Dubai Islamic Bank Car Loan

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.

 

Top Car Loan Plans in Dubai

 

Features and Benefits of Dubai Islamic Bank Car Loan in UAE

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:

• Low-Interest Rates - With low financing rates, Dubai Islamic car loans are amongst the most affordable car loan in UAE. Depending on the car you want to buy and other eligibility criteria, you can receive a flat profit rate starting from 2.10% and a reducing profit rate starting from 3.84%. Overall, the loan cost primarily depends on the offered profit rates, so getting a lower rate can considerably reduce your loan cost. 
• Higher Finance Amount - Dubai Islamic Bank provides high finance amounts of up to AED 1 million for individual customers and up to AED 8 million for businesses. So, with a high financing amount from DIB, you don't need to compromise on your dream car and can conveniently purchase the same.
• Flexible Loan Tenure - Depending on your financial requirements, you can select the loan tenure. For example, Dubai Islamic Bank offers a flexible loan tenure ranging from 12 months to 60 months. However, you must understand that a shorter loan tenure incurs higher EMIs and lower profits and vice versa. 
• Finance up to 80% of Car Value - As per the Central Bank of UAE guidelines, you can acquire a maximum car loan of up to 80% of your car cost. So, based on your financial capabilities, you can also opt for lower financing amounts. 
• Convenient Loan Processing and Approvals - The bank offers convenient loan processing through online channels and a dedicated customer service team to guide you through the loan application process. Additionally, you also get quick and easy approvals with a digital application. 
• Loans without Salary Transfer - In the UAE, several banks require you to have a salary account in order to apply for a car loan . But, DIB makes car loans accessible to individuals even without a salary transfer account in the bank. However, if you have a salary account in DIB, you are in luck because you may get preferential profit rates and other rebates as well. (This is, of course, an added benefit). So, you can verify the same with the bank prior to your car loan application. 
• Auto Takaful Option - In collaboration with Noor Takaful, the bank offers Islamic car loan insurance with a coverage of up to AED 30,000 for a period of the first 3 years in case of involuntary loss of employment. Moreover, the coverage starts 6 months after enrolling in the takaful scheme. Besides, Auto takaful has separate eligibility criteria that you need to satisfy and is available to salaried individuals only. 
• New and Used Car Loans - Dubai Islamic Bank Car Loans are available for both new cars as well as used cars. However, you may find variations in the offered profit rates as the rates are higher for a used car in comparison to a new car.  
• Easy Access to DIB Auto Loan - With a network of over 54 branches and the availability of DIB Al Islamic auto financing staff across all major dealerships, DIB car loans are relatively easier to access. 

DIB Car Loan Interest Rates

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:

Dubai Islamic Bank Car Loan Interest Rates for Individual and Self Employed Customers

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

Eligibility Criteria to Apply for Dubai Islamic Bank Car Loans

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.

• Age - To acquire a DIB car loan in the UAE, you must be at least 21 years of age to meet the eligibility criteria to apply for Dubai Islamic Car Loans. Additionally, the bank may have an upper age limit of 60-70 years, depending on your employment status and salary, so don't forget to check that with the bank. 
• Minimum Salary Requirements - If you are a salaried individual, you need to have minimum monthly earnings of AED 3,000 or above in order to apply for a DIB car loan in the UAE. So, minimum salary requirements are also one of the major eligibility criterias you must meet to apply for Dubai Islamic Car Loan. 
• Residency - DIB auto loans are available to UAE nationals and residents, including ex-pats. However, the Interest Rates and loan amount may vary depending on the individual's residency. 
• Credit Score - Along with the other criteria, the bank may also consider your aecb credit score, especially if you have an ongoing loan. Based on your creditworthiness, the bank can approve or reject your loan application. Additionally, you may also get a higher loan amount with a decent credit score of 700 or above. 
• Down Payment - While financing your car, you need to pay a minimum of 20% of the car cost in the form of a down payment. Then, the remaining 80% amount can be converted into a car loan. 

Documents Required for DIB Car Loan 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.

For Salaried Individual

• An original Emirates ID and a copy for UAE national and residents,
• An original passport ID with valid visa details for ex-pats,
• A driving license issued by the competent authorities in the UAE,
• Pay Slip or Salary certificate from your employer addressing Dubai Islamic Bank (Not required if you have a Dubai Islamic Bank salary account),
• Address proofs such as rent/lease agreement or latest utility bills,
• Bank account statement of last 3 to 6 months,
• Proforma invoice mentioning the cost of the car or Quotation from the dealer.

For Self Employed Individuals

• An original Emirates ID for the UAE nationals and residents,
• An original passport ID, with valid visa details for ex-pats,
• An original driving license issued by a competent authority in the UAE,
• A valid trade license issued by the Department of Economic Development (DED),
• A proforma invoice of the car or dealer's quotation,
• A copy of Power of Attorney (if applicable),
• Details of existing loans, expenses and liabilities,
• Last 3 months' bank statement for both individual and company accounts.

For Businesses and Companies

• A valid trade license copy,
• A valid passport ID, visa or EIDA car copy of the company signatories,
• Last 3 months company's bank account statement,
• A valid copy of power of attorney (if applicable),
• Details of existing loans, expenses and company's liabilities,
• Memorandum of Association or partnership agreement,
• A proforma invoice of the car or dealer's quotation,

How to Apply for Dubai Islamic Bank Car Loans ?

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 Calculator

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. 

Dubai Islamic Bank Car Loan Fees and Charges

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

Important Terms and Conditions for Dubai Islamic Car Loan

Before applying for a Dubai Islamic Bank Car Loan, you must keep the following terms and conditions into account:

• If the customer has only a savings account (Deposit account), they need to open a settlement current account for repaying the car loan amount. However, individuals already holding a current account don't need to open one.
• In case of any default in the loan repayment, the bank may appoint or authorise a collection agent to collect the outstanding amount.
• The applicant is solely responsible for the correctness of documents and proofs submitted to the bank.
• The bank has the sole discretion to approve or reject the car loan application.
• The customers have the option of cancelling their loan application during the cooling-off period of 5 days. However, after disbursement of the loan amount, the bank doesn't allow any cancellation.
• Applicants can waive their cooling-off period and avail the amount immediately after the approval for their loan.
• The bank can modify DIB car loan terms and conditions with 60 days' prior notice.

Frequently Asked Questions