Dubai Islamic Bank Car Loan Calculator

As a handy online tool, car loan calculators are exceptionally helpful in estimating and outlining the additional monthly expenses that you will take on after taking a car loan. You can find these calculators online in abundance, with banks and financial institutions also offering their own car loan calculators.

Dubai Islamic Bank car loan calculator is one such tool. You can easily use this calculator to get an estimate of your easy monthly payments for DIB car loans. Let’s cover important details related to the DIB car loan EMI calculator and equal monthly payments.

How Does Dubai Islamic Bank (DIB)Car Loan Calculator Work?

Dubai Islamic Bank offers a common dynamic calculator tool for its auto loans, home loans, and personal loan products. A user can select the type of financing they want to obtain and calculate their EMI amounts accordingly. 

The following are the steps involved in using the DIB car loan EMI calculator:

• Open the calculator and choose ‘Auto Loan’ as your preferred option from the drop-down menu of the calculator.
• To use a Dubai Islamic Bank car loan calculator, you will need the estimated loan amount you desire, the tenure of the car loan, and the down payment you are willing to make.

  

• The calculator comes with a pre-set down payment percentage of 20%, which is the minimum required down payment offered for UAE nationals. The minimum required down payment amount for UAE residents, on the other hand, is 25% of the total cost of the product.
• You can change the down payment amount as you see fit while following the minimum limits for the same.
• Once you provide all the required details, the calculator will show you the estimated installment amount at the end of the page.
• You will also get an option to reset the values by clicking the ‘reset’ button.

The final amount displayed on your screen will be your estimated equal monthly payment amount for the loan amount and plan of your preference. This includes both the interest amount and the payable principal amount.

However, as the calculator uses an average base interest/profit rate to calculate your estimated monthly payment amount, this leaves room for changes when you get your final car loan in UAE approvals from the bank. Thus, it is advisable to leave room for adjustments in your financial planning to incorporate any changes that may occur due to such factors. 

Factors That Can Affect Dubai Islamic Bank Car Loan EMI

• Loan Interest Rate: The interest rates used by most online car loan calculators, including the Dubai Islamic Bank car loan calculator, are either the base flat rates offered by the bank or an average rate of interest for their car loan products. This means that the actual interest rate applicable on your car loan can differ from the one used by the calculator. Always keep this fact in mind when you are calculating your car loan monthly payment amount using this car loan calculator.
• Down Payment Amount: The down payment amount you choose will also significantly impact your equal monthly payment amount, with a higher down payment leading to lower monthly payments and vice versa. Dubai Islamic Bank requires the residents to cover at least 25% of the car price as a down payment, with the minimum limit for nationals being 20%. You should first examine how much you can afford to pay as a down payment on your car beforehand so that your estimated monthly payment amount is more realistic.
• Loan Tenure: Simply put, longer tenure equals lower monthly payments while shorter tenures lead to higher equal monthly payments. It is wise to keep some space for adjustments in your preferred loan tenure to ideally incorporate any fluctuations.
• Loan Amount: Similar to the tenure, a higher loan amount will make your equal monthly payment amount higher as well. Consequently, you should select the loan amount carefully to have a payment plan that can be managed within your budget.

Tips to Choose the Right Dubai Islamic Bank Car Loan EMI Amount

• Check Eligibility Criteria: Navigating the eligibility criteria for a DIB car loan is not just about figuring out whether you are eligible to get the loan - it also brings your attention to crucial factors that can help in choosing the right EMI amount like your salary. Banks mostly offer loan amounts ranging up to 3 or 2.5 times your annual salary.  As an applicant, it is beneficial for you to calculate this amount to further calculate your equal monthly payment amount. Moreover, the loan amount that gets approved could be lower than 3 to 2.5 times your salary due to other influential factors. Keep that in mind as well.
• Design a New Monthly Budget: Once you have an approximate idea of the estimated loan amount you can get, it is time to design a new monthly budget to figure out how much loan you can actually afford to take. If your monthly expenses are as high as your salary, you won’t be able to take a high loan amount and repay it in time. Thus, you should first outline your expenses and make modifications to fit the loan monthly payments in the budget.
• Pick Loan Tenure: In selecting a suitable loan tenure, one can go for the middle path by not going too long or too short. While longer tenures may make you feel stuck with EMI payments, shorter ones may burden your budget with higher instalment amounts. You should, thus, figure out a sweet spot in terms of the loan tenure to find out the one that works the best for you.
• Keep Room for Adjustments: Finally, you should always expect to make adjustments in your chosen loan amount, monthly budget, as well as loan tenure. Ultimately, the DIB car loan terms that you get may differ from your expectations.

Frequently Asked Questions