Emirates Islamic Car Loan Settlement Guide

Understanding Emirates Islamic Bank Car Loan Settlement

Car loan early settlement refers to the process of paying off your outstanding auto loan balance before the end of your loan tenure. Emirates Islamic Bank (EIB), one of the leading Islamic banks in the UAE, offers Shariah-compliant auto finance solutions with the option of early settlement.

With Emirates Islamic Bank auto loan settlement, you can save on interest rates and ensure full ownership of the vehicle. Knowing that you are free from debt, you can enjoy a worry-free livelihood.

However, before opting for this option, it’s crucial to carefully evaluate your financial situation. This process includes paying the remaining loan amount, along with a nominal early settlement fee. If it’s not planned wisely, it could lead to unexpected financial strain.

Table of Content

Understanding Emirates Islamic Bank Car Loan Settlement
Key Features and Benefits of Emirates Islamic Bank Auto Finance
Emirates Islamic Bank Auto Loan Settlement Fees
How to Apply for an EIB Car Loan Early Settlement?
Why Go for Early Emirates Islamic Bank Car Loan Settlement?
Things to Keep in Mind Before Applying for an EIB Car Loan Early Settlement
FAQs
Related Links:

Key Features and Benefits of Emirates Islamic Bank Auto Finance

The following features of the Emirates Islamic Bank auto finance are mentioned below:

Shariah-compliant Murabaha-based financing
Flexible repayment terms of up to 5 years
Competitive profit rates
Quick approval process
Available for new and used vehicles
No salary transfer is required

Emirates Islamic Bank Auto Loan Settlement Fees

While Emirates Islamic Bank auto loan settlement offers financial freedom, it’s important to be aware of the associated fees. According to the UAE Central Bank guidelines, the early settlement fee for auto loans is capped. Typically, Emirates Islamic Bank charges an early settlement fee of 1.05% of the outstanding balance.

✍️Note: It’s advisable to confirm the latest charges with the bank, as the fees may change over time.

How to Apply for an EIB Car Loan Early Settlement?

You can apply for early settlement with Emirates Islamic Bank either by visiting the branch or via mobile banking. The following process is mentioned below:

Via Phone Banking

Make a call on +971 600 599 995
Speak to one of the customer service representatives
Provide your finance details to them
Once you settle the loan, make sure to get the loan clearance certificate from the bank

Via Branch Visits

Visit the nearest EIB branch with your Emirates ID and passport
Request a loan settlement quote to understand your outstanding dues and fees
Submit a written request for early settlement
Clear the dues, including the principal amount and settlement fee
Receive the clearance letter from the bank

✍️Note: If you pay through Auto Payment, make sure to send your request at least 5 working days before your payment due date.

Why Go for Early Emirates Islamic Bank Car Loan Settlement?

There are several reasons to consider EIB car loan settlement:

Save on Interest

Paying off your loan early reduces the total interest paid over time, helping you save money.

Improve credit Score

Settling your loan boosts your credit history and shows financial responsibility, which can improve your credit score. Additionally, keep in mind that an early loan settlement can also lead to a temporary drop in your credit score.

Reduce Debt Burden

Settling early lowers your overall debt, reducing stress and improving your financial well-being. This also enables you to get better loan opportunities in the future.

Things to Keep in Mind Before Applying for an EIB Car Loan Early Settlement

Before initiating the early settlement process, keep these points in mind:

✨Check for pre-closure fees and calculate if the savings outweigh the costs

✨Review your financial goals to see if early repayment aligns with them

✨Get the exact settlement amount from the bank to avoid confusion

✨Ask for a no-objection certificate (NOC) once the loan is fully settled

FAQs

Ans: Yes, it’s possible with Emirates Islamic Bank to apply for an early car loan settlement in the UAE.

Ans: Typically, a valid Emirates ID, the car loan account number, and a written request are needed to initiate an early EIB car loan settlement.

Ans: Yes, an early loan settlement may impact your credit score negatively. However, this impact is for a short time only.

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