FAB Car Loan Interest Rates in UAE

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FAB or First Abu Dhabi Bank is one of the most popular banks in the UAE when it comes to credit services and products. This also extends to FAB car loans, which are among the most preferred auto loans in the UAE given the extensive range of features. FAB car loan interest rates make for one such feature. 

Starting at only 2.19%, First Abu Dhabi car loan interest rates are some of the lowest ones available rates in the emirates. Let’s cover everything you need to know about First Abu Dhabi Bank car loan interest rates as a borrower. 

Types of FAB Car Loan Interest Rates

  • Flat Rate of Interest: Flat rate of interest is charged on your total car loan amount, meaning that the interest amount remains the same throughout the tenure of the loan. Consequently, the monthly instalment amount also remains the same. Flat rates are ideal for applicants who would like to utilise the complete duration of their loans and pay them off comfortably without going for early settlement. 
  • Reducing Rate of Interest: Reducing or floating rates of interest are calculated on the remaining due amount of your car loan. So as you pay off the loan bit-by-bit each month, the interest amount keeps going down. As a result, the instalment amount also keeps decreasing.

Reducing rates are ideal for individuals who find themselves capable of repaying the loan early. 

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FAB Car Loan Interest Rates Overview

Types of Interest Rates 

Flat Rate Starting From 

Reducing Rate Starting From

FAB Car Loans for Self-Employed 

3.19% per annum

5.98% per annum 

FAB Car Loan for Salaried Individuals 

2.49% per annum 

4.72% per annum

Top Features of First Abu Dhabi Bank Car Loans

Parameters 

Features 

Available Types 

Auto loans for salaried individuals 

Auto loans for self-employed individuals

Maximum Loan Amount 

AED 1.5 million 

Maximum Loan Tenure 

60 months 

Maximum Finance Ratio 

80% of the vehicle value 

Available for 

New and pre-owned vehicles 

Special Benefits 

180-day-long grace period for auto loans for salaried individuals

Eligibility 

Self-employed and salaried individuals 

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Factors That Influence FAB Car Loan Interest Rates

Car loan interest rates are highly variable due to their dependency on various factors like your income, credit score, and even the loan repayment tenure. To understand the impact of each one of them on the applicable FAB car loan interest rates, discussed below are all the major factors in detail:

  • Credit Score & History: Your credit score is one of the most influential factors with respect to FAB car loan interest rates in the UAE. Applicants can get approved for car loans even if they have a low credit score. However, the downfall here is that the interest rates that they receive are exceptionally high due to their low credibility. If you have a medium-level credit score, you may score decent FAB car loan interest rates. Low-interest rates, however, can be scored only by applicants with an exceptional credit score and a flawless credit and repayment history. This includes payment for both credit tools and generic entities like utility bills. 
  • Debt-to-Income Ratio: The percentage of your monthly income utilised for monthly loan instalment amounts is known as the debt-to-income ratio. A higher debt-to-income ratio will show that your income is not high enough to cover your essential expenses as well as a loan payment. For this reason, banks prefer a low debt-to-income ratio which signifies that your income is much greater than the debt amount you wish to get. High repayment capabilities represented by a low debt-to-income ratio attract low First Abu Dhabi Bank car loan interest rates and vice versa. 
  • Co-Borrowers: Having another individual with a stable income sign off your loan as your co-borrower can also influence your First Abu Dhabi Bank car loan interest rates. Co-borrowers lower the risk of payment defaults by sharing the risk. Consequently, as banks can now rely upon your co-borrower to repay the loan amount if you are unable to do so, they may lower the interest rates to an extent. 
  • Employment History: Most banks prefer applicants who have held permanent jobs with regular income. Some professions and occupations also get preference over others due to factors like job stability and high income. So if your employment history has been unstable for a while, your risk factor increases and you may end up receiving high First Abu Dhabi Bank car loan interest rates. 
  • Loan Tenure: Longer loan tenures tend to attract slightly higher FAB car loan interest rates. Longer repayment tenure of a car loan means that the bank’s money will be stuck with the borrower for a longer time, which is why they increase the interest rates slightly. However, the difference here is not all that noticeable, as loan tenures are not as influential factors as others in this list.  
  • Car Variants & Model: With cars acting as collaterals for auto loans, their resale value can also influence the interest rates that you receive for your loans. Some cars and models are more popular than others whether due to the brand name, features, or anything else. A popular car model will be capable of fetching a high resale price, which can result in a lower First Abu Dhabi Bank car loan interest rate. A less popular model, on the contrary, may lead to higher interest rates. It’s worth noting that sports car auto loans also get high-interest rates as the value of sports cars depreciates swiftly.

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FAQs

What is the minimum First Abu Dhabi Bank car loan interest rate available for salaried individuals?

The minimum available First Abu Dhabi Bank car loan interest rate for salaried individuals is 2.49% per annum.

What is the First Abu Dhabi Bank car loan interest rate available for auto loans for self-employed individuals?

FAB car loan interest rate for self-employed individuals starts at 3.19% per annum. 

What are two types of FAB car loan interest rates available for FAB car loans in the UAE?

The two types of available First Abu Dhabi Bank car loan interest rates are flat and floating, i.e., reducing. 

How much loan amount is offered for FAB car loans for self-employed individuals?

An amount of up to AED 1.5 million is available for FAB car loans in UAE for self-employed individuals. 

Which factors can influence my FAB car loan interest rate primarily?

Your debt-to-income ratio and credit score will influence the First Abu Dhabi Bank car loan interest rate primarily. Other factors that can make a difference here include co-borrowers, income, and employment history. 

Can I get a low First Abu Dhabi Bank car loan interest rate with a low credit score?

No, it will be difficult to get a low First Abu Dhabi Bank car loan interest rate if your credit score does not fall in the high or very high category, as segregated by AECB. 

Do FAB car loans finance pre-owned vehicles in the UAE?

Yes, FAB car loans in UAE for salaried individuals offer to finance pre-owned vehicles.

What are some special benefits available for FAB car loans in UAE?

FAB allows a 180-day-long repayment grace period for the first loan instalment of car loans.

What is the minimum salary required for FAB car loans in UAE?

The minimum salary required for First Abu Dhabi Bank car loans for salaried individuals is AED 7,000. 

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