Zero Down Payment Car Loan in UAE

 

Banks in the UAE offer various car financing options with exciting deals and lower interest rates, but certain financial commitments can prevent and discourage many from being able to put in the required down payment. In this post, we will talk about all that you need to know about zero down payment car loan.

 

Top Car Loan Plans in Dubai

 

How Can You Get a Zero Down Payment Car Loan in UAE?

Some of the banks in the UAE offer 100 percent financing car loans. However, a down payment of at least 20 percent is a common practice. You can always find credit options to extend the down payment support and ease the entire car purchasing process. The credit options to consider include payment via credit card or availing personal loan.

Let’s check out how you can make a down payment by utilising these options at the bank’s discretion:

• Credit Cards: Getting a credit card in UAE is quite easy if you have a good credit Score coupled with a remarkable repayment history. If your creditworthiness is proven, all you need to do is contact your bank, get authorisation to make such a high-value credit card transaction, and break it into easy monthly payments through an online or mobile banking portal.
• Personal Loans: Personal loans are unsecured loans that don’t require any collateral for approval. Apart from credit cards, you can also consider applying for a personal loan to make a hassle-free down payment. You can visit our personal loan sections to explore various personal loan options based on your preferences. Once done, you may contact the chosen personal loan lender and check for further details like the application process, offered interest rates, loan tenure, and more. Make sure you contact multiple lenders and compare interest rates to make an informed financial decision.

Now that you have easy access to funds, whether using a credit card or a personal loan, you can make a down payment of a minimum of 20 percent and start the car loan application process.

Top Banks Providing Car Loans with Low Down Payment Options

Here are a few major banks in the UAE offering car loan options with a lower down payment requirement.

• Abu Dhabi Islamic Bank Car Loan
• Commercial Bank International Car Loan
• Emirates National Bank of Dubai Car Loan
• First Abu Dhabi Bank Car Loan
• Emirates Islamic Bank

1- Abu Dhabi Islamic Bank Car Loan

Abu Dhabi Islamic Bank offers a car loan at a 20 percent down payment. Here are some of the features and benefits offered in this car loan.

• Interest Rates: The interest rates for Abu Dhabi Islamic Bank Ijarah car loan start from 1.99 percent. Various factors, including your age, monthly income, chosen loan tenure, repayment history, number of active loans, and more affect the interest rate percentage.
• Repayment Terms: Ijarah car loan provided by the Abu Dhabi Islamic Bank offers flexible loan tenure options of up to 60 months. You can select your preferred term at the time of loan application.
• Minimum Monthly Income: The minimum monthly income requirement to apply for ADIB car loan is AED 5,000.
• Minimum Age: The applicant must be at least 21 years of age when applying for the Abu Dhabi Islamic Bank car loan.
• Documents Required: The set of documents needed when applying for a car loan include Emirates ID, driving license, a valid passport, income proof, bank statement, and so on.
• Fees and Charges: A few additional charges applied to the Abu Dhabi Islamic Bank car loan, with an early settlement fee of 1 percent and a processing fee of AED 1,000 being some examples.
• First Instalment Payment: A first loan installment holiday period of up to 90 days is another benefit the Abu Dhabi Ijarah car loan offers. 

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2- Commercial Bank International Car Loan

Commercial Bank International offers a new car loan at a minimum 20 percent down payment with the following benefits.

• Interest Rates: For Abu Dhabi Islamic Bank Ijarah car loan, the interest rates begin from 1.99 percent. Factors like your age, chosen loan tenure, monthly income, repayment history, number of active loans, etc., affect the interest rate percentage. 
• Minimum Monthly Income: A minimum monthly salary of AED 5,000 is required to apply for a Commercial Bank International car loan.
• Term of Loan: Commercial Bank International offers the maximum loan tenure of 60 months for the repayment. You can choose your preferred tenure duration at the time of loan application.
• Loan Amount: With Commercial Bank International, you can borrow a maximum loan amount of AED 500,000.
• Minimum Age: The minimum age requirement to apply for the Abu Dhabi Islamic Bank car loan is 21 years or more at the time of application.
• First Instalment Payment: Abu Dhabi Ijarah car loan offers a first loan installment holiday period of up to 90 days. 

Click Here to Apply Now

3- Emirates National Bank of Dubai Car Loan

Besides offering up to 80 percent of funding, Emirates National Bank of Dubai car loans also offers benefits and features as described below.

• Repayment Term: With the Emirates National Bank of Dubai car loan, you can get multiple loan tenure options of up to 60 months. 
• Flexible Payment Options: Emirates National Bank of Dubai offers flexible loan repayment options to allow to borrowers make streamlined loan repayments. 
• Free Bank Account: A free bank account is one of the best benefits of the Emirates National Bank of Dubai car loan. However, you need to maintain a minimum average balance of AED 20,000 when applying for a car loan.
• Free Credit Card: You can enjoy a free credit card with an Emirates National Bank of Dubai car loan that is free for the first year and requires an annual membership fee second year onwards.
• Loan Amount: You can borrow a maximum loan amount of up to AED 250,000 with the Emirates National Bank of Dubai car loan. 
• Fees and Charges: A few additional Emirates NBD car loan charges include a processing fee of AED 500 and an early settlement fee of 4 percent.

Click Here to Apply Now

4- First Abu Dhabi Bank Car Loan

First Abu Dhabi Bank notably offers car loans for both salaried and self-employed individuals. With the car loan, you need to pay a minimum down payment of 20 percent. Here are a few major benefits and features provided by the bank.

• Minimum Income: If you are a salaried employee, you must have a minimum monthly income of AED 7,000 to apply for a FAB car loan. On the other hand, if you are applying for a loan as a self-employed individual, you must have an average account balance of AED 25,000 at the time of the loan application.
• Interest Rates: First Abu Dhabi Bank offers interest rates ranging between 1.99 and 3.49 percent on car loans. The interest rate may vary as per the type of car you are planning to buy.
• Loan Tenure: First Abu Dhabi Bank allows the option of flexible loan tenure to the borrowers. You can choose the loan repayment term at the time of loan application.
• Loan Amount: With First Abu Dhabi Bank, you can apply a maximum of AED 1.5 Million for a car loan amount.
• Fees and Charges: First Abu Dhabi Bank applies some additional charges such as a processing fee of 1.05 percent on the car loans. 

Click Here to Apply Now

5- Emirates Islamic Bank Car Loan

Similar to most banks in the UAE, Emirates Islamic Bank also offers a car loan with a minimum 20 percent down payment requirement. Following are the benefits and features of the car loan.

• Interest Rates: Emirates Islamic Bank offers a minimum car loan interest rate of 2.15 percent for UAE Nationals and 2.29 percent for expatriate applicants.
• Repayment Term: Emirates Islamic Bank extends flexible loan repayment tenure of 5 years to help you repay the car loan amount with ease. 
• Loan Amount: The maximum EIB car loan amount that the bank offers AED 1.5 Million.
• Loan Tenure: Emirates Islamic Bank offers flexible loan tenure of 5 years for borrowers to choose from. You have to make the choice regarding the loan repayment tenure as per your financial preferences. 
• Fees and Charges: Emirates Islamic Bank levies some additional charges like a processing fee of 1 percent capped at a minimum of AED 500 and a maximum of AED 2,500.
• Grace Period:  With all the other benefits, the Emirates Islamic Bank offers a grace period of up to 60 days to help borrowers pay their first instalment easily.

Click Here to Apply Now

Key Takeaways

• Make sure to explore multiple car loan options before you apply for one to get the best deal available in the market.
• You can also consider doing a partial settlement with your chosen bank if you are one of their existing customers.
• Taking a personal loan is the best way to make a down payment in case you are running short of funds and want to buy a car.
• Check with your bank if they offer a 100 per cent car financing option.
• Always go through the active loan offers to get the best interest rates for a car loan.

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