United Arab Bank Auto Loan

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The UAE has excellent options available related to both cars and loans required to get them in an affordable manner. With auto loans helping you get the required funds without restricting your other expenditures, you can easily obtain new or used vehicles with ease.

A great option in the same category is the United Arab Bank auto loan provided by the United Arab Bank, which is a leading bank in the UAE offering various types of personal banking solutions for its customers. You can discover the essential features and eligibility requirements related to the loan plan below.

United Arab Bank Auto Loan

  • Minimum Salary AED 75,00
  • Flat Rate 2.99%
  • Reducing Rate 5.38%
  • No Salary Transfer

Features and Benefits of United Arab Bank Auto Loan

When availing of a car loan in UAE from the United Arab Bank, here are the salient features and benefits of the loan that you can enjoy:

  • Adequate financing  - The UAB car loan finances up to 80% of the vehicle’s cost, following the UAE car loan guidelines. Based on your eligibility and other factors, you can avail of loans up to AED 500,000.
  • Easy availability  - With an online loan application process and minimal paperwork required, you can get the loan sanctioned at the earliest without much effort. Similar leniency is present with the requirements, as there is no need for a salary transfer to get the loan.
  • Affordable interest rates  - With United Arab Bank auto loan available at a flat interest rate of 2.99%, you can enjoy affordable interest rates that save you from the accumulation of large interest amounts.
  • Flexible repayment period - The bank offers a repayment period of up to 60 months over which you can repay the loan in affordable instalments. 
  • Loan for both old and used cars - Whether you go for used or new cars, you will find a suitable United Arab Bank auto loan plan for financing them.

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Why Choose the United Arab Bank Auto Loan?

The UAB car loan is a prudent choice for car buyers due to the following factors –

  • Affordable rate of interest
  • Loans up to AED 500,000
  • Up to 80% financing
  • Hassle-free application without salary transfer

Eligibility Criteria for United Arab Bank Auto Loan

To apply for the United Arab Bank auto loan, you would have to fulfil the specified eligibility parameters including –

Applicant’s Age 

Minimum age of 21 years

Employment Status

Employed for at least 6 months in the current job

Minimum Monthly Salary

AED 7,500

Documents Required for United Arab Bank Auto Loan

To apply for the UAB car loan, you would have to submit the following documents –

If you are a salaried borrower 

  • Original driving license along with its copy
  • A valid Emirates ID proof
  • Copy of a valid passport
  • Visa copy for ex-pats
  • Address proof like a rent agreement, property agreement, or utility bills
  • Bank account statement for the last 3 to 6 months as directed
  • A certificate issued by your current employer or salary slips (not required if you have a salary transfer account with United Arab Bank) 
  • The car’s quotation from the dealer or the proforma invoice of the purchase 

If you are self-employed 

  • The original driving license along with its copy
  • A valid Emirates ID proof
  • Copy of a valid passport
  • For expatriates, a Visa copy would be required
  • The car’s quotation from the dealer or the proforma invoice of the purchase
  • Copy of your business’s trade license
  • Bank account statements of both the borrower and the business showing the records of the last 3 to 6 months
  • A copy of the power of attorney if requested

If you are a business entity

  • A valid Emirates ID
  • Copy of a valid passport
  • A copy of the trade license issued by the Department of Economic Development (DED)
  • A copy of the power of attorney if applicable
  • Details of the existing liabilities of the business
  • Bank account statement of the business for the last 3 to 6 months
  • The car’s quotation from the dealer or the proforma invoice of the purchase

Interest rates of United Arab Bank Auto Loan

The car loan in UAE is available at a competitive interest rate of 2.99% on a flat rate with the UAB. If, however, you choose the reducing balance option of interest calculation, the applicable interest rate would be 5.38%.

United Arab Bank Auto Loan Fees and Charges

Here is a schedule of the fees and charges associated with the UAB car loan – 

Type of fees and charges

Amount 

Processing fee

1% of the loan amount subject to a minimum of AED 500 and a maximum of AED 2,500

Penal charges for delayed payments

2% subject to a maximum of AED 500

Full or partial early settlement of the loan

Conventional loan – 1% of the outstanding loan amount

Islamic loan – 1% of the unpaid future profit

Cancellation fee

AED 100

Charges for advance payment of instalment

1% of the instalment amount

Instalment deferment fee

AED 100 per deferment

Charges for changing the due date on standing instructions

AED 25

Rescheduling fee

AED 250

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How to Apply for United Arab Bank Auto Loan?

You can apply for the United Arab Bank auto loan through two different yet convenient modes. These are as follows –

  • Offline mode - To apply offline, you can visit the nearest branch of the United Arab Bank. At the branch, you can get the loan application form. Fill out the form, attach the relevant documents, and submit it along with the processing fee. The application would be processed by the bank, which will then contact you if everything is found to be in order. 
  • Online mode - There is also an online mode to apply for the United Arab Bank car loan which is easier and more convenient. To apply online, visit the auto loans section and select the ‘Apply Now’ option. Carefully fill out the online application form and submit it. The bank would process your application and connect with you regarding your next steps.
  • Another way to apply for your preferred car loan is to visit the car loans section on our website, i.e., policybazaar.ae. You will be able to view and purchase the plan of your choice within a few clicks. 

Using the UAB Car Loan Calculator 

The United Arab Bank also offers a car loan calculator that helps you find the loan instalment beforehand without engaging in tedious calculations. You can use the calculator to estimate an affordable loan quantum before applying for the loan.

To use the calculator, visit the Auto loans section and find the calculator there. Enter the loan amount and the tenure of repayment. It should be noted that the instalment amount would be calculated at an interest rate of 2.99% per annum. You can also change the loan amount and/or the repayment tenure to find your ideal instalment amount.

Things to Know When Securing the United Arab Bank auto loan

Before you apply for the UAB car loan, some fundamental aspects that you should keep in mind are:

  • Pay the monthly instalments on time as the bank can take the vehicle in possession if you fail to do so
  • Your vehicle should be insured to comply with UAE traffic rules
  • While you can buy used cars, the condition of the car would determine whether the loan would be sanctioned as well as the loan amount
  • The processing fee would have to be paid up-front with the loan application

FAQs

How do I find the nearest branch of the United Arab Bank?

To find the nearest branch of the United Arab Bank you can visit the ‘Locate Us’ section on the official website of UAB and check out the branches in the different Emirates of the UAE.

Is there a maximum limit on the loan amount?

Yes, loans up to 80% of the value of the vehicle are allowed. Moreover, the upper limit on the loan is AED 500,000.

Can expatriates apply for the United Arab Bank auto loan?

Yes, expatriates can apply for the UAB car loan. However, they would have to furnish the relevant Visa for the loan application.

Can I apply for the UAB car loan if I don’t have a salary transfer account with the bank?

Salary transfer is not required for the United Arab Bank auto loan, meaning that you can apply for the loan even without a salary transfer account. 

 

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