How to Transfer a Car Loan in UAE
Do you want to sell your car but still pay off its loan? At times, it can be challenging to transfer a car loan. However, it isn’t impossible — the process is quite easy if done carefully.
Get Car loan at Lowest Interest Rate
Read on to get all the relevant information on how to transfer a car loan in the UAE!
Top Car Loan Plans in Dubai
What Are The Steps to Transfer a Car Loan?
Primarily, there are 3 ways to transfer a car loan to another person -
Pay Off the Loan
The primary step is to clear your existing loan. However, it’s worth mentioning that your bank must inform the RTA regarding the loan clearance.
It is highly advised to initiate the process at the earliest. This is because the entire loan clearance can take up to a few business days.
Once done, remember to ask your bank to issue an official letter of your record.
Find a Finance Buyer
In case you are unable to clear the loan, here are the two methods to sell your car finance:
- Look for a buyer who wishes to buy a car through a bank loan and continue to finance the car with the same financial institution.
- Upon finding your car loan buyer, immediately notify the bank to transfer the loan. Make sure to stay updated with your bank’s policy — not all lending institutions have an auto loan transfer facility.
- The buyer must apply for a loan application once you have initiated the loan transfer procedure. Further, get the application approved by your respective bank.
- Submit a car valuation certificate. In case the agreed selling price and the outstanding debt amount are different, request the bank to settle it with the buyer’s loan.
- Visit a Tasjeel centre or RTA to transfer your car ownership to the new buyer.
- The buyer will now provide a new registration card and a copy of comprehensive insurance to the bank.
Look For a Cash Buyer
Cash buyers are those who pay the loan amount on your behalf and get the car ownership after paying the outstanding amount. The process is as follows:
- Know the remaining loan amount and early settlement fee (if applicable) for the loan closure.
- Sign the ‘Power of Attorney’ to allow the buyer to transfer the car ownership to itself.
- Accompany the buyer to the bank to pay off the loan.
- The buyer is required to visit the RTA after the bank notifies the RTA regarding the loan clearance.
What are the Documents Required to Transfer a Car Loan in the UAE?
You need the following set of documents to transfer car loan to another person in the UAE -
- Emirates ID
- Car insurance
- UAE driving licence
- Passport
- Residence visa (applicable to expatriates)
- No Objection Certificate from your bank
- Bank Clearance Letter
- Sale Agreement
- Mileage Certificate
- Car Registration Card
Note: All the documents listed above must be valid.
| Apply for Car Loan |
Have questions about how to transfer car loan to another person? Jump onto the next section!
Frequently Asked Questions
You must have the following documents for transferring a financed car to another person -
- Emirates ID
- Car insurance
- UAE driving licence
- Passport
- Residence visa (applicable to expatriates)
- Bank Clearance Letter
- Car Registration Card
- No Objection Certificate from your bank
- Sale Agreement
- Mileage Certificate
If you don’t repay your car loan, the bank may file a civil case against you. Additionally, you can be banned from travelling outside the UAE.
Yes, you can prepay your car loan. However, additional charges may apply.
Yes, you must submit the car valuation certificate to the concerned bank.
More From Car Loans
- Recent Articles
- Popular Articles
Last Updated : 20 Jan 2026Car Loan vs Personal Loan - Key Differences ExplainedCompare car loan vs personal loan options. Understand interest rates, repayment terms, and best use cases to choose the right loan for your needs.
Last Updated : 22 Sep 2025Emirates Islamic Car Loan Settlement GuideEmirates Islamic Car Loan settlement made simple. Learn the step-by-step process, documents, and charges involved in closing your car loan.
Last Updated : 23 Sep 2025Emirates Islamic Car Loan Customer Care InfoGet support for Emirates Islamic Car Loan. Contact customer care for queries, payment help, or settlement details. Quick and easy assistance.
Last Updated : 23 Sep 2025ADCB Car Loan Settlement – Early Closure GuideLearn how to complete ADCB Car Loan settlement. Step-by-step early closure guide including charges, process, and required documents.
Last Updated : 23 Sep 2025Sell Car with Loan in Dubai – Step-by-Step GuideLearn how to sell a car with a loan in Dubai. Step-by-step process to transfer ownership, clear loan, and complete RTA requirements.
Last Updated : 30 Sep 2025How to Foreclose a Car Loan in the UAE ?Need to close your car loan in the UAE? Learn the simple steps to foreclose your auto loan without hassle.