Car Loans in UAE
If you’re searching for the best car loan in the UAE, you’ve come to the right platform. At Gulf Policy Souq, we make it easy for you to find the perfect financing option for your next vehicle.
What is a Car Loan?
A car loan, also known as an auto loan, allows you to borrow money from a bank or financial institution to purchase a new or pre-owned vehicle. You repay the loan over a fixed period, along with interest or profit, depending on the terms of the loan.
Car loans in the UAE are typically secured loans, meaning your vehicle acts as collateral. The bank has the right to repossess the car if repayments are missed. Once the loan is fully repaid, you gain complete ownership of your vehicle.
Choose From Over 40 Car Loans
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 applications that streamline 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 |
Benefits of Applying for Car Loan through Gulf Poilcy Souq in UAE?
When you choose Gulf Policy Souq, you unlock a range of benefits for yourself. Here are a few reasons to apply for auto loan finance through Gulf Policy Souq —
Here are just 4 reasons why:
- With us, you never have to worry about your finances — we help you find the best car loan with the lowest interest rate that suits your needs.
- You can choose from top providers in the UAE by easily comparing their features, finance options, repayment tenure, and much more.
- With our industry experts, you can get assistance in finding the best car finance solution without any hassles.
- No jargon — easily understand different types of loans and make an informed choice after comparing.
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.
How to Calculate Your Car Loan In UAE?
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What is a Car Loan Calculator?
A car loan calculator is an online tool that helps you to determine your EMIs and the interest rates you will pay during the car loan tenure. It has a simple and user-friendly interface that allows you to plan your budget efficiently.
It offers insight into how much funding you need to buy your dream car. Put some few inputs- loan amount, loan interest rate, and loan tenure, it will quickly provide you with the accurate EMI amount.
Before planning a car loan, it’s important to calculate the Equated Monthly Instalments (EMIs) with the use of a car EMI calculator.
The Formula of Calculating a Car Loan
The standard formula for calculating an auto loan is as follows:
E = P x R x (1+R)^N / {(1+R)^N – 1}
The components stand for-
- E = Monthly payable EMI
- P = Principal amount
- R = Interest rate
- N = Car loan tenure
Note: You can calculate the EMI based on fixed and floating interest rates.
Accuracy of Car Loan Calculator UAE
Calculating car finance is such a complex task, but it can be easy with the use of a car loan calculator. The results derived from the online loan calculators are based on inputs such as loan tenure, interest rates, and loan amount. Consequently, it’s highly accurate.
However, the actual car loan EMIs can be varied as lenders add additional components to the sum amount, such as processing fees. For initial calculations and planning a budget, car loan calculators are worthwhile.
Note: It is recommended to consult with a loan advisor or bank for a detailed breakdown of car loan EMIs
Get the Best Car Loan from the Top UAE Banks
Citi Bank Credit Card
First Abu Dhabi Bank
Standard Chartered Bank
HSBC
ADCB
Liv
Emirates NBD
Invest Bank
RAK Bank
ADIB
Commercial Bank of Dubai
Dubai Islamic Bank
Sharjah Islamic Bank
Finance House
Ajman Bank
deem
Dubai First
NBQ
Emirates Islamic
Emirates Islamic
CBI
NBF
Al Hilal Bank
United Arab Bank
Arab Bank
Al Mawarid
AAFAQ
Mashreq
Bank of Sharjah
Wio Bank
Eligibility Criteria for Car Loan in UAE 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.
Note: The eligibility requirements mentioned above are for reference purposes. Actual requirements, especially for minimum salary, may vary as per the bank.
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 license | Recent bank statements |
| Salary proof | Car quotation |
| Trade license (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
Got a question?
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