Finance House Car Loan Car Loan in UAE

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Established in 2004, Finance House is the first independent financial company in the UAE. Registered on the Abu Dhabi Securities Exchange, it is a Public Joint Stock Company incorporated in the Emirates of Abu Dhabi. With this institution, you get unique and customisable banking products ranging from retail, business, and corporate banking, to proprietary investing, and credit and loan services. 

Among the various loan services available in the UAE, Finance House car loans are some of the most affordable ones with competitive interest rates that help you purchase your dream car without making a reduction in other finances. In addition, you get lenient eligibility criteria and streamlined application processes to acquire a car loan without any hassles. Read the article below to learn more about the features, benefits, charges, and interest rates for Finance House car loan in the UAE. 

Features of Finance House Car Loan 

Besides affordability, Finance House car loans are renowned for offering highly flexible tenures depending on your financial planning. A few important features of Finance House vehicle finance are described below. 

  • Competitive Interest Rates - With Finance House car loans, you get competitive interest rates to keep your loan cost within your budget without compromising other living expenses. The bank offers flat rates where the interest is calculated on the principal loan amount. 
  • Flexible Loan Tenure - Finance House offers flexible loan tenures of up to 60 months, allowing you to plan your finances and choose a convenient tenure as per your requirements. The minimum tenure for a Finance House car loan is 1 year. 
  • Up to 80% Cost Financing - You can finance an amount of up to 80% of your car’s invoice cost, with the bank providing a maximum loan of up to AED 250,000. Just keep in mind that the actual amount of loan approved depends on your income, expenses, and current financial liabilities. 
  • No Salary Transfer Required - To obtain a Finance House car loan, you don’t require a salary transfer account with the institution. However, if you have a cordial relationship with the bank, you may avail of preferential rates. 
  • Comprehensive Auto Insurance - Besides vehicle financing, you also get an option to secure your car through Finance House auto insurance. You can avail of the insurance with a nominal premium of 2.80% in addition to the car loan interest rates. This also provides you with a personal accident cover without any extra cost.
  • Free for Life Credit Card - Finance House also provides a free for life credit card with attractive shopping, lifestyle, and travel offers to the car loan applicants. 

Benefits of Finance House Car Loan  

While you can be assured of multiple features that will help you manage your finances efficiently with a Finance House car loan, you also get numerous benefits with it as mentioned below. 

  • The bank makes your financing affordable by providing competitive interest rates. 
  • For easy financial management, the bank also provides you with a credit card without any annual fee. 
  • To purchase your preferred vehicle, you can get a high loan amount of AED 250,000. 
  • The bank offers easy loan applications and approvals through various digital and offline channels. 
  • Besides giving auto insurance with low premiums, you also get free travel insurance for Schengen countries with a Finance House car loan. 
  • You can get Finance House car loans for both used and new cars.

Types of Finance House Car Loans in the UAE   

Finance House offers two types of car loans based on the type of car you are purchasing. You can opt for a new car loan if you are purchasing a brand new car from the dealership, or opt for a Finance House used car loan in the UAE in case you are going for a pre-owned car. 

The following are the types of Finance House car loans in the UAE. 

  • Finance House New Car Loan - When buying a new car from an authorised dealership, you can opt for a new car loan. The bank offers a flat interest rate of 7% on the new car loan. Additionally, you may receive offers and rebates on your loan rates depending on your relationship with the bank. 
  • Finance House Used Car Loan - The bank also provides used car loans if you wish to purchase a used car in the UAE. The interest rate offered for a pre-owned car by the bank is higher than new car loans, standing at around 8% per annum flat rate. 

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Finance House Car Loan Interest Rates 

Following are the car loan interest rates offered by Finance House. 

Type of Finance House Car Loan

Flat Interest Rate Offered

New Car

7% per annum

Used Car

8% per annum

Eligibility Criteria for Finance House Car Loan in the UAE

In order to apply for a Finance House car loan, you will be required to fulfil a few requirements as laid down by the bank. The criteria may vary as per the applicant’s financial characteristics, employment status, etc. However, there are some common eligibility criteria to apply for a Finance House car loan in the UAE that can be viewed below.

  • Monthly Income - Your income is a primary eligibility criterion, as it allows the bank to gauge your capability to repay the loan based on that salary (and other expenses). To acquire a Finance House vehicle loan, you need to have a monthly income of AED 5,000 if you are a salaried individual. In case you are a self-employed individual, the criteria will vary as per your revenue and financial liabilities. 
  • Age - To apply for a Finance House car loan, you must be 21 years old or above. The upper age limit for loan applications is 60 years. 
  • Nationality - Nationality is another primary requirement that has to be satisfied with relevant documents. Finance House car loans are available to UAE nationals as well as ex-pats. However, as an applicant, you will be asked to submit documents related to your residency and nationality. 
  • Credit Report and Score - Although a credit score may not be a fundamental requirement, the bank may nevertheless check your creditworthiness through the AECB credit score. It may approve, alter, or reject your car loan application based on your score. With a healthy credit score, you can ensure loan approvals without any hassles. 
  • Downpayment - Following the Central Bank of UAE guidelines, you will be required to pay 20% of your car’s cost upfront to the dealership. The remaining 80% cost is to be borne by the bank in the form of auto finance. 

Documents Required to Apply for Finance House Car Loan in the UAE

Once you satisfy the eligibility criteria, you can proceed with document collection and submission. Following are the required documents to apply for a Finance House car loan in the UAE. 

For Employed Individual

  • A driving license (both original and a 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 the address proof
  • Bank account statement for the last 3 to 6 months
  • Salary slip or certificate issued by your current employer (not necessary in case you have a salary transfer account in the bank)
  • Dealer’s quotation of the car you plan to purchase

For Self Employed Individuals

  • A driving license - original and copy
  • A valid Emirates ID for record and verification
  • A valid passport ID along with a copy (ex-pats are required 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 issued by the Department of Economic Development (DED)
  • A valid passport ID, visa details, or Emirates ID copy of the company signatories or directors
  • Power of attorney (if applicable)
  • Details of expenses, existing loans,  and company liabilities
  • Company bank account statement for the last 3 to 6 months
  • Dealer’s quotation or proforma invoice mentioning the cost of the vehicle

How to Apply for a Finance House Car Loan in UAE?

While the offline channels are open, you always have the option to apply for a Finance House car loan online from the comfort of your home. Still, for your convenience and preference, here are the ways offered by Finance House for auto loan applications.

  • Car Loan Application Online - To apply online, you can log in to the official portal of Finance House and scroll through the auto loans sections. After going through the details, click on the ‘Apply Now’ button and enter your contact and personal details. After filling out the form, press the submit button. The bank will take it from there and contact you for the further application process. 
  • Car Loan Application Offline - For offline application, you can visit a nearby bank branch with all your relevant documents and contact the car loan representative. Subsequently, fill out an offline car loan application form and submit your application after attaching all the documents. After your loan gets approved, the bank disburses the loan amount into the dealership’s account through a banker’s draft or fund transfer channels. 
  • Application via Customer Support - As an alternate method, you can also apply for a car loan by contacting the bank’s customer support. Similar to the other methods, provide your personal details for identity verification, although the process will be completed over a call. The representative will guide you through the Finance House car loan application process. 

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Finance House Car Loan Calculator

Determining your car loan monthly instalments involves intricate calculations, making it inconvenient for you to find out the amount to be paid every month. However, with the Finance House car loan calculator, you can conveniently calculate your total loan cost, easy monthly payments, and the total interest applicable. You can find a car loan calculator on the official portal of the bank or any online car loan aggregator. 

Using a car loan calculator is a straightforward process, as you will simply need to enter basic details like the principal loan amount, interest offered by the bank, and your loan tenure. Once you enter the details, the portal shows you all the details related to your Finance House car loan. However, it should be remembered that the amount shown is indicative to help you plan your finances. The exact repayment amounts, depending on several factors as considered by the bank, are disclosed to you by the bank during the loan application. 

Finance House Car Loan Fees and Charges 

Following are the fees and charges for Finance House car loans in the UAE.

Types of Charges

Amount in AED

Processing Fees

1% of the loan amount

Early Settlement Charges

1% of the outstanding loan amount

Charges for Delayed Payment 

2% of the delayed amount

Letter of Liability

AED 100

Loan Rescheduling Fees

AED 250

Note - Each banking service charge involves an additional 5% VAT

Terms and Conditions for Finance House Car Loan in the UAE

Illustrated below are the important terms and conditions for a Finance House car loan in the UAE. 

  • Any processing fee paid to the bank during the application and loan approval is non-refundable. These fees also include VAT charges of 5%. 
  • In case of late repayment of the installment, the applicant needs to pay a late payment fee of 2% of the delayed amount. 
  • If there are multiple repayment defaults, the bank can seize the vehicle at its discretion.
  • As a vehicle owner, it is mandatory to ensure the vehicle is adequately insured during the entire tenure of the Finance House car loan.
  • The bank does not allow third-party insurance. The vehicle insurance is provided by Insurance House.
  • The bank can change the terms and conditions at its discretion with prior notice. 
  • You will be required to keep the ownership in your name during the term of the Finance House car loan. Any change in ownership has to be informed to the bank in written form. 

Finance House Car Loan Contact Details

Following are the details of the Finance House car loan in the UAE.

Area

Contact Details

Within UAE

600511114

FAQ's on Finance House Car Loan

Q1. What is the minimum age to apply for a Finance House car loan in the UAE?

Ans. To apply for a car loan, you should be at least 21 years of age. There is also a limit on the other side, with the bank prescribing an upper age limit of 60 years.

Q2. How much minimum monthly salary do I need to apply for a Finance House car loan in the UAE?

Ans. You need to have a minimum monthly income of AED 5,000 to apply for a Finance House car loan.

Q3. Can I apply for a Finance House car loan as an ex-pat in the UAE?

Ans. Yes, you can apply for a Finance House auto loan as an ex-pat in the UAE. However, you will have to fulfil the eligibility requirements and produce the documents as asked by the bank.

Q4. What is the maximum amount of car loan I can acquire through Finance House?

Ans. You can acquire a maximum loan of AED 250,000 from Finance House as a car loan. However, the final amount approved by the bank depends on your income, expenses, and financial situation.

Q5. Can I settle my Finance House car loan before the end of the loan tenure?

Ans. Yes, you can opt for early settlement if you wish to close your car loan account prematurely with a lump sum amount. However, an early settlement fee of 1% of your outstanding amount will be levied.

 

Q6. What benefits do I get with the Finance House car loan?

Ans. Besides a smooth and quick loan procurement experience, the bank also offers free for life credit cards with attractive shopping, lifestyle, and entertainment offers, complimentary travel insurance to Schengen countries, and several more benefits.