Car Loan Clearance Certificate
Paying off your car loan in the UAE is a significant milestone. However, before you wind down, there’s one important thing that you shouldn’t overlook —obtaining your car loan clearance certificate. This is more than a paper, as it shows there are no outstanding dues and you are a legal owner of the ...read more
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Let’s read this article and learn more about the vehicle clearance certificate, including the process, required documents, fees, and more.
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What is a Vehicle Loan Clearance Certificate?
A car loan clearance certificate is an official document that is issued by the bank or financial institution upon full repayment of your car loan. With this, the bank transfers the ownership of the car in your name and confirms that your loan is closed.
This document is particularly required when you sell your car, transfer ownership, and renew your registration. It usually contains your car information, loan details, your Emirates ID, and a bank stamp.
Why Do You Need a Car Loan Clearance Certificate?
Here is why you should get your vehicle clearance certificate in the UAE:
☑️️ Legal Proof
It's your official proof that you no longer owe anything on the loan and you are a legal owner of the car.
☑️Ownership Transfer
When you transfer your car to another person, you must follow a complicated legal process. This allows you to complete the procedure efficiently and alter the owner's name without any complications.
☑️Remove Mortgage from RTA
To complete the loan process, this document is required to update vehicle records.
☑️Maintains Transparency
This certificate keeps the record of car ownership, prevents fraud, and protects the interests of both car buyer and seller.
Documents Required for Obtaining a Car Loan Clearance Certificate
You need to have the following documents while applying for a vehicle clearance certificate:
- Emirates ID
- Vehicle ownership certificate
- Loan details
- Trade license (if required)
✍️Note: You may need to submit some additional documents if required.
Where to Get a Vehicle Clearance Certificate?
You can get a vehicle clearance certificate through multiple channels — the RTA website, the Dubai Drive App, and self-service machines available at the various customer happiness centers in Dubai.
To get the certificate in the UAE, follow the steps mentioned below:
Through the RTA Website and Dubai Drive App
- Visit the RTA website and log in with your credentials
- Select ‘Licensing Services’ on the website
- Tap on the ‘My vehicles (more)’ option
- Provide the required information and pay the service fees
- You will get the certificate electronically
Through Self-Service Machines
- Choose online services and submit the vehicle’s information
- Pay the required service fee and proceed
- Receive the certificate from the self-service machine
Via Bank
Once your loan is completed, you can easily get the clearance certificate from the concerned bank or lending institution. Simply connect with them after the completion of your loan.
Car Loan Clearance Certificate Service Fee
When you receive the car loan clearance certificate from the specified bank, you don’t need to pay any charges, as the service is free of cost.
However, for a vehicle clearance certificate from the official authorities, you may need to pay a certain charge. For further details, you can connect with your lending bank.
Things to Keep in Mind to Apply for a Vehicle Loan Clearance Certificate
Keep the following pointers in mind while applying for a car loan clearance certificate:
✨Ensure the loan is completely paid off
✨Settle all the fines, such as traffic fines, black points, and more
✨Renew your vehicle registration timely
✨Follow up with the RTA to update your vehicle mortgage status
✨Double-check the details in the vehicle clearance certificate
Frequently Asked Questions
To get the vehicle clearance certificate, you need to apply on the RTA website, Dubai Drive app, Mahboub Chatbot, and self-service machines at the customer happiness centers in Dubai.
A car loan clearance certificate is crucial, as it shows your car is legally free from any mortgages/loans and you are the legal owner. Moreover, it’s essential while transferring car ownership and renewing a car's registration.
You can instantly obtain a vehicle clearance certificate from the online portals, typically in your email. However, the service usually takes around 3 working days if you apply for the certificate through offline channels.
Yes, once you repay the complete car loan amount, you can receive the vehicle loan clearance certificate from the bank. It transfers the ownership to your name and shows your car is free from any liabilities.
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