Car Loan in UAE

What is a Car Loan?

A car loan, as the name suggests, allows you to own your dream car without breaking the bank. It simplifies the car-buying process — you simply need to pay an upfront amount instead of the total car’s value. You can then repay the remaining amount in installments over a specified time.

When you apply for vehicle loan, the bank or lender checks your finances and credit history to decide how much money to lend you, what interest rate to charge, and how long you’ll have to repay it.

Top Car Loan Plans in Dubai

Car Loan - Key Features & Benefits

Tabled below are the key features of auto loan finance in the UAE —

Key Features	Specifications
Quick Processing	Many banks offer digital application that streamlines the application process
High Finance Amount	High finance amount — up to 80% of the car’s value
Competitive Interest Rate	Attractive interest rates starting from 1.89% (varies as per the bank and your profile)
Minimal Documentation	You can easily apply for a car loan online without any physical documentation
Flexible Repayment Tenure	Banks in the UAE provide repayment periods of up to 5 years

Types of Auto Loans in UAE

Let’s take a look at some of the key types of vehicle loans available in the UAE —

🚘New Car Loan

As the name suggests, this car finance solution is available for new cars in the UAE. This helps you drive the latest car model straight from the showroom!

🚗Used Car Loan

Also known as a pre-owned vehicle loan, it helps you purchase a second-hand car at a competitive interest rate.

🚜Green Auto Loan

This type of vehicle loan is specially designed for environment-friendly vehicles such as hybrid and electric cars. It comes with many significant benefits such as a low interest rate, flexible tenure, and more.

Best Car Loan Interest Rate in UAE, Dubai 

Whether you’re looking for cheap car loans in the UAE or those with high amounts, it’s important to check the interest or profit rates first. In this section, we will take a look at the top options that are available at competitive rates —

Auto Loan Provider	Interest Rate	Apply
NBQ Auto Loan	Fixed Rate: N/A Reducing Rate: Starting from 5.82%	Apply Now
Emirates Islamic Bank Auto Finance	New Auto Finance Fixed Rate: Starting from 2.49% Reducing Rate: Starting from 4.72%	Apply Now
	Certified Pre-owned Auto Finance Fixed Rate: Starting from 3.19% Reducing Rate: Starting from 5.98%	Apply Now
	Used Auto Finance Fixed Rate: Starting from 3.19% Reducing Rate: Starting from 5.98%	Apply Now
First Abu Dhabi Bank Islamic Car Finance	For UAE Nationals Fixed Rate: Starting from 2.15% Reducing Rate: Starting from 4.1%	Apply Now
	For Expatriates Fixed Rate: Starting from 2.29% Reducing Rate: Starting from 4.35%	Apply Now
Abu Dhabi Islamic Bank (ADIB) Car Finance	Fixed Rate: Starting from 1.79% Reducing Rate: N/A	Apply Now
RAKBANK Auto Loan	Fixed Rate: Starting from 2.7% Reducing Rate: Starting from 5.09%	Apply Now
Emirates NBD Auto Loan	Starting from 3.75%	Apply Now

✍️Note: The interest rates are subject to change and for reference only. Actual rates may vary as per your specific profile so consider the bank’s official website for the updated information. 

How to Calculate Auto Loan EMI in UAE

With the car loan calculator of Paisabazaar.ae, you can easily estimate your monthly instalments (EMI). No need for any paper and pen or manual calculations — simply enter a few details such as the loan amount, interest rate, and loan tenure to get the installment amount! With this online tool, you can make informed decisions and compare multiple auto finance solutions.

Get the Best Vehicle Loan from the Top UAE's Banks

Eligibility Criteria to Apply for Car Loan in UAE & Dubai

To apply for an auto loan, you need to meet a few eligibility criteria —

Eligibility Criteria	Specifications
Age	At least 21 years old
Nationality	Both UAE nationals and expats can apply
Minimum Salary	AED 5,000 per month
Employment Status	Salaried and self-employed

Note: The eligibility requirements mentioned above are for reference purposes. Actual requirements, especially for minimum salary, may vary as per the bank.

How to Find the Best Car Loan in UAE?

Choosing a vehicle loan in Dubai that meets all your requirements without straining your budget is crucial. Here are a few tips to help you find the right option in the UAE —

• Compare Options

For financing, it’s always advisable to explore the market and compare all the available options for car loans. With Paisabazaar.ae, you can easily compare all the available auto loan options in the UAE from the leading providers. 

• Interest Rate

It’s a crucial factor that you shouldn’t ignore. Always check out the interest rates along with the finance amount as this will have a big impact on your monthly instalments. 

• Fees and Charges

With all types of loans, you get different charges and fees related to late payment, instalment deferment, early settlement, and more. These charges, in the long run, can add to your financing costs. Thus, make sure to carefully read and understand all the terms and conditions related to your car loan. 

• Discounts and Offers

Check the available discounts and offers on loans. For instance, some banks may offer 0% offers on buyout loans that you can take advantage of. 

On Paisabazaar.ae, you can find the best loans with exclusive offers.

Document Required to Apply for an Auto Loan in Dubai, the UAE

Here is a checklist of some common documents for auto financing in the UAE —

✅Emirates ID	✅Passport copy
✅Driving licence	✅Recent bank statements
✅Salary proof	✅Car quotation
✅Trade licence (if applicable)	✅MOA (Memorandum of Association)

Note: You may be required to submit some additional documents if requested by the concerned bank or financial institution.

Things to Consider When Applying for an Auto Loan

Here are some things to keep in mind while applying for car finance in the UAE —

• Since your car is collateral, it can be confiscated by the bank if you fail to pay installments 
• Comparing interest rates offered by different banks is crucial for getting the best deal 
• Approval of your auto loan is influenced by your credit Score, monthly salary, and more
• You can only get up to 80% of the financed car's worth — a down payment of at least 20% is required
• You can choose loan tenures of up to 5 years or 60 months — consider a tenure in which you can repay the amount without incurring too much on the interest amount
• Be aware of key charges such as processing fees, deferment fees, and more 
• Your credit score can be affected by the late repayments

FAQs About Auto Loan Dubai