United Arab Bank Car Loan in UAE

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Car Loan in UAE

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Headquartered in Sharjah, the United Arab Bank is renowned for providing customisable and innovative banking products and services across its 6 branches throughout the UAE. Besides personal bank accounts, UAB also offers financial services to growing commerce and industrial bases across all the emirates. From a comprehensive range of corporate and retail banking to trading finances, SME banking, and treasury services, the bank offers world-class financial services.

While you will find plenty of options regarding cars, buying a car in the UAE requires considerable investment on your part. If you are under further financial constraints, car financing will be the most suitable option for you. One of the best places to seek such assistance is the United Arab Bank, which provides affordable car loans with low-interest rates, flexible tenures, convenient loan applications, and lenient criteria. 

The article below details various features, benefits, charges, and ways to apply for UAB car loans.  

Features and Benefits of United Arab Bank Car Loan 

United Arab Bank car loans are affordable and offer numerous advantages for easy financial management. The low-interest rates and flexible tenures further help you keep your expenses under your budget. The following are the key features of the United Arab Bank Car Loan in the UAE.

  • Affordable Interest Rates - UAB car loan interest rates start at a 2.99% flat rate and a 5.38% reducing interest rate. With such low interest rates, your overall loan cost remains within your budget even if you plan to purchase an expensive car. However, one should still consider other necessary expenses before buying a high-priced car. 
  • Flexible Loan Tenure – Based on your financial planning, you get flexible loan tenures with the UAB bank car loan of between 12 and 60 months. Just keep in mind that for smaller tenures, you need to pay a higher monthly instalment and vice versa. 
  • Convenient Application and Loan Processing - The bank provides streamlined loan applications through both online and offline modes for convenient access. Moreover, as the bank provides quick processing and approvals through digital channels, you can save your time and effort from the manual loan applications. 
  • High Finance Amount - With United Arab Bank, you can get a high finance amount of up to AED 500,000 to purchase your dream car. The final amount you receive from the bank, however, depends on your financial status, monthly income, and other related factors.  
  • Loan for New as well as Used Cars – Whether you want to go for a new or used car, you can get car loans for both with United Arab Bank. It should be noted that the interest rates differ depending on the kind of car you purchase. While the new car loans are affordable, you may expect relatively higher interest rates for used car loans. 
  • 80% of Car Value Financing - As per the UAE Central Bank guidelines, the bank finances up to 80% of the vehicle cost. The rest 20% needs to be paid upfront in the form of a down payment by the applicant in order to apply for the car loan. 

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Types of UAB Car Loans

Depending on the type of car you are financing, United Arab Bank provides two types of loans as mentioned below. 

  • New Car Loan - When you purchase a car from the dealership, you can opt for a UAB new car loan, with the bank providing new car loans for almost every vehicle available in the UAE. Compared to a used car loan, the interest rates for a new car loan are lower. The maximum loan amount you can avail of in this case is AED 500,000. The bank pays the loan amount directly to the dealership from where you purchase the car. 
  • Used Car Loans - You can still apply for UAB used car loans if you are planning to purchase a pre-owned car. However, while the bank offers competitive interest rates, the interest rates are generally higher compared to new car loans. After the approval, the bank credits the borrowed amount directly into the seller’s account or issues a banker’s draft for the same. 

UAB Car Loan Interest Rates

Following are the interest rates for the UAB car loan in the UAE. 

UAB Car Loan Type

Flat Rate

Reducing Rate

New Car Loan

Starting at 2.99% per annum

Starting at 5.38% per annum

Used Car Loan

Starting at 2.99% per annum

Starting at 5.38% per annum

Eligibility Criteria to Apply for UAB Car Loans

During the UAB car loan application, you are required to satisfy a few eligibility criteria concerning your nationality, age, income, and finances. While the criteria may vary depending on the type of applicant, the following are a few eligibility criteria to apply for a UAB car loan in the UAE.

  •  Age – As the bank has a lower and upper age limit, only the individuals falling within the age range get their loans approved. To acquire a UAB car loan in the UAE, you need to be at least 21 years old. While the upper age limit to apply for vehicle finance is 70 years, this limit also depends on your income and financial situation. 
  • Nationality - United Arab Bank offers car loans to both UAE nationals and residents. 
  • Minimum Income Requirements - You need to have a minimum income of AED 7,500 to apply for UAB car loans in the UAE. Again, the criteria may vary depending on the type of applicant. A self-employed individual may be required to have higher earnings besides demonstrating financial stability.
  • Credit Score - Before offering you the loan, the bank verifies your credit performance through AECB credit scores. Based on your scores, the bank may approve, reject, or modify the loan amount. Generally, a score above 700 can help you obtain UAB vehicle finance without any hassles.  
  • Down Payment – You are required to pay a minimum of 20% of the car value upfront when purchasing a car in the UAE. You may choose to pay a higher amount based on your financial capabilities. 

Documents Required for UAB Car Loan in the UAE

To prove your eligibility and financial situation, you have to submit supporting documents and your national identification card. Following is the list of documents required during the UAB car loan application process. 

For Salaried 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)
  • 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)

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 existing loans, expenses, and company liabilities
  • Company bank account statement for the last 3 to 6 months
  • Dealer’s quotation or proforma invoice mentioning the cost of the vehicle.

Note: - Apart from the documents mentioned above, the bank may ask for additional documents at its discretion.

How to Apply for UAB Car Loans?

As mentioned previously, UAB offers convenient and quick car loan applications through online and offline channels. You can log in to the official website of United Arab Bank or visit the bank in person to apply for a car loan. Following are the ways to apply for a UAB car loan in the UAE. 

  • Offline Car Loan Application – If you decide to apply offline, you will be required to visit a nearby UAB bank branch with all the required documents and contact the car loan department. You will receive an offline application form that you need to submit after filling it out and attaching all the relevant documents. Once your loan gets approved, the bank sends the sanctioned loan amount directly to the dealership. 
  • Online Car Loan Application - For online applications, you can log in to the official portal of the bank and navigate to the car loan section, where you will find all the details related to UAB vehicle finance. Once you have read all the terms and conditions, click on the ‘Apply Now’ button and enter your contact and personal details. Later, the bank representative will contact you regarding the further application process. 

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United Arab Bank Car Loan Calculators

Calculating your monthly repayment can prove challenging as it requires intricate calculations and numerous variables. However, you can use the UAB car loan calculator to conveniently find your repayments per month including the total interest applicable during the tenure. 

To use the car loan calculator, check out the car loan section on the UAB bank's official website. You will find the car loan calculator on that page. Enter the details like your principal loan amount, the interest rate, and loan tenure. Once you have entered all the details, the portal displays the total number of repayments and the amount you have to pay every month to repay your UAB vehicle loan.

United Arab Bank Car Loan Fees and Charges

Following are the details of the Fees and Charges for a United Arab Bank car loan in the UAE.

Type of Fees and Charges

Amount in AED

Car Loan Processing Fee

1.05% of the total loan amount and a maximum of AED 2,625

Instalment Advanced Payment Fee

1.05% of the advance payment sum

Early Settlement Fee

1.05% of the total outstanding amount

Change of Due Date on Standing Instruction

AED 26.25

Important Terms and Conditions for United Arab Car Loan in the UAE

While applying for a United Arab Car loan, it is recommended that to go through the terms and conditions first to understand the car loan better. You will also have to comply with every clause under the loan contract, as the bank may undertake the legal route in case of any defaults or failure regarding repayments. 

  • As a vehicle owner, you need to keep the car under your ownership. In case you decide to sell your vehicle or change ownership, you are required to take written permission from the bank during the active loan tenure. 
  • In case the vehicle owner fails to pay the loan instalment before the due date, the Bank shall charge penalties as per the policy. 
  • If the vehicle owner defaults on loan repayments, the bank has the right to seize the vehicle at its discretion. 
  • The borrower has to ensure that the vehicle is insured all the time during the active loan tenure. 
  • The vehicle has to be kept in a good running condition as required for its purpose during the loan tenure. 

United Arab Bank Car Loan Contact Details

Following are the contact details for the United Arab Bank car loan in the UAE. 

Details

Contact Number

Toll-Free

800 474

Outside the UAE

971 6 5987332

Sadara Toll-Free

800 72 32 72

Sadara Outside the UAE

971 6 5987333

UAB Head Office

971 6 5075222

Personal Banking Email

info@uab.ae

The details mentioned in the previous sections are sufficient to check your eligibility and apply for a UAB car loan in the UAE. However, in case you wish to know more, the following are some of the questions pondered upon by users.

Frequently Asked Questions

Q1. What is the maximum amount of car loan I can acquire from UAB?

Ans. United Arab Bank provides a high financing amount for your car purchase. Depending on your income and financial situation, you can opt for a loan amount of up to AED 500,000. However, as the bank finances up to 80% cost of your vehicle, the approved amount also depends on the cost of your vehicle.

Q2. What should be my monthly salary to apply for a UAB car loan?

Ans. To apply for a UAB car loan, you must have a minimum salary of AED 7,500 (if you are a salaried individual). However, self-employed individuals don’t need to worry as the bank has set criteria in such cases as per the type of profession and the stability of the business. The bank may also ask to deposit a security amount in certain cases.

Q3. What is the minimum age required to apply for a UAB car loan in the UAE?

Ans. You should be at least 21 years old in order to apply for a car loan in the United Arab Bank.

Q4. Can I close my UAB car loan account prematurely?

Ans. Yes, United Arab Bank provides an option to close your car loan account prematurely. However, you might be required to pay an early settlement charge for closing your loan account.

Q5. Can I apply for a UAB car loan as an ex-pat in the UAE?

Ans. Yes, you can conveniently apply for a United Arab Bank car loan as an ex-pat. However, you will be asked to submit all the required documents and satisfy the eligibility requirements for expatriates in the UAE.

Q6. Can I apply for a UAB car loan if I am 70 years of age or older?

Ans. The upper age limit to apply for a UAB car loan is around 65-70 years. In case you are above the age of 70 years, you should first contact the bank as it may consider your financial situation and income before offering you the loan.

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