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7,500

250,000

9.05%

4.99%


  • Features
    • No Early Settlement Fee
  • This is great for
    • Option to defer up to 2 installments a year
  • Be Aware
    • Loan amount is not very high
    • Salary needs to be transferred to avail of lower rates
  • Main Benefit
    Option to defer up to 2 installments a year; Insurance finance; Rust proofing finance; Finance service and maintenance contracts; RAKdirect 24 hour phone support

5,000

250,000

7.24%

3.99%


  • Features
    • No Early Settlement Fee
  • This is great for
    • Option to defer up to 2 installments a year
    • Low minimum salary requirement
  • Be Aware
    • Loan amount is not very high
    • Salary needs to be transferred to avail of lower rates
  • Main Benefit
    Option to defer up to 2 installments a year; Insurance finance; Rust proofing finance; Finance service and maintenance contracts; RAKdirect 24 hour phone support

7,500

175,000

7.24%

3.99%


  • Features
    • No Salary Transfer
    • No Arrangement Fee
  • This is great for
    • There is no arrangement fee
  • Be Aware
    • There is a 30% down payment requirement
    • Loan amount is not very high
  • Main Benefit
    1% early settlement fee; loan repayment period of up to 48 months; arrangement fee of 1%

7,500

365,000

7.24%

3.99%


  • Features
    • No Salary Transfer
    • No Arrangement Fee
  • This is great for
    • There is no arrangement fee
  • Be Aware
    • There is a 30% down payment requirement
    • Loan amount is not very high
  • Main Benefit
    1% early settlement fee; loan repayment period of up to 60 months; arrangement fee of 1%

5,000

500,000

5.9%

3.25%


  • Features
    • No Arrangement Fee
  • This is great for
    • High loan amount
    • Low minimum salary requirement
    • Salary transfer is not a requirement to avail of the loan
  • Be Aware
    • There is a down payment requirement
    • Loan repayment period is 36 months
  • Main Benefit
    Finance repayment period of up to 36 months; Salary transfer is not required; minimum salary AED 5000 is required

10,000

500,000

6.35%

3.50%


  • Features
  • This is great for
    • High loan amount
    • Long loan repayment period
  • Be Aware
    • Finance available only for used cars
    • There is an early settlement and arrangement fee
  • Main Benefit
    1% early settlement fee; loan repayment period of up to 60 months; arrangement fee of 1%

10,000

500,000

4.54%

2.50%


  • Features
  • This is great for
    • High loan amount
    • Long loan repayment period
    • Low interest rates
  • Be Aware
    • There is a down payment requirement
    • There is an early settlement and arrangement fee
  • Main Benefit
    1% early settlement fee; loan repayment period of up to 60 months; arrangement fee of 1%

10,000

500,000

4.99%

2.75%


  • Features
  • This is great for
    • High loan amount
    • Loans available for Expats and UAE nationals
  • Be Aware
    • There is a down payment requirement
    • There is an early settlement and arrangement fee
  • Main Benefit
    50 Attijari loyalty points for every AED 1000 finance -Quick turnaround time for approval (48 hours)

10,000

500,000

6.35%

3.50%


  • Features
  • This is great for
    • High loan amount
    • Get Attijari points with the loan
  • Be Aware
    • High interest rates
    • Finance available only for used cars
  • Main Benefit
    50 Attijari loyalty points for every AED 1000 finance -Quick turnaround time for approval (48 hours)

ADIB Used Car Finance - Murabaha Most Popular


5,000

500,000

5.44%

3.00%


  • Features
    • No Arrangement Fee
    • No Early Settlement Fee
  • This is great for
    • Low minimum salary requirement
    • High loan amount
    • Low interest rates
  • Be Aware
    • Finance available only for used cars
    • There is an early settlement and arrangement fee
  • Main Benefit
    Finance repayment period is up to 60 months; The max Finance amount is AED 750000

6,000

400,000

5.88%

3.24%


  • Features
    • No Arrangement Fee
  • This is great for
    • High loan amount
    • Low minimum salary requirement
  • Be Aware
    • There is an early settlement and arrangement fee
    • There is a down payment requirement
  • Main Benefit
    Finance repayment period is up to 60 months; The max Finance amount is AED 400000

6,000

350,000

6.8%

3.75%


  • Features
    • No Arrangement Fee
  • This is great for
    • Low minimum salary requirement
  • Be Aware
    • Finance available only for used cars
    • Loan amount is not very high
  • Main Benefit
    Finance repayment period is up to 60 months; The max Finance amount is AED 350000

40,000

500,000

9.07%

5%


  • Features
    • No Arrangement Fee
  • This is great for
    • High loan amount
    • Specifically designed to get loans for exotic cars
  • Be Aware
    • There is a high minimum salary requirement
    • There is a 30% down payment requirement
  • Main Benefit
    Finance repayment period is up to 48 months; The max Finance amount is AED 500000

40,000

500,000

9.98%

5.5%


  • Features
    • No Arrangement Fee
  • This is great for
    • High loan amount
    • Specifically designed to get loans for exotic cars
  • Be Aware
    • There is a high minimum salary requirement
    • There is a 35% down payment requirement
  • Main Benefit
    Finance repayment period is up to 48 months; The max Finance amount is AED 500000

10,000

500,000

7.24%

3.99%


  • Features
    • No Arrangement Fee
    • No Downpayment
  • This is great for
    • Low minimum salary requirement
    • High loan amount
    • There is no minimum down payment requirement
  • Be Aware
    • Salary needs to be transferred to get higher loan amount
    • There is an early settlement and arrangement fee
  • Main Benefit
    Finance repayment period is up to 60 months; The max finance amount is AED350000 if salary is not trasferred and AED500000 if salary is transferred; The finance includes insurance; extended warranty and traffic registration for full finance period.

10,000

500,000

7.24%

3.99%


  • Features
    • No Arrangement Fee
    • No Downpayment
  • This is great for
    • Low minimum salary requirement
    • High loan amount
    • There is no minimum down payment requirement
  • Be Aware
    • This loan is only for used cars
    • Salary needs to be transferred to get higher loan amount
  • Main Benefit
    Finance repayment period is up to 60 months; The max Finance amount for existing ADIB customers is AED500000

10,000

750,000

5.44%

3.00%


  • Features
    • No Arrangement Fee
    • No Early Settlement Fee
  • This is great for
    • Low interest rates
    • High loan amount
    • Low minimum salary requirement
  • Be Aware
    • There is an early settlement and arrangement fee
    • Salary needs to be transferred to get the high loan amount
  • Main Benefit
    Finance repayment period is up to 60 months; The max finance amount is AED 350000 if salary is not trasferred and AED750000 if salary is transferred.

5,000

750,000

5.44%

3.00%


  • Features
    • No Arrangement Fee
    • No Early Settlement Fee
  • This is great for
    • Low minimum salary requirement
    • Low interest rates
    • High loan amount
  • Be Aware
    • There is an early settlement and arrangement fee
    • Salary needs to be transferred to get the high loan amount
  • Main Benefit
    Finance repayment period is up to 60 months; The max finance amount is AED 350000 if salary is not trasferred and AED750000 if salary is transferred.

6,000

500,000

9.07%

5.00%


  • Features
  • This is great for
    • High loan amount
    • Low minimum salary requirement
    • Long finance repayment period
  • Be Aware
    • Finance available only for used cars
    • There is an early settlement and arrangement fee
  • Main Benefit
    Loan amounts up to AED 500000; Repayment up to 60 months

8,000

500,000

from 4.08%

from 2.25%


  • Features
    • No Salary Transfer
  • This is great for
    • High loan amount
    • Long loan repayment period
  • Be Aware
    • Salary transfer is a requirement to avail of these rates
    • There is a down payment requirement
  • Main Benefit
    Loan amounts up to AED500000; Repayment period up to 60 months; Downpayment of 20% is required; This finance can be offered as per the shariah law

8,000

350,000

from 4.26%

from 2.35%


  • Features
  • This is great for
    • Long loan repayment period
    • Salary transfer is not a requirement to avail of the loan
  • Be Aware
    • There is a down payment requirement
    • There is an early settlement and arrangement fee
  • Main Benefit
    Loan amounts up to AED350000; Repayment period up to 60 months; Downpayment of 20% is required; This finance can be offered as per the shariah law

5,000

350,000

10.87%

5.99%


  • Features
    • No Salary Transfer
  • This is great for
    • Low minimum salary requirement
  • Be Aware
    • Finance available only for used cars
    • Salary needs to be transferred to get this loan
  • Main Benefit
    Loan amounts up to AED350000; Repayment period up to 48 months; Downpayment of 20% is required; This finance can be offered as per the shariah law

5,000

200,000

11.77%

6.49%


  • Features
  • This is great for
    • Low minimum salary requirement
    • Salary transfer is not a requirement to avail of the loan
  • Be Aware
    • Finance available only for used cars
  • Main Benefit
    Loan amounts up to AED200000; Repayment period up to 48 months; Downpayment of 25% - 30% is required; This finance can be offered as per the shariah law

6,000

500,000

6.8%

3.75%


  • Features
  • This is great for
    • High loan amount
    • Low minimum salary requirement
    • Long finance repayment period
  • Be Aware
    • There is a down payment requirement
    • There is an early settlement and arrangement fee
  • Main Benefit
    Loan amounts up to AED 500000; Repayment up to 60 months

10,000

500,000

5.97%

3.29%


  • Features
    • No Arrangement Fee
    • No Early Settlement Fee
  • This is great for
    • High loan amount
    • Low minimum salary requirement
    • Low interest rates
  • Be Aware
    • Finance available only for used cars
    • There is an early settlement and arrangement fee
  • Main Benefit
    Finance repayment period is up to 60 months; The max Finance amount is AED 750000
Page 1 of 3

Our Guide to Car Loans in UAE 

 

There are over 55 new and used car loans from UAE Banks and our site allows you to search and compare all the different features of a particular car loan and help you find the right one for you.  There are important aspects of a car loan to consider before taking one up.  If you are from Continental Europe, there are quite a few differences such as downpayment, salary transfer etc.

 

What should you know when comparing car loans in the UAE?

 

There are different criteria will dictate which car loans you are eligible for and which ones would suit you best. 

 

1. New or Used – Once you decide whether you are buying a brand new car from the showroom or a second hand car, you probably will need to finance the car.  For used car, banks have a limit of model that they will finance so make sure you check it on souqalmal.com – each car loan has a minimum model displayed.

 

2. Down payment – As part of setting your budget for a new or used car, you would need to consider the down payment that would be required by the bank for your car loan. Down payment on car loans in the UAE is a requirement and can vary according to

 

-       Are you buying a new car or a used car?

 

-       Are you going to transfer your salary to the bank that will be providing you the car loan? i.e will your salary be deposited from your employer at the bank in question?

 

-       Is it an Islamic product? An Ijarah, which is an Islamic car finance product does not require any downpayment to be made as it is considered as a lease to you and transferred to your ownership at the end of the term.

 

3. Minimum salary requirement – There is always a minimum salary criteria set by banks on new and used car loans so make sure you look at this requirement when searching for your car loan.

 

4. Arrangement fee- Arrangement fees or Upfront fees is what a bank would typically charge you at the beginning of the loan as a processing cost – that is after you have accepted to take the car loan and you will have the option to club it with your principal car loan amount or pay if upfront.

 

5. Early settlement fee – If you take a car loan for 5 years and you decide to pay if off earlier, there is a fee you will be charged by most banks which is typically around 1% or more.  Sometimes, they have offers with no early settlement fees but check clearly that this is not applicable only on cash settlement vs refinancing.

 

6. Flat vs Reducing Rates: There are two ways of calculation of the rate on the car loans that you see advertised by providers - as a reducing rate or as a flat rate so make sure you ask the bank what type of rate is being quoted. A reducing rate means it is the % you pay on your outstanding balance of your car loan whereas a flat is is the % of you pay on the principal amount of your car loan throughout the term.  So a loan at a reducing rate of 8% is exactly the same as a loan at a flat rate of 4.41% (the general rule is you divide reducing by 1.813 to get the equivalent flat rate) - So be careful when you compare rates as one bank maybe advertising a reducing rate loan and the other a flat rate loan.  If you want more details about how these are calculated, you can read our guide to reducing vs flat rate.

 

7. Salary transfer: While transferring your salary to a bank to get a car loan is not necessary however, it might mean you get a better rate.  The bank will consider a customer with a salary transfer less risky and generally offers a lower rate.

 

8. Islamic or conventional: If you are looking to finance your car with an Islamic product, you need to search for only products that are Sharia Compliant.  Make sure you ask your bank whether they offer Islamic financing. 


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