Best Car Loan Plan in UAE 

December 28, 2022 Life Style, Loan Comments Off on Best Car Loan Plan in UAE 

best car loan plan in UAE - Emirates Loan

In all countries, the banking system is digitalized in this age, the banks are providing all types of loans with manageable installments. The banking system is flourished day by day because of the customers and also because of the easy plans of banks. In the past, it was difficult to obtain loans without any property. But now clients can obtain loans without anything. The UAE has a large number of banks that are working here for the citizens. They are working to facilitate the clients, and in the same way, they also working to extend their business. 

In the UAE, banks are delivering all types of loans and facilitating with different packages that are easy to achieve. These banks also give car loans to all citizens and migrated people. Almost all banks are providing the best car loan plan in UAE. Some banks are providing loans for long tenure and low-interest rates and some are providing for a short tenure. These banks are also providing personal loans, and home loans and give different packages for these loans. Cars are necessary for life in this busy era, different vehicles are here but the car is famous in all countries. Motorbikes are also famous because of their low expenses, but cars are safe in summer and winter. The car is useful for a family also, one vehicle is best for all and a motorbike is only for 1 or 2 people. So, most people refer to cars for convenience. Because of this, almost all banks are providing car loans with easy packages. 

Banks Strategies 

The UAE is providing all facilities to the migrated people also, therefore banks planned their strategies for all. Some banks are providing all types of loans and some are providing only personal and car loans. Car loan requirements are not so much, just need an Emirates ID and a certificate from the workplace will be needed. Sometimes you need 3 months’ bank statements if you are applying for a car loan from another bank and your account is in another bank. If, you are applying for a loan from the same bank then no need for a bank statement. Some banks are providing car financing only to their permanent clients. In every situation, car financing is an easy task in UAE.   

Best banks for a car loan plan in UAE 

Many banks are working in UAE and providing facilities to their customers. Some banks are providing car loans at low-interest rates and some at high-interest rates. Some are providing loans only to their permanent clients and others are providing for all. ADCB, DIB, FAB, Emirates NBD, and Mashriq Bank are top listed for car loans. Interest rates and installment packages differ from each other but all are providing best car loan plan in UAE to their clients. Almost all banks are providing insurance plans also and installments start after the car delivery. Some banks start installments after three months. 

The following are the leading auto loan providers in the UAE, along with their respective interest rates and loan highlights: 

Car Loan from ADCB Bank 

  • Car Loan Interest Rates: Fixed 1.99 percent per annum and lowering 3.65 percent per annum 
  • Maximum Repayment Tenure: 60 months 
  • Minimum Salary Required: AED 5000 
  • Finance to Down Payment Percentage: 80 percent -20 percent 
  • Additional Benefits: 50 Touchpoints earned for every AED 1000 loan amount 

Car Loan from ADIB Bank 

  • AED 500,000 is the maximum amount you can borrow for a car loan. 
  • Fixed 2.75 percent – 4.49 percent p.a. and Reducing 4.75 percent – 8.25 percent p.a. Car Loan Interest Rates: Fixed 2.75 percent – 4.49 percent p.a. and Reducing 4.75 percent – 8.25 percent p.a. 
  • AED 5000 is the minimum salary need. 
  • Additional Benefits: One-year instalment deferment and a 90-day grace period for the first instalment. 
  • Finance to Down Payment Ratio: 80% – 20% 

Car Loan from Emirates NBD 

  • AED 500,000 is the maximum amount you can borrow for a car loan. 
  • Fixed 1.99 percent p.a. car loan interest rates 
  • Maximum Repayment Tenure: 60 months 
  • Required Minimum Salary: AED 4000 to AED 15000 (case basis) 
  • Additional Advantages: A free credit card is available. 
  • Finance to Down Payment Ratio: 80 percent to 20% for individual loans, 75 percent to 25% for sports cars, 90 percent to 10% for businesses 

First Abu Dhabi Bank (FAB) Car Loan 

  • Maximum Car Loan Amount: AED 1.5 million from First Abu Dhabi Bank (FAB) 
  • Fixed 1.99 percent p.a. for UAE nationals and 2.15 percent p.a. for ex-pats on car loans (salaried employees). For self-employed people, the rate is 2.99 percent p.a. unchanged and 5.62 percent p.a. decreasing. 
  • Maximum Term of Repayment: 60 Months 
  • Minimum Salary: AED 8000 for salaried employees and AED 25,000 for self-employed individuals 
  • Finance to Down Payment Ratio: 80% – 20% 

Mashreq Bank Car Loan 

  • Maximum Car Loan Amount: AED 500,000 
  • Car Loan Interest Rates: 3.45 percent per annum fixed rate and 6.31 percent per annum decreasing rate 
  • Maximum Repayment Tenure: 60 months 
  • Minimum Salary Required: AED 5000 
  • Finance to Down Payment Ratio: 80% – 20% 
  • Additional Benefit: Free credit card for life 

RAKBANK Automobile Loan 

  • Minimum Salary Required: AED 5000 
  • Car Loan Interest Rates: 1.99 percent p.a. flat rate for salaried candidates 
  • Maximum Repayment Tenure: 60 months 
  • Finance to Down Payment Ratio: 80% – 20% 
  • Car Loan from the Emirates Islamic Bank 
  • Car Loan Interest Rates: 1.80% p.a. fixed rate and 2.95 p.a. decreasing rate 
  • Maximum Repayment Tenure: 60 months 
  • Minimum Salary Required: AED 8000 
  • Finance to Down Payment Ratio: 80% – 20% 
  • Additional Benefit: Free Emirates Islamic current account 

Car Loan from HSBC 

  • Additional Benefit: 0.15 percent discount on flat interest rates for hybrid vehicles and 0.25 percent discount on flat interest rates for full electric vehicles 
  • Maximum Car Loan Amount: AED 600,000 
  • Minimum Salary Required: AED 10,000 
  • Additional Benefit: 0.15 percent discount on flat interest rates for hybrid vehicles and 0.25 percent discount on flat interest rates for full electric vehicles 
  • Flat-rate car loan interest rates starting at 1.99 percent p.a. 
  • Special flat interest rate of 1.74 percent for TESLA 
  • Lower monthly EMIs with easy Balloon repayment options 

Car loans interests rates 

All banks are providing car loans at interests-rate, here is a list of some bank interest rates. 

  • ADCB car loan:                        flat:2.75% to 5% 
  • Emirates NBD car loan:          flat:2% to   3% 
  • DIB car loan:                             flat: 1.25 
  • FAB car loan:                             flat:1.99% to2.99% 
  • Mashriq car loan:                     flat:3.45% to 4% 

Other banks are also providing car loans at different percentages. Some starts installments with the delivery of the car and others starts from the 3rd month.   

Riba-free financing 

Riba is an Islamic term, it means interest, and some banks provide riba-free financing. DIB is the top list bank for this term and also provides low takaful rates. Takaful is also an Islamic term that means Islamic insurance. This bank is providing a Mashariqa facility to their clients, according to this facility bank and the client both are conceder owners of the car. On the other hand, you cannot be the owner of the car at the end of the installment in other banks.  

Online car loans 

All banking systems are digitalized nowadays and provide online banking. Car financing is also provided online services now, just visit your favorite bank’s website and collect all information. So, all banks provide this facility to the clients, and all the facilities are the same for online clients. You can visit the website, fill out the given form and then click on apply button. Your application will be submitted, the bank will contact you in the coming 2, or 3 days.   

Old and new cars 

All banks are giving old and new car loans, and installments are according to the car model. In UAE you can apply only for 8-year-old cars maximum, more than 8 years will be not accepted here. You can purchase cars with emirates loans also and it can be cheaper from the showroom. But banks will charge extra for this type of loan. The main reason is, banks are interlinked with the showrooms they get benefits from banks. So, when you apply for a loan without any showroom they will be charged their fee.   

Income-clubbing option 

The UAE provides the income-clubbing option to clients, which is beneficial for all citizens. According to this, two people can apply for a car loan. Both can pay installments and considered owners. They can use a car everywhere in UAE, which is helpful for employees. Tenure will be also according to the salary and car model. Emirates loan will support you in this case also and you can easily rely on this firm. 

Eligibility 

Eligibility criteria are the same almost in all banks. 

  • First of all, you need Emirates ID, no matter, if you are residential or migrated, in both cases ID is a must. 
  • If you are migrated then visa and passport copies are also required. 
  • You need 3 to 6 months old bank statements. 
  • If you have another partner to obtain a loan for a car then it will require Emirates ID for both. 
  • For employee job certificate is required. 
  • Businessmen required six months old business experience letter new businessmen cannot be encouraged. 
  • You can apply online with some specific information from your existing bank account. 
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