Car Loan in UAE from Dealership or Bank - Know which car loan option is better for you from dealership and Bank. And also know the financing process of both with advantages and disadvantages.
Check and Compare DIB car loan interest rate on used and new cars
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With a global customer base of over 2 million, Dubai Islamic Bank is one of the most prominent Islamic banks in the whole wide world. Established in 1975, the bank offers innovative and advanced banking services and products through its experienced and robust banking system. Further, the bank offers fully sharia-compliant services with several products ranging from individual, business and corporate accounts, investment banking, loan and finances.
We all are well aware that buying a car requires a hefty investment, and financing it through an auto loan is feasible for most individuals in the UAE. For this reason, Dubai Islamic Bank provides affordable car loans with low-profit rates and lenient eligibility criteria. Not just that, DIB car loans come with minimal documentation and quick approvals for your utter convenience.
So, do you want to know all about DIB car loans, features, benefits, charges, and various applying methods? Just tread-along!
If you want to finance your dream car on affordable terms and with a hassle-free process, Dubai Islamic Car Loan in the UAE is just made for you as it provides numerous features and benefits on car loans. Here are the key features and benefits of Dubai Islamic car loans in the UAE:
To assist you in purchasing your preferred car, Dubai Islamic Bank offers car loans at affordable and low-Interest Rates starting from as low as 2.10%. In addition, the bank also provides flat as well as reducing Interest Rates for effective EMI management. Moreover, you can opt for a Interest Rate type depending on your financial needs and capabilities. Here are the details of DIB car loan Interest Rates in the UAE, so let's take a closer look:
DIB Car Loan Type | Flat Rate | Reducing Rate |
New Car Loan | 2.10% to 5.50% per annum | 3.84% to 10.6% per annum |
Used Car Loan | Starting from 2.75% per annum | Starting from 5.19% per annum |
You need to satisfy a few requirements while applying for a Dubai Islamic Bank car loan. For example, the eligibility criteria include your age, monthly salary, residency and downpayment. If you meet the eligibility criteria, you may get a higher or lower car loan amount depending on the same. Additionally, the criteria may differ depending on the applicant. Here are a few common eligibility criteria for DIB car loans in the UAE.
Subsequent to verifying your DIB car loan eligibility, you need to collect and produce a few documents during your loan application. The bank may ask for additional supporting documents based on the type of applicant. Here are the common document required during a car loan application.
Providing world-class banking services, Dubai Islamic bank accepts loan applications through numerous online as well as offline channels. So, to apply for Dubai Islamic Bank Car Loans, you can log on to DIB's official website and apply for car loans anywhere and anytime, or visit the bank in person to apply offline. Following are the ways to apply for a DIB car loan in the UAE.
Online Car Loan Application - To apply for a DIB car loan online, you need to visit the official website and navigate to the car loan section. Here, you can find various details pertaining to the car loan. Subsequently, you need to fill out an online application form entering your personal and contact details. Next, the banking personnel will contact you with the further loan application process.
Offline Car Loan Application - For offline applications, you need to visit the nearest bank branch along with all the required documents. Further, you need to fill out an offline loan application form mentioning your personal details, earnings and finances etc. Next, after duly filling out the application form, you must attach your documents and submit them to the banking representative. Once approved, the bank will credit the loan amount to the dealer's account and get you into the driver's seat.
Application via Phone Call - Alternatively, you can also use the IVRs and customer service to request a car loan application. You need to provide your contact, and personal details and the support representative will guide you through the loan application process. Therefore, you can also apply for a Dubai Islamic Bank Car Loan via Phone Call.
Dubai Islamic Bank Used Car Loans - Eligibility, Interest Rate, & Benefits |
DIB Car loan calculators are one the best and the easiest ways to understand and manage your finances efficiently. Primarily this is because a car loan EMIs involves complex calculations and multiple variables for computing your Interest Rates. However, you can conveniently forecast your total loan amount, monthly EMIs, and total Interests you need to pay by entering the details like car cost, loan tenure and the Interest Rates that you are offered.
Furthermore, to calculate your car loans, you can visit any car loan aggregator's website and enter the required details as already mentioned. After submitting the form, the portal reflects various details related to your DIB car loan. However, you should also keep in mind that the EMIs calculated are approximate because your total loan cost includes various fees and charges such as loan arrangement fees, finance charges etc.
Following are the charges and fees you need to pay while applying for a DIB car loan.
Type of Fees and Charges | Amount in AED |
Due Diligence and Documentation Fee | 1.05% of the total loan amount with a minimum amount of AED 520 and a maximum of AED 2620 |
Undertaking to donate due to late payment | Up to AED 525 |
Early Settlement Fee | 1.05% of the remaining loan amount |
NOC to the traffic department | Free |
Instalment Deferment Processing Charges | AED 105 per deferment |
Before applying for a Dubai Islamic Bank Car Loan, you must keep the following terms and conditions into account:
Ans: Currently, the bank offers both flat as well as reducing Interest Rates on car loans. You can opt for one depending on the loan amount. In the case of flat rates, the Interests are calculated considering the total loan amount and the loan tenure. For a reducing rate, the Interests are calculated on the remaining loan amount after the payment of each EMI.
Ans: Yes, you can apply for a car loan UAE even if you don't have a salary transfer account with the bank. The bank may ask you to open a settlement current account for loan repayments. However, with a salary account in the bank, you may get rebates and discounts on Interest Rates.
Ans: DIB car loans are affordable, and you need a minimum monthly salary of AED 3,000 or above.
Ans: You need to be at least 21 years old to apply for a car loan in the UAE.
Ans: The bank offers a cooling-off period of 5 days, within which you can cancel your car loan. However, you cannot cancel your loan application once your loan is disbursed.
Ans: Yes, you can foreclose your car loan account by paying a lump sum amount at once. However, you need to pay a processing fee of 1% of the remaining loan amount.
Ans: If you fail to repay your loan amount, the has the right to seize your vehicle since it acts as collateral.