Mercedes Car Loan

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A German luxury car brand, Mercedes is certainly no new name in the automobile sector. As one of the most recognised luxury car brands across the world, Mercedes has come up with some of the most premium Sedans, Coupes, Cabriolet, and SUVs that can truly scale up your lifestyle. If you are looking forward to purchasing a new or a used Mercedes car, you can find an equally wide range of Mercedes car loans in the UAE that can help you finance your dream purchase.

In this article, we will look at some insights concerning Mercedes car loans and discuss a few related factors such as the top banks that offer these loans, how to apply for car loans in UAE, and more. We will also find out how to calculate the EMI for our car loan and what are the suitable loan repayment options in the UAE.

Features and Benefits of Mercedes Car Loan

Let’s start by looking at some features and benefits of the top plans related to Mercedes car finance as offered by the leading providers in the Emirates -

  1. Low and Negotiable Rate of Interest -You can get your Mercedes car loan sanctioned at an interest rate as low as 2%. Most banks offer bank loans at flat rates and reducing rates, which can enable you to repay the loan easily.
  2. Flexible Loan Repayment Tenure -The leading car loan providers in the UAE offer flexible repayment tenure of up to 60 months, which can help you plan your repayment strategy and select a real-time repayment tenure. 
  3. Maximum Financing -Most lending institutions in the UAE opt for 80-20 financing where they offer you a loan that is 80% of the car value while you pay 20% upfront. A few banks, however, may also offer 100% financing options for Mercedes car loans in UAE.
  4. Lower Minimum Salary Requirements -Usually, the minimum salary required to apply for a Mercedes car loan is AED 5,000 per month. This makes it possible for even working individuals to purchase a car like Mercedes. 
  5. You can Finance a Used Car -While you’d expect new car loans to be easily available, you can get a Mercedes car loan for a used one as well. With that said, keep in mind that such loans are available at a higher interest rate. When processing the loan, the lending institution will inspect the car to estimate the age and condition of the vehicle.

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Top 5 Banks that Offer Mercedes Car Loans in UAE

We will now discuss the top 5 banks in the UAE that offer Mercedes Car Loans -

ADIB Car Finance

ADIB Car Loan Specifications Information
Maximum Loan Amount Up to AED 500,000 or 80% of the car value
Minimum Salary AED 5,000
Flexible Repayment Tenure Up to 60 months
Benefits Grace Period of up to 90 days on the first instalment
Click here to Apply for ADIB Car Finance

ADCB Car Loan

ADCB Car Loan Specifications

Information 

Maximum Loan Amount 

Up to AED 1.5 million or 80% of the car value

Minimum Salary 

AED 5,000

Flexible Repayment Tenure 

Up to 60 months

Benefits

50 TouchPoints for every AED 1,000 of loan amount

Flat Rate 

1.99% per annum

Reducing Rate

3.65% per annum

Click here to Apply for ADCB Car Loan

RAKBANK Car Loan

RAKBANK Car Loan Specifications

Information 

Minimum Salary 

AED 5,000

Flexible Repayment Tenure 

Up to 60 months

Benefits

  • Finance available for companies with 2 years of business experience
  • Finance also available for insurance, servicing the car, rustproofing, and GAP (if needed)

Interest Rate for Salaried Employees

1.99% per annum

First Instalment

After 60 days

Click here to Apply for RAKBANK Car Loan

HSBC Car Loan

HSBC Car Loan Specifications

Information 

Maximum Loan Amount 

Up to AED 600,000

Minimum Salary 

AED 10,000

Flexible Repayment Tenure 

Up to 60 months

Benefits

  • Balloon Repayment with reduced monthly payments in case you change your car every 2 to 3 years
  • 0,25% discount on flat interest rates when financing in full
  • Available for a saloon, four-wheeler vehicles, and motorcycles
  • Concierge Service
  • Loan available for used cars as well
  • No salary transfer required

Interest Rate 

Starting from 1.99% per annum

Click here to Apply for HSBC Car Loan

Emirates NBD Car Loan

Emirates NBD Car Loan Specifications

Information 

Maximum Loan Amount 

Up to AED 600,000

Minimum Salary 

AED 10,000

Flexible Repayment Tenure 

Up to 60 months

Benefits

  • Available for a saloon, four-wheeler vehicles, and motorcycles
  • Concierge Service
  • Loan available for used cars as well
  • No salary transfer required

Interest Rate 

Starting from 1.99% per annum

Click here to Apply for Emirates NBD Car Loan

Mercedes Car Loan Interest Rates

The interest rate for Mercedes car loans would vary as per the bank that you choose for the loan. For instance, if you plan on taking a Mercedes car loan from Emirates Islamic Bank for your new car, the flat rate would be 2.29% per annum, while the reducing rate would approximately be 4.2% per annum. These interest rates would differ for other banks.

The interest rate for your Mercedes finance is generally influenced by the following factors -

  1. Income - Your income plays a significant role in determining the interest rate for Mercedes car finance. Lending institutions check your monthly income before providing you with a loan at a specific interest rate. The higher your income, the better your capacity to repay the loan on time. Correspondingly, the higher your income, the lower would be the interest rate.
  2. credit Score - Most lending institutions check your credit score to figure out if you qualify for a Mercedes car loan. Your credit score is a three-digit credit rating that you get based on your history and actions towards your finances and credit. The higher your credit score, the more chances you have to get a car loan at an interest rate of your preference. 
  3. Down Payment - If you choose to pay a larger amount of the car value as a down payment, the loan amount would be reduced. This, in turn, reduces the financial burden on the bank which can offer you a better Mercedes car loan interest rate. Moreover, if you pay a large sum of the car value up front, you strengthen your financial foothold and present yourself as a reliable borrower.
  4. Model and Age of the Car - Unlike a secured loan, you do not have to provide any additional collateral for a car loan. Your car itself becomes collateral. Consequently, the age and the condition of the car play a crucial role in determining the interest rate for your Mercedes car loan. If you are driving a used Mercedes, for instance, the interest rate for your loan may increase. 

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Documents Required for a Mercedes Car Loan

Different banks have different document requirements. However, we will look at some of the basic documents required to get a Mercedes car loan - 

For Salaried Personnel For the Companies  For Self-Employed Applicants
  • Original passport 
  • Residence visa page from the passport (for UAE residents only)
  • Emirates ID
  • A duly filled car loan application form
  • Recent bank statements (of the last three months)
  • A copy of driving licence
  • Salary Certificate (not necessary in case your salary is transferred to the bank that is offering you the Mercedes car loan)
  • Passport copies (of all the authorised company officials)
  • Copies of residence visas (of all the authorised company officials)
  • Emirates ID copies (of all the authorised company officials)
  • Driving licences (of all the authorised company officials)
  • Memorandum of Association
  • List of authorised signatories on behalf of the company
  • Recent bank statements 
  • Trade licence
  • A copy of passport
  • Emirates ID 
  • A copy of residence visa
  • Driving licence
  • Recent bank statements (preferably for the last three months)
  • Trade licence of the business 
  • Power of Attorney
  • Partnership agreement (if an LLC)
  • Memorandum of Association or Article of Association

The bank may also ask for documents like the dealer’s quotation for a new car or the dealer’s evaluation in the case of a used car. Such document requirements, however, vary from bank to bank.

Eligibility Criteria for Mercedes Car Loan

Here are the major eligibility criteria that you must fulfil to secure a Mercedes car loan in the UAE -

  1. Nationality - Most lending institutions offer Mercedes car loans in the UAE to nationals, expatriates, and residents. However, you would be required to provide valid identity proof to justify your nationality. 
  2. Age - To get a Mercedes car loan, the minimum age requirement is 21 years. Generally, the upper age limit for nationals is 65 years, with 60 years being the limit for expatriates. 
  3. Monthly Income - The monthly income usually differs from bank to bank. As an applicant of the car loan, it is mandatory to meet the minimum income requirement of the bank.
  4. Employment Status - A Mercedes car loan can be secured by a salaried individual, a self-employed person, and even companies as well. So if you have a stable income and fall under any of the categories, you can avail of the loan. 

How to Apply for a Mercedes Car Loan?

You can apply for a Mercedes finance in the UAE via any of the modes below -

Via Policybazaar UAE

You can effortlessly apply for a Mercedes car loan on policybazaar.ae. We are a third-party aggregator portal and offer the best loan options from the leading financial institutions in the UAE. To apply for the loan, simply fill in the lead form with personal details in the relevant section on our website and click on the submit tab. You will be directed to the quotes page that contains the best loan options.

You can compare these car loans and select a Mercedes car loan plan that fits your budget. Once you make a decision, click on the apply tab to have your application submitted. 

When you take a Mercedes car loan from Policybazaar.ae, you become eligible for -

  • Exclusive discounts and deals on the loan
  • 24/7 access to customer care service
  • Access to the best car loans in UAE 
  • Assistance from financial experts in case you are confused about the options

Online Banking

Another way to apply for a Mercedes car loan in the UAE online is to visit the bank’s website from where you plan on taking the car loan. It is recommended that you opt for a bank with which you already have an account. Log into your net banking account and fill in the car loan application form with accurate details. 

Once through, attach the requested documents and submit the form. A designated executive will connect with you for further processes regarding the car loan. 

Offline Banking

To apply for a Mercedes car loan, you can visit the nearest branch of the bank where you want to apply for the loan. For this, first make sure that you carry all the necessary documents along with you. Once there, obtain a loan application form and fill it in with accurate details. Affix the compulsory documents and submit the form to have a designated loan officer connect with you for the remaining procedures.

How to Calculate EMI for a Mercedes Car Loan and Finance?

You can easily estimate the monthly instalment that you would have to pay to settle your Mercedes car loan using a car loan EMI calculator. It is an online automated tool that helps you determine the instalment amount based on factors like principal amount, loan repayment tenure, and interest rate. 

Most of the EMI calculators provide you with an amortisation schedule of the loan where you can find the amount and interest payable during the repayment tenure.

You would be required to provide the following details to a car loan EMI calculator -

  • Principal amount
  • Loan repayment tenure (in months)
  • Rate of interest

Charges Applicable to Mercedes Car Loan and Finance

While the services and charges applicable for Mercedes car loan differ from bank to bank, some of the common charges are discussed in the following table -

Description 

Fees 

Processing Fee

Starting from 1%

Early Settlement Fee

Starting from 1%

Down Payment 

Depends on the Bank’s Policies

Late Payment Fee

Variable

Mercedes Car Finance Repayment Options

Given below are the major Mercedes car loan repayment options available -

  1. Regular EMI - One of the most common Mercedes car loan repayment methods, you would have to pay a predetermined instalment amount on a fixed date every month here. You can pay the instalment either at the beginning of each month (monthly in advance) or towards the end of every month (monthly in arrears).
  2. Step-up EMI - Under this Mercedes car loan repayment method, you can lower your equated monthly instalments (EMIs) during the early years of repayment and eventually increase your EMI towards the end of the tenure. However, the interest rate would be higher than that of the regular EMI repayment mode. 
  3. Step-down EMI - In the step-down EMI method, you pay a higher EMI at the start of the loan repayment tenure, with the EMI amount gradually decreasing towards the end of the tenure. 
  4. Balloon EMI - Several banks offer this provision to use this method of repaying a  Mercedes car loan in the UAE. Here, you have the flexibility to make lump sum payments at the end of the loan repayment tenure. While the interest rate is usually higher than that in other loan repayment options, this method reduces your initial loan burden.

Ultimately, the best Mercedes car loan repayment method for you would depend on your financial position and planning. Before making a choice, make sure to thoroughly study all the options. 

Tabled below are the most popular Mercedes cars in the UAE and their general prices -

Car Model

Price 

Mercedes Benz G-Class 

AED 440,000 to AED 600,000

Mercedez Benz CLS-Class Coupe 

AED 380,000 to AED 445,000

Mercedes Benz C-Class Cabriolet

AED 205,000 to AED 325,000

Mercedes Benz V-Class

AED 195,000 to AED 295,000

Mercedes Benz C-Class Sedan

AED 190,000 to AED 325,000

Mercedes Benz S-Class Coupe

AED 462,610 to AED 877,472

Mercedes Benz E-Class Sedan

AED 250,000 to AED 375,000

Mercedes Benz AMG GT

AED 545,000 to AED 730,000

Mercedes Benz CLA-Class

AED 170,000 to AED 265,000

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FAQS

Is there an option for early Mercedes car loan settlement in the UAE?

Most banks in the UAE offer the option of settling the Mercedes car loan early. However, this service can usually be availed only when you have paid 12 EMIs already. The exact details of this provision can vary from bank to bank.

What is the ideal repayment tenure for Mercedes car loan in the UAE?

Ideally, you can avail of a Mercedes car loan for a duration of 60 months or 5 years.

What is the minimum amount of down payment for a Mercedes car loan?

To secure a Mercedes car loan in the UAE, you would generally be required to pay at least 20% of the car’s value upfront as a down payment.

 

Is salary transfer mandatory to get a Mercedes car loan in the UAE?

Most lending institutions in the UAE do not require you to transfer your salary if you have a salary account in a different bank. With that said, make sure you thoroughly go through the terms and conditions of the bank from where you are securing your Mercedes car loan.

 

Can you change your Mercedes car loan’s EMI date?

While you can change your car loan’s EMI date, the availability and the precise terms of this feature will depend on the bank’s policies.

 

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