Check and Compare RAK Bank car loan interest rate on used and new cars
Compare and get the best loan
Established in 1976, RAKBANK is one of the oldest and largest leading financial institutions in the UAE. Focusing on customers' needs, the bank underwent a major restructuring in 2001, shifting its services and focus from corporate to personal and business banking. As a notch in one's belt and with a vast network of 27 branches and digital portfolios, RAKBANK serves individuals across the country. Over and above that, among various products and services, it offers personal, business and corporate accounts, including savings and deposit schemes as well as loan services.
Furthermore, RAKBANK car loans are one of its popular products that allow you to accumulate funds for purchasing used and new cars. Additionally, loan applications are quick and easy with lenient eligibility criteria and low-interest rates. So do you want to apply for a RAKBANK car loan? If you do, let's delve deeper to know various features, benefits and numerous ways of acquiring RAKBANK car loans:
Along with low-interest rates, RAKBANK car loans come with numerous features and benefits to ease down the rather gruelling process. Moreover, ensuring minimal formalities and flexible repayment periods, you can buy your dream car without any hassles. To further expand on what benefits you will get if you apply for RAKBANK car loans in the UAE, pick up the threads!
RAKBANK car loans are among the inexpensive financing options in the UAE. It is undoubtedly true that with low-interest rates, your overall financing cost reduces considerably. So, let's understand the RAKBANK car loan interest rates for individual customers in the UAE:
|Car Loan Type||Flat Rate||Reducing Rate|
|New Car Loan||1.79% to 3.49% per annum||4.26% per annum|
|Used Car Loan||2.30% to 3.69% per annum||5.42% per annum|
Following are the details of RAKBANK car loans interest rates for Businesses
|RAKBANK Car Loan Type||Flat Rate for New Vehicle||Flat Rate for Used Vehicles|
|Business excluding rental cars||3.45% to 4.45% per annum||3.65% to 4.75% per annum|
|Car Rental Businesses||3.50% per annum||Not available|
|RAKBANK Car Loan Types||Flat Rate for New Vehicles||Flat Rates for Used Vehicles|
|Car Loans for Self Employed Individuals||2.40% to 3.24% per annum||2.99% to 4.19% per annum|
Before applying for a RAKBANK car loan, you need to meet various eligibility criteria, including your age, residency, salary and more. However, remember that the requirements may vary from person to person and the applying entity. Nevertheless, the following are the common eligibility criteria to apply for RAKBANK car loans in the UAE:
After you have ensured that you fulfil all the eligibility requirements, you need to proceed with the required documents. Here, the bank verifies your details through various documents you submit related to your identity, address, income and driving licence. So, to apply for a RAKBANK car loan, here is the list of documents you need to keep handy:
RAKBANK offers easy loan applications through various online and offline channels to make the car loan application process utterly convenient. We have mentioned the various ways for RAKBANK car loan applications below so that you can check them out!
Online Car Loan Application - To apply online, you can visit the RAKBANK official website and navigate the car loan section. Here, you can find the details of car loans, including an online application form. Later, you need to enter your personal and contact details and submit them. You are done with your part, and next, the bank representative will contact you for the further application process.
Offline Car Loan Application - To apply offline, you need to visit the nearest RAKBANK branch with the dealer's quotation and other required documents. Later, you need to fill out an offline car loan application form as per the directions of the bank representative and submit it after attaching the documents. Once your loan gets approved, the bank will credit the amount to the dealer. Adding to that, you can visit the bank's official website to locate the nearest branch.
Application via Phone Call - RAKBANK offers dedicated customer support through calls and chats. So, along with resolving your queries, you can also request a loan application by calling 600 54 4049 without any hassles. Then, you need to provide your personal details, and the bank representative will guide you through the RAKBANK car loan application process.
Loans and EMIs involve intricate calculations, including various factors like principal loan amount, type of interest applied (flat or reducing), tenure of your loan etc. This entire process can indeed be overwhelming, but it can be a cakewalk with the RAKBANK car loan calculator. Having said that, a car loan calculator is the easiest way to find an estimate of your total loan cost, EMIs you need to pay, and the total interest payments. Additionally, you can visit various aggregator websites to find the RAKBANK car loan calculator. Moreover, by entering the details like the cost of your car, loan tenure, and the interest offered, you can easily calculate the amount you have to pay every month. This easy process helps you understand and plan the amount of loan you can afford according to your budget.
While applying for a RAKBANK car loan, you need to pay a few charges such as processing fee, late payment fee and early settlement fee (if applicable). Here are the details of various fees and charges for the RAKBANK car loan:
|Type of Fees and Charges||Amount in AED|
|Car Loan Processing Fee||For Individuals and Self Employed: 1% of the principal loan amount and a maximum of AED 2,500.
For Businesses:1.5% of the principal loan amount and a maximum of AED 7,500
|Late Payment Charges||AED 500 per delayed payment|
|Early Settlement Charges||1% of the outstanding loan amount|
|Value Added Tax||5% of the bank's fees and charges|
Following are the terms and conditions for RAKBANK car loans in the UAE:
Ans: Currently, RAKBANK offers both reducing and flat interest rates on your car loan and depending on your needs, you can opt for either of the two. In the case of flat rates, the principal loan amount is considered for calculating the payable interest, while the outstanding loan amount is considered during a reducing interest rate calculation.
Ans: Yes, you can opt for a RAKBANK car loan even if you don't hold a salary account in the bank. However, with a salary transfer account, you may get a lower interest rate since you already have a relationship with the bank.
Ans: To apply for a car loan in the UAE, you need to have a monthly income of AED 5,000 or above.
Ans: Yes, you can cancel your car loan within the 5 days cooling-off period. The bank does not approve loan amounts during this term, and you can request a loan cancellation by paying a nominal fee as mentioned in the cancellation clause.
Ans: Yes, the bank offers motor loans for a variety of vehicles ranging from economical, premium, sports, and luxury cars. Depending on your financial capabilities and creditworthiness, the bank provides loan amounts to purchase your dream car.
Ans: Yes, you can settle your car loans prior to the maturity of the loan tenure by paying the outstanding amount in a lump sum. However, you need to pay a 1% early settlement fee of the remaining loan amount.
Ans: The bank provides a period of 60 days between your loan approval and first repayment.