Can I Get a Car Loan In UAE Without Down Payment?


There are many banks in the UAE that offer car loans and there are always special promotions going on. However, not everyone is able to afford the required deposit when buying a car while in the UAE. In this article, we will look at whether you can get a car loan in the UAE without a downpayment.

You cannot get a car loan in the UAE without a down payment. A down payment (normally 20%) is mandatory for all Auto Loans in the UAE. However, you can get down payment support through your UAE bank using one of their credit cards at the bank’s discretion. You can also purchase a car on a personal loan which does not require a down payment.

Let’s discuss further how you can do this.

What Is a UAE Auto Loan?

An Auto Loan is basically a loan provided by any financial institution (e.g a bank) in order to purchase a vehicle (e.g a car). With an Auto Loan, you are not paying on the vehicle purchase price plus interest over time.

How Much Downpayment Is Required In The UAE For A Car?

Normally, a 20% downpayment is required by most banks to purchase a car in the UAE.

car loan 20 percent downpayment uae

Can I Get 100% Financing On A Car Loan In UAE?

It is possible to get 100% financing on a car from some banks in the UAE. However, the more popular concept of car finance in the UAE is paying 80% of the car’s value as the loan and 20% as deposit.  However, there are many banks that offer 100% financing options for an auto loan in the UAE.

There are some banks as well that offer a 1% downpayment for the purchase of vehicles. Check out this list of auto loan providers in Dubai to learn more.

Personal Loans and Downpayments In The UAE

An easy way to purchase a car in the UAE is to purchase the vehicle on a personal loan. A personal loan is an unsecured loan, meaning no deposit or collateral is required. you do not have to give a down payment with personal loans.

While you can get a cheap personal loan in the UAE, the fact is cars are generally not cheap. Personal loans are really based on your salary. For example, you can get a personal loan on a 4000 salary or a personal loan on a 5000 salary.

Can I Do A Partial Payment To My Car Loan?

Yes, you can do a partial settlement on your car loan from most banks. However, there will be an additional settlement fee which is 1% of the principal outstanding in most cases.

Who Can Get A Car Loan In UAE With A Downpayment?

The normal minimum downpayment of 20% is required for Salaried Customers. However, clear loans start at 0% Down Payment for All businesses & Self Employed Customers.

Are Salary Transfers Required For A Car Loan?

In general, most banks do not require a salary transfer for salaried customers to get a car loan.

How Does The Process Of Purchasing A Car With Downpayment Work?

When purchasing a car on a 20% down payment, this means consumers will only finance 80 percent of the new or used car’s value. This of course implies that a 20 percent down payment is required.

Buying A Used Car With 20% Downpayment

Some banks will allow you to purchase a car with a 20% down payment. In this case, the down payment is generally paid directly to the bank. The bank in turn settles the full value of the used car with the used car dealer.

However, a few banks in the UAE ask used car buyers to settle the 20 per cent down payment directly with the seller. Once that is done, the bank will settle the remaining 80 per cent of the car’s value.

How Used Car Dealers Offer 0% Downpayment In The UAE?

some dealers are smart about this and offer 0 % downpayment by simply discounting the invoiced price of the car via a promotion.car loan zero down payment uae

Top Car Loan Providers in UAE

The following are the top car loan providers in UAE with their respective downpayment percentages:

ADCB Bank Car Loan

  • Maximum Car Loan Amount: AED 1.5 million
  • Car Loan Interest Rates: Fixed 1.99% p.a. and reducing 3.65% p.a.
  • Maximum Repayment Tenure: 60 months
  • Minimum Salary Required: AED 5000
  • Additional Benefits: 50 Touchpoints earned on every AED 1000 of the loan amount
  • Finance to Down Payment Percentage: 80%-20%

ADIB Bank Car Loan

  • Maximum Car Loan Amount: AED 500,000
  • Car Loan Interest Rates: Fixed 2.75% – 4.49% p.a. and Reducing 4.75% – 8.25% p.a.
  • Maximum Repayment Tenure: 60 months
  • Minimum Salary Required: AED 5000
  • Additional Benefits: Deferment for one yearly instalment and a grace period of 90 days for the first instalment.
  • Finance to Down Payment Ratio: 80% – 20%

Emirates NBD Car Loan

  • Maximum Car Loan Amount: AED 500,000
  • Car Loan Interest Rates: Fixed 1.99% p.a.
  • Maximum Repayment Tenure: 60 months
  • Minimum Salary Required: AED 4000 to AED 15000 (case basis)
  • Additional Benefits: Free credit card. Green loan for electric cars, 90 days deferment period on the first payment.
  • Finance to Down Payment Ratio: 80% – 20% for individual loans, 75%-25% for sports car, 90%-10% for companies

First Abu Dhabi Bank (FAB) Car Loan

  • Maximum Car Loan Amount: AED 1.5 million
  • Car Loan Interest Rates: Fixed 1.99% p.a. for UAE nationals / 2.15% p.a. fixed for ex-pats (salaried employees). 2.99% p.a. flat and 5.62% p.a. reducing for self-employed.
  • Maximum Repayment Tenure: 60 months
  • Minimum Salary Required: AED 8000 for salaried individuals and AED 25,000 for self-employed
  • Finance to Down Payment Ratio: 80% – 20%

Mashreq Bank Car Loan

  • Maximum Car Loan Amount: AED 500,000
  • Car Loan Interest Rates: 3.45% p.a. flat rate and 6.31% p.a. reducing rate
  • Maximum Repayment Tenure: 60 months
  • Minimum Salary Required: AED 5000
  • Additional Benefit: Free for life credit card
  • Finance to Down Payment Ratio: 80% – 20%

ANRAKBK Car Loan

  • Car Loan Interest Rates: 1.99% p.a. flat rate for salaried applicants
  • Maximum Repayment Tenure: 60 months
  • Minimum Salary Required: AED 5000
  • Finance to Down Payment Ratio: 80% – 20%

Emirates Islamic Bank Car Loan

  • Maximum Car Loan Amount: AED 1.5 million
  • Car Loan Interest Rates: 1.80% p.a. flat rate and 2.95% p.a. reducing rate
  • Maximum Repayment Tenure: 60 months
  • Minimum Salary Required: AED 8000
  • Additional Benefit: Free Emirates Islamic current account
  • Finance to Down Payment Ratio: 80% – 20%

HSBC Car Loan

  • Maximum Car Loan Amount: AED 600,000
  • Minimum Salary Required: AED 10,000
  • Additional Benefit: 0.15% discount on flat interest rates for hybrid vehicles and 0.25% off on flat interest rates for full electric vehicles
  • Car Loan Interest Rates starting from 1.99% p.a. flat rate
  • Special flat Interest rate for TESLA – 1.74%
  • Reduced monthly EMIs with easy Balloon repayment options

What Documents Are Required To Get An Auto Loan In the UAE?

  • Signed bank form
  • Passport-visa
  • Emirates ID
  • Valid quotation
  • Driving license
  • Salaried individuals
  • Salary certificate
  • Bank statements
  • Self-Employed individuals
  • Trade license
  • Bank statements
  • Companies
  • Trade license
  • Bank statements
  • List of authorized signatories on company behalf (wherever applicable)
  • MOA

Who Is Eligible For A Auto Loan In The UAE?

The eligibility criteria to apply an Auto Loan are as below:

  • Salaried Segment
  • Self Employed / Companies
  • AED4K (ALE with Salary Transfer or Non ALE with Salary Transfer and good CASA score)
  • AED 5K (Non ALE, Salary Transfer or ALE, Non Sal Transfer)
  • AED 7K (Non ALE & Non STL) or Private deals)
  • AED 15K (Used sports cars)
  • Min Average Balance of AED 20K

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