Cars are the most viable mode of transportation in Dubai and to this end, are very accessible and easy to use. To cater for the rooted traditional love for cars in the city, different car brands have found a home in Dubai which has brought their products closer to the consumers. In order to make the process more enjoyable, several loan providers such as banks, have different loan schemes for people who wish to drive the cars of their dream but cannot afford to fully pay for it in cash.
Getting an auto loan in Dubai is very easy, all you need is to meet the standard requirement which in most times include passport, Emirates ID, salary certificate, labor card, 3-6 months of bank statement, driver’s license and some more documents related to the car to be purchased. You also have to be at least 21 years of age and your minimum salary has to be between AED 3,000 – 5000 and in some instances, AED 10,000; depending on the car you want to buy.
Loans can also be gotten for both new and used cars, some banks will finance up to 80% of the car’s value and require a 20% down payment in advance, while some finance the entire thing; the higher percentage financed by the bank, the more interest you pay.
Here are the 10 best auto loan providers in Dubai.
1. CBD – Tamweel Car Loan
The Commercial Bank of Dubai grants an auto loan with flexible repayment period of up to 60 months with a meager flat rate of 2.18% while requiring only AED 8,000 as the minimum salary. It also does not require salary transfer. The loan offer is available for both new and used cars which makes it a very affordable offer especially for people that don’t have much financial freedom as they can opt for used cars instead of new.
2. RAKBANK – RAKauto Loan
RAKBANK’s RAKauto Loan basically seek for speed and convenience when dealing with auto loans. A minimum 20% down payment required for Salaried Customers, and from 0% Down Payment for All Business & Self Employed Customers. The repayment can run up to 60 months with only 2.35% interest being accrued annually. It is easy as there is no requirement of transfer of salaries to the bank. The loan is granted on new and used cars of varying styles and purpose.
3. Mashreq Bank Car Loans
Mashreq Bank has been praised for having one of the the lowest interest rates in the country. Its loans are very accessible to most as it allows you to get a car loan of up to AED 500,000 while paying just 2.45% interest per annum. Aside from having the lowest rate, it also provides convenient repayment options for clients, allowing for repayments to last up to 60 months. In addition to it all, Mashreq Bank does not ask borrowers to transfer their salaries to its account but set a minimum salary requirement, which is pegged at AED 5,000.
4. DIB Auto Finance
The Dubai Islamic Bank is one of the most preferred auto loan providers in the whole of Dubai as it requires the minimum salary of just AED 3,000. Might be crowned as the best on the list because the bank does not just cater for people with low salaries but also others interested in acquiring luxury cars as the bank grants up to AED 1,500,000 with only 2.35% flat interest rate. It allows for the loan to be paid over a period of 60 months with an early settlement fee of 1%.
5. Emirates Islamic Auto Finance
With a profit rate that ranges from 2.49% to 4.30% for salaried customers, Emirates Islamic is one of the banks that provide quality loan offers for the inhabitants of Dubai. Aside from it being a Murabaha structure complying with Sharia principles, the bank also has flexible and extended repayment periods of up to 5 years. The bank’s loan offers are available for variety of vehicle brands, new, certified pre-owned and used vehicles.
6. Emirates NBD Auto Loan
Emirates NBD grants auto loans for passenger and business vehicles and provides a whole lot of value in its packages. The minimum salary required to acquire this loan is AED 10,000 and there is a 2.49% flat interest rate. The benefits of the Emirates NBD is the value added package which contains interesting features such as flexible payment options, free annual registration renewal service, free bank account, round the clock roadside assistance among many other services.
7. Al Hilal Bank Auto Finance
Every bank has its own allure and that of Al Hilal Used Car Finance is the 0% Early Settlement Fee. It is the best choice for someone who is likely to complete the repayment of the loan before the due date as it will save such person precious time and money. It requires a minimum salary of AED 5,000 per month and puts the maximum time to repay the loan for up to 60 months. After satisfying all the requirements, Al Hilal can offer a loan of up to AED 500,000 with an interest rate of 2.35%.
8. United Arab Bank Car Loan
The United Arab Bank requires little to grant loans and once those eligibility criteria are met, the bank grants a fair loan. This includes the requirement of AED 7,500 as the minimum salary while granting up to AED 500,000 maximum loan account. This amount can be paid over a period of 60 months while accruing 2.99% flat interest rate.
9. HSBC Car Loans
The bank offers a wide array of benefits for the prospective borrower and seeks to provide loans with more ease and purpose. The customer care agents are always ready to help while giving options that will ease the burden on the borrower. This includes granting loan amounts of up to AED 918,000 while requiring no salary transfer, with an interest rate of 2.49%.
10. ADCB Car Loan
Like most of the banks on this list, Abu Dhabi Commercial Bank Car Loan also boasts a 60-month repayment tenure. The minimum salary required is AED 5,000 and they can loan up to AED 1,500,000. The interest rate starts from 2.25% per annum and the bank gets to finance 80% of the car value.