What it means
The part of a purchase price you pay upfront from your own money. For UAE car loans it is generally at least 20%.
Loans
Down Payment
The part of a purchase price you pay upfront from your own money. For UAE car loans it is generally at least 20%.
CategoryLoans
Pro tip inside1 quick win
What “Down Payment” really means
The meaning, how it works in the UAE, and why it matters to your money.
How it works in the UAE
For car loans, UAE banks generally finance up to 80% of the vehicle's value, so you pay at least 20% upfront. Home loans also need a down payment, which depends on the property value and whether it's your first home.
Why it matters
A bigger down payment means a smaller loan, a lower EMI and less interest over the tenure.
EXAMPLE
Car price AED 100,000 → minimum down payment AED 20,000.
PRO TIPBudget for registration, insurance and fees on top of the down payment.
Test yourself
Which of these best describes Down Payment? Tap an answer.
Read more about Down Payment
Guides that use this term — and a tool to put it into practice.
