Car loans in UAE can be a difficult task to undertake. Many companies and banks offer car loans, but each one has different interest rates and conditions. It’s essential to do your research before you go out and buy a car. This is because the last thing you want is an expensive payment plan or a high-interest rate on top of it!
In this post, we will look at some of the best options for obtaining car loans. Also, we’ll discuss what kind of financing methods exist for those who don’t have much money saved up.
Top Best Zero (0) Interest on Car Loans in UAE
UAE is one place where you can quickly get a secured loan for your personal or business needs at a competitive interest rate.
The country’s economy allows individuals to build credit ratings by making timely repayments.
Thus, enabling them to acquire highly sought-after mortgages in the future. Some of the best 0 interest on car loans in UAE include:
1. Emirates Islamic Bank
The Emirates Islamic Bank offers interest-free car loans for up to five years. You can even acquire 0 % interest on new cars offered by the bank if you are planning to buy one. The maximum repayment tenure is ten years, and there’s also no processing fee attached with this offer.
2. Abu Dhabi Commercial Bank
Another ideal place to get 0 interest on car loans in UAE is Abu Dhabi Commercial Bank. This bank offers car loans with 0% interest for a period of up to three years.
The bank also charges no processing fees, and you can avail of the loan amount ranging from AED 50,000 to AED 200,000.
3. Al Hilal Bank
Al Hilal Bank offers both new and used cars on finance at an interest rate of 0%.
You can repay the loan over 12 to 60 months, and there are no hidden costs involved.
4. Ajman Bank
Ajman Bank is one of the largest private sector banks in the UAE that offer Sharia-compliant car financing products with zero percent markup rates on a Murabaha basis.
The maximum tenure for repayment is 60 months, and the loan amount can be up to AED 300,000.
5. Bank Muscat
Bank Muscat also offers Islamic car finance with 0% markup rates on Murabaha basis.
The bank offers car loans for both new and used cars.
You can repay the loan over 12 to 84 months, and the maximum loan amount offered is OMR 100,000.
6. Dubai Islamic Bank
Dubai Islamic Bank offers Sharia-compliant car finance products with 0% markup rates on Murabaha basis. Dubai Islamic Bank also offers car loans for both new and used cars. You can repay the loan over 12 to 60 months, and the maximum loan amount offered is AED 200,000.
If you are looking for an interest-free or low-interest rate car loan in UAE, any one of these banks will be able to help you out.
The terms and conditions may vary from one bank to another, but the basic premise remains the same. You get to enjoy a hassle-free ride without having to worry about interests piling up each month.
Car Loan Interest Rate in UAE
Many factors influence the interest rate on car loans in UAE. The most important of these is the credit score of the borrower.
Lenders will look at this to determine how risky it is to lend money to the individual. Other factors that can affect the interest rate include the loan’s length, the vehicle’s age, and whether or not a deposit is required.
The average interest rate for car loans in UAE sits at around six percent. However, this can vary significantly depending on the lender and the loan terms. It’s always essential to shop around for the best deal when looking for a car loan.
Minimum Credit Score for Car Loan In UAE
The minimum credit score for a car loan in UAE is 600. However, if you have a higher credit score, there is a chance you will be approved for the loan even with slightly lower income requirements and lesser guarantor fees.
This is because a higher credit score reflects on your reliability and stability. If you do not have a good credit history, you may need to have a guarantor from UAE who has lived in this country for at least two years without any due payments or arrears against them.
Additionally, they should also ensure that their salary is above AED 4000 per month to pay off whatever amount they require in monthly installments over the time agreed upon by both parties.
Car Loan for Self-Employed in UAE
It is still possible if you are self-employed in the UAE but wish to buy a car. Some lenders offer loans to self-employed people.
However, you cannot get easy approval like salaried applicants because banks will require more documentation and proof of income from your side. This loan usually has high-interest rates that vary according to lender choices.
ADCB Car Loan Calculator
ADCB provides a car loan calculator on their website that helps customers determine the monthly installment for their car loan.
The calculator considers the down payment amount, interest rate, and loan tenure. Customers can also use ADCB’s Personal Loan Calculator to calculate the monthly installment for their personal loan.
This calculator considers the loan amount, interest rate, and repayment period. Both calculators provide an estimate of the monthly payments only and do not constitute an offer from ADCB.
Emirates NBD Auto Loan Minimum Salary
The minimum salary that you need to be earning for your application even to be considered is AED 5,000. This might not always work as a yardstick, though, because the analysis of your financial profile will be done by considering many factors.
These include credit card dues and installments against loans like car loans in UAE, along with installment payments on any housing loan which may exist currently.
Car Loan Procedure in UAE
Here is how the car loan procedure is in the UAE:
- You need to have a signed AECB form
- Have a passport/visa
- Emirates ID
- Valid quotation
- Driving license
- You need to have a salary certificate and provide bank statements for salaried individuals.
- You need to have a trade license and provide bank statements for companies.
Conclusion
Car loans in UAE are available through banks and other financial institutions. Before taking out a loan, you should ensure that the lender offers competitive interest rates to suit your needs. You can compare different loans on various websites to determine which ones best suit your needs. Once you have determined if you can get a zero-interest car loan, the next step is to figure out if you can get a car loan in the UAE without a downpayment.
