Are you looking to buy a new car in UAE but don’t have the funds to pay for it upfront? Car loans can be the solution to your problem. In this blog, we will take you through all that you need to know about the best car loans in UAE. We’ll discuss the benefits of taking car loans, factors to consider before choosing one, and some of the most popular car loans available in UAE from ADCB, ADIB, Emirates NBD, FAB, Mashreq, RAKBANK, Emirates Islamic, and HSBC. We’ll also go over key features of car loans, such as interest rates and repayment options, and eligibility criteria and documents required for applying for them. With this information at hand, along with a little research on your part, you can easily make an informed decision about which car loan is right for you.
How to Apply for Car Loans in UAE?
Calculating the budget and interest rate is crucial when applying for car loans in UAE. It helps you determine how much you can afford to borrow and how much your monthly payments will be. To calculate your monthly payments, multiply the loan amount by the interest rate and divide that amount by the loan term.
Additionally, gather all necessary documents like salary certificates, bank account statements, and Emirates ID before submitting your application online or at a bank branch. Once approved, you can finally get behind the wheel of your dream car.
Benefits of Taking Car Loans in UAE
Taking a car loan in UAE can have several benefits for individuals looking to purchase a vehicle. One major advantage is that it allows individuals to spread the cost of the car over a longer period of time, making it more affordable and manageable.
Additionally, many banks in the UAE offer competitive interest rates on car loans, which can save borrowers money in the long run. Another benefit is that a car loan can help build a credit history, as timely payments can improve credit scores.
Finally, some car loans come with added perks, such as insurance company coverage or free servicing, which can save borrowers even more money. Overall, a car loan in UAE can be a smart financial decision for those who need to purchase a vehicle but want to do so affordably and responsibly.
Factors to Consider Before Choosing a Car Loan
Before choosing a car loan, consider the following factors:
- Interest rates: Compare interest rates from different lenders and choose the one that offers the lowest rate.
- Loan term: Choose a loan term that suits your budget and financial goals. Longer terms may result in lower monthly payments but higher overall interest costs.
- Down payment: Consider making a larger down payment to reduce the amount of the loan and lower your monthly payments.
- Credit score: Your credit score will affect the interest rate you receive, so check your credit score before applying for a loan.
- Fees and charges: Be aware of any fees and charges associated with the loan, such as application fees, prepayment penalties, and late payment fees. Ensure you understand all the costs involved before signing on for a car loan.
8 Best Car Loans in UAE
1. ADCB Car Loan
ADCB Car Loan is a versatile and flexible financing option for those looking to purchase a car in the UAE. With competitive interest rates and repayment options, borrowers can choose from various loan amounts and periods that best suit their budget. Additionally, ADCB provides various benefits, such as free credit cards, insurance, and discounts on car services. To be eligible for the loan, borrowers must meet certain criteria, such as minimum income requirements and age restrictions.
2. ADIB Car Loan
When it comes to car loans in the UAE, ADIB Car Loan is a popular and reliable option. With competitive interest rates and flexible repayment options, this loan makes financing your car purchase more manageable. One unique feature of the ADIB Car Loan is its grace period of up to 60 days before the first installment is due, giving you some breathing room as you get used to your new financial commitment. Additionally, ADIB provides benefits such as free Takaful insurance and discounts on car maintenance services, making it an attractive choice for those looking for additional perks with their loan.
3. Emirates NBD Car Loan
Choosing the right car loan is essential to finance your dream car in the UAE. Emirates NBD Car Loan offers competitive interest rates and flexible repayment options, making it an attractive option to consider. Customers can opt for up to 60 months of repayment with fixed or variable interest rates. Moreover, additional benefits such as free car valuation, fast approval, and optional insurance coverage make this loan popular among borrowers. To apply for an Emirates NBD Car Loan, ensure you meet the eligibility criteria and have all required documents on hand.
4. First Abu Dhabi(FAB) Car Loan
The FAB car loan offers a range of benefits to its customers, making it a popular choice amongst UAE residents. With competitive interest rates and flexible repayment options, the loan amount can cover up to 80% of the car’s value. Customers can apply for pre-approved loans for new, used, or even imported cars online or at any FAB branch in the UAE. In addition, FAB offers additional benefits such as free road assistance, discounts on auto insurance, and free credit card issuance to its car loan customers.
5. Mashreq Car Loan
If you’re looking for flexibility in your car loan, Mashreq Bank’s car loan might be the perfect solution. With competitive interest rates and flexible repayment options, Mashreq Bank offers up to 80% financing for new cars and up to 60% for used cars. With a range of loan tenures available, from as little as 12 months to as long as 60 months, Mashreq Bank’s car loan makes it easy to find the right repayment plan for your needs. Plus, with additional features like pre-approved car loans and top-up loans, getting behind the wheel has never been easier.
6. RAKBANK Car Loan
The RAKBANK Car Loan offers competitive interest rates and flexible repayment options, making it attractive for customers looking to finance their car purchases. With a loan amount of up to AED 1.5 million and repayment periods ranging from 12 to 60 months, applicants can choose a plan that suits their budget and needs. Additionally, the loan comes with optional insurance coverage for added protection and peace of mind. Applying for the loan is easy and can be done online or at any RAKBANK branch in the UAE, with simple eligibility criteria that make it accessible to many potential borrowers.
7. Emirates Islamic Car Loan
When it comes to car loans, Emirates Islamic Bank offers flexible financing options with competitive interest rates. Whether you want to purchase a new or used car, the bank provides up to 80% financing based on the car’s value. Additionally, customers can choose between conventional or Shariah-compliant financing options to suit their individual preferences. To provide added peace of mind, Emirates Islamic also offers a free Takaful cover for the duration of the loan. With these features and more, the Emirates Islamic Car Loan is an attractive option for those looking to finance their vehicle purchase.
8. HSBC Car Loan
HSBC Car Loan offers flexible repayment options, competitive interest rates, and a pre-approved loan feature for convenience. Customers can apply for up to 100% financing based on the car’s value and choose from repayment periods ranging from 12 to 60 months. The loan is available for both new and used cars, making it a versatile option for those in the market for a vehicle. Additionally, HSBC requires only basic documentation, such as proof of income, residence, and identity, to apply for the loan.
Eligibility Criteria for Car Loans in UAE
If you’re considering taking out a car loan in the UAE, it’s important to be aware of the eligibility criteria. To qualify for a car loan, you must be between the ages of 21 and 65 and have a minimum monthly income of AED 10,000. Additionally, you must meet any other requirements set by the lender, such as having a certain credit score or providing proof of employment. It’s important to carefully review the eligibility criteria before applying for a car loan to ensure you meet all the requirements. This can help increase your chances of being approved for the loan and avoid potential disappointment or financial strain.
Documents Required for Car Loans in UAE
When applying for a car loan, there are several documents that you will need to provide to the lender. These documents typically include your passport and Emirates ID, proof of identification and residency in the UAE.
You will also need to provide a salary certificate from your employer and a labour card if applicable. Additionally, lenders will require a valid driver’s license and insurance policy documents for the car you plan to purchase.
To assess your financial eligibility for the loan, you will need to provide bank statements for the last 3 to 6 months. Finally, some lenders may also require a valuation certificate for the car. Ensure all these documents are ready when applying for a car loan to ensure a smooth and efficient process.
Getting a car loan can be a smart financial move for many people in the UAE. Knowing which car loan is right for you can be difficult with so many options available. By doing your research and comparing different offers, you can find the best car loan that meets your needs and budget. Whether you’re looking for competitive interest rates or flexible repayment terms, a car loan out there will work for you. If you’re interested in learning more about the best car loans in the UAE, be sure to check out our other blogs on this topic for more information.