RAK Bank Car Loan in UAE

Check and Compare RAK Bank car loan interest rate on used and new cars

RAK Bank Car Loan in UAE

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  • EMI Tenure up to 48 Months
  • Lowest Interest Rates

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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:

Features and Benefits of 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!

  • Low-Interest Rates - Reducing your overall loan cost, RAKBANK provides car financing at low-interest rates starting from 1.79% for salaried individuals. Additionally, you can also opt for reducing or flat interest rates depending on your convenience of repayment. 
  • Flexible Loan Tenure - With RAKBANK car loans, you get flexible loan tenure of up to 60 months. However, before selecting the tenure, you must understand that a longer loan tenure incurs larger loan costs but lower EMIs. (Makes sense, right?) So, based on your budget, you can decide the term of your repayment of the car loan. 
  • No Hidden Charges - RAKBANK promises to disclose all the fees and charges before processing your loans, maintaining transparency and ethics. So, you can trust the RAKBANK car loans for no hidden charges. 
  • No Salary Account Needed - To obtain a car loan in UAE, you may need to have a salary account linked with the lending bank. However, you don't require a salary account while applying for a car loan in RAKBANK. But, you may get attractive interest rates if you get your salary transferred to the lending bank.
  • Option of Loan Insurance - By paying a nominal charge, you can also insure your car loan to avoid burdens on your dependent family members in case of unforeseen events.
  • Loans Available for a Variety of Vehicles - RAKBANK offers car loans for various vehicles ranging from economical cars to premium, luxury, and sports cars, including various bikes. In addition, you can also apply for commercial motor loans to purchase buses, pickups and trucks.
  • Round the Clock Support - With RAKdirect, you get 24-hours support for all loan-related queries and concerns. This means that you'll never feel lost during the process of applying for a car loan at RAKBANK, as the customer support panel will be there at your beck and call every step of the way.

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RAKBANK Car Loans Interest Rates

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

Following are the details of RAKBANK car loan interest rates for self-employed individuals

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

Eligibility Criteria to Apply for RAKBANK Car Loans in the UAE

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:

  • Age - For most types of loans in the UAE, you need to be at least 21 years old or above. Additionally, the bank may also have an upper age limit of 60-70 years. Therefore, you need to verify before a car loan application with the bank. 
  • Minimum Salary Requirements - To acquire a RAKBANK car loan, you need to have a minimum monthly salary of AED 5,000 or above.
  • Residency - RAKBANK car loans are available to UAE nationals as well as residents. However, ex-pats can also apply for a car loan based on their credit history and score. 
  • Credit Score - Apart from the above criteria, the bank may also consider your credit score. Thus, the bank may approve or reject your loan applications based on your scores. Also, note that you can easily acquire a car loan with an AECB score of 700 or above. 
  • Down Payment Criteria - According to the Central Bank of UAE guidelines, you need to pay a minimum of 20% of your car's invoice value as a down payment. The rest, 80%, can be converted into a car loan through bank financing.

Documents Required 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:

For Salaried Individual

  • A valid driving licence issued by RTA UAE,
  • An original Emirates ID with a valid copy for record and verification,
  • A valid passport ID and a copy for Residents and ex-pats,
  • Utility bill, Lease of rent agreement for the proof of address,
  • Latest bank account statements for the last 3-6 months,
  • A valid salary certificate addressing RAKBANK from your current employer (Not applicable if you hold a salary account with the bank),
  • Proforma invoice of the car or a dealer's quotation mentioning the ex-showroom and on-road price of the vehicle.

Documents Required for Self-employed Individuals

  • A valid driving licence issued in the UAE,
  • A valid Emirates ID and a copy for UAE nationals, 
  • An original passport ID visa details for the residents and ex-pats,
  • A valid trade license issued by the Department of Economic Development (DED),
  • The latest Bank account statement for both individual and company accounts for the last 3-6 months,
  • A copy of a power of attorney (If asked by the bank),
  • Details of expenses, existing loans and liabilities,
  • A dealer's quotation or the proforma invoice mentioning the ex-showroom and on-road price of the vehicle.

Documents Required for Companies and Businesses

  • A valid copy of the trade licence,
  • A valid passport ID, visa or EIDA card copy of the company signatories,
  • Company's bank account statement for the last 3 to 6 months,
  • A power of attorney copy (if asked by the bank),
  • Details of company's liabilities expenses and active loans,
  • A dealer's quotation or proforma invoice of the car mentioning the ex-showroom and on-road price of the car.

How to Apply for RAKBANK Car Loans in the UAE?

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.

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RAKBANK Car Loan Calculator

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.  

RAK Bank Car Loan Fees and Charges

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

Important Terms and Conditions for RAKBANK Car Loans

Following are the terms and conditions for RAKBANK car loans in the UAE:

  • If the customer has only a savings account (Deposit account), they need to open a settlement current account for repaying the car loan amount. However, individuals already holding a current account don't need to open one.
  • In case of any default in the loan repayment, the bank may appoint or authorise a collection agent to collect the outstanding amount.
  • The applicant is solely responsible for the correctness of documents and proofs submitted to the bank. 
  • The bank has the sole discretion to approve or reject the car loan application. 
  • The customers have the option of cancelling their loan application during the cooling-off period of 5 days. However, after disbursement of the loan amount, the bank doesn't allow any cancellation. 
  • Applicants can waive their cooling-off period and avail the amount immediately after the approval for their loan. 
  • The bank can modify DIB car loan terms and conditions with 60 days' prior notice.

Frequently Asked Questions

Q1. What type of interest rates are applicable on my RAKBANK car loan?

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.

 

Q2. Can I still apply for a car loan if I don't have a salary account in RAKBANK?

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.

Q3. How much salary do I need to apply for a RAKBANK car loan in the UAE?

Ans: To apply for a car loan in the UAE, you need to have a monthly income of AED 5,000 or above.

Q4. Can I cancel my RAKBANK car loan?

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.

Q5. Can I opt for a RAKBANK motor loan for a luxury car?

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.

Q6. Do I get an early settlement option with RAKBANK car loans?

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.

Q7. How much time do I get between my loan approval and the payment of the first instalment?

Ans: The bank provides a period of 60 days between your loan approval and first repayment.