do not make car payments, you are at risk of ruining your credit and losing your vehicle. It depends on the bank, but usually after 2-3 months if they have not received any payments, and they are unable to contact you the lender will repossess your car. Not only do they take your car, but they will also ruin your credit.

You will constantly be indebted to them, and must pay all of the fees you owe the bank including the remainder of the original loan. This bad credit will also be on your credit for 7 years.

Legal action for any kind of loan default

Non-payment of a loan results in the bank depositing the security cheque provided by the borrower. A chq bounce is a criminal offence and one may end up being put in prison.