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 HSBC car loan interest rate on used and new cars
Get Car loan at Lowest Interest Rate
Serving over a whopping 40 million customer base across the globe, HSBC Bank is one of the largest financial organisations in the world, with its operations in more than 64 countries. In the UAE, the bank's history dates back to 1946, when the Imperial Bank of Iran began operating as the forerunner of HSBC. Having said that, HSBC bank offers a comprehensive range of products and services suiting the customers' financial needs, including personal and business accounts, investment banking, savings and deposit schemes, as well as credit & loan services.
Furthermore, we all know that purchasing a car requires hefty funds and can be taxing for most individuals. However, with an HSBC car loan, you can easily finance your dream car without worrying about your financial burdens. Additionally, you can acquire a car loan at low-interest rates with a convenient application process and incredibly lenient criteria. Now, let's delve deeper into the features, benefits and various ways to apply for an HSBC car loan:
With over 70 years of professional experience, HSBC innovates its banking products aligning with the individual's requirements. In addition, along with competitive interest rates, you get numerous benefits for easy financial management while financing your new or used car. Given below is a rundown of a few features and benefits of the HSBC car loan in the UAE:
|HSBC Car Loan Plans|
|HSBC Green Car Loan||HSBC Pre-owned Car Finance|
As mentioned before, HSBC offers low-interest rates on car loans. Additionally, you may also get preferential rates as low as 1.99% APR based on a few factors. Most significantly, your overall loan cost reduces with a low-interest rate, including your monthly EMIs. Here are the details of HSBC car loan interest rates in the UAE:
|Car Loan Type||Flat Rate||Reducing Rate|
|HSBC New Car Loan||2.49% per annum||4.60% per annum|
|HSBC Used Car Loan||3.49% per annum||7.29% per annum|
While applying for an HSBC car loan, you need to satisfy a few eligibility criteria pertaining to your age, nationality, monthly income and more. Additionally, the bank may alter a few criteria on a person-to-person basis. However, here are a few common eligibility criteria that one needs to fulfil to apply for an HSBC car loan:
Once you satisfy all the eligibility requirements, you need to collect and submit various documents supporting your proof of identity, residence, salary and address. Here's a quick rundown of some general documents required during an HSBC car loan application:
HSBC offers convenient car loan applications through various online and offline modes. While you can visit the bank branch in person, online applications are relatively easy with simple steps. However, you can apply for an HSBC car loan in the UAE either through an online or offline mode of application. Here are the ways to apply for an HSBC car loan in the UAE:
Online Car Loan Application - You can visit the official website of HSBC Bank UAE to apply for online car loans. After logging on to the portal, you need to navigate to the car loan section and fill out an online application form after going through all the details and offers. Post submission, the bank representative will contact you for the further loan application process.
Offline Car Loan Application - You need to visit the nearest HSBC branch with all the required documents for offline application. Subsequently, you need to contact the loan officer providing your details and contacts. Next, the bank representative will ask you to fill out an offline loan application form. Here, please enter your details as asked in the form and submit the form after attaching your documents. After verification and approval, the bank will credit the loan amount to your car dealer.
Application via Phone Call - Alternatively, you can reach out to the customer support team and request a car loan by providing your personal and contact details. Then, the support representative will guide you through the loan application process. Following are the contact numbers for HSBC car loan support:
|HSBC Car Loan Contact No Within UAE||04 294 8000|
|HSBC Car Loan Contact No Outside UAE||+971 4 294 8000|
With an HSBC car loan calculator, you can conveniently forecast your monthly EMIs, the total interest you need to pay during the loan tenure, and the total loan cost you incur. Moreover, a loan calculator is the most viable option since car loans and EMI calculations follow convoluted methods.
Furthermore, you can visit any car loan aggregator website to find an HSBC car loan calculator. To compute your car loan EMIs, you need to enter details like car cost, down payment amount, the interest rate offered, and your loan tenure. Since there are several charges and fees you need to pay during the application, a car loan calculator can only provide you with an approximate EMI. However, it can help you manage your finances according to your budget beforehand.
Along with affordability, HSBC car loans also come with various offers from time to time. Let's check out the list of a few offers available on HSBC car loans in the UAE:
To avail of the offers, you need to ensure that you fulfil the eligibility criteria laid down by the bank. For further details, you can visit the official website of HSBC bank.
When applying for an HSBC car loan, you need to pay a few charges such as loan arrangement fees, finance charges etc. Here is the list of fees and charges you need to pay during the HSBC car loan application:
|Type of Fees and Charges||Amount in AED|
|Car Loan Processing Fee||1% of the principal loan amount with a minimum charge of AED 500 and a maximum charge of AED 2,500|
|Late Payment Charges||2% of the delayed loan amount with a minimum charge of AED 50 and a maximum of AED 145|
|Early Settlement Charges||1% of the outstanding loan amount|
|Advance Payment of Instalment||1% of the advance payment amount|
|Change of due date on standing instruction||AED 25|
|Liability Letter||AED 50|
|Value Added Tax||5% of the bank's fees and charges|
Following are the important terms and conditions for HSBC car loans in the UAE:
Ans: Yes, you don't need to have a bank account with HSBC to apply for a car loan. However, existing customers get attractive discounts on HSBC car loan interest rates.
Ans: HSBC Bank provides two types of interest rates on car loans, namely flat rate and reducing rate. In the case of flat rates, the interest is calculated on the total loan amount for a pre-specified tenure. For reducing rates, the interest is calculated every month on the outstanding loan amount. However, mind that the EMI reduces after each repayment if you opt for a reducing interest rate car loan.
Ans: To apply for a car loan in the UAE, you need to have a minimum monthly income of AED 10,000 or above.
Ans: Based on your eligibility, you can opt for a maximum car loan of AED 600,000.
Ans: Yes, you can cancel your car loan within the drawdown period. It is a time slab between your document submission and loan approval. However, once your loan is credited into your account, you cannot cancel the agreement.
Ans: HSBC Bank provides the option of early settlement, and you can foreclose your loan account by paying the outstanding amount in a lump sum. However, you need to pay an early settlement fee of 1% of the remaining loan amount.
Ans: In balloon financing, you need to pay a portion of your car financing in a lump sum at the end of the loan tenure. In addition, the interest rates are not applicable on this amount, and you can reduce your EMIs. Therefore, it is a viable option for individuals who prefer changing their cars every 2-3 years.
Ans: Promoting emission-free vehicles, HSBC offers Green Car Loans if you are financing an electric vehicle (EV) or a hybrid vehicle. Moreover, the bank offers attractive interest rates and a 100% waiver of processing fee on Green Car Loans.