MG Car Loan

MG, a car manufacturer based in the United Kingdom, has a strong presence in the UAE as well. Correspondingly, you can find numerous MG car loans in UAE that can help you complete the purchase and get your hands on your MG car without much delay.

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Features and Benefits of MG Car Loans

Let’s first discuss the significant features and benefits of MG car loans as offered by most providers in the emirates –

  • Flexible Repayment Tenure- MG car loans have a flexible loan repayment tenure which generally ranges from 1 to 5 years. With such long repayment tenures, you can easily pay the loan in low equal monthly instalments. This, in turn, can help you easily manage your finances and pay the loan conveniently without facing any big hurdles along the way.
  • Low Salary Requirements- Several lending institutions in UAE offer MG car loans with minimum salary requirements, as low as AED 5,000. Thus, even individuals with low salary requirements can get the loan quickly without worrying about their income.
  • Minimal Documentation and Swift Processing- The documentation process for these car loans in UAE is fairly straightforward if you qualify for the eligibility criteria and have a good credit Score. This also means that you can quickly get approval for your loan application if you present the correct documents and meet the eligibility requirements as set by your lender.
  • An Easy Way to Buy a Car- By purchasing an MG car using only your savings, you will be required to undertake considerable tedious planning – all while facing the risk of quickly depleting your funds. This issue can be easily avoided with MG car finance, as you can make the purchase without compromising your savings or lifestyle.
  • Attractive Profit and Interest Rates- Most of the leading lending institutions in the emirates offer competitive interest or profit rates on MG car loans in UAE. To further make it convenient for customers, these institutions provide loans with two types of interest rates – flat interest rate and reducing rate of interest. You can choose any of them as per your requirements.
  • No Collateral Required- One of the remarkable benefits of obtaining an MG car loan is that collateral is not required, as the vehicle itself serves as collateral. However, in case you fail to repay the loan on time or default on loan, the lending institution can legally seize your vehicle to recover the amount.
  • Additional Benefits- Apart from the above-listed benefits, additional benefits can be availed by obtaining an MG car loan in the UAE, including a free bank account, a 0% instalment payment plan, a grace period for the first instalment, a free credit card, and so on.

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Documentation Required for MG Car Loans

Although the list of required documents varies from one lender to the other, you can keep the following standard documents ready to fast-track the loan application process - 

For Salaried Individuals  For Self-Employed Individuals  For Companies 
  • Original Visa
  • Salary Certificate
  • Original Emirates ID
  • Driving Licence 
  • Original Passport
  • Bank Statements (Of the last 3 or 6 months)
  • Valid Quotation
  • Original Visa
  • Original Emirates ID
  • Driving Licence 
  • Original Passport
  • Bank Statements (Of the last three or six months)
  • Trade Licence
  • Valid Quotation
  • Original Passports
  • Original Visas
  • Original Emirates IDs
  • Driving Licences (of the concerned company officials)
  • Valid Quotation
  • Memorandum of Association
  • Bank Statements

Interest Rates for MG Car Loans in UAE

It is crucial to estimate the cost of the loan to check the loan's affordability. This cost primarily depends on the interest rate, which is affected by several factors. Here are the major factors affecting interest rates – 

  • Credit Score and Report- Your AECB score plays a vital role in assessing your creditworthiness. Generally, most lending institutions in the UAE prefer a credit score above 750 for low-interest rates. This is because good credit history and credit score imply that you are a credible and trustworthy borrower with a low risk of default.
  • Your Income- Lenders in the UAE also consider your income level when deciding the interest on your MG car loan. With high income, you can expect low-interest rates and vice-versa. Low income increases the probability of defaulting on the loan.
  • Loan Repayment Period- The loan repayment tenure refers to the period in which you repay your MG car loan via monthly instalments. Interest rates are usually related to the length of this period - with a long tenure, you can generally expect high interest rates. However, short tenures, while reducing the overall interest amount, lead to high instalments. Thus, to select a suitable loan repayment tenure, you should first understand your loan requirements and make a well-informed decision.
  • Age of Vehicle- In case you wish to obtain a loan for a used vehicle, its age is an essential factor that would matter a lot in deciding the interest or profit rate of the loan. Banks generally charge a higher interest rate if your car is old compared to the new ones.
  • Down Payment- MG car loan comes with a predefined margin, which indicates the amount or percentage of the money you are required to pay from your own pocket. Generally, you would be required to pay at least 20% of your vehicle’s price in the form of margin or down payment. Saving money and using it as a down payment can be favourable, as you would have to borrow less and pay less interest to the financial institution. Furthermore, it also gives assurance to lenders that you are good at planning and managing your funds and will not bail out of the MG car loan monthly repayments.
  • Debt-to-Income Ratio- Besides your income, lending institutions in the UAE also evaluate your other financial commitments to assess whether the MG car loan fits your budget. This will be done by computing your debt-to-income ratio, which would determine your ability to take a new credit and stand by it. Debt-to-income ratio is the ratio of all your debt payments divided by your current income. A low debt-to-income ratio is preferred as it implies the potential risk associated with the loan is considerably low.
  • Association with the Lender- Lending institutions are more likely to offer lower interest rates to individuals whose financial records are on their files compared to new customers. So if you already have an association with a bank, it may attempt to retain you as a customer by offering you lower interest rates on your MG car loan.
Car Loan Interest Rates in UAE

Eligibility Criteria for MG Car Loans in UAE

Similar to the documentation requirements, each lending institution has its own eligibility standards in order to qualify for an MG car loan. The table below lists some of the standard criteria – 

Parameter Eligibility Criteria
Age Range Between 21 and 65 years
Employment Requirement Both salaried and self-employed
Minimum Salary Starting as low as AED 5,000 (and as low as AED 8,000 for used cars)
Nationality Citizen of the UAE or an expat
Credit Score A good credit score is required

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How to Apply for an MG Car Loan in UAE?

Enhancements in the banking technology in the UAE have made it possible to easily apply for an MG car loan online. To apply for this car loan from the comfort of your home and find the best deals at the best rates, you can simply choose Policybazaar UAE.

Policybazaar UAE is a popular choice among those seeking a car loan in UAE as it has reduced the hassle of required documentation, visiting the bank branch, or making an arrangement to compare the loans. On policybazaar.ae, you can view the best plans available in the UAE in one place and compare them per your requirements and budget.

Besides the high convenience in searching, comparing, and applying, a key benefit of applying for a car loan via Policybazaar UAE is that you can access the top loans at the best interest rates along with lucrative offers. Moreover, the features, benefits, eligibility, and documents list are mentioned next to each plan so that you can compare, explore, and make a wise decision. Still, you can always reach out to our customer service and get the required assistance if required.

To apply for an MG car loan from Policybazaar UAE, follow the given steps:

  • Step1- Head to the official website of Policybazaar UAE - policybazaar.ae
  • Step2- Tap on the 'Banking Products' located on the home screen
  • Step3- Click on the ‘Car Loans’ tab
  • Step4- You will be provided with a lead form - fill it out with details like your full name, nationality, monthly income, residence city, and more
  • Step5- Once the lead form is submitted, you will be redirected to the ‘Car Loan Quotes’ page
  • Step6- All the details of the top plans would be displayed for your consideration on the screen
  • Step7- After selecting a particular plan from the list, you can easily apply for it on our website with a few clicks

Some of the advantages of applying for an MG car loan via Policybazaar UAE are as follows:

  • Easily apply for an MG car loan anytime and anywhere without moving a step anywhere
  • Get access to various loan plans from reputed lending institutions in the UAE in one place
  • Compare all available plans without switching between the tabs
  • You can complete the application with minimal documentation requirements
  • You can easily make the payments using your debit or credit card as the Policybazaar UAE platform facilitates safe and secure transactions
  • Other than the above-stated benefits, you can quickly check and track the status of your MG car loan application by placing a call on a round-the-clock customer care number

As far as the online application is concerned, you can also head to the official website of your preferred lending institution in UAE or visit their branch to apply for your MG car loan.

How to Calculate Monthly Instalments for MG Car Loan?

Car loan calculators available on the official websites of the top lending institutions in the UAE allow you to easily get an estimate of your monthly instalments on your MG car loan. This calculator considers your loan terms, including the finance amount, interest rate, and loan repayment tenure to instantly provide you with the EMI of your car loan.

Besides the monthly instalments, a car loan calculator also briefs you about the principal and interest amount payable towards the loan, thus providing the total cost of the loan for the entire loan period. Some calculators also give a graphical representation of these calculations.

One of the remarkable benefits of online car loan calculators is that it helps to set your car finance expectations before starting the loan application process. Without performing any complex calculations by yourself, you can get accurate results in a few seconds.

Follow the given steps to use the online car loan calculators – 

  • Step1- Visit the official website of the concerned car loan provider
  • Step2- Locate the car loan calculator on the website, whether on the car loan page or the online calculator section 
  • Step3- Generally, these online car loan calculators ask for three determinants for computing the monthly instalment on a loan – loan amount, interest rate, and loan repayment tenure
  • Step4- As the source of these online car calculators is from different lending institutions, interest rates may differ
  • Step5- You can use the slider provided in each field to reach the desired figure

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Charges and Fees Applicable on MG Car Loan & Finance in UAE

Let’s go through below are some of the general charges applicable for car loans in the UAE below. Just keep in mind that while these charges are standard, there could be slight variations from one bank to another - 

Early settlement fee 1.05% of the Principal outstanding amount
Late payment fee AED 52.50
Change in the mode of payment Free
Deferment AED 105
Partial Settlement 1.05% of the payment made
Rescheduling fee AED 262.5
Cheque returned charges AED 105
Liability/No liability letter AED 52.5
Application processing fee 1.05% of the loan amount applicable

 Disclaimer - *These charges are subject to variations from bank to bank*

What are the Advantages of Obtaining MG Car Finance in the UAE?

As buying a vehicle can be one of the most expensive purchases in your life, it is essential to weigh the pros of obtaining car finance in the UAE. The following section outlines some of the advantages of availing of an MG car loan in UAE –

  • Spread the Cost of Repayment-One of the most notable benefits of obtaining an MG car loan is that you don't have to pay the entire cost of your vehicle upfront. This enables you to spread the cost of a vehicle over a few years, ranging from 1 to 5 years, all while giving you immediate access to your car without any need to save up.
  • Get a Car without Straining Your Budget-Several repayment options are associated with car finance such as balloon EMI, special-tie-up methods, and more, which can help you find the vehicle that fits your budget. Whichever option you go with, you can easily manage the instalments in your monthly expenses without spending beyond your limit.
  • Improve Your Credit Score-Another benefit of obtaining MG car finance in UAE is that it enhances your credit score. Your credit score is computed based on the information provided in your credit file, which consists of all details of the credit you have taken in the last 5 years or so. Making timely payments here can help you manage your funds conveniently and have your credit score improve with time as well. With a good credit score, you can expect to be offered attractive interest rates and favourable loan terms on any future credit you take in the UAE.
  • Added Benefits-Several lenders offer free services, free registration, and other services when you obtain a car loan. These benefits can further simplify the process of obtaining a car for you, besides the fundamental advantage of getting the required financial assistance.

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MG Car Finance Repayment Options in the UAE

You can repay your MG car loan via online, offline, or mobile banking. The three methods are discussed in detail here -

Online Method

  • Visit the official website of the concerned lending institution or bank
  • Sign into your account to get the information on your MG car loan
  • Locate the loan repayment option on the page and choose the suitable payment method to make the payment
  • Once done with payment, a notification shall be sent to you via SMS or email

Mobile Banking

  • Several lenders in the UAE have mobile applications to provide convenience to their customers
  • Install the official mobile application of the lending institution on your device
  • Go to the ‘loan’ section and tap on MG car loan to get all the required information
  • Select the payment button and pay your current monthly instalment on the loan

Offline Banking

  • If you don’t prefer the online or mobile banking options, you can always head to the official branch of the said lender and make your monthly instalment payments.

Check out the table below for the prices of some of the top MG car models in the UAE –

Popular MG Car Models UAE Price Starting from
MG FT 2023 AED 54,522
MG 5 2023 AED 45,827
MG ZS EV 2023 AED 125,900
MG RX8 2023 AED 96,191
MG HS 2023 AED 81,438
MG 6 2023 AED 65,159
MG ZS 2023 AED 58,037

Note: The table above lists the estimated prices. It is advisable to visit the official website of MG or your nearest dealer to find the exact prices.

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Top Banks Offering MG Car Loans in UAE

Here are some of the top lending institutions offering MG car loans –

1- RAKBANK

Product Name Interest Rate Loan Repayment Tenure Loan Amount Additional Benefits
RAKBANK Car loans Starting from 1.99% for salaried customers Up to 60 months NA
  • Available for both new and used cars as well as luxury and sports cars
  • First instalment after 60 days
  • No hidden charges
  • 24-hour banking support
  • Available for insurance, rustproofing, service & maintenance costs, and GAP
Click Here to Apply Now

2- Emirates NBD

Product Name Loan Interest Rate Loan Repayment Tenure Loan Amount Additional Benefits
Auto cash loan N/A Up to 60 months Up to 75% of the invoice value of your vehicle
  • Preferential rates
  • Same day approvals
Flexi drive Flat interest rate – starting from 1.92% NA NA
  • Transparent pricing linked to a one-month EIBOR
  • Half-day approvals
Auto loans Flat interest rate - starting from 1.99% Flexible tenure NA
  • Free bank account and credit card
  • Attractive pricing for business and passenger vehicles
  • 0% instalment payment plan on emirates nbd credit cards
Click Here to Apply Now

3- First Abu Dhabi Bank

Product Name Profit Rate Loan Repayment Tenure Loan Amount Additional Benefits
Islamic car finance for expats Flat rate - starting from 2.49% Reducing rate - starting from 4.72% NA Up to AED 1.5 million or 80% of the value of the car 
  • Available for both used and new cars
  • Up to 120 days grace period before the first instalment
  • Valid for salaried individuals
Islamic car finance for UAE Nationals Flat rate - starting from 2.49% Reducing rate - starting from 4.72% NA Up to AED 1.5 million or 80% of the value of the car
  • Grace period of up to 120 days prior to the first instalment 
  • Applicable only to salaried individuals
Click Here to Apply Now

4- Emirates Islamic Bank

Product Name Profit Rate Loan Repayment Tenure Loan Amount Additional Benefits
EIB Auto Finance Flat rate - starting from 2.15% for UAE nationals and 2.29% for expatriates Up to 60 months NA
  • Get preferential rates
  • Salary transfer is not mandatory
  • Entirely Shariah-compliant Murabaha structure 
Click Here to Apply Now

Let’s walk through some of the most frequently raised queries related to MG car loans in UAE in the next section.

FAQ's

Q1. What is the flat interest rate on a MG car loan?

Ans: The interest rates on MG car loans depend on various factors such as your profile, loan terms and conditions, and more. Generally, the flat interest rates for MG car loans start from 1.99% in UAE.

Q2. What documents are required to apply for a MG car loan for salaried individuals?

Ans: Salaried individuals may require the following documents to apply for an MG car loan:

  1. Original Visa
  2. Salary Certificate
  3. Original Emirates ID
  4. Driving Licence 
  5. Original Passport
  6. Bank Statements (Of the last 3 or 6 months)
  7. Valid Quotation

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