Today, car loans have become a necessary condition for buying cars in the UAE. Before choosing a specific loan, many factors need to be considered, such as interest rates, returns, and processing time. Many banks provide car loans for new and used cars.
1- Al-Hilal bank
It is automobile finance in line with Islamic teachings. They provide car financing for used cars and new cars with an interest rate of 2.35%. The reason why it is included in the list is that its functionality allows you to repay the loan in advance with a zero advance liquidation fee. Therefore, if you think you have the ability to repay the loan in advance, then this is the loan for you. Other features/advantages of Al Hilal car loan are that there is a Competitive margin, No salary transfer is required, the Possibility of common income (blood relatives only) and there are Takaful arrangements and financing.
2- Emirates NBD
The National Bank of the UAE offers a number of agreements on auto financing, including half-day approval, flexible payment methods, online replenishment, free annual registration renewal service, 24/7 roadside assistance, free bank account, etc. Other features/advantages of Emirates NBD car loan include are there is fixed interest rate starts from 2.49%, the minimum wage requirement is AED 10,000.
3- Standard Chartered Bank
Getting a car loan from Standard Chartered Bank is very convenient. It covers the financing of new and used/used vehicles. It has fast processing services and can provide a 60-month period of use. Other features/advantages of Standard Chartered Auto Loan include are that you can depend on the monthly income you can borrow up to AED 1 million. The minimum balance requirement on the trading account is waived during the loan period. The interest rate is 2.49%. For used cars, the minimum salary requirement is 8000 dirhams and the annual interest rate is fixed at 3.5% and you get 20% down payment in advance.
4- Abu Dhabi Islamic Bank
ADIB offers a car loan option with a down payment of 0%. It has established partnerships with car dealers and brought exclusive car deals. It also offers a grace period of up to 3 months. Other features/advantages of ADIB car loan include are the fixed fee starts at 2.59%, you get free ADIB VISA cashback card, and comprehensive takaful coverage.
HSBC also provides other features, such as balloon payment options funding for used and new cars.: Regular payment refers to a one-time total payment to the bank at the end of the loan period. After monthly repayment, this will bring benefits such as reducing monthly installments, increasing affordability, and cash flow management. Other features/advantages of HSBC Auto Loan include are the annual interest rate starts from 2.49% and for new cars at 3.49%. No salary transfer, No need to open an account, Depending on eligibility, the maximum loan amount is AED 918,000.
6- Mashreq car loan
Most of you want to get a loan with the lowest interest rate to easily manage your monthly budget. If so, a Mashrek car loan may be the ideal choice. Mashrek Bank has a minimum annual interest rate of 2.35%. This AED not only gives you a top loan of 500,000 but also gives you a convenient loan opportunity. You can get 80% of the loan for yourself and repay the loan within 60 months. The financing plan is effective not only for new cars but also for used cars, which makes it easier for people with financial problems to make valuable purchases.
Unlike other financing plans, Mashreq Bank does not require you to transfer your salary to its account but sets a minimum wage of 5,000 AED. You can get many useful things through this financing plan, including a free Platinum Elite Credit Card and bonus points.
7- Dubai Islamic Bank
If the minimum wage requirement of other car financing schemes is higher than your income, do not be discouraged, because Dubai Islamic Bank will bring you and all the individuals with a monthly income of 3,000 dirhams to get a car loan. Although most banks require you to earn at least 5,000 dirhams to get a loan, even if you take 3,000 dirhams home, the Islamic Bank of Dubai will provide you with a financing plan! This is, of course, good news for low-income people who still need the cars they need for daily work. The Islamic Bank of Dubai, known as Al Islam New Car Finance Company, provides loans of up to 1,500,000 AED at a fixed interest rate of 2.35%.
In order to obtain this loan, you will need to pay a 20% down payment and pay the balance of up to 60 months. If you intend to liquidate the loan before the agreed terms, you need to pay a 1% advance liquidation fee. If you choose the automatic Ijara plan, the annual interest rate is 3.5 fixed units.
8- United Arab Bank
The United Arab Bank hardly needs to issue loans, and once these eligibility criteria are met, the bank will issue fair loans. This includes a minimum wage of AED 7,500 and a maximum loan account of AED 500,000. The amount can be paid within 60 months and a fixed interest rate of 2.99% is obtained.
9- ADCB car loan
Like most banks on the list, Abu Dhabi Commercial Bank car loans also have a 60-month repayment period. The minimum wage requirement is AED 5,000 and they can provide up to AED 1,500,000 in loans. Interest rates start at 2.25% per year, and banks begin to fund 80% of the value of cars.
10- Commercial Bank of Dubai
Dubai Commercial Bank provides car loans with a repayment period of up to 60 months, a fixed interest rate of only 2.18%, and a minimum wage of only 8,000 dirhams. It also does not require salary changes. The loan concessions apply to new and used cars, which makes it an affordable concession, especially for those who do not have much financial freedom, because they can choose used cars instead of new cars.