Home Tips How to Apply for a Car Loan in Dubai

How to Apply for a Car Loan in Dubai

Having a car makes getting around Dubai easier and more convenient, especially if your family lives with you. Dropping your kids off to school, going to the office, and simply traveling to different places is faster and more comfortable when you drive your own car.

ALSO READ: How to Get a Driving License in Dubai

Of course, whether you’re buying a new car or a secondhand vehicle, you’re going to need a hefty sum. And unless you already have some money set aside, you could consider applying for a car loan when purchasing a vehicle. Keep on reading to know more about getting a car loan in Dubai!

How to Apply for a Car Loan in Dubai

Guide to Applying for a Car Loan in Dubai

You can use a loan to purchase a new or secondhand car in Dubai. Most banks require a 20% down payment, with an interest of about 4% for new cars, and 4.5% for secondhand ones. Still, the rates may vary depending on the bank you choose.

Before applying for a car loan, check out the following prerequisites, requirements, and procedure first:

Prerequisites

You (the applicant) must be:

  • A UAE resident
  • 21 years old or above
  • Employed or self-employed with a salary of at least AED 5,000/month
  • Employed for at least two years, and the latest employment must be over one year
  • Not exceed this age upon loan maturity: 60 years old (employed), 65 years old (self-employed)

Requirements

  • Copy of passport with residence visa
  • Copy of UAE driving license
  • Salary certificate
  • Bank statements for the last 3 months
  • Copy of DEWA bill
  • Car evaluation report
  • Down payment (usually 20%)

Procedure

  • You can apply for a car loan at your bank; OR
  • Have a representative from the car dealership process the loan on your behalf.
  • Pay vehicle registration fees and vehicle insurance annually, as mandated by UAE law.

Additional Information

  • Terms of repayment for car loans are usually 4 to 5 years, with 5 years being the maximum.
  • Choose the pay-back term that fits your budget. Keep in mind that the longer the paying period, the bigger the interest you may have to pay.
  • Avoid missing your monthly payments, as this could lead to penalties, or worse, your car could get repossessed.

ALSO READ: How to Transfer Vehicle Ownership in Dubai

As long as you are able to afford the monthly payments, getting a car loan is a great way to buy your own car in Dubai. Speaking of finances, we recommend that you read more about banking, taxes, wills, and other money matters in the emirate.


We're on YouTube!
Please subscribe to the Dubai OFW YouTube Channel for updates and tips!


Get FREE Dubai Updates by entering your email address:



Don't forget to check your email to activate your subscription!

SHOP ONLINE ON AMAZON.AE

Enjoy Great Sounds Anywhere with these 8 Portable Speakers

We have previously talked about some great speakers that you can use when listening to music or watching movies at home. But what if...

Use these Mouse Pads & Wrist Rests for Working Long Hours

Does your work involve working long hours in front of the computer? If so, then most likely you have experienced body pain, such as...

8 Top Selling Travel Mugs for Coffee & Tea Lovers

Just recently, we featured some really cool water bottles that can keep you hydrated, wherever you may be. Today, we’re going to talk about...

13 Best Pet Toys your Dog Will Surely Love

If you happen have a dog for a pet, then you know the importance of having dog toys around the house. Toys are necessary...

8 Beddings & Pillows that Your Kids Will Love

Are you planning to furnish or decorate your children’s bedroom anytime soon? Other than kid-sized furniture and decor, you’re going to need children-themed beddings,...

Store Precious Memories in these Frames and Photo Displays

Just as we use jewelry boxes for storing jewelry and keepsakes, we use albums, frames, and displays for keeping something that is also precious...

12 Great (and Cheap) Gifts for Father’s Day

Father’s Day is just around the corner, so most likely you’re already thinking about what to buy for your Dad. And although malls and...