ADIB Car Loan in UAE

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ADIB Car Loan in UAE

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  • Hassle-free documentation
  • EMI Tenure up to 48 Months
  • Lowest Interest Rates

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Abu Dhabi Islamic Bank, widely known as ADIB, was incorporated in 1997 and is among the largest banks in the UAE and the 4th largest Islamic bank worldwide. In addition, listed and headquartered in Abu Dhabi, the ADIB bank has over a million satisfied customers and a colossal paid-up capital of over USD 34 billion. Further expanding on its products, the bank offers a wide range of Sharia-compliant financial products and services, including personal, business and corporate accounts, deposit schemes, investment, loans, and financing. Among a myriad of loans available in the market out there, ADIB car loan offer the lowest ever profit rates.

Furthermore, the bank provides car loans in UAE at affordable interest rates to help you acquire quick and convenient funds so that you can purchase your favourite car in no time. As a feather in its cap, the loan application and approval process are hassle-free with lenient criteria. So, are you looking out for an affordable car loan? Please read the article below to know various aspects of ADIB car loan in UAE and numerous ways of acquiring them, and that too hassle-free. Let's dive in!

Features and Benefits of ADIB Car Loan in UAE

Do you want to acquire quick funds to buy your most preferred car? If it's a yes, you are in luck because, with flexible tenures and low-profit rates, ADIB car loan are amongst the most affordable (Read cheapest) loans in the UAE. Additionally, you get a convenient loan application process to acquire funds without unwanted hassles. Now let's know the key features and benefits of ADIB car loans in UAE:

  • Low-Profit Rates - As mentioned before, ADIB car loans are among the most affordable loans in the UAE. In addition, the bank offers low-profit rates starting from as low as 1.99% based on a few criteria. Also, low-profit rates are one of the supreme benefits of ADIB car loan in UAE because low-profit rates help keep your overall loan cost right within your budget.
  • Higher Finance Amount - ADIB car loan in UAE offers a loan as high as AED 1 million for UAE nationals and AED 500,000 for ex-pats.
  • Flexible Loan Tenure - ADIB offers flexible loan tenure of up to 60 months. So, depending on your financial needs, you can plan the tenure of your car loans. In addition, you must note that a longer loan tenure incurs higher finance costs. However, you can receive low monthly EMIs for your car loan.
  • Finance up to 80% of Car Value - With ADIB, you can finance up to 80% of your car value. As per the Central Bank of UAE guidelines, it is the maximum amount you can acquire for financing a car in the UAE.
  • Convenient Loan Processing and Approvals - With a completely online loan application process, you can apply for loans with a few simple steps and bypass the gruelling documentation on paper. In addition, the process is not only convenient but also takes less approval time, a total win-win-win, right?.
  • Loans without Salary Transfer - To receive car loans from Abu Dhabi Islamic Bank, the good part is you don't need a salary account with the bank. However, if you have a salary account with ADIB, the bank offers higher loan amounts for financing your car. So, that's surely an added benefit.
  • Instalment Postponement - With Abu Dhabi Islamic Bank, you also get the option of Instalment postponement, wherein you can defer one yearly payment. This instalment postponement benefit further eases your financial management.
  • Attractive Motor Takaful - With ADIB car loan, you also get high motor takaful coverage at low contributions. Additionally, the bank offers competitive profit rates, including 60 minutes online policy issuance for your convenience.

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ADIB Car Loan Interest Rates

Abu Dhabi Islamic Bank provides car finances at low-interest rates, ensuring you can purchase your dream car with utmost ease and convenience. Additionally, individuals with salary accounts in ADIB can receive a interest rate of as low as 1.99% per annum. However, the finance charges are different for new cars and used cars. So, here are the details of ADIB Car loan interest rates in the UAE:

ADIB Car Loan Interest Rates - Murabaha

ADIB Car Loan Type Flat Rate Reducing Rate
New Car Loan 2.59% per annum 4.7% per annum
Used Car Loan 3.09% per annum 5.61% per annum

ADIB Car Loan Interest Rates - Ijarah

ADIB Car Loan Type Flat Rate Reducing Rate
New Car Loan 3.99% per annum 7.23% per annum
Used Car Loan 3.99% per annum 7.23% per annum

Eligibility Criteria to Apply for ADIB Car Loan

While applying for an ADIB car loan, you must fulfil a few eligibility criteria. The requirements include the applicant's age, nationality, and financial situation. Depending on various conditions, the eligibility may vary for different individuals. Here are the common eligibility criteria to apply for ADIB car loan.

  • Age - The minimum age to acquire any loan in the UAE is 21 years, and the criteria remain the same for car loans. Additionally, the bank also lays down an upper age limit depending on employment status and other factors. Generally, the upper age limit for ADIB car loan lies between 60 to 65 years.
  • Minimum Salary Requirements - To acquire a car loan in the UAE, you need to have a minimum monthly salary of AED 5,000.
  • Residency - ADIB car loan are available to Emiratis, residents and ex-pats. However, the maximum loan amount varies with the individual's residency.
  • Credit Score - Before approving your car loan, the bank may verify your AECB score. However, you may opt for a higher loan amount depending on your score and credit history. Noe that a score above 700 is considered decent to acquire a car loan in the UAE.
  • Down Payment - For loans like car financing, you need to pay an upfront amount from your side, also known as a down payment. So, you need to pay a minimum of 20% of the car's value as a down payment during car financing.

Documents Required for ADIB Car Loan in the UAE

After verifying your eligibility, you need to collect a few documents to support your identity, nationality, address and other details. Here's a quick rundown of the list of documents required while applying for ADIB car loan in UAE:

For Salaried Individual

  • An original Emirates ID for verification
  • An original passport ID along with a copy
  • An original driving licence
  • Salary certificate issued by your current employer addressed to ADIB (Not required if your salary get credited in ADIB bank account)
  • Utility bill for the proof of address
  • Last 3-6 months' bank account statement
  • Quotation from the dealer or proforma invoice mentioning the cost of the car

For Self Employed Individuals

  • An original Emirates ID
  • An original passport ID
  • Visa and EIDA car copy
  • An original driving licence
  • A valid trade licence
  • A proforma invoice of the car or dealer's quotation
  • A valid copy of power of attorney (if applicable)
  • Last three months' bank statement for both individual and company accounts
  • Details of existing loans and liabilities

Apart from the aforementioned documents, you may need to submit additional proofs depending on your income and employment status. 

How to Apply for ADIB Car Loan in UAE?

ADIB car loan applications are very simple. With a few easy steps, you can apply for car financing online by logging on to the ADIB official website. Alternatively, you can apply for a car loan by visiting the bank's branch in person at your ease. Following are the various ways to apply for ADIB car loan in UAE:

  • Car loan Application Online - You can conveniently apply for car loans anywhere anytime by visiting the official portal of Abu Dhabi Islamic Bank. Subsequently, you need to scroll through the car loans section and enter your contact and personal details in the online application form available alongside. Later, the bank will contact you for the further application process.
  • Car Loan Application Offline - If visiting the bank is convenient, you can apply offline by carrying the required documents to the nearest bank branch. Subsequently, you need to duly fill out an offline loan application form and attach your required documents before submitting. After approval, the bank credits the finance amount directly into the dealer's account for easy and convenient purchase.
  • Through Customer Support - You can also apply for the ADIB car loan by contacting the support team. To reach out to the support team, you need to contact the following numbers and provide your personal and contact details. The representative will then guide you through the subsequent application process. Additionally, the ADIB support helplines are available round the clock.
ADIB Car Loan Contact Details
Area Local International
Contact Number 600543216 +971-2-6100600
ADIB Used Car Loan - Eligibility Criteria, Interest Rate & Benefits 

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ADIB Car Loan Calculator

An ADIB car loan calculator is one of the easiest ways to calculate your car loan instalment as well as total loan cost. So, you can visit numerous online platforms to access the calculator. Subsequently, you need to enter various details like the car's value or total loan amount, including the offered interest rates and loan tenure and hit the 'Submit' button. Next, the loan calculator returns your approximate monthly instalments and the loan cost you need to repay within the finance tenure. Also, keep in mind that the costs are approximate since the ADIB car loan includes various charges such as processing fees, finance charges, takaful contribution (if applicable). However, note that you get the final loan amount and exact EMIs only after loan approvals.

ADIB Car Loan Offers

Along with a convenient application process and low finance charges, the bank also provides attractive offers from time to time. For example, in collaboration with numerous dealerships and sellers, ADIB provides a host of benefits to the customers for financing their vehicles. Following are some of the ADIB car loan offers in the UAE:

 

ADIB Car Loan offers
Car Brand Dealership Offers and Benefits

Porche - All Models

Ali and Sonc Co. LLC

Get a 0.99% profit rate for financing Porche Cayenne for the 1-year loan term

Get a 1.99% profit rate for financing Porche Panamera for the 3-year loan term
Get up to 50% discount on loan processing fee

Porche - All Models

Al Nabood Automobiles

Get a 0.99% profit rate for financing Porche Cayenne for the 1-year loan term
Get a 1.99% profit rate for financing Porche Panamera for the 3-year loan term
Get up to 50% discount on loan processing fee

*Interest Rates are subject to change

Fees and Charges for ADIB Car Loan 

Following are the important fees and charges for ADIB car loan in UAE.

Types of Fees and Charges Amount in AED
Car Loan Arrangement Fee AED 1000
Early Settlement Charges 1% of the outstanding loan amount
Late Payment Fee AED 500 on each late payment
Down payment 20% of the vehicle cost 

Important Terms and Conditions for ADIB Car Loan in UAE

ADIB car loan also include specific terms and conditions that you need to follow while financing your car with the bank. Let's have a look at a few important terms and conditions pertaining to ADIB car loan in UAE:

  • The company offers loans on Car Murabaha and Mussawama basis.
  • For Murbaha finances, the bank buys the vehicle from the local vendor constructively or physically. Then, it sells it to the customer on Murabaha basis that includes the car cost and profit margin as agreed with the customer.
  • In the case of Car Mussawama, the bank buys a car from the local vendor constructively or physically. Then, it sells it to the customer on a Mussawama basis as agreed upon with the customer without disclosing the vehicle's cost.
  • The bank calculates the total Murbaha profit amount on the entire financing period, including the grace period that precedes the first instalment date.
  • The bank allows a 30 to 60 days grace period before the first instalment payment. However, if the customer avails 30 days grace period, he/she is allowed only one EMI postponement in the first financial year. In the case of 60 days grace period, no EMI postponement is allowed.
  • In case of early settlement, the bank settles the funds paid against the outstanding balances and may partially or fully waive the unearned profits.
  • ADIB bank has the right to approve or reject any car loan application at its discretion.
  • All the services charges paid to the bank are non-refundable. 

Frequently Asked Questions

Q1. Do I get ADIB car loan based on a flat profit rate or a reducing rate?

Ans: The bank offers both flat and reducing rates for car financing. Here are the details of the ADIB car loan interest rates:

ADIB Car loan Interest rates
Profit Rates Reducing Rates Flat Rates
With Salary Transfer 4.75% to 8.25% 2.75% to 4.49%
Without Salary Transfer 5.25 to 8.25% 2.99% to 4.49%

 

Q2. What is the processing fee for the ADIB car loan?

Ans: ADIB bank charges a processing fee of 1% of the principal loan amount and a maximum of AED 2500. In addition, you need to pay a one-time fee while applying for the ADIB vehicle loan.

Q3. Do I need to pay any charges for instalment postponement?

Ans: No, the bank does not charge any instalment postponement fee.

Q4. What is the maximum amount of ADIB car loan I can acquire?

Ans: ADIB bank offers a maximum loan amount of AED 1 million. However, the loan approval depends on several factors: your credit score, monthly income and expenses, and more. The bank holds the discretion to limit or approve the loan amount.

Q5. Can I apply for ADIB car loan without a salary account in the bank?

Ans: Yes, you can acquire car loans without a salary account in ADIB bank. However, the bank provides a lower loan amount and higher profit rates when compared to a salary account holder.

Q6. Do I need to be employed with a company to acquire an ADIB car loan in UAE?

Ans: No, self-employed individuals can also apply for ADIB car loan, but they need to satisfy the bank's minimum income requirement. For salaried individuals, the loan application and approval is more accessible since they possess less risk to the bank.

Q7. I am an ex-pat, can I apply for a car loan in ADIB?

Ans: Yes, as an ex-pat in the UAE, you can apply for ADIB car loan subject to documentation and the bank's discretion. The finance amount is lower for ex-pats than an Emirati or UAE resident.

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