Arab Bank Auto Loan

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Established in 1930, Arab Bank has developed a rich legacy over the years in the UAE due to its operations. The bank’s dedication to sustainable development manifested in 2011 when it became the first bank in Jordan to initiate a GRI-checked Sustainability Report that encompassed all the major activities in 2010. In the UAE, the bank offers different types of banking solutions whether for individual customers or corporate ones.

Arab car loan makes for an integral part of the array of products provided by the Arab Bank. With this type of loan, users are able to get the car of their choice in the UAE without cutting their spending elsewhere. 

Given below are all the major aspects you need to know regarding the car loans provided by Arab Bank.

Key Benefits of Arab Bank Auto Loan

Given below are the salient features and benefits of Arab Bank Auto Loan –

  • Large loan amount - With lower down payment requirements due to higher financing on the car’s cost by the bank, individuals can buy their dream car without putting a dent in their savings.
  • Competitive interest rates  - The rate of interest on an Arab car loan starts from 2.49%, among the most affordable rates in the UAE. That’s not all, as you can also enjoy preferential insurance rates on the loan depending on your financial conditions and relationship with the bank.
  • Easy repayment facility -  Arab Bank allows repayment tenures of up to 60 months, which prevents the burden of higher instalments for applicants. You can select a suitable tenure for an affordable investment amount.
  • Quick processing and easy availability  - As Arab Bank’s car loan in UAE is processed quickly with minimal documentation, you can obtain the loan easily without major effort on your part. 
  • Flexibility  - Arab Bank offers flexibility in its car loans be it for the down payment (up to the specified limit), repayment tenure, and several other aspects. 

Eligibility Criteria for Arab Bank Auto Loan

The following eligibility criteria have to be fulfilled if you want to apply for the Arab Bank Auto Loan –

  • You must be a salaried or self-employed borrower
  • You should qualify on the age parameter specified by the bank
  • You should have a valid UAE ID to qualify for the loan
  • You should earn a minimum salary to get the loan

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Documents Required for Arab Bank Auto Loan

The following set of documents will have to be submitted while applying for the car loan in UAE from the Arab Bank –

  • Completely filled out loan application form
  • Bank statement for the last 6 months
  • Valid UAE ID
  • Valid passport with Resident Visa for the residents of UAE
  • Recent utility bills like telephone bills, rental contracts, electricity bills, etc., in the name of the borrower
  • Latest salary or employer verification document (or the latest income document for self-employed borrowers)
  • The price quotation of the car from the dealer
  • In the case of used cars, a certificate issued by an evaluator approved by Arab Bank stating the current vehicle’s status and its market price or value

Note: Additional documents might be required by the bank depending on the borrower’s credentials and eligibility.

Interest Rate of Arab Bank Auto Loan

The Arab car loan is available at an annual interest rate beginning from 2.49%.

Fees and Charges of Arab Bank Auto Loan

Besides the interest rate, you would have to bear the fees and charges associated with Arab Bank’s car loan in UAE. Such fees and charges are listed in the table below –

Applicable fees and charges 

The amount or rate payable 

Loan processing fee

1% of the loan amount availed, with the minimum fee being AED 500 and the maximum one as AED 2,500

Early settlement of the loan

1% of the remaining loan balance 

Advance payment of instalment

1% of the amount of the instalment advanced

Changing the due date on Standing Instructions

AED 25

Fees for deferment of the instalment

AED 100

Loan rescheduling fees

AED 250

Penal charges for late payment of instalments

4% of the delayed amount of instalment (AED 200 as minimum charge and AED 500 as the maximum charge)

How to Apply for Arab Bank Auto Loan?

You can apply for a car loan in UAE either online or offline. Both the processes are convenient as Arab Bank provides the loan fairly quickly. The processes are as follows –

  • Offline  - You can locate the nearest branch of Arab Bank online with your preferred search engine or the Arab Bank’s official website. Visit any branch and fill out the loan application form. The form is available at the branch. The form, the documents, and the processing fee would have to be submitted then to apply for the loan. 
  • Online  - The online mode can also be used to apply for an Arab car loan more conveniently. Check out the Arab Bank website’s auto loan section, select the plan you find the most suitable, and apply for it after filling out the relevant application form and submitting it with the specified documents. 

Both these methods have a common aspect in the aftermath of the application. If you’re verified as an eligible applicant, you will be contacted by the Arab Bank and guided through the subsequent processes.

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Arab Bank Auto Loan Calculator

To simplify the calculation process, Arab Bank has the provision of an online calculator to find out the instalment amount payable for the loan. You can access this calculator on its website and calculate the expected instalment amount by simply entering the following information –

  • Type of loan 
  • Loan amount
  • Loan period

It should be noted that the loan interest rate would generally be auto-filled once you enter the type of loan and other details. After you enter the specified information, the installment amount would be calculated and shown on the screen. 

If you wish to explore more loan options and buy one right there in one place, you can view our ‘car loans’ section and have an easy purchasing experience. With policybazaar.ae, you get assistance from experts regarding all your insurance and finance queries in the most convenient way.

FAQ's

Is there any fee applied if I cancel the loan?

No, there is no fee applicable for cancelling your loan application within the specified period. The provision of a loan cancellation fee should be verified with the bank at the time of application.

Can I close the loan before the stipulated tenure?

Yes, you can close the loan before the stipulated tenure. However, such a closure would attract an additional fee which is 1% of the outstanding balance of the loan.

Can I pay additional instalments in advance?

Yes, you can pay advance instalments to reduce your loan burden. However, such instalments would attract a fee of 1% of the advance amount.