Commercial Bank of Dubai (CBD) Car Loan in UAE

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Headquartered in Dubai, the Commercial Bank of Dubai is one of the oldest established regional banks in the UAE. Founded in 1969 by Sheikh Rashid bin Saeed Al Maktoum, the second Prime Minister of the UAE, the bank specialises in providing a full range of financial services including bank accounts, credit cards, loans, and mortgages to both corporates and individuals. 

One of these well-known financial products is the Commercial Bank of Dubai car loan and for good reason. CBD bank car loans are well-liked by customers for the highly competitive interest rates and the high loan amount sanctioned. Let’s cover everything one should know about Commercial Bank of Dubai auto loans. 

Features of CBD Car Loan

  • Multiple Car Financing Options: Car loan choices available with the Commercial Bank of Dubai provide you with enough options to compare and pick the best-suited alternative for yourself. Whether it is a brand new car or a used, second-hand car that you have your eyes set on, you can always avail of a good Commercial Bank of Dubai car loan option that perfectly suits your requirements. 
  • Easy and Swift Processing: Submitting your documents and having your loan request processed only takes a few hours with the Commercial Bank of Dubai. The documentation process is simple, with the application process only including a few straightforward steps. You can submit your Commercial Bank of Dubai car loan applications offline as well as online. 
  • Flexible Tenure: Borrowers can select their tenure as per the requirement of the hour, as the Commercial Bank of Dubai offers flexible loan tenure of up to 60 months for all types of offered car loans. Another useful feature of the Commercial Bank of Dubai car loans is the rescheduling of the tenure. In case the situation requires such a move, the borrower can send in a request to reschedule the tenure of their car loan at any time during the running tenure of the loan. 
  • High Loan Amount: Commercial Bank of Dubai sanctions a rather high loan amount for auto loans in Dubai. This allows borrowers to easily select a loan amount suitable for their requirements that also matches the allowed debt burden ratio by the bank. The maximum allowed debt burden ratio for applicants is 50% in the case of earning individuals, and 30% for pensioners. 
  • 80% Vehicle Financing: You can get up to 80% of your car’s value financed by the Commercial Bank of Dubai auto finance. The rest 20% must be covered as the down payment of the car by the applicant. 
  • Competitive Interest Rate: Commercial Bank of Dubai auto loan interest rate starts from 2.18% flat. As Commercial Bank of Dubai car loan interest rates are some of the most competitive interest rates in the UAE, applicants can be assured of getting the best possible financing for their vehicles. 
  • Islamic and Conventional Car Loans: With the Commercial Bank of Dubai, customers can receive two major types of car financing options – conventional and Islamic. Applicants interested in getting their new vehicle financed with Islamic car finance can choose the options available with the Islamic tag,  while others can choose the conventional forms of car loans.

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Benefits of Car Loan with CBD Auto Finance

  • Easy Financing: Paying for your dream vehicle is as easy as buying groceries with Commercial Bank of Dubai auto finance by your side. Once you have completed the approval and application process, you can have the keys to your new ride practically in your hands as the financing finishes in no time at all. 
  • Emergency Fund Protection: Choosing a smart financing option like Commercial Bank of Dubai auto finance gives you a chance to save for emergencies. You can pay back the bank slowly for the financed amount, have the comfort of a personal vehicle, and keep your funds liquid to be used in emergencies.
  • Better Financial Management: Securing a Commercial Bank of Dubai car finance to buy your new car opens doors for more effective financial management. You can save your liquid funds for emergencies or invest them for growth instead of spending them to buy a car. While a vehicle is an asset for the owner, it makes more sense financially to opt for low-interest financing options instead, and invest your own money in a venture that offers expedite growth. 
  • High Loan Amount: Commercial Bank of Dubai car finance can sanction up to AED 500,000 to cover the cost of your vehicle. The applicant can score the loan amount as per the allowed debt burden ratio for them. Salaried and self-employed individuals can go up to 50% when it comes to the debt burden ratio. Pensioners are also allowed to get a Commercial Bank of Dubai vehicle loan as long as they satisfy the age and income criteria. Up to a 30% debt burden ratio is permitted for pensioners. 

Types of Commercial Bank of Dubai (CBD) Car Loan 

  • New Car Loans: As the name suggests, this particular Commercial Bank of Dubai car loan is designed for a brand new vehicle that hasn’t been with an owner yet. The financing is done for the on-road price of the vehicle that you choose, with anyone over the age of 21 eligible for these loans. . The maximum financing amount available is AED 500,000 for up to 80% of the vehicle’s value.
  • Used Car Loans: Commercial Bank of Dubai used car loans are available for the cars that you buy directly from the owners or dealerships. You can easily get any kind of second-hand car financed by the Commercial Bank of Dubai, although the interest rates for used car financing can be higher than those for new cars. 
  • Islamic Car Loans: For people searching for Islamic loans instead of conventional loan plans, the Commercial Bank of Dubai could prove beneficial as it also offers Islamic car loans. Islamic car loans from the Commercial Bank of Dubai are available in two variants just like the usual ones – new car loans and used car loans. 

CBD Car Loans Interest Rates

Types of Interest Rates

Available CBD Car Loan Interest Rates

Flat Rate Car Loan Interest 

Starting from 2.18%

Eligibility Criteria of CBD Car Loan & Auto Loan

  • Nationality: Both UAE nationals and UAE ex-pats can opt for Commercial Bank of Dubai car loans. The applicants are required to have valid identity proof for the application, including a passport, Emirates ID, and resident’s visa. However, the additional eligibility criteria for both these applicant categories are different. For instance, the Resident’s visa is only applicable to UAE residents. 
  • Age: All Commercial Bank of Dubai auto loan applicants must be at least 21 years of age to be considered eligible applicants for the loan. The maximum age to apply for Commercial Bank of Dubai auto finance for UAE nationals is 65 years. On the other hand, the maximum age to apply for Commercial Bank of Dubai car finance for UAE ex-pats is 60 years. 
  • Income: The minimum income required to apply for Commercial Bank of Dubai auto finance is AED 8,000 for both UAE nationals and ex-pats. Applicants who are on pension can also apply for the loan as long as they fall under the set age criteria and cover the minimum income criteria. Besides the income, the bank also has criteria regarding the debt burden ratio. The maximum debt burden ratio for self-employed or salaried applicants is 50%, while the 30% debt burden ratio has been allotted to pensioners. 
  • Credit History and Score: There are no pre-set criteria for credit score to get Commercial Bank of Dubai car loans. However, every applicant must have at least a fair credit score to be eligible for application. Approvals are subject to several factors of which credit score is a part. In general, people with scores above 580 can apply for the Commercial Bank of Dubai car loans. 

Criteria

Salaried Individuals

Self-Employed Individuals

Pensioners

Nationality

Both UAE Nationals and Ex-pats

Minimum Age

21 years

Maximum Age

65 years for UAE Nationals (at the maturity of the loan)

60 years for UAE Ex-pats (at the maturity of the loan)

Income

AED 8,000

Debt Burden Ratio

50%

30%

Documents Required for CBD Car Loans in the UAE

Category of Documents 

Required Documents 

Identification Documents 

  • Passport – a copy and the original 
  • Resident’s Visa – a copy and the original (for ex-pats)
  • Emirates ID – a copy and the original 
  • Driver’s license

Income-Relates Documents 

  • 3 month’s bank statement of the applicant
  • Salary certificate from your employer
  • Security Cheque up to 120% of the loan amount

Vehicle-Related Documents 

  • Price quotation from the dealer for both new and used cars

Mortgage Release Documents

  • Registration documents of the car or Mulkiya
  • Emirates ID of the borrower

How to Apply for Commercial Bank of Dubai (CBD) Car Loans in the UAE?

  • Online: Applying for the Commercial Bank of Dubai car loans is a matter of a few minutes only. You can visit policybazaar.ae or the official website of the Commercial Bank of Dubai. Head to the car loan section on the website and locate the lead form on the right side. Once you complete this form using your basic personal information, you will reach the quotes page where all suitable car loans are listed. Compare your top options right away, make a choice, and proceed to fill out your application form. You will need just a few basic personal details for that. Attach the required documents here and submit the application form, after which your request will be processed by the bank. A representative will contact you after the completion of processing and the approval of the loan. You can move further with the disbursal process after this. 
  • Offline: If you plan to apply for your Commercial Bank of Dubai car finance offline, find out a nearby branch of the Commercial Bank of Dubai and make arrangements to visit it. Take all required documents for application with you as mentioned in the previous section. Once you are at the branch, connect with a representative in charge of handling the car loans. Obtain an application form from the executive present at the car loan designated counter. Fill it out, attach the documents, and submit them here. The bank will go through the documents and decide on the approval of the loan. Once you get approval from the bank, you can proceed with the rest of the formalities before the loan amount is disbursed. 
CBD Used Car Loan -  Eligibility, Interest Rate & Benefits

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CBD Car Loan Calculator

Calculating your car loan equal monthly payments can take a considerable amount of time if you do all the calculations on your own. Fortunately, there is a much easier way to get an estimate of your Commercial Bank of Dubai car loan equal monthly payments – car loan calculators. CBD Car loan calculator is online tool easily available on multiple platforms. 

You can find the estimated monthly payment amount for your car loans by simply entering a few particulars like the estimated interest rate, tenure of the loan, and the loan amount. The calculator processes everything, adding the average fees and charges, and gives you an estimated amount payable as equal monthly payments for your loan. 

Note that since the actual rate of interest is decided on a case-by-case basis, the equal monthly payment amount estimated by an online car loan calculator may differ from the actual loan payments. 

Commercial Bank of Dubai Car Loan Fees and Charges

Particulars 

Details of the Fee

Deferment Fee

AED 105

Advance Payment of Monthly Instalment 

1% of the amount being paid in advance 

Loan Tenure Rescheduling Fee

AED 262.5 per request

Late Payment Charges 

2% over the agreed rate

Limited to a maximum of AED 200 and a minimum of AED 50 

Liability Letter Issuance Fee 

AED 63 (including VAT)

Early Settlement Fee

1% on either the outstanding loan amount or the maximum amount allowed for early settlement i.e., AED 10,500

Processing Fee

1% 

Limited to a minimum of AED 525 and a maximum of AED 2,625

Important Terms and Conditions for CBD Auto Loans

  • Once your loan has been approved, the Commercial Bank of Dubai provides a 5-day-long “cooling period”. This time can be utilised to make final decisions about the loan. If you like, you can cancel the loan here and the whole process will be stopped. However, if no action is taken, the bank will take it as your consent to proceed with Commercial Bank of Dubai auto finance. 
  • Fees and charges can be modified at any time as per the policies and terms of the bank. 
  • Pre-payment penalties are applicable if the borrower decides to pay off the loan before the tenure ends. The charges can be found in the ‘fees and charges’ section as “early settlement fee”.
  • Refinancing of loans can be done as per the requirement of the borrower. However, refinancing your Commercial Bank of Dubai car loan will result in higher interest amounts. 
  • 5% VAT is applicable on all kinds of fees and charges.
  • Additional expenses like postage, fax, courier, legal fee, etc., are also applicable. The borrower will be required to bear these expenses. 

Things to Keep in Mind About Commercial Bank of Dubai (CBD) Car Finance 

  • Debt Burden Ratio: Commercial Bank of Dubai has set the maximum allowed debt ratio at 50% for salaried and self-employed individuals. Pensioners who qualify the rest of the applicable eligibility criteria for age and income get a maximum of 30% debt burden ratio. This limit is set to protect you from burdening yourself with high repayment amounts and to protect the bank from enduring losses as well. To further ensure easier repayment of your Commercial Bank of Dubai vehicle loan, it is recommended to keep your debt burden ratio below 30% instead. If you end up with late payments or deferred payments due to an excessive load of debt, you will end up with penalties. 
  • Maximum Loan Amount: If you are planning to finance your car with the Commercial Bank of Dubai only, choose a vehicle that has a cost within the allowed loan amount. If not, make sure you can cover the maximum cost as a down payment. The maximum allowed loan amount in CBD bank car loans is AED 500,000.
  • Fees and Charges: Fees and penalties are chargeable for actions like loan tenure rescheduling, deferred and late payments, early settlement, etc. Consequently, you should ensure that you are aware of the fee structure before you go for any of these services or actions. Note that the charges mentioned in the fee schedule of CBD bank car loans are applicable per request. For instance, you will have to pay the rescheduling fee every time you send a formal request. The processing fee is to be submitted before receiving loan approvals. 
  • Risk-Based Pricing: All lenders and banks, including the Commercial Bank of Dubai, go for risk-based pricing for all kinds of loans, meaning that you could end up with an 8% Commercial Bank of Dubai car loan interest rate even when the CBD car loan interest rates start at 2.18%. The higher risk you bring in for the bank, the higher the interest rate you will receive. Your risk factor is calculated after considering several minor and major factors, including your credit history and credit score as well.  
  • Credit Score: As mentioned in the previous point, your credit score will play an important role in deciding the CBD car loan interest rate for you. There are no set criteria for the minimum credit score required for Commercial Bank of Dubai vehicle loans. However, the higher your credit score is, the better your prospects are for approvals and getting low Commercial Bank of Dubai car loan interest rates. An AECB credit score of around 700 points is considered good in the UAE. 
  • Transfer of Ownership: Once you have repaid the complete CBD bank car loan amount, there comes the time to transfer the complete ownership of the car to your name. During your loan tenure, the bank is the part-owner of the vehicle. You will need the registration documents of your car and your Emirates ID to get this process started. Visit the bank to complete the required steps. 
  • Refinancing Costs More: If you plan to refinance your CBD bank car loan, remember that it may cost you additional to do so. Besides an additional interest amount, refinancing your car loan may come with some additional fees and charges as well. Be crystal clear about the extra money you will pay before starting with the refinancing process. 

Commercial Bank of Dubai (CBD) Auto Loan Contact Number

CBD Auto Loan Contact Number for UAE 

600575556

CBD Auto Loan Contact Number for Outside of UAE

+971 600 575 556

FAQ's

What is the minimum age to get a CBD car loan?

The minimum age to get a CBD vehicle loan is 21 years.

Can I get my Commercial Bank of Dubai car loan equal monthly payment deferred?

Yes, you can go for deferred equal monthly payments with your Commercial Bank of Dubai car loan.

What is the maximum age limit for ex-pats to get a CBD auto loan?

A minimum of 20% down payment amount must be paid for Emirates Islamic auto loans.

What is the maximum age limit for ex-pats to get a CBD auto loan?

The maximum age for ex-pats to get Commercial Bank of Dubai auto loans is 60 years.

Can I get my CBD auto loan rescheduled?

Yes, getting your CBD vehicle loan rescheduled is possible with the payment of a small fee.

What are the charges of CBD auto finance advanced repayment?

The advance payment fee for the Commercial Bank of Dubai car loan is 1% of the amount being paid in advance.

What are the late payment penalty charges for CBD car finance?

If you fail to make payments on time, a late payment charge will be applicable, which will be 2% of the amount due applicable. A minimum limit of AED 50 and a maximum capping of AED 200 are applicable.

What are the charges of getting a liability letter issued for other banks?

The charges to get a letter of liability issued for your Commercial Bank of Dubai vehicle loan are AED 63.

Can I go for early settlement for my CBD car loan amount?

Yes, you can go for early settlement for your loan amount with the Commercial Bank of Dubai.

What is the maximum early settlement amount I can go for?

AED 10,500 is the maximum early settlement amount you can go for with your Commercial Bank of Dubai (CBD) car loan.

What is the early settlement fee?

1% early settlement fee applying on the due loan amount, or AED 10,500, are applicable (whichever one is lower).

What is the processing fee applicable to my CBD vehicle loan?

On your Commercial Bank of Dubai loan amount, a 1% processing fee is applicable in addition to VAT.

What is the maximum loan amount available with CBD car loans?

You can get a maximum of AED 500,000 in your Commercial Bank of Dubai auto loan.

Can pensioners opt for a CBD vehicle loan?

Yes, pensioners are allowed to opt for Commercial Bank of Dubai auto finance products as long as they satisfy the maximum age and minimum income criteria.

What is the maximum allowed debt burden ratio for CBD car finance?

The maximum debt burden ratio allowed for salaried and self-employed individuals is 50%. For pensioners, it is set at 30% only.

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