First Abu Dhabi Bank (FAB) Car Loan in UAE

First Abu Dhabi Bank, one of the largest banks in the MENA region in terms of asset capital, is also considered one of the world’s most secure banks. It was formed in 2016 after the merger between First Gulf Bank and the National Bank of Abu Dhabi. With the combined experience of two of the largest banks in the UAE, FAB offers world-class services and innovative banking products ranging from personal and business bank accounts, investment banking, deposit schemes, credit and loan services, and so on.

FAB bank car loans are some of the most affordable loans in the UAE with low interest rates and salary requirements. Additionally, the bank offers streamlined loan applications through both online and offline channels. 

If you wish to know the features, benefits, and various ways to apply for FAB car loan in the UAE, read the article below.   

Features of FAB Car Loan in the UAE

FAB car loans offer impeccable features to manage your finances. Besides affordability and flexibility, you get a range of features on your car finance with these car loans. Some of their key features are mentioned below. 

• Low and Competitive Interest Rates - FAB car loans are among the most affordable loans in the UAE. Starting at just 2.49% flat rates for UAE nationals, you get lower overall loan costs with FAB car loans. The car loan interest rates for ex-pats start at 2.49% per annum. And while the interest rate is higher for self-employed individuals than for salaried ones, the rate of 2.99% is still affordable in itself.
• Flexible Loan Tenure - The FAB bank offers flexible loan tenure of up to 60 months. This allows you to decide the tenure based on your financial requirements and capability to repay the loan. 
• Convenient Loan Processing and Approval - With a completely digital application process, you get quick processing and FAB car loan approvals. 
• Large Finance Amount – Compared to other banks, the FAB bank provides a relatively higher loan amount. Such is the limit of the amount provided that you can acquire a loan of up to AED 1.5 million, or up to 80% cost of your preferred car. 
• Finance up to 80% of Car Value – As per the guidelines of the UAE Central Bank, a user is required to pay 20% of the car’s invoice cost upfront in the form of a downpayment. However, customers can be assured of easy payment with a FAB car loan, as it finances the rest 80% and can be repaid in easy instalments every month. 
• First Instalment after 180 days – Besides low interest rates and ease of repayment, another admirable aspect of FAB car loans is that they provide you a longer period of up to 180 days from loan disbursement to the first instalment payment. This feature helps you plan and manage your finances well in advance.

Benefits of Car Loans with FAB Auto Finance

Besides features to easily manage your finances, FAB Auto Finance provides numerous benefits for your car loan. You can conveniently apply for a car loan from the comfort of your home and enjoy preferential rates based on your relationship with the bank. Here are some important benefits of FAB auto finance. 

• FAB car loan interest rates ensure some of the most affordable financing options available in the UAE. The car loan rates start from 2.49% per annum, although the number can depend on your relationship with the bank and other factors. 
• With a FAB car loan, you can get a high financing amount of up to AED 1.5 million to purchase your dream car. 
• FAB car loans are affordable with low salary requirements and with an easy application process. 
• For better financial management, you get a longer period of up to 180 days from loan disbursement to the first instalment payment.
• When you apply for a FAB car loan, you get a flexible repayment period of up to 60 months, allowing you to choose the tenure as per your requirements and financial planning. 
• FAB car loans are available for both new and pre-owned cars. 

Types of FAB Bank Car Loans

Based on the type of car you plan to purchase, you can opt for the following FAB car loans in the UAE. 

• New Car Loan - The bank offers a financing option for almost every car available in the UAE. If you are purchasing a new car from the dealership, you can opt for a new car loan as the bank provides low-interest rates and several rebates on purchasing a car from the dealership. 
• Used Car Loan - You can also finance a pre-owned car through FAB bank. However, it should be noted that the interest rates for FAB bank used car loans are usually higher than the new car loans. Moreover, you may also need to submit additional documents as per the bank’s requirements. 

FAB Bank Car Loan Interest Rates

FAB bank provides affordable and competitive interest rates on car loans. These low rates ensure that the overall loan amount remains within your budget. For your convenience to finance a vehicle in the UAE, the bank offers car loan interest rates starting from just 2.49% per annum. You can find the details of FAB car loan interest rates in the table below.

Eligibility Criteria for FAB Car & Auto Loan

While applying for the FAB car loan, you need to satisfy a few eligibility criteria as laid down by the bank. While the criteria may differ from individual to individual, the following eligibility criteria are the most common ones cited to apply for a FAB car loan.  

• Age - To obtain a FAB car loan, you need to be at least 21 years old. However, the bank has also laid down the upper age limit of 65-70 years for the loan, although the limit may depend on your employment and income. You can always contact the bank to get accurate information regarding the age limit.
• Residency - FAB car loans are available to both UAE nationals and ex-pats. During the loan application, you will be required to submit proof of your residence and nationality. 
• Minimum Salary Requirements - Your salary requirement is one of the most fundamental eligibility criteria to acquire a FAB car loan in the UAE. To get your car financed from FAB bank, you need to have a minimum salary of AED 7,000. 
• Down Payment - You are required to arrange 20% of the invoice cost as a down payment from your side when applying for a FAB car loan. 
• Credit Score - The bank also verifies your credit score while providing you with a car loan. Generally, a score above 540 is considered fair, and you can apply for a FAB car loan with such a score. At the same time, the loan approval depends on the bank’s discretion.  

Documents Required for FAB Car Loan in UAE

After you have ensured your eligibility, you can proceed with document collection and submission. Following are the common documents required to apply for FAB car loans in the UAE.  

For Salaried Individual

• A driving license (original and copy)
• A valid Emirates ID for record and verification
• A valid passport ID along with a copy (ex-pats have to submit visa details along with the address page)
• Utility bills or lease agreement for address proof
• Bank account statement for the last 3 to 6 months
• Salary slip or certificate issued by your current employer (not required in case you have a salary transfer account in the bank)
• Dealer’s quotation or the proforma invoice of the car you plan on purchasing

For Self Employed Individuals

• A driving license in original and a copy
• A valid Emirates ID for record and verification
• A valid passport ID along with a copy (Ex-pats need to submit visa details along with the address page)
• A copy of the trade license
• Bank account statement for the last 3-6 months for both company and individual accounts
• A proforma invoice of the car or dealer’s quotation
• A valid copy of the power of attorney (if applicable)
• Details of the company’s balances, expenses, revenue, and active loans

For Companies

• A valid copy of the trade license
• A valid passport ID, visa, or EIDA card copy of all the company signatories
• Company’s bank account statement for the last 3 months 
• A copy of the power of attorney (if applicable)
• Details of active loans, expenses, and company liabilities
• A proforma invoice of your prefered car or the dealer’s quotation,

Note: - You need to submit a duly filled loan application form along with the documents mentioned above.

How to Apply for FAB Bank Car Loan?

Once you have collected your documents and proof, you can reach out to the bank online or offline, and apply for a car loan. The process is streamlined and hassle-free if you keep your documents handy. Following are the various ways to apply for a FAB car loan.

•  Online Car Loan Application -  To apply online, visit the official website of FAB bank and navigate to the car loan section. After going through all the details, you need to fill out the application form available alongside the loan detail and submit it. The bank will contact you and proceed with the subsequent application process. 
• Offline Car Loan Application -You can also visit a nearby FAB bank with all your supporting documents including the dealer’s quotation to apply offline. Contact the car loan representative, fill out an offline application form, and submit it to the bank after attaching the required documents.
• Car Loan Application via FAB Mobile App – Another way of applying online for a FAB car loan is to use the FAB mobile app. The application process is similar to applying through the official portal. However, you will first need to download the mobile application and perform a one-time registration. Once done, you can navigate to the car loan section and enter your contact and personal details. Later, the bank will contact you in regard to the subsequent application process.  

FAB Bank Car Loan Calculator 

With a FAB car loan calculator, you can easily estimate your monthly EMIs, total loan cost, and the interest you need to pay before applying for car finance. As the EMI calculation requires intricate computation with flat and reducing rates, a car loan calculator is the most viable option. To use a car finance calculator, you can visit the car loan section on the official website of FAB bank. You will find there the loan calculator where you will be required to enter a few details like the loan amount you require, loan tenure, and the interest rate you are offered. After submitting the form, the calculator returns all the details pertaining to your car loan including the monthly EMIs you need to pay. 

Although the amounts displayed are approximate, you can outline your finances and plan your expenses accordingly. The exact car loan details are provided only after sanctioning it, as it includes various charges like processing and arrangement fees, finance charges, and more

FAB Bank Car Loan Fees and Charges

There are a few charges you need to pay while applying for a FAB car loan in the UAE. Moreover, car finance itself comes with certain penalties for deferring or delaying your repayments. Here are the details of FAB car loan fees and charges.

Terms and Conditions for FAB Bank Car Loan

There are a few terms and conditions you need to keep in mind while applying for a FAB car loan in the UAE as mentioned below.

• If you default on your loan repayments, the bank has the right to seize your car since it is a form of mortgage to the bank.
• The bank pays the loan amount directly to the seller via various transfer modes like banker’s drafts and payment instructions.
• Customers must verify that the vehicle is in good running condition and suitable for its required purpose.
• The applicant must keep the vehicle under their name and must not transfer the ownership without informing the bank through written consent.
• The applicants are required to keep their vehicle insured all the time on their own expenses. In case the customer fails to do so, the bank will cover the vehicle with comprehensive insurance on behalf of the customer. However, the insurance expenses will be added to the outstanding loan amount.

FAB Bank Car Loan Contact Details

For queries regarding car loans and others, you can always contact the bank through several channels. Some of the numbers that you can contact for the same are as follows.