Sharjah Islamic Bank Car Loan in UAE

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Established in 1975, Sharjah Islamic bank is the world’s first bank to convert from a commercial to an Islamic bank. At present, the bank provides a vast range of Sharia-compliant financial products like retail, corporate, and investment products. The bank is easily accessible across the UAE through a nationwide network and is famous for its innovative products that include individual and business bank accounts, deposit schemes, and credit and loan services.

One of the popular credit products offered by the bank is vehicle financing. With low profit rates, Sharjah Islamic Bank car loans are affordable and provide easy application through online and offline channels. If you want to get more insights into the features, benefits, and various ways to apply for a Sharjah Islamic Bank car loan in the UAE, read the article below.

Features and Benefits of Sharjah Islamic Bank Car Loan in the UAE

With a completely Sharia-compliant car financing option, you can enjoy a range of features to manage your finances efficiently. From convenient applications to flexible tenures, the bank helps you purchase your dream car without compromising your budget. Below are the key features of Sharjah Islamic bank car loans in the UAE. 

  • Low-Profit Rates – Besides providing one of the most affordable vehicle financing options in the UAE, the bank also offers preferential rates based on your relationship with the bank and the loan you opt for. 
  • Higher Finance Amount - With Sharjah Islamic Bank, you can obtain a loan of up to AED 750,000 to purchase your preferred car.  
  • Flexible Loan Tenure - You can opt for a suitable loan tenure as per your financial requirements, as Sharjah Islamic Bank offers flexible loan tenure of up to 60 months.  You must note that while a longer loan tenure incurs larger finance costs, you may pay low monthly instalments.
  • Up to 80% Loan of Your Car’s Cost – As per the guidelines of the Central Bank of UAE, you can opt for up to 80% of your car’s invoice cost in the form of a loan. The remaining 20% of the car’s value upfront has to be paid by you to the dealership as a down payment. 
  • Easy Loan Processing and Approvals - The bank offers convenient digital application channels for easy processing and loan approvals. Additionally, you get excellent customer support for quick query resolutions. 
  • Loans without Salary Transfer – A notable aspect of the bank is that to acquire a SIB car loan, you don’t require a salary transfer account with the bank. As long as you comply with the terms and conditions and satisfy the eligibility requirements, the bank usually approves your loan application without any hassles. 
  • Range of Vehicle to Finance - As the bank offers a car financing option for almost every vehicle from all manufacturing giants available in the UAE, you have the freedom to choose an economical, premium, sport, or luxury car as per your preference and finances. 
  • Group Credit Life Motor Takaful – Besides a convenient application process, you can also enjoy peace of mind with Islamic insurance financing as you get a high coverage motor takaful at low contributions along with Sharjah Islamic Bank car loans.

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Types of Sharjah Islamic Car Loan in the UAE

Depending on the type of car you are buying, you can obtain any of the following Sharjah Islamic Bank car loans in the UAE. 

  • New Car Loan - SIB offers financing options for almost every vehicle available in the UAE. So if you are purchasing a new car from the dealership, you can opt for a new car loan as the bank offers affordable profit rates and rebates on purchasing a car in such a manner. 
  • Used Car Loan - With Sharjah Islamic Bank, you can also opt for pre-owned car financing. However, the profit rates for used car loans may scale up in comparison to the new car loan. Moreover, the bank may ask for extra documentation from both selling and buying parties in this case. 

Sharjah Islamic Bank Car Loan Interest Rates

Following are the car loan profit rates offered by Sharjah Islamic Bank car loan. 

Type of SIB Car Loan 

Flat Rate

Reducing Rate

New Car Loan

Starting at 2.79% per annum

Starting at 5.06% per annum

Used Car Loan

Starting at 3.89%

Starting at 7.06% per annum

Eligibility Criteria to Apply for Sharjah Islamic Bank Car Loans

A few criteria have to be fulfilled in order to be eligible for applying for a SIB car loan in the UAE. While the criteria may vary as per the applicant, the following are the common eligibility criteria relevant for Sharjah Islamic Bank car loans.  

  • Age - To acquire a Sharjah Islamic Bank Car loan, you should be at least 21 years old. Similarly, the bank has an upper age limit of 65 to 70 years (although it could depend on your income and financial conditions). 
  • Minimum Income Requirement - A minimum salary of AED 5,000 per month is required to apply for a Sharjah Islamic Bank vehicle loan. However, the bank may also consider your other expenses and balance before offering you the loan.  
  • Nationality- While both UAE nationals and residents are eligible to opt for Sharjah Islamic Bank car loans, the maximum loan amount varies with the individual’s nationality and is subject to document submission.
  • Credit Score – Although not a primary requirement, the bank verifies your AECB credit score before offering you the car loan. As per your credit score, the bank may accept, limit, or reject your car loan application. However, you will generally get easy and quick loan approvals with a score of 700 or above.   
  • Down Payment -. As mentioned above, you need to pay 20% of the car invoice cost as a down payment. Failing in this can eventually lead to loan application rejection. 

Documents Required for Sharjah Islamic Bank Car Loan in the UAE

Once you have ensured that you qualify for the car loan, collect all the relevant documents and submit them to the bank during the loan application. Following are the common documents you need during the Sharjah Islamic Bank car loan application. 

For Employed Individuals

  • Original and a copy of the driving license
  • A valid Emirates ID for record and verification
  • A valid passport ID along with a copy (Ex-pats need to submit visa details along with the address page)
  • 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 in case you have a salary transfer account in the bank)
  • Dealer’s quotation or the proforma invoice of the car you plan on purchasing

For Self Employed Individuals

  • A driving license (original and a copy)
  • A valid Emirates ID for record and verification
  • A valid passport ID along with a copy (Ex-pats need 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
  • Dealer’s quotation or proforma invoice mentioning the cost of the vehicle

How to apply for Sharjah Islamic Bank Car Loans in the UAE?

Whether you select the online or offline method, you can be assured of a convenient experience with Sharjah Islamic Bank vehicle loan applications. You can apply online from the comfort of your home or visit the nearest SIB branch to submit your applications. Following are the ways to apply for Sharjah Islamic Car Loan in the UAE. 

  • SIB Car Loan Application Online - To apply online, simply login to the official portal of the Sharjah Islamic Bank and visit the car loan section. You can find the details of the loan along with an online application form. Fill out that form with your personal and contact details. The bank will contact you for further applcation processes. 
  • SIB Car Loan Application Offline - For offline applications, you can visit a nearby SIB branch with all the relevant documents and contact the car loan department. Similar to the online one, you will be required to fill out the loan application form and submit it to the representative after attaching the documents. Once your loan application gets approved, the amount will be disbursed into the dealership account through a banker’s draft or online payment channels. To locate a nearby branch, you can visit the official website of SIB. 
  • Through Customer Support - Alternatively, you can apply for car loans by contacting the support team. To reach out to the support team, you can contact the numbers provided on the website and request a car loan. Once you provide your contact and personal details over the call, the support representative will guide you through the application process. 

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Sharjah Islamic Bank Car Loan Calculator

Since car loan instalment calculation requires intricate methods involving numerous variables, it can be difficult to determine your monthly repayments. At the same time, you should at least have an estimate of your monthly repayments before the SIB car loan application to avoid any future financial inconvenience. 

To help you find your loan cost, the total profit, and the monthly instalments to be paid, you can use the Sharjah Bank Car loan calculator on the official SIB portal. Simply enter the selected amount of loan, the profit rate offered by the bank, and the loan tenure. Once all the details are filled in, the portal will show the details of your SIB car loan and the applicable monthly instalment. 

Sharjah Islamic Bank Car Loan Fees and Charges

The following is the rundown of Sharjah Islamic Bank car loans in the UAE. 

Type of Charges

Amount in AED

Documentation Fee Salaried Customers

1.05% (min AED 500 and max AED 2625)

Documentation Fee Self Employed Customers

1.31% (min AED 630)

Rescheduling of liability

AED 262.50

Instalment Deferement Fee

AED 105

Late Payment Fee

AED 525

Early Settlement Fee

1.05% of the Outstanding amount

Partial Payment Fee

1.05% of the partial amount

Liability/No Liability Letter

AED 63

Terms and Conditions for Sharjah Islamic Bank Car Loan 

Following are some of the vital terms and conditions of the Sharjah Islamic Bank car loan in the UAE. 

  • Any service and processing fee paid to the bank during application and loan approval is non-refundable.
  • In case of late repayment, the customer will be charged a late payment fee. 
  • If the customer defaults on the repayment, the bank has the right to seize the vehicle of the customer.
  • The vehicle needs to be insured adequately during the entire tenure of the SIB car finance.
  • The bank can change the terms and conditions at its discretion with a prior notice of 30 days. 
  • The bank may disclose customers’ information to a third party for information verification.  

Sharjah Islamic Bank Car Loan Contact Details

Given below are the contact details for the Sharjah Islamic Bank car loan.

Area

Contact Number

Within UAE

+97165999999

 You can always contact this number to apply for your preferred Sharjah Islamic Bank Car loan or present your queries. However, you can also read below to find answers to most of the questions asked by customers of this type of loan.

Frequently Asked Questions 

Q1. What is the minimum age to apply for Sharjah Islamic Bank car loan in the UAE?

Ans. As one may expect, you should be at least 21 years old to apply for a SIB car loan. Similarly, a ceiling is present on the other side, although it should be noted that the upper age limit depends on your financial situation and monthly income. Generally, the upper age limit ranges between 65 and 70 years of age.

Q2. Can an expat apply for SIB car loan in the UAE?

Ans. Yes, Sharjah Islamic Bank provides car loans to ex-pats. However, they have to fulfil the eligibility requirements and produce the required documents as sought by the bank.

Q3. What is the minimum salary requirement for SIB car loan in the UAE?

Ans. You must have a minimum monthly salary of AED 5,000 to apply for the loan. However, the bank grants approval after considering your income, expenses, and other liabilities.

Q4. Can I settle my SIB car loan before the completion of its tenure?

Ans. Yes, you can settle your loan amount with a lump sum payment at once. However, a charge of 1.05% of the outstanding loan amount will be levied.

Q5. How can I access SIB car loan calculator?

Ans. If you wish to avoid the hassles of manual calculation, you can access the SIB car loan on the official portal of Sharjah Islamic Bank. Simply locate the car loan calculator in the car loan section of the website, enter a few details related to your loan, and you will see all the details regarding your monthly installments and the total amount to be paid during the loan tenure.

 

Q6. What is the maximum amount of SIB car loan can I acquire?

Ans. You can acquire a maximum of AED 750,000 as a car loan from Sharjah Islamic Bank. However, the amount approved also depends on the cost of the car and your financial circumstances. It should be remembered that you can obtain up to 80% of your car’s invoice cost.