Top 5 Car loans that you can consider in UAE

The huge popularity of car loans in the UAE is because of persons’ interest in investing in purchasing their own vehicles. Always relying on public transport is not a wiser idea, especially if you need to travel for any emergency reason. These loans are part of the services of the financial market of the country. All institutions, including banks & online lenders, offer the best types of car loans. Factors including interest rate, monthly income, and eligibility criteria are involved in the decision of lenders to provide loans to borrowers. In this blog, we will explain the top 5 car loans that you can consider in UAE. All of them are ideal for all individuals.

Top 5 car loans in UAE

Choosing an accurate car loan is an essential step because there are so many options available. Therefore, we have researched the best loan for the purchasing of cars. Emirates Loan gives you so many varieties of vehicle loans. The clients can choose at their convenience. You should consider the following five car loans because they are exceptional. Choose the one which is suitable for your financial budget.

Al Hilal Bank

This bank is well-known for providing loans based on Sharia Law. All strategy of Al Hilal Bank follows Islamic principles. The borrowers have options of applying for finances for both used & new cars. These finances are with competitive interest rates. The most important specification of this bank’s loan is that if you want to repay the amount early, there will be no demand for any settlement fee. You have enough tenure to repay the loan more easily without much financial stress. The interest rate is not higher. That’s why the borrowers save the money and want to repay earlier the duration. So, if you also want to repay early, you can do it.

Features & benefits 

The total tenure is more than five years. But, the loan amount decides the duration. Some people feel hesitation in the step of compulsory salary transfer. For their easiness, the bank does not require salary transfers. Takaful is Islamic insurance that is a mandatory part of every arrangement of finances. This lender ensures that you will make a down payment of 20%. Then, it will give you the remaining amount of the car’s cost. For this reason, your income must be more than 5000 AED monthly. The higher salary of the applicant gets more chance of instant approval.

Emirates NBD

The Emirates NBD is different from numerous other banks. It does not only offer car finances, but it also gives packages of finances. According to the packages, the applicant will enjoy the many advantages of receiving the debt. You can buy your own vehicle, and also you can get the other bank’s services. One of the great points is that the approval time is only a half-day. It means you will not wait long to receive the application’s approval and then the loan amount. Purchasing a car becomes easier with this method.

Features & benefits 

The first thing that comes to our mind when applying for a car loan is its interest rate. This rate only starts from 1.99%. It goes higher for high amounts but is still low as compared to other lenders. The criterion for a minimum salary of the applicant is 5000 AED. Further, the benefits of availing a debt from this bank are that you will get a free account & a credit card. There are no additional formalities in receiving them.

Abu Dhabi Islamic Bank (ADIB)

Many times, the borrowers face difficulty in paying the 15% or 20% down payment. In this scenario, the excellent idea is to choose the lender that gives you an offer of getting loans without the down payment. ADIB is one of those lenders that provide a car loan with no requirement for a down payment. This bank has special partners of the vehicle dealers. Their partnership with the dealers provides so many deal options for vehicles to clients. Emirates Loan has the best professional team that guides its clients in choosing their debt. They will help in the borrower’s decision to select of effective deal for the vehicle finances.

Features & benefits 

Without any salary transfer, the process of submitting of application with all documents will be complete. There is no tough step during the application. The criterion for monthly income depends on the loan amount that you want from this bank. The amount of finance for every individual is more than 500000 AED. The benefit that attracts the borrowers is that the installment period starts after 90 days of receiving debts. Thus, you will financially relax for the repaying of the repayments. Moreover, there is also one option of deferring 1 installment in a year.

HSBC Bank

The bank gives financial debts to customers for use as well as new cars. One unique thing about HSBC Bank is that it has an option for Balloon payment. This option is for those who want to apply for a new car. The bank receives the amount of debt after the payment of monthly installments from borrowers. Furthermore, the amount of installments is lower. Due to lower installments, borrowers can afford the obtaining of the loan.

Features & benefits 

If you have no account in HSBC bank, do not worry. It offers loans to every customer, no matter if they have an account or not. In addition, there is also no need for an account opening when applying for a loan. Even salary transfer is also not compulsory. The starting interest rate is less than 2%. If you are a fully eligible person, you can get more than 600000 AED amount as a loan. Individuals who want to change their car after every two to three years must choose this bank for getting car finances. Your dream of purchasing a new car becomes easier. Most importantly, the monthly income of a borrower must be higher than 10000 AED. For applying high amounts, make sure you have a good source of income per month.

First Abu Dhabi Bank

FAB bank is popular in offering different personal loans and credit cards. In general, the car loans of FAB are with competitive rates of interest. That’s why it is ideal for every self-employed & salaried person. You can choose any model of car to buy through the debt financing of this bank. The process of applying is quite easier.

Features & benefits 

Whenever you plan to purchase a costly vehicle in the UAE, First Abu Dhabi Bank is an appropriate choice. The maximum limit of loans is more than 1.5 million AED. But, we suggest you take on high debts when you have a higher income. In addition, the steady income source is a further positive aspect in the approval of a high amount of funds from this lender. The installment period will start after the 180-days of receiving the loan. Particularly, it is helpful when you do not need to repay the first payment instantly during the tenure. The tenure is longer, and each month the interest rate will add to the installment. This rate is only 1.98%. You should consider it for buying your dreamy car.