How to Get a Car Loan in Dubai?

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Getting a car loan in the UAE is an effective way to finance a new or used vehicle. In the UAE, banks and lending institutions offer loans with competitive interest rates and flexible repayment plans. These loans make it easier for you to purchase your car without paying the full amount upfront. With various options available, including fixed and reducing interest rates, you can easily choose the plan that best fits your financial situation.

Features and Benefits of Car Loans in Dubai

When you opt for a car loan, you can easily purchase your dream car without burdening your savings. Let’s take a look at some other key benefits that car loans can bring to you -

  • Competitive Interest Rates
  • Flexible Loan Repayment Tenure
  • High Finance Amount Offering
  • Easy Documentation and Quick Approval

Compare Car Loan - Policybazaar uae

Top 5 Banks Offering Car Loans

Let’s now explore some of the best car loans in UAE -

Emirates Islamic Bank

  • You must have a minimum salary of AED 5,000
  • Loan finance tenure of up to 60 months
  • Get financing options for both new and pre-owned vehicles
  • Salary transfer is optional
Click Here to Apply Now

First Abu Dhabi Bank

  • Financing solutions for expats and UAE nationals
  • Availability of car financing for self-employed and salaried individuals
  • Finance up to 80% of the car value
  • Attractive profit rates
Click Here to Apply Now

Abu Dhabi Commercial Bank

  • Finance amount as high as AED 1.5 million
  • Loan repayment tenure of up to 60 months
  • Insurance finance option available
  • Finance up to 80% of the car
  • Simple documentation and quick application approvals
Click Here to Apply Now

HSBC

  • Salary transfer is not mandatory
  • Flexible loan repayment tenure of up to 60 months
  • Financing options available for hybrid vehicles, fully electric vehicles, and Tesla
  • Options available for both new and used car loans
Click Here to Apply Now

RAKBANK

  • No hidden charges
  • Get a loan whether you are looking for new, used, sports, or luxury cars
  • Salary transfer is not mandatory
  • Flexible loan repayment tenure of up to 60 months
  • Deferment period of 60 days before making the first instalment
Click Here to Apply Now

Eligibility for a Car Loan in Dubai

While you can certainly enjoy many benefits with car loans, you will need to meet the eligibility criteria first.

Here are the common requirements to get a car loan in the UAE -

Eligibility Factors Requirements

Age

Your age must be 21 years or above
Nationality You can be a UAE national or an expat
Minimum Salary Your salary must be at least AED 5,000

Note: The minimum salary requirement varies for each bank. Make sure to check with your bank before applying.

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What are the Documents Required for a Car Loan?

For verification, keep these documents ready -

  • Emirates ID
  • Passport
  • Driving licence
  • Original salary certificate
  • Past 3-6 months’ bank statements
  • Car insurance policy documents
  • Car registration documents

Note: All the copies and originals must be valid.

Keep in mind that the above list is for reference purposes only. You may have to submit additional documents as per your bank’s requirements.

How to Get a Car Loan in Dubai via Policybazaar UAE?

With Policybazaar UAE, you can apply for car loan online. Simply follow these steps for a hassle-free application process -

  • Click on the ‘Banking Products’ menu on our homepage.
  • Select ‘Car Loans’ and fill out the lead form.
  • Submit the form to view the car loan quotes page.
  • Choose your preferred product.
  • Apply and proceed with the application process.
  • Submit the form and await a response from us.

Note: We will review your car loan application and get back to you to help you with further steps.

Frequently Asked Questions

Q1. What is the car loan interest rate in the UAE?

Ans: Interest rates vary depending on the customer’s profile and bank’s criteria. However, you can expect a minimum interest rate of 1.89% fixed per annum.

Q2. What is the minimum salary required for a car loan in the UAE?

Ans: Most banks have a minimum monthly salary criteria of AED 5,000.

Q3. What is the minimum downpayment for an auto loan?

Ans: You must make a minimum downpayment of 20% of your car value.

Q4. Which factors are considered while determining car loan eligibility?

Ans: Some of the top factors to determine car loan eligibility include:

  1. Age
  2. Salary 
  3. Credit score 
  4. Employment status
  5. Nationality
Q5. What is the processing fee of a car loan?

Ans: Most banks charge a processing fee of 1.05% of the loan amount.

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