ADCB Car Loan Early Settlement

What is ADCB Auto Loan Early Settlement? 

ADCB car loan early settlement is a facility provided by the bank that allows borrowers to pay off the entire outstanding debt before the end of the loan tenure. 

This can be a financially beneficial move, as it helps reduce the total interest paid and allows you to gain full ownership of your car much sooner. It also offers the peace of mind that comes with being debt-free. 

However, early settlement should be approached with careful financial planning. Before making the decision, it is important to evaluate any associated costs, and fully assess your overall financial situation. Without this, the decision may not always be in your favour. 

Key Features of ADCB Car Loan 

Here are the key features of car loans offered by ADCB in the UAE: 

🔵Offers high loan amounts up to AED 1.5 million

🔵Auto finance available at a competitive interest rate

🔵Extended repayment tenure, such as up to 60 months

🔵Easy loan process and simple documentation

🔵Insurance finance facility is accessible

ADCB Car Loan Early Settlement Fees in the UAE

Abu Dhabi Commercial Bank charges a 1% early settlement fee on the outstanding principal loan amount, in line with the regulations provided by the UAE Central Bank. 

Example:

If your outstanding balance is AED 50,000, the early settlement fee would be AED 500 (1% of AED 50,000).

✍️Note: Fees and policies are subject to change. It’s advisable to confirm with the bank at the time of loan settlement.

ADCB Car Loan Settlement Process

Follow the below-mentioned steps to pay off your car loan early with the ADCB: 

• Check the outstanding loan amount before proceeding with the early loan settlement process
• Visit your nearest ADCB branch, or you can look for online services offered by the bank
• Request a loan liability letter or early settlement amount by providing relevant documents
• Clear any pending dues or penalties, if any
• Make the payment either through cash, cheque, or bank transfer, whichever is feasible 
• Upon payment, ADCB will issue a car loan clearance certificate, and your vehicle will no longer be collateral

Why Choose Early ADCB Car Loan Settlement? 

Here are a few reasons to settle your ADCB car loan early: 

Save on Interest Payments

One of the biggest benefits of early loan settlement is saving on interest. By repaying the loan before the full tenure, you reduce the total interest that would have otherwise accumulated over the full loan term. 

Full Ownership of Car

When you settle your car loan early, ADCB will release the vehicle mortgage, allowing you to gain full ownership. This is especially useful if you're planning to sell, modify, or export your car.

Debt-Free Living

Eliminating monthly EMI payments gives you greater financial freedom. With the burden of regular payments lifted, you can redirect your income toward savings, investments, or other priorities.

Peace of Mind 

Being free from a long-term financial obligation brings peace of mind and flexibility in financial planning which is especially important in a fast-paced and high-cost environment like the UAE.

Considerable Tips Before You Pay Off Your ADCB Car Loan Early 

Keep the following tips in mind while settling your ADCB car loan earlier: 

💡Compare the cost of early settlement and interest savings

💡Don’t exhaust all your savings to pay off your car loan 

💡Check with ADCB for updated fee structure or offers

💡Ensure you have a clearance certificate and NOC after paying off the loan 

💡If you're planning to sell or export your car, early settlement is often necessary

Frequently Asked Questions 

1. Can I pay off the ADCB car loan early? 

Yes, the bank allows borrowers to settle down the loan amount prior to the end of the loan tenure. However, this service is offered under a certain charge. 

2. Is there any penalty for the ADCB car loan early settlement? 

Yes, ADCB charges an early loan settlement fee, which is 1% of the outstanding loan amount. 

3. How long does it take to process an early loan settlement?

It depends upon the loan settlement method, documentation, and platform. Typically, it takes 5-10 working days in the UAE.

4. Does ADCB auto loan early settlement affect my credit Score?

Yes, your credit score gets affected by early loan settlement, typically lowering it by a few points for the short term.