Mashreq Car Loan

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. 

Features of Mashreq Bank 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.

• Low-Profit Rates - Mashreq Al Islami car loan offers one of the most affordable profit rates among all financing options. Moreover, if you have a relationship with the bank, you can also get preferential rates on financing your car purchase. 
• High Financing Amount - The bank offers a high financing amount of AED 500,000 to help your purchase your dream car. However, the maximum loan amount approved by the bank depends on your monthly income, financial status, and the cost of your car. 
• Flexibility to Choose the Loan Tenure - With Mashreq Bank, you get the flexibility to select the loan tenure as per your financial requirements. You can choose any tenure between 12 months to 60 months depending on your repayment capabilities and loan amount. It should be remembered that a shorter loan tenure ensures low financing costs as you pay lesser profit in comparison to a longer tenure, although the monthly instalment may turn out to be a significant amount. 
• Easy Loan Processing and Approvals - Being digitally advanced, Mashreq Bank provides a completely online loan application process that allows you to apply for an auto loan from the comfort of your home. In addition, the approval process is quick and convenient, saving your effort and time in acquiring the loan. 
• Car Loan Without Salary Transfer -You don’t need a salary transfer account in the Mashreq Bank to obtain a car loan. Instead, you can directly approach the bank and request a car loan. 
• Finance up to 80% Car Loan - As per the guidelines of the Central Bank of UAE, you can obtain a maximum loan of 80% of your car’s invoice cost. The remaining 20% is to be paid from your side as an upfront amount in the form of a down payment. 
• Sharia Compliant Car Loan - Mashreq Bank provides car loans through its Islamic Banking wing, meaning that the financing is completely Sharia-compliant and follows the laws of fatwa and Islamic banking. 
• Host of Vehicle to Finance – As the bank provides car loans for almost every vehicle available in the UAE, you have the option of choosing from a range of economical, sports, luxury, and premium cars to purchase. 

Benefits of Mashreq Bank Car Loan

Besides numerous features to help you manage your finances conveniently, the auto financing from Mashreq Al Islami offers several other benefits as mentioned below. 

• You get a free current account with zero balance requirement during the entire loan tenure.
• Customers also receive an internationally accepted debit card to access funds quickly.
• The bank offers a complimentary chequebook facility and a full suite of online banking.
• You can avail of preferential rates on motor takaful when opting for a Mashreq Bank car loan. 

Types of Mashreq Car Loans in the UAE

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. 

• New Car Loans - When purchasing a brand new car from the dealership, you can opt for a new car loan from Mashreq Bank. The bank provides competitive profit rates and numerous rebates and periodic offers while financing a new car loan. You can contact the bank to know about various offers and discounts. 
• Used Car Loans - If you are planning to purchase a pre-owned car in the UAE, you can go for Mashreq Al Islami used car loans. These loans are a bit costlier in comparison to the new car loans. However, you can compensate with the overall cost of your preferred car. 

Mashreq Bank Car Loan Interest Rates

The following table depicts car loan interest rates offered by Mashreq Bank.

Eligibility Criteria to Apply for Mashreq Bank Car Loans in the UAE

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. 

• Age - To acquire a Mashreq Al Islami car loan, an applicant should be of a minimum age of 21 years. The bank also has an upper age limit of 65-70 years based on your income and financial situation.
• Monthly Income - To apply for a Mashreq Bank Auto loan, a minimum monthly salary of AED 5,000 is required. The bank will consider your income and other expenses before offering you a car loan. 
• Nationality - Mashreq Al Islami car loans are available to both UAE nationals and ex-pats. However, separate documents have to be provided in case of the applications of ex-pats in the UAE. 
• Down Payment Requirement - You are required to complete a downpayment of 20% of your car’s invoice cost as an upfront amount. Failing in the downpayment may lead to application rejection or delay. 
• Credit Score - The bank verifies your creditworthiness through the AECB credit score. Based on your score, the bank may approve, change, or reject your loan application However, with a decent credit score, you can ensure easy loan application and approvals.

Documents Required for Mashreq Bank Car Loan in the 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. 

For Employed Individuals

• A driving license - both original and a copy
• A valid Emirates ID for record and verification
• A valid passport ID along with a copy (visa details with address page required for ex-pats)
• 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 required if you have a salary transfer account in the bank)
• Proforma invoice or dealer’s quotation of the car you plan to purchase

For Self Employed Individuals

• 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)
• 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 company liabilities, existing loans, and expenses
• Company bank account statement for the last 3 to 6 months
• Proforma invoice or dealer’s quotation mentioning the value of the vehicle

Note:- The bank may ask for additional documents besides the ones mentioned above at its discretion. 

Ways to Apply for Mashreq Bank Car & Auto Loan in the UAE

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.

• Online Mashreq Car Loan Application - To apply for a car loan online, check out Mashreq Bank's official website and visit the car loan section. The loan's specifics, as well as an online application form, can be found here. Fill out the application providing your personal and contact details, after which the bank will contact you for further application processes. 
• Mashreq Car Loan Application Offline - You can also apply for a car loan at a Mashreq branch near you by carrying all necessary documents and contacting the car loan department. Fill out the car loan application form, attach the documents, and submit it to the bank’s representative. If approved, your loan is deposited to the dealership account through banker draft or fund transfer channels. You can use Mashreq's official website to locate a branch near you.
• Through Customer Support – If you wish for an alternative to the modes mentioned above, you can contact the Mashreq Bank assistance team to apply for auto loans. Simply dial the phone numbers listed on the website to contact the support service and ask for a car loan. Provide your contact and personal information over the phone as asked by the representative, who will then guide you through the subsequent application process. 

Mashreq Bank Car Loan Calculator

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. 

Mashreq Bank Car Loan Fees and Charges  

Following is the schedule of charges for the Mashreq Al Islami car loan in the UAE. 

Terms and Conditions for Mashreq Car & Auto Loan in the UAE

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. 

• Processing fees and service charges, including a VAT of 5%, are non-refundable.
• The applicant has to pay a late payment fee of 2% of the delayed amount if the instalment is not paid on time.
• The vehicle has to be insured adequately during the entire period of auto financing. 
• In case the borrower fails to repay the loan amount, the bank has the right to seize the vehicle or ask for the security of an equivalent amount at its sole discretion. 
• The vehicle owner must keep the vehicle in a good running condition suitable for its purpose during the loan tenure.  
• It is mandatory for the borrower to keep the vehicle in their ownership during the entire tenure. In case a transfer of ownership is required, the borrower has to report to the bank in writing.  

Mashreq Car Loan Contact Details 

Following are the contact details for the Mashreq Bank car loan in the UAE.