DIB Used Car Loan in UAE

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While purchasing a car is a dream for many people, aspects of car loans like high monthly instalments and interest rates often act as deterrents. This is more so the case with used cars, where an added uncertainty regarding the availability of car loans specifically for used cars persist. However, this is not the scenario in the UAE, where affordable UAE car finance has become possible with the plethora of available options. An excellent option present for used cars is the DIB Used Car Loan, which is among the leading used car loan plans in the UAE.

Dubai Islamic Bank, one of the leading banks in the UAE, caters to the financial needs of individuals and corporates. Since its inception in 1975, the bank has become synonymous with quality products and services through its robust banking system. Consequently, if you are looking for auto finance, DIB Used Car Loan could be a viable option.

DIB Pre-Owned Car Plan

Dubai Islamic Bank car loan provides easy and manageable car financing with flexible repayment options, meaning that you can affordably enjoy your dream car. Moreover, to enhance the accessibility of its car loans, Dubai Islamic Bank offers low-interest rates as well as lenient eligibility conditions with minimum documentation. 

Listed below are some key facts related to the DIB used car loan. 

Plan Name

DIB Car Loan

Minimum Salary Requirement

AED 3,000 per month

Flat Rate

Starting from 2.10% per annum

Reducing Rate

Starting from 3.84% per annum

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Features & Benefits of DIB Used Car Finance

Let's have a look at the defining factors of the pre-owned car loan by the Dubai Islamic Bank.

  1. Affordable Interest Rates - Dubai Islamic financing offers loans at competitive interest rates, with users able to get a flat interest rate starting at 2.10% as well as a reducing interest rate starting at 3.84%, albeit based on the chosen vehicle and other qualifying conditions. As the loan cost is largely determined by the interest rates offered, obtaining a lower interest rate can significantly cut your loan cost.
  2. High Loan Amount - Individual consumers can borrow up to AED 1 million, while corporations can borrow up to 8 million AED from Dubai Islamic Bank for an impactful used car loan in UAE
  3. Quick and Hassle-free Loan Application - With a dedicated customer service team and online application process, it's easy to apply for a DIB home loan. This is especially applicable for digital applications, which could be completed in a few minutes besides a short approval time.
  4. Flexible Loan Tenure - A key factor of DIB used car loan plans in the UAE is flexibility in loan tenures, with the option to customise the plans to match your financial requirements. The duration ranges from a year to 5 years, which means that you can repay the loan as per your convenience in your stipulated duration.
  5. Car Insurance - Dubai Islamic Bank, in cooperation with Noor Takaful, provides Islamic auto loan insurance coverage for up to AED 30,000 for the first three years in the event of unexpected unemployment. The coverage begins six months after joining the Takaful scheme. However, it is essential to remember that Auto Takaful is only offered to salaried applicants and has its own set of eligibility requirements to be met.
  6. New and Pre-Owned Car Financing - While new cars are always in demand, individuals may also opt for used cars for various reasons. Both types of users can choose Dubai Islamic Bank as it offers car loans for both new and used cars. However, the offered profit rates are based on the car's age and condition. One may notice differences in the interest rates since used car loan interest rates are generally higher than new car loan interest rates. However, even the used car loans are affordable with DIB.

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DIB Used Car Loan Interest Rate

Auto Financing Type

Fixed Rate of Interest Starting from

Reducing Rate of Interest Starting from

DIB New Car Loan

2.10% p.a.

3.84% p.a.

DIB Used Car Loan

2.75% p.a.

5.19% p.a.

Documents Required for DIB Used Car Loan

If you wish to proceed with DIB used car finance, you need to have all your loan documentation in order before you start the loan process. Here are the documents to be kept ready.

Salaried Applicants for DIB Used Car Loan

  • Driving License
  • Emirates ID
  • Passport ID
  • Recent Utility Bill
  • Last 6-month Bank Statement
  • Recent Payslip
  • Dealer Quotation or Car’s Proforma Invoice

Self-employed Applicants for DIB Used Car Loan

  • Driving License
  • Emirates ID
  • Passport ID and VISA copy
  • Trade License
  • Last 3-month Individual Account Bank Statement
  • Last 3-month Corporate Account Bank Statement
  • Existing Liabilities, Expenses, and Loans details
  • Power of Attorney copy (if applicable)
  • Dealer Quotation or Car’s Proforma Invoice

Corporate Applicants for DIB Used Car Loan

  • EIDA card, VISA copy, and Passport ID
  • Trade License
  • Last 3-month Corporate Account Bank Statement
  • Existing Liabilities, Loans details, and Expenses 
  • Power of Attorney copy (if applicable)
  • Dealer Quotation or Car’s Proforma Invoice

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Eligibility Criteria for DIB Used Car Loan

To avoid any last-minute hassles, you should be aware of the norms concerning the criteria used by banks use to admit a car loan application for consideration.

Age Requirement

21-60 years

Residency

UAE and Expatriates

Monthly Salary Requirement

AED 3,000 or more

Credit Score

The applicant must possess a good credit score

Down Payment

20% of the value of the car 

With plenty of favourable factors and a wide range of benefits offered, you can easily go with DIB Used Car Loan. At the same time, a thorough comparison is required if you wish to avail of the best used car loan for yourself. To do that and buy a car loan right away, you don’t need to go anywhere as you can complete all the required procedures on policybazaar.ae.

After going through the article, you can scroll to the ‘car loans’ section on our website and check out the top used car loan plans in the UAE. From the available list, you can conveniently buy one in a few clicks online. 

How to Calculate DIB Used Car Loan Equal Monthly Payments in UAE?

The search for the best car loan can be difficult, with users required to dig into various details. However, you can have ample assistance for at least calculating monthly payments with the Dubai Islamic Bank car loan calculator.

This calculator does all the tedious calculations for you and shows your finance charges, as well as the required monthly payment, after being provided with a set of details including your car model, car value, loan tenure, etc.

FAQ's

Q. Is there an early settlement clause in my DIB used car finance?

Yes, you can close your DIB car loan by paying off the remaining balance in one payment. However, you will be charged a 1% processing fee for this service.

Q. What would happen if I am unable to repay the car loan?

Your credit rating suffers due to late loan repayments. However, if you ultimately fail to repay car your loan, the bank can repossess your car since it acts as collateral.

Q. How do I apply for a DIB used car loan?

To apply for a DIB used car loan, visit the DIB website and follow the instructions given under the auto finance section. An alternative is to go to the nearest DIB branch and apply there.

Q. How much income do you need to make a pre-owned car loan from DIB?

A monthly income of AED 3,000 is required to be eligible for a DIB pre-owned car loan.

Q. Do I need to be a DIB account holder to apply for a used car loan from DIB?

No, you don’t need to be a current customer in order to apply for a pre-owned car loan. However, you will be required to submit additional documents and may receive a used car loan with a higher interest rate.

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