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 Mashreq car loan interest rate on used and new cars
T&C Apply
Get Car loan at Lowest Interest Rate
Founded in Dubai, Mashreq is one of the oldest banks in the UAE marking its origin in 1967. The bank has been bestowed with several awards and accolades such as the ‘Most Innovative Bank’ in the MENA region by Euromoney 2020. Mashreq bank is popular for its customised banking services and products that include personal and business bank accounts, deposit schemes, credit and loan services, and so on.
To help you purchase your dream car without any hassles, Mashreq Bank offers car loans through its Islamic Banking wing Mashreq Al Islami. With auto finance from Mashreq Al Islami being Sharia-compliant and offering low-profit rates, you can fulfil your car dream at affordable prices. Additionally, the lenient criteria make it convenient to apply for car loan.
As already mentioned, Mashreq bank provides car financing through Mashreq Al Islami. Besides adherence to Islamic banking laws, the car loan offers a range of features and benefits for an easy car purchase. Important features and benefits of Mashreq Al Islami Auto Loan are illustrated as follows.
Besides numerous features to help you manage your finances conveniently, the auto financing from Mashreq Al Islami offers several other benefits as mentioned below.
Mashreq Al Islami offers mainly two types of car loans depending on the type of purchase. Here are the details of the type of car loan from Mashreq Bank.
The following table depicts car loan interest rates offered by Mashreq Bank.
Type of Car Loan |
Flat Rate |
Reducing Rate |
---|---|---|
New Car Loan |
From 3.45% to 5.50% |
Ranging between 6.49% and 10.01% |
While applying for a Mashreq Bank car loan, you are required to satisfy a few eligibility criteria first. The requirements include the applicant’s age, monthly income, nationality, etc. And while the requirements vary from person to person, there are a few common eligibility criteria that have to be satisfied when applying for a Mashreq Auto loan in UAE.
Once you have ensured that you qualify for the car loan, the next step involves the collection of all the relevant documents and submitting them to the bank during the loan application. Following are the common documents required during the Mashreq Bank car loan application.
Note:- The bank may ask for additional documents besides the ones mentioned above at its discretion.
Mashreq Bank has greatly simplified the process of applying for a vehicle loan through a variety of online and physical methods. You have the option of applying online from your home or visiting the nearest Mashreq branch to submit your application. The following are the methods for applying for a Mashreq Auto Loan in the United Arab Emirates.
Calculating your car loan monthly instalment beforehand is necessary as you will be required to plan your finances while making such a large investment. However, car loan EMI calculation is intricate and operates on numerous variables such as profit rates offered (whether flat or reducing rate), principal loan amount, and tenure.
Using a Mashreq car loan calculator, you can conveniently determine your monthly instalments by entering the earlier mentioned details of your loan. Once all your details are entered, the calculator displays the amount to be repaid each month to get a specific amount in the form of a car loan by Mashreq Bank.
It is true that the auto financing details by the car loan calculator are indicative. However, they can help you plan your finances better. You can find the Mashreq Auto loan calculator on the official portal or at several car loan web aggregators.
Following is the schedule of charges for the Mashreq Al Islami car loan in the UAE.
Type of Charges |
Amount in AED |
---|---|
Loan Processing Fee |
1.05% of the principal loan amount |
Postponement Fee |
AED 105 per postponement |
Late Payment Fee |
2% of each delayed amount |
Pre-termination compensation (Early Settlement fee) |
1.05% of the outstanding amount or AED 10,500, whichever is lower |
Partial Settlement Fee |
1.05% of the outstanding amount or AED 10,500 (whichever is lower) |
Change in date of standing instruction |
AED 26.25 |
Finance Rescheduling fee |
AED 262 |
Finance Cancellation fee |
AED 105 |
Trade Fee |
AED 525 |
Before entering into Mashreq auto financing, you are required to go through the terms and conditions and understand them better. Reading the terms also helps you compare various car loan products offered by numerous lenders. Here are a few important terms and conditions for Mashreq Car Loan in the UAE.
Following are the contact details for the Mashreq Bank car loan in the UAE.
Contact Number |
Active Hours |
04 424 4411 |
Monday to Friday - 8:30 am to 5:30 pm |
Ans. Yes, you can visit the official portal of Mashreq bank or Mashreq Al Islami and apply for car financing online. Simply enter your contact and personal details, and the bank will contact you for the further application process.
Ans. Similar to other loans, the minimum age to apply for Mashreq Bank car loan is 21 years. The bank also has an upper age limit of 60 years for ex-pats and 65 years for Emiratis. As per the rules, the loan tenure must mature within the upper age limit.
Ans. Mashreq Al Islami offers a maximum of AED 500,000 to finance your preferred vehicle. However, the actual amount approved by the depends on your income, expenses, and repayment capabilities. Additionally, as per the guidelines of the Central Bank of UAE, the bank can approve a maximum of 80% finance amount of your car’s value.
Ans. Mashreq Al Islami offers a maximum of AED 500,000 to finance your preferred vehicle. However, the actual amount approved by the depends on your income, expenses, and repayment capabilities. Additionally, as per the guidelines of the Central Bank of UAE, the bank can approve a maximum of 80% finance amount of your car’s value.
Ans. You are required to have a monthly income of AED 5,000 or above to apply for a Mashreq bank car loan.
Ans. Yes, the Mashreq Al Islami car loans are available to UAE nationals as well as ex-pats. However, the ex-pats need to furnish their passport and visa details along with address proof to acquire a car loan.