Car loans have become a necessity nowadays for purchasing a car in UAE. There are a number of factors, such as interest rates, benefits included and processing time, that needs to be considered before selecting a particular loan. A number of banks offer car loans for both new and used cars.
Calculate your Car Loan EMI using Car Loan Calculator UAE
Favorable car loans offered by some of the banks in UAE
Al Hilal Bank
Is a sharia-compliant car finance. They provide car finance for both used and new cars with competitive interest rate. The reason it is made to the list is because of its feature that allows you to repay the loan early with 0 early settlement fee. Hence if you think you have the capability of repaying the loan early, then this is the loan for you.
Other features/benefits of Al Hilal car loan are:
- Competitive profit rates
- Tenure provided up to 5 years
- No salary transfer required
- Joint income possibility (with blood relatives only)
- Takaful (Islamic Insurance) arrangements and financing
- A minimum salary of AED 5000 is required
- 20% down payment is required
Emirates NBD
The Emirates NBD offers a package deal for their auto finance, which includes half-day approval, flexible payment options, online Salik recharge, free annual registration renewal service, round the clock roadside assistance, free bank account etc.
Other features/benefits of Emirates NBD car loan are:
- Flat interest rate starts at 1.99%
- Minimum salary requirement is from AED 5000
- Free bank Account is provided
- Free Credit Card is provided
Abu Dhabi Islamic Bank
ADIB provides car loan options with 0% down payment. It has partnerships with auto dealers, bringing exclusive car deals. It also provides up to 3 months grace period.
Other features/benefits of ADIB car loan are:
- A minimum salary of AED 5000 is required
- Salary Transfer is not needed
- Grace period of 90 days is provided on the first installment
- Finance amounts up to AED 500,000
- Can defer one installment per year
- Full comprehensive Takaful cover
HSBC Bank
Along with providing financing for both used and new cars. HSBC provides an additional feature such as Balloon payment option for new cars:
A balloon payment is a lump sum amount owed to the bank at the end of a loan term after all regular monthly repayments have been made, this offers benefits such as lower monthly installment, increased affordability, cash flow management.
Other features/benefits of HSBC car loan are:
- Interest rates starting from 1.99% p.a.
- No salary transfer
- No account opening is required
- Can borrow around AED 600,000 depending on eligibility.
- Balloon repayment option is provided if you like to change your car every 2-3 years
- A minimum salary of AED 10,000 is needed
First Abu Dhabi Bank
Along with FAB Personal Loans and FAB credit cards in the UAE, FAB provides car loans as well on competitive interest rates and high benefits for both self-employed and salaried individuals. They offer finance for both new and used cars in the UAE.
Other features/benefits of FAB car loan are:
- Interest rates starting from 1.99% p.a.
- Provides upto AED 1.5 Million as finance
- Can pay the first installment in 180 days after the loan is credited into the account
- A minimum salary of AED 8000 is needed
These are few loans that you can consider. However, it is advisable that you do a thorough check and compare every loan before finalizing one.
About the author
Hemanta Bijoy Kaushik is a personal finance writer. Discovering his love for writing, he has written a number of blogs on personal finances and other genres on various digital media platforms. He has completed his MBA from IMT and currently working at HDFC bank as Personal Banker. When he's not writing, you can find him exploring different cuisines and binge-watching TV series. Hemanta hopes to write a novel soon. You can check out his work on www.instagram.com/hemantakaushik
