Arab Bank Car Loan in UAE

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Arab Bank first opened in 1930 in Jerusalem with 7 investors. From opening branches across the world to the nationalisation of the bank, closing down several global branches, and then reinstating them, Arab Bank has undergone several major changes since its inception.

What has remained constant right from the start is the status of Arab Bank as a trusted provider of banking and financing services in the Arab region. One such product among its exquisite array of financial products and services is a car loan. 

Arab Bank car loans are some of the most popular financing products trusted by customers across the UAE and the world. Let’s follow through with this piece to ensure you get all the required information about Arab Bank vehicle loans, their types, interest rates, eligibility, and important terms. 

Types of Arab Bank Car Loan 

  • New Car Arab Bank Vehicle Loan: Arab Bank offers car loans for all types of new cars you are looking to get financed. The loan is offered at competitive Arab Bank car loan interest rates, which start only at 2.49% pa. You can also get flexible tenure options for your Arab Bank auto loan. The maximum available tenure for Arab Bank car loans is 5 years, with the minimum available car loan tenure being 12 months. 
  • Used Car Arab Bank Vehicle Loan: In addition to car loans for new cars, Arab Bank auto finance can also be utilised for used cars. The only condition here is that the second-hand car you want to get financed must be evaluated by an approved dealership. Arab Bank car loan interest rates start from 2.49% and the available tenure is up to 5 years. 

Features and Benefits of Arab Bank Auto Loan

  • New and Used Car Finance: Arab Bank car finance is available not only for new but also for used cars in the UAE. This means that you can easily choose any kind of vehicle that fits your budget ideally and have it financed from Arab Bank. Besides offering financing options for both new and used cars, Arab Bank also provides other diverse features with its financing products. The next few features explain the same in detail.
  • Competitive Interest Rates: Arab Bank car finance come with highly competitive interest rates for both new and used car finance options. Arab Bank car loan interest rates for new car finance start only at 2.49%. Moreover, Arab Bank car loan interest rates for used cars begin from 3.99% only. You can easily get any type of vehicle financed at a rather low rate of interest with Arab Bank car finance options. 
  • High Finance Amount: Arab Bank car finance can defer up to AED 350,000 as loan amount for all different types of car financing options. On the other hand, the loan amount offered for used car finance can go up to AED 250,000. Customers can easily get a preferred loan amount to finance the vehicle of their choice as per their income and required debt burden ratio by Arab Bank. 
  • Swift Loan Processing: Arab Bank car finance applications are generally processed within a few hours, with the information regarding approvals sent in real-time. Applicants can expect to be contacted by the bank shortly after submitting their application forms to take the procedure further. Once approved, the applicant may have to engage in a few meetings with the bank to finalise the final few details regarding their Arab Bank vehicle loan application. 
  • Flexible Loan Tenure: Arab Bank car finance products come with flexible loan tenure options ranging up to 60 months. Any applicant can choose a loan tenure ranging anywhere between 12 and 60 months for their Arab Bank car loans.

Arab Bank Car Loans Interest Rates

Arab Bank Car Loan Interest Rates 

Flat Rates

Reducing Rates

Arab Bank Car Loan Interest Rates for New Cars

2.49%

4.25%

Arab Bank Car Loan Interest Rates for Used Cars

3.99%

7.23%

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Eligibility Criteria for Arab Bank Auto Loan

  • Nationality: All UAE nationals and residents are allowed to apply for an Arab Bank car finance in the UAE. While UAE nationals are required to have Emirates ID as proof of identification, UAE residents must have their passport and the resident visa as identity proof for taking an Arab Bank car finance. Having possession of these documents is crucial, as applicants without valid identification proof cannot be accepted as valid applicants. 
  • Age: The minimum age to apply for Arab Bank auto finance is 21 years. However, the bank may apply a maximum age limit as well. It should be noted that the minimum age limit refers to your age when you apply for the loan. On the other, the maximum age refers to the age when the loan tenure ends. Make sure that you check with Arab Bank before you take on the loan. 
  • Income: The minimum monthly salary or income required to get an Arab Bank auto finance is AED 7,500. Both salaried and self-employed individuals are allowed to apply for Arab Bank vehicle loans as long as they meet the minimum salary criteria. This applies to both new and used car loans offered by Arab Bank. 
  • Credit Score: Credit score is one of the most essential eligibility criteria when it comes to credit tools like car loans. At the same time, there are no pre-decided criteria for it. Most banks, including the Arab Bank, accept applications from applicants with at least a fair credit score. A fair credit score for loans in the UAE is generally categorised at 580 points. However, while you can apply for a loan with at least a 580 credit score, it does not guarantee approval. Banks prefer applicants with a good credit score, which is usually classified as around 700 points. 

Eligibility Criteria

Requisites 

Nationality

Both UAE Citizens and Residents

Minimum Age

21 years of age 

Minimum Income (Per Month)

AED 7,500

Minimum Down Payment 

20%

Documents Required for Arab Bank Car Loans in UAE

Types of Documents Required 

Documents 

Identification Documents 

  • Passport 
  • Resident Visa (for UAE Residents)
  • Emirates ID
  • Utility bill, electricity bills, or rental contract

Income Related Documents 

  • Salary certificate or an employment certificate from your Employer (for salaried applicants)
  • Proof of income for self-employed applicants
  • Bank statement for last 6 months

Vehicle Related Document 

  • Price quotation from the dealer
  • Valuation certificate of the vehicle from a verified dealership 

How to Apply for Arab Bank Car Loans in UAE?

You can apply for your favoured Arab Bank auto finance plan via both online and offline platforms. Given below are the details of the required steps:

Online Apply for Arab Bank Auto & Car Laon

Applying for your Arab Bank car finance via online platforms is pretty convenient and quick. You can either apply via our website or the Arab Bank website itself. To apply for Arab Bank car loans with us, continue on our website and head to the ‘car loan’ section on the homepage. Scroll down a bit to find the lead form on your right side. 

Start by filling out this form. Add a few basic details like your name, contact number, etc., as requested. Once you submit this form, you will be taken to the quotes page of car loans. Pick your ideal product from the range of Arab Bank car loan products. Once you have the Arab Bank car loan plan of your choice, fill out its application form, attach the required documents, and submit them. 

If you would like to fill out your application on the Arab Bank's official website, visit the car loan section on the home page of the website. Locate the link for the application form there. Once you click it, a form will pop up on the right. Fill out the form, attach the specified documents, and submit them. A representative from the bank will contact you when your online application for the Arab Bank car loan has been processed. 

Offline Apply for Arab Bank Auto & Car Loan

It is also possible to go the traditional way and submit your Arab Bank auto finance application via offline platforms. Find a nearby Arab Bank branch and visit it while carrying all necessary documents as hard copies. Get an application form from the designated counter. Fill out this form and submit it along with all the required documents. Once again, a representative from the bank will call you when your application has been processed. You can take it further after the bank contacts you with the help of the bank executive. 

Arab Bank Car Loan Calculator

A car loan calculator is your ultimate escape from lengthy calculations related to interest and equal monthly payments. Car loan calculators are easy-to-use tools found online on several platforms. Like many other banks, Arab Bank also offers a rather convenient car loan calculator to help you calculate equal monthly payments for your Arab Bank car finance.

Following are the steps to find and efficiently use the Arab Bank car loan calculator:

  • Go to the car loan page of Arab Bank where you will find a link for the loan calculator.
  • When you click on this link, a calculator will pop out from the right side of your desktop screen. 
  • Choose “auto loan” as the type of loan. Enter the Arab Bank car finance amount you need in the assigned box and set the tenure as required. 
  • Once all the particulars are in place, hit the button “apply” and proceed to get the monthly instalment amount, the nominal interest rate, and the processing fee applicable on your Arab Bank car finance. 
  • You can change the particulars to get new results as and when required. 

Fees and Charges for Arab Bank Car Loan & Auto Loan

Arab Bank Car Loan Fees and Charges 

Fee Applicable

Processing Fee

1% of the total fee amount

Limited to a maximum of AED 2,500 and a minimum of AED 500

Early Settlement Fee

1% of the remaining loan amount

Advance Payment Fee

1% of the instalment that you want to settle

Fee for Changing the Due Date

AED 25 per request

Deferred Instalment Fee

AED 100 per request

Rescheduling Fee

AED 250 per request 

Late Payment Fee 

4% of the delayed instalment amount 

Limited to the maximum of AED 500 and a minimum of AED 200

Important Conditions for Arab Bank Auto Loans

  • The processing fee applicable on Arab Bank car loans is to be submitted when you submit the application form for your Arab Bank car finance. It is non-refundable, one time, and has to be submitted with every new request. It means that every time you send in a new application for Arab Bank car loans, you will be required to submit the processing fee once again. 
  • Some fees and charges applicable on Arab Bank auto loans are one-time while others may be reoccurring during your loan tenure as per the requests made. For instance, the processing fee is a one-time fee as explained earlier. On the other hand, late payment fees or instalment deferment fees could be reoccurring as per the instances.
  • A minimum of 20% down payment is required for all Arab Bank auto loan products. 
  • While the early settlement of the Arab Bank auto loan is allowed, an early settlement fee will be applicable for it. A limit on the maximum loan to be settled in a single early settlement request may also apply. 
  • The maximum finance amount available for used and new car financing is different. Make sure that you are well aware of all applicable terms before choosing Arab Bank auto finance for your new or used car.
  • The bank reserves the right to change the applicable fees and charges for its auto loan products. 

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Things to Keep in Mind When Taking Arab Bank Auto Loan

  • Affordability: The loan amount you choose to finance your car must be something that you can pay off easily within your chosen tenure. Just because the bank can offer a high loan amount, you shouldn’t go for the highest possible amount. Choose the loan amount you can afford to pay back so that it doesn’t hinder your daily life requirements and expenses. 
  • Choosing the Right Product: Choosing the right car loan product to finance your car is essential. If you end up choosing the wrong Arab Bank car finance, you may pay high interest or have a low financing amount. Thus, you should check all the details related to the Arab Bank auto finance product you choose before signing up for it. Ensure that there are no hidden charges or additional fees applicable. 
  • Debt Burden Ratio: The debt burden ratio is crucial when it comes to credit tools like car loans. It shows your capability to repay that loan with your current income. An ideal debt burden ratio falls below 30% for a certain month. This means that the equal monthly payment you have to make every month is no more than 30% of your total monthly income. Having a low debt burden ratio when you are going out to take an Arab bank auto loan is highly important, as you will be able to pay back the loan amount easily and may also score a low Arab Bank car loan interest rate. 
  • Risk-Based Pricing: All lenders follow a risk-based pricing model to decide the interest rates for all credit tools, and car loans are no exceptions. Arab Bank follows the same model regarding the approval and interest rates for its car loan products. A risk pricing model suggests that a borrower will have to pay higher interest if they pose a high risk. This implies that if the risk portfolio, prepared for your application by the bank, showcases you as a high-risk low credible lender, you will probably get higher interest rates. 
  • Fees and Charges: Always keep a track of all the fees and charges applicable to your Arab Bank car finance. Some fees are applicable multiple times throughout your loan tenure; others are one-time fees. Examine the relevant documents thoroughly to have a good understanding of the additional fee and charges you are required to pay. This is to make sure that you do not end up paying more than you are liable to. 
  • Credit History: Your credit history and credit score will make all the difference when credit tools like loans and credit cards are at stake. The better credit history you hold the higher chances you have of approval. Moreover, you can also secure a low-interest rate for your car loan with a good credit history. The same applies to Arab Bank car loans as well. People with at least a fair credit score and up-to-date credit history can apply for the loan. However, applicants with a credit score over 700 have an excellent chance of getting approval for an Arab Bank car loan.

Arab Bank Auto Loan Contact Numbers and Details

Particulars 

Arab Bank Auto Loan Contact Numbers and Details

Contact Number

44450000

Email Address

Customer.care@arabbank.ae 

P.O.BOX

11364 Dubai

Address 

Arab Bank Plc UAE, Dubai, Emaar Square, Building 2, 6th Floor

FAQ's 

What is the maximum amount available for Arab Bank car finance?

You can get a maximum of AED 350,000 as the loan amount for Arab Bank. The limit may be lesser for used-car finance.

What is the minimum age required to get an Arab Bank auto loan?

The minimum age to get Arab Bank auto finance is 21 years.

What is the processing fee applicable to my Arab Bank car loan?

A 1% processing fee is applicable whenever you submit an Arab Bank vehicle loan application. It should be kept in mind that this fee is applicable to every new request.

What is the maximum available tenure for Arab Bank auto loans?

The maximum loan tenure you can get with Arab Bank vehicle loans is 60 months.

What are the available Arab Bank car loan interest rates in the UAE?

Arab Bank car loan interest rates start from a 2.49% flat rate.

Are late payments allowed for Arab Bank auto loans? Is there a penalty applicable on late payments?

Yes, late payments are allowed although 4% of the installment amount is applicable as a late payment fee. The fee is limited to a minimum of AED 200 and a maximum of AED 500. 

Can I get my Arab Bank settled early? What is the early settlement charge for the Arab Bank vehicle loan?

Yes, early settlement is possible for Arab Bank car finance. 1% of the outstanding finance balance will be applied as an early settlement fee.

Who can get Arab Bank car loans in the UAE?

Both UAE nationals and residents can get Arab Bank auto finance. Additionally, both salaried and self-employed folks can also get Arab Bank auto loans.

Can I get new as well as used cars financed from Arab Bank?

Yes, Arab Bank offers financing options for both new and used cars in the UAE.

Is there a loan cancellation fee applicable for Arab Bank vehicle finance?

No, there is no loan cancellation fee applicable for Arab Bank car loans. 

Is the processing fee refunded if my loan application gets rejected?

No. the processing fee is not refundable once submitted along with your loan application.

Can I pay my Arab Bank auto finance equal monthly payments in advance? Is there a chargeable fee on advance payment of instalments?

Yes, you can easily make advance payments of your Arab Bank vehicle loan instalments. An advance payment fee of 1% of the instalment amount will apply in such cases.

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