Used Car Loan

Whether you're an expat or a UAE national, securing a second-hand car loan in the UAE can be a smart and budget-friendly choice. Keep reading to understand the eligibility criteria, documentation, best interest rates, and more to make an informed decision.

Top Car Loan Plans in Dubai

What is a Used Car Loan? 

As the name suggests, a used car loan is a practical financing option designed for people looking to purchase a second-hand vehicle with a low budget. This is also known as a second-hand or pre-owned car loan, allowing you to borrow funds from a bank or financial institution.

Used auto loans come with significant privileges and offer flexibility to repay the fixed monthly installments (EMIs) over a set tenure, typically ranging from 12 to 60 months. While they share a similar structure with loans for new cars, they might come with slightly higher interest rates. 

Used Auto Loan—Top Banks and Interest Rates in the UAE 

Here is the list of the top banks in the UAE offering attractive interest rates and features: 

Top Banks	Used Car Interest Rate	Features	Apply
NBQ Auto Loan	N/A	For UAE nationals and expats  Easy loan application process Flexible repayment terms	Apply Now
Emirates Islamic Bank Auto Loan	Profit rate starting from 3.19%	Minimum documentation  Based on Shariah principles Extended loan repayment term	Apply Now
RAKBANK Auto Loan	Starting from 2.70%	High finance option, such as up to 80% of the car value Simple documentation  For salaried and self-employed	Apply Now
Emirates NBD Auto Loan	Starting from 3.74%	Variety of loan options available  Flexible loan repayment term  Instant loan approval	Apply Now
Dubai Islamic Bank Auto Loan	Profit rate starting from 2.25%	Shariah-compliant loan facility  Extended repayment term  Quick loan approval	Apply Now
Sharjah Islamic Bank Auto Loan	Profit rate starting from 1.79%	Sharia'a-compliant Murabaha structure Flexible finance tenure, up to 5 years  Low downpayment	Apply Now
Ajman Bank Auto Loan	Starting from 3.75%	High finance amount, such as up to  AED 2,000,000 Loan tenure up to 60 months For salaried and self-employed	Apply Now

✍️Note: The interest rates are subject to change and are mentioned for reference only. To get the most accurate and up-to-date rates, it’s advised to check the actual rates from the bank’s official website, as the final rates may vary on the basis of your profile. 

Eligibility Criteria for Used Vehicle Loan 

Meet the following eligibility criteria to get the best second-hand car loan in the UAE: 

Eligibility Criteria	Specifications
Age	At least 21 years old
Nationality	UAE nationals and expats
Employment Status	Salaried and self-employed

✍️Note: The eligibility requirements can differ from one bank to another. To ensure you meet the requirements, it is best to check directly with the bank. 

Necessary Documents- Car Loan for Second-Hand Car 

You’ll need the following documents to get a used car loan in the UAE: 

Documents	Individual Applicants	Self-Employed Applicants
Emirates ID	✅	✅
Passport	✅	✅
Salary Certificate	✅	❎
Bank Statements	✅	✅
Trade License	❎	✅
Driving License	✅	✅
Used Car Valuation Certificate	✅	✅
MOA (Memorandum of Association)	❎	✅

Key Features and Benefits of Used Auto Loan 

You can enjoy significant features and benefits of a car loan for used cars in the UAE: 

Affordable Financing 

You can easily get a high finance amount with a second-hand car loan in the UAE, such as up to 80% of the car’s value.

Flexible Repayment Tenure

If you apply for a used car loan, you won’t need to pay the full cost of the car upfront. Instead, you can repay the loan amount in flexible EMIs for a specified period. Typically, you can finance a car for up to 5 years.

Easy Loan Disbursal 

You can easily get the required loan amount for a pre-owned car in the UAE. The cost of secondhand cars is lower than new cars—this means lower cost, instant loan approval by the bank, and reduced insurance expenses. 

Minimal Documentation

Basic paperwork is required when securing a loan for a used car. However, many banks are using a digital process through which you can easily submit the required documents online without any need for physical visit to the bank. 

Increases Credit Score 

Making timely payments of used auto loan EMIs positively impacts your credit Score. It helps you secure better financial opportunities in the future. 

How to Secure a Used Car Loan in the UAE? 

By following these tips, you can get the best loan alternative for a used car: 

Research and Compare

You can begin the process of financing a used car with thorough research and comparison. Explore loan offers from various banks and financial institutions and compare their features and benefits to get the best fit.

Check Eligibility

Make sure you meet the lender’s criteria to get a second-hand car loan in the UAE. This makes the application process smooth, and you can obtain a loan without any hassles. 

Build a High Credit Score

It’s good to have a high credit score for used vehicle financing. With a high score, such as more than 750, you can secure better loan options with a low interest rate. 

Loan Tenure 

The maximum vehicle loan tenure in the UAE is 5 years, and usually, people prefer low down payments and long tenures. But this results in paying a higher interest on EMIs. Thus, choose shorter loan tenures in which you can repay the borrowed amount without any burden. 

How to Calculate Used Car Loan EMI? 

Using online calculators for used car loans is beneficial in calculating future EMIs. You can easily find this tool on the bank’s official website or the Paisabazaar.ae platform. It requires you to enter a few inputs to calculate the estimated amount. 

With this tool, you can make better financial decisions, save time, and prevent yourself from hectic manual calculations. This tool is efficient and shows different results based on your profile. 

Best Used Car Loan at Paisabazaar.ae—Compare and Apply 

Unlock a range of benefits by choosing Paisabazaar.ae for a used vehicle loan. With this platform, you can easily choose the best loan options without any hassles. 

Simple steps for a used car loan: 

1️⃣Visit the homepage of the website and select the ‘Car Loan’ option 

2️⃣Enter the required details in the lead form 

3️⃣Get the car loan options on the quote page 

4️⃣Compare all the loan options and choose the best one that fits your needs

It’s done! One of our representatives will call and guide you further. 

Frequently Asked Questions Used Car Loan

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