SME Car Loan in UAE

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Car loans for small and medium-sized enterprises in the UAE are designed to provide suitable commercial car financing options for small businesses in the UAE. Generally, SME car loans offer higher loan amounts compared to car loans for personal vehicles. With SME car finance options, borrowers can easily finance their business vehicles given the highly competitive interest rates, flexible repayment period, and versatile coverage of these loans.

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Features and Benefits of SME Car Loan in UAE

  • High Loan Amount: Car loans for SMEs are designed keeping the unique requirements of fast-developing businesses in mind. Consequently, most banks offer high loan amounts up to AED 10 million, with several banks even offering loan amounts up to AED 35 million. Business owners, thus, are free to opt for an amount that suits their interests the best.
  • Flexible and Long Repayment Tenure: Most banks offer flexible repayment tenure of up to 84 months for their SME car finance plans in the UAE, although you may find loan tenures ranging up to 48 months as well. One should note that the minimum tenure available for SME car finance is 12 months. As a general rule, borrowers can choose any loan tenure between 12 and 60 months as per their suitability.
  • Coverage for Multiple Types of Vehicles: SME car finance options in the UAE are designed with high flexibility to cover different types of vehicles utilised by businesses. Most SME auto finance products extend their coverage to passenger cars, medium commercial vehicles, and light commercial vehicles. This allows business owners and signatories of the loan to finance all major types of business vehicles using their SME car finance options. 
  • Quick Processing and Approvals: Processing all loan applications within only a few hours, banks in the UAE ensure that you do not have to wait for your loan application status for long. Approvals are usually given almost instantaneously if all your application documents and the application form are in order.
  • Competitive Interest Rates: Banks in the UAE offer highly competitive interest rates for their SME car loan products. As a customer, you can expect to find interest rates starting from as low as 4.25% for your car loan. Several banks offer SME auto financing for used cars as well, although the interest rates are mostly higher for used car financing products.
  • Optimum Financing Ratio: Unlike individual personal car loans, you will find several plans for SME car loans in the UAE that offer up to 100% financing. Most banks will offer you at least 90% financing for your vehicles with an SME car finance option - meaning that you will only pay a maximum of 10% down payment for your business vehicles if applicable. However, the financing ratio for used cars is generally lower than for new cars, as one can generally get only up to 70% financing for the former.
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Interest Rates for SME Car Loans in UAE

SME car loans offered by banks in the UAE, as mentioned earlier, are accompanied by highly competitive interest rate options. Most banks offer interest rates starting from 4.25%, although it should be remembered that the rate can change as per the profile of the applicant. Factors that may influence your interest rate can be your company’s annual turnover, the type of vehicle you need to finance, the creditworthiness of the signatories, etc. 

Car Loan Interest Rates in UAE

Top Banks Providing SME Car Loan – Features & Eligibility

Several banks in the UAE offer SME car finance options with attractive interest rates. Given below are some of the top options for SME car loans in the UAE and the key features of their products:

Emirates NBD Business Vehicle Loans

Features Details
Maximum Financing Amount Up to AED 3.5 million
Interest Rates 4.25% flat
Repayment Tenure Up to 5 years
Types of Vehicles Covered

Passenger cars , Light commercial cars, Medium commercial cars

Loan Availability For both UAE nationals and residents
Click here to Apply for this Car Loan

ADCB Commercial Vehicle Financing 

Features Details
Maximum Financing Amount Up to AED 10 million
Repayment Tenure 84 months

Financing Ratio 

Up to 100%

Vehicles Covered

Wide array of new vehicles and refinancing for existing company vehicles

Loan Availability

For both UAE nationals and residents

Click here to Apply for this Vehicle Loan

RAK Bank Commercial Vehicle Finance 

Features Details
Maximum Financing Amount Up to AED 35 million
Repayment Tenure 48 months
Financing Ratio Up to 90%
Types of Vehicles Covered New and used vehicles ,Refinancing available for existing assets of the company
Minimum Business Age 2 years in the UAE
Loan Availability For both UAE nationals and residents
Click here to Apply for this Commercial Vehicle Loan

Ajman Bank Commercial Vehicle Finance

Features Details
Maximum Financing Amount Up to AED 5 million
Repayment Tenure 36 to 48 months
Financing Ratio Up to 90%
Types of Vehicles Covered New and used commercial vehicles
Minimum Turnover Required AED 1 million
Loan Availability For both UAE nationals and residents
Click here to Apply for this Commercial Finance

Commercial Bank of Dubai Fleet Finance

Features Details
Maximum Financing Amount Up to AED 2 million
Repayment Tenure 48 months
Financing Ratio Up to 90%
Types of Vehicles Covered Heavy machinery and trucks
Minimum Turnover Required AED 1 million
Loan Availability For both UAE nationals and residents
Click here to Apply for CBD Car Loan

Eligibility Criteria for SME Car Loan

  1. Nationality: UAE nationals, as well as residents, are allowed to take SME car finance in the UAE. However, the applicant must have a national ID and other required identification documents. If there are multiple signatories for the loan, national IDs of all the signatories will be required.
  2. Age: The minimum age to apply for SME car finance or any other type of credit product in the UAE is 21 years. This applies to the primary applicant as well as the co-signatories of the loan.
  3. Turnover: The minimum yearly turnover required to take an SME car finance in the UAE range around AED 1 million, although the limit may differ for each bank. Any medium or small-sized enterprise with the specified minimum turnover can apply for the loan.
  4. Age of the Business: Most banks also set a minimum age criterion for the business. Businesses are usually required to be at least 1-year-old in the UAE to be eligible to take an SME car loan, with some banks even requiring the businesses to be at least 2 years old. Notably, other banks may also require the business owner to have at least 2 years of experience as the owner of a company in the UAE. 

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Documents Required for SME Car Loan

  1. Emirates ID of the applicant or all authorities signing for the loan
  2. Passport and valid resident Visa (for UAE residents only)
  3. Power of Attorney of the company
  4. Address proof or proof of residence in the UAE
  5. Reference letter from the company’s bank
  6. Bank statement for the company’s account for the previous 3 to 12 months (depending on the bank) 
  7. Pro Forma invoice from the dealership or a quotation document addressed to the bank
  8. Trade licence of the company 
  9. Memorandum of Association 

How to Apply for SME Car Loan?

One can make use of quite a few ways to apply for SME car finance in the UAE. You can send in your applications via both online and offline methods. The following are the ways in which you can apply for your SME car finance in the UAE:

Via the Banks Website

  • Finalise the bank that you want to get the loan from and visit their official website. 
  • Find the dedicated page for commercial loans. 
  • Choose your loan type (if there are multiple options) and read the key features. 
  • Once you complete reading the features, click the ‘apply now’ button on the page to begin your application. 
  • Enter the required details in the application form and upload all the specified documents. 
  • Pay the processing fee for the application and submit your form.
  • The bank will examine your application and verify your eligibility. 
  • An executive from the bank will contact you to inform you if the application has been approved. 
  • If approved, you can take the SME loan disbursal process further from there. 

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Via Policybazaar UAE

  • Head to the car loan section on policybazaar.ae, our official website. 
  • You will find a lead form on the main page of car loans. Fill out this form with basic information regarding your income, nationality, and more.
  • Submit the form to get to the quotes page of car loans. 
  • You will find all types of relevant SME car loans on this page. 
  • Compare the quotes, features, and loan amounts here and choose your provider. 
  • Once you have chosen the loan product you want, move ahead and click on ‘apply now’ to start your application. 
  • Fill out the form, upload all the documents, and submit. 
  • The bank will contact you to let you know the status of your application. 
  • When approved, you can take the loan process further from hereon with an executive from the bank. 

Via Bank’s Branch 

  • You can also apply for your SME car loan by visiting one of the nearby branches of the bank you have chosen. 
  • Find a nearby branch and make arrangements to visit it by collecting all the necessary documents. 
  • Connect with a car loan or auto finance executive at the branch and obtain an application form from them.
  • Fill out the form using the required information and attach all the documents. 
  • Submit your application form for SME car finance at the designated counter. 
  • The bank will connect with you to inform you whether your application is approved or not. 
  • You can take the procedure forward with the help of the executive assigned to your case from here on. 

One can easily choose to apply for an SME car loan in UAE with Policybazaar UAE if they wish to complete the application process in the most convenient way. In just one place and with a few clicks, you can check out and compare the best plans for the same. From here, you can pick one of your choice and purchase it, again in a few clicks. This allows you to complete all the application-related procedures from the comfort of your home.

Q1. What are SME car loans?

Ans: SME car loans are auto finance products meant for small and medium-sized enterprises in the UAE to finance their business and commercial vehicles. 

Q2. Which are some of the best banks to get SME car loans in UAE?

Ans: Some of the top banks that offer SME car finance in the UAE include the Abu Dhabi Commercial Bank, Emirates NBD, RAK Bank, and the Commercial Bank of Dubai

Q3. What is the maximum finance amount available for SME car loans?

Ans: Banks offer up to AED 35 million financing amount for SME car loans in the UAE. However, the maximum loan amount can differ as per the bank you pick. 

Q4. Which type of vehicles can be financed by SME car finance?

Ans: Most banks offer to finance all types of commercial vehicles including passenger cars and heavy machinery. However, it is recommended to confirm with your bank about the available vehicle options.

Q5. Is refinancing available with SME car finance products?

Ans: Yes, several banks offer refinancing options with SME car loans in the UAE. You can get your existing assets refinanced using these options.

Q6. What are the interest rates I can avail myself of for SME car finance in the UAE?

Ans: The interest rates available for SME car loans start at 4.25%.

Q7. Is there minimum income eligibility for SME car finance in UAE?

Ans: Yes, several banks impose minimum income or turnover criteria for the applicants. The minimum yearly turnover limit for most banks is AED 1 million.

Q8. What is the maximum repayment tenure available for SME car finance products?

Ans: The maximum repayment tenure available for SME car loans in the UAE ranges from 36 to 84 months.

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