Car Loan Eligibility in UAE
Applying For a Car Loan? Check Your Eligibility Now!
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With a car requiring significant capital investment, it is safe to say that a car is a prized possession for most, if not all. Needless to mention that buying a car is a huge investment for most. Arranging for large sums all at once can be a bit challenging and that is why opting for a car loan is the most viable option in such cases. However, just like any other loan, you need to satisfy car loan eligibility criteria to get approval from banks and other financial institutions providing car loans in the UAE.
Top Car Loan Plans in Dubai
Although it may appear that lenders have stern criteria for providing car loans, the eligibility requirement for individuals with decent credit scores is lenient and requires minimal documentation. The only major aspect you should take note of is the criteria laid down by the bank, with each one having different regulations regarding the approval of a loan. The article below gives an insight into the eligibility requirements for various car loan providers in the UAE.
Car Loan Eligibility in UAE
Banks and car loan providers have set minimum eligibility requirements, and only those satisfying these criteria are granted car loans in UAE. The car loan eligibility criteria may vary as per the bank and the financial institution you are applying with. Following are the common eligibility criteria for car loans in the UAE.
- Age - To acquire any loan in the UAE, you need to satisfy the minimum age criteria. The age requirement can vary depending on the banks offering car loans. However, for most banks, the minimum age requirement is 21 years. Several banks also have an upper age limit (depending on the employment status of the applicant) that can go up to 65 or 70 years.
- Nationality - Although the banks in the UAE provide loans to UAE nationals, resident visa holders, and ex-pats, nationality may restrict the amount of loans being offered in some cases. However, it should be remembered that the car loans provided by most banks to UAE natives, residents, and foreigners with long stays are subject to the fulfillment of other eligibility requirements.
- Income Requirement - As an applicant, you also need to satisfy the minimum income requirements. For most types of car loans, you need to have a minimum monthly income of AED 5,000. Again, the income criteria vary depending on the bank and the financial institution offering you the car loan.
- Down Payment - As per the UAE Central Bank’s guidelines, you need to pay 20% of the car invoice cost in the form of down payment, with the remaining 80% amount being borne by the bank on your behalf.
- Credit Score - Although the credit score criterion is secondary, the financial institutions and banks in the UAE often consider your aecb credit score before offering you a car loan. Besides ensuring a higher loan amount, a decent credit score also begets your preferential car loan interest rates. In addition, the banks may also reject or limit your loan application based on your credit score and history.
Car Loan Eligibility for Top Banks in UAE
When applying for a car loan, you need to fulfil the above-mentioned eligibility criteria. However, different banks can have their own requirements that you may need to meet during a car loan application. Let’s have a look at car loan eligibility criteria for top banks in the UAE.
1- Emirates NBD Car Loan Eligibility Criteria
Emirates NBD provides a high loan amount for purchasing your dream car. Additionally, the bank offers preferential rates if you hold a salary transfer account with them. However, you need to satisfy the car loan eligibility criteria before acquiring the loan. Emirates NBD car loans are available to the following individuals.
- Individual Applicants
- Self Employed individuals
- Businesses and corporates
Following are the car loan eligibility criteria for Emirates NBD bank.
| Car Loan Eligibility | Requirement |
|---|---|
| Age | 21 years |
| Monthly Income | AED 4,000 per month with salary transfer and a good CASA score AED 5,000 without salary transfer AED 7,000 for self-employed |
| Nationality | UAE Nationals and Residents, and Expatriates |
| Minimum Average Balance in Bank Account | AED 20,000 |
| Down Payment | 20% of Car invoice cost |
| Salary Transfer Required | No |
| Click Here to Apply Now |
2- ADCB Car Loan Eligibility Criteria
ADCB car loans are amongst the most affordable loans in the UAE. With a salary transfer account, you can also ensure a high loan amount at preferential rates. The bank offers both new and used car loans for almost every car model available in the country. ADCB car loans are available to salaried and self-employed individuals, businesses, and corporate entities. Following are the eligibility criteria for ADCB car loans in the UAE.
| Car Loan Eligibility | Requirements |
|---|---|
| Age | 21 years |
| Monthly Income | AED 5,000 or above for salaried individuals |
| Nationality | UAE nationals Residents with visa permit Expatriates |
| Down Payments | 20% of the car invoice cost |
| Salary Transfer Required | Optional |
| Click Here to Apply Now |
3- DIB Car Loan Eligibility Criteria
Dubai Islamic Bank is renowned for providing convenient and affordable car loans with competitive profit rates. The bank also offers lenient eligibility criteria along with low salary requirements. Depending on your relationship with the bank, you can get a high loan amount of up to AED 1 million and a repayment tenure of up to 60 months. Given below are the key requirements to apply for car loans in Dubai Islamic Bank.
| Car Loan Eligibility | Requirements |
|---|---|
| Age | 21 years |
| Monthly Income | AED 3,000 or above for salaried individuals |
| Nationality |
|
| Down Payments | 20% of the car invoice cost |
| Salary Transfer Required | Optional |
| Minimum Finance Amount | AED 10,000 |
| Other Requirements | Salaried individuals need to be employed for at least a month in the current company |
| Click Here to Apply Now |
4- ADIB Car Loan Eligibility Criteria
Abu Dhabi Islamic Bank car loans are easy to acquire thanks to their lenient eligibility criteria and documentation. In addition, you can obtain up to AED 1 million as a car financing amount depending on your relationship with the bank. Notably, you don’t need to hold a salary transfer account with the bank in order to apply for car loans. The bank also offers financing options for used cars in the UAE. Following are the eligibility criteria to apply for ADIB car loan.
| Car Loan Eligibility | Requirements |
|---|---|
| Age |
|
| Monthly Income | AED 5,000 or above for salaried individuals |
| Nationality |
|
| Down Payments | 20% of the car invoice cost |
| Salary Transfer Required | Optional |
| Other Requirements | Employees of approved employers list in ADIB |
| Click Here to Apply Now |
5- HSBC Car Loan Eligibility Criteria
HSBC bank offers new, used, and green car loans as per the type of car you are purchasing. Their green car loan is one of its kind, as this remarkable loan provides rebates on purchasing hybrid and electric vehicles. HSBC provides affordable interest rates along with easy application and HSBC car loan eligibility criteria. If you are a Premier or Advance account holder, you get additional rebates on car loan interest rates. Being an international bank, it offers car financing to individuals from every nationality residing in the UAE, provided that they have all the required documents.
Here are the key eligibility criteria to apply for HSBC car loan.
| Car Loan Eligibility | Requirements |
|---|---|
| Age | 21 to 65 years |
| Monthly Income | AED 10,000 or above for salaried individuals |
| Nationality | UAE nationals Residents with visa permit Expatriates |
| Down Payments | 20% of the car invoice cost |
| Salary Transfer Required | Optional |
| Other Requirements | Car loan approval subject to furnishing of required documents |
| Click Here to Apply Now |
6- RAKBANK Car Loan Eligibility Criteria
RAKBANK car loans are easy to obtain and you don’t even need to have a salary transfer account for financing your car. The bank offers auto loan for almost every car model including sports, luxury, and supercars. However, the eligibility criteria remain lenient and you can easily apply for car financing through online and offline channels. If you hold a salary transfer account in RAKBANK, the interest rates on your car can go as low as 1.79%. Following are the eligibility criteria for RAKBANK car loan in the UAE.
| Car Loan Eligibility | Requirements |
|---|---|
| Age | 21 to 65 years |
| Monthly Income | AED 5,000 or above for salaried individuals |
| Nationality |
|
| Down Payments | 20% of the car invoice cost |
| Salary Transfer Required | Optional |
| Click Here to Apply Now |
Factors Affecting Car Loan Eligibility in UAE
Besides the amount and interest on your car loan, even your eligibility for it can depend on a few factors as mentioned below.
- Credit Score - Depending on your creditworthiness, banks offer preferential interest rates and the amount of car loan. So if you have a decent score, you can easily fetch affordable rates for your car loan.
- Type of Car - The eligibility of your loan also depends on the type of car you are planning to buy. As the value of a car may depreciate over time, the banks also consider car resale value while offering you the loan.
- Applicant’s income - Your income determines the level of risk you pose to the lender. Banks also consider the income to expense ratio to check your capability of repaying your loan. As a thumb rule, a lower income may decrease eligibility clearing chances.
- Employers’ reputation - Banks also consider the credibility and reputation of your employer. If you are working at an established firm, chances are that you will have a stable job for a considerable period, which will help you easily repay your loan. With an unstable employer, on the other hand, your chances of clearing the eligibility reduce.
- Bonus Tip: If you have an account in the bank you are applying for a car loan, you have generally better chances of loan approval and getting lenient car loan eligibility criteria.
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