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As we all know, Dubai is one of the fastest-growing and glamorous cities in the whole wide world. But do you know that Dubai is also one of the cities with the highest number of vehicles? Whether you talk about new or second-hand, having your own car in the UAE is turning into a necessity rather than a luxury. And along with the car comes the most crucial thing you can't do away with- Protection for your car. So, if you live and work in the UAE today, you will probably need a personal car for commuting and leisure. However, buying a car while building a new life from scratch does not always go well. This is precisely why car financing is becoming more and more popular among UAE ex-pats and nationals. With car financing, you get to buy your dream car without costing an arm and a leg in one go, and of course, it saves a fortune. Luckily, paying back the loan is unrushed, and the loan amount can be paid off slowly over time. However, not to mention, there goes a lot in finding the right lender for your financing needs. Adding to that, you will have to take care of quite a few things, and one of these crucial things is car loan interest rates. And to do the same, you don't need to go anywhere else because we have covered everything you need to know about car loans, their benefits, banks that offer the best car loan interest rate in the UAE and what should you consider when taking out an auto loan. So dive right in!
As evident, several different banks offer good car loan interest rates in the UAE. However, for your convenience, we have compiled a list of all the banks that offer the most competitive car loan interest rates in the UAE. So let's take a closer look at a list of all the top banks that offer the best car loan interest rates in the UAE and decent loan amounts for both new and used cars loans.
Established in 1975, Dubai Islamic Bank is known across the UAE for its incredibly innovative line of financial products and services. As the name suggests, Dubai Islamic Bank functions solely on principles of Islamic Banking. With products like Johra card in sight, Dubai Islamic Bank continues to make sure that every customer gets the services they desire, whether individual or corporate groups. Apart from credit cards, investment banking, home loans, personal loans and auto loans are some of the top-sought products of Dubai Islamic Bank. Below are details about the car loan interest rate in the UAE that Dubai Islamic Bank provides and other essential details related to DIB auto financing. Well, that's pretty interesting; read along!
Key Features of Dubai Islamic Bank Auto Loans
|DIB Car Loan Type||Flat Rate||Reducing Rate|
|New Car Loan||2.35% p.a||4.42% p.a|
|Used Car Loan||0.75% p.a||5.19% p.a|
Emirates Islamic Bank was founded in the year 2004 with the principal goal to offer the highest level of Islamic banking services and products to the customers in UAE. Besides, the complete range of products offered by Emirates Islamic Bank caters to a broad spectrum of customers, including salaried individuals, small and mid-scale businesses and large national and multinational corporations. Additionally, Emirates Islamic Bank functions strictly as per the Sharia-based banking and financing business rules. Auto loans from Emirates Islamic Banks are one such sharia-compliant product.
Key Features of Emirates Islamic Bank Car Loan
|Car Loan Type||Flat Rate||Reducing Rate||UAE National|
|New Car Loan||2.29% p.a||4.2% p.a||2.15% p.a|
|Used Car Loan||2.59% p.a||5.48% p.a||2.49% p.a|
Emirates Islamic Bank Car Loan Interest Rate for Certified Pre-Owned Cars: 2.29% for ex-pats and 2.15% for UAE nationals.
A public joint-stock company, RAK Bank was founded in the year 1976, which makes it one of the oldest banks in the history of the UAE. It initially used to cater to only corporate clients but went under major reformation in 2001. After the 2001 reforms, RAK Bank shifted to personal banking and has been there since then. It is pretty popular for its customer-centric products catering to the customers' conventional and Islamic banking needs. Moreover, there are 27 branches of RAK Bank all over the UAE dealing in both personal and corporate finance products. For your convenience, car loans is one of these products mentioned in ample detail below.
Key Features of RAK Bank Car Loan
|Rak Bank Car Loan Type||Flat Rate||Reducing Rate|
|New Car||2.35% p.a||4.26% p.a|
|Used Car||2.99% p.a||5.42% p.a|
RAK Islamic is the Islamic banking version of RAK Bank. It officially launched in 2013 with Islamic counterparts for all banking products and services that RAK Bank offers. Over and above, there is an internal Sharia committee that oversees the Islamic banking operations of RAK Bank. Islamic car loans offered by RAK Islamic are one of these most prominent services as well, and given below are a few details of the same.
Key Features of RAK Islamic Car Loan
|Car loan Type||Flat Rate||Reducing Rate|
|New Cars||2.35% p.a||4.26% p.a|
|Used Cars||2.99% p.a||5.42% p.a|
A London-based multinational bank, Standard Chartered bank has been a part of the global banking and finance industry since 1969. Standard Chartered Bank was initially established as Chartered Bank of India in Kolkata, Mumbai and Shanghai. Another bank named Standard Bank was founded in Britain in 1862. However, in 1969, both these banks came together and merged to form the Standard Chartered Bank. The currently known Standard Chartered Bank deals in many regions worldwide, including most of Asia, South Africa, Gulf regions and the west. Having said that, the SC Bank first came to the UAE in 1958 and established the first branch in Sharjah. The current UAE headquarters of SC Bank are in Dubai. It offers several attractive banking services and products, including financing, accounts, credit cards, etc. Apart from that, Standard Chartered car loan interest rates in the UAE are among the best you would find in the country.
Key Features of Standard Chartered Bank Car Loan
|Car loan Type||Flat Rate||Reducing Rate|
A part of Dubai Islamic Bank now, Noor Bank or Noor Islamic Bank was established in 2008 as a private company. In addition, another matter of fact is that Noor Investment Group is the parent company of Noor Bank. Dubai Islamic Bank recently acquired Noor Bank, becoming its parent organisation. It deals in all major finance and banking services like credit cards, personal loans, auto loans and Islamic insurance. Moreover, Noor Bank is the 11th largest bank in the UAE in terms of assets. Car loans and financing is one of the most preferred products among the customers from Noor Bank. Over and above, it offers highly competitive rates and high loan amounts pre-approved for most customers. Given below is all you need to know about Noor Islamic Bank Car Loan.
Key Features of Noor Islamic Bank Car Loan
|Car loan Type||Flat Rate||Reducing Rate|
|New Cars||2.64% p.a||5.02% p.a|
Given below is the complete list of documents you will need to get a car loan in the UAE:
Note: A few other documents may also be required as per the individual policies and requirements of the bank that you choose. So, confirm all the documents required with the concerned authorities at your bank.
Like any other financial instrument subject to market forces, car loan interest rates can be influenced by several factors. Given below is a comprehensive list of the same:
Ans: The minimum age to sign up for a car loan in the UAE is 21 years. This is a common eligibility requirement across all banks and financial institutions.
Ans: Emirates Islamic Bank. RAK Bank and Dubai Islamic Bank are a few of the several banks that offer competitive car loan interest rates in the UAE.
Ans: The minimum salary required to get a car loan in the UAE ranges from AED 3,000 to AED 4,000. However, the requirements may differ for each bank.
Ans: No, most banks do not require you to transfer your salary if you hold your salary account in some other bank. However, confirm this with the bank in question or read the fine print of terms and conditions.
Ans: Yes, ex-pats can easily get car loans from most banks in the UAE.
Ans: Yes, some banks do offer 100% financing for cars now. However, additional terms and conditions may apply.
Ans: Valuation certification is an official document that contains the current market of a used car. If you are planning to finance a used car, a valuation certificate of the said car will be required to get the loan.
Ans: Yes, minimum income requirements will generally differ for salaried and self-employed customers.
Ans: Yes, most banks allow you to choose your auto financing options before you have even finalised your car.
Ans: Most Islamic banks make this an eligibility criterion to have comprehensive Islamic insurance, aka auto takaful, to get the car financed. However, this will depend solely on the bank's policies.
Ans: Yes, most banks allow you to change your EMI date and schedule. However, it depends on the individual policies of the bank.
Ans: Yes, you can generally finance a vehicle from most banks, but certain terms may apply.
Ans: Car loan interest rates are generally same across all banks. What makes a real difference here is your income, debt to income ratio and loan tenure. If the interest rate seems to be justified as per these factors, you can consider it decent.
Ans: You can negotiate your car loan interest rates with banks. However, it is subject to your relationship with the bank and your credit history. If you plan to negotiate the car loan interest rate with your bank, make sure you have documented proof a good credit history. Having a realistic idea of your credit score will also help. Try and get the loan from a bank that you’re already subscribed to since banks value returning or existing customers.
Ans: Maintaining a good credit history is the biggest factor that makes a difference when it comes to getting a low interest rate on car loans. Apart from that, you need to be regular with your existing credit card payments and other related transactions. Financial institutions keep a track of all your financial history to assess your creditworthiness. Negotiate with the bank to see if you can scale down the interest rate.
Ans: The best way to assess that is by checking out the policies and offers of the bank you want to take a loan from. Generally, these rates can range between 2% to 9%.
Ans: The maximum tenure available is 60 months. It is important to note that interest rates go higher for lengthy tenures.