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Car Loan in the UAE

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Finance your Vehicles in UAE with Dhanguard

You don't have to wait or think twice before grabbing that sleek, wonderful ride. With the concept of vehicle loans in existence, getting a new car is more easier and quicker than it used to be. Today, practically all major banks offer auto loans in the UAE and Dubai, with reasonable interest rates, flexible repayment terms, and a variety of other incentives.

Features & Benefits of taking Vehicle Loan Consultation from Dhanguard-

  • Low and Negotiable Interest Rates
  • Easy Processing
  • Compare various Vehicle Options available

 

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Buying a car is made simple and hassle-free with Dhanguard Vehicle Finance in UAE. We provide you with the prospect to bring home the car you always wanted with the minimum possible trouble including paperwork & payments.

What are the Documents Required for acquiring Vehicle Finance in UAE?

The documents required for acquiring Vehicle Finance are as follows-

Documents Required for acquiring Vehicle Finance in UAE

Income Evidence

You are required to submit your salary certificate or any documented evidence to show your income.

Bank Statement

You need to submit bank statements for three months for your salary account as well.

Identity Proof

You are required to submit copy of valid passport with a valid UAE Residence Visa. The latter is only applicable for emigrates itself (You also have to show your original documents for verification).

Post-dated cheques

You need to submit a post-dated cheque if it is applicable

Security Cheque

You need to submit a cheques as security for your loan

Documents from dealers

You need to obtain a quotation or pro-forma invoice from the dealer for acquiring loan for new vehicles.

Driving License

You need to submit a copy of your driver’s license. (Only in cases where it is asked for)

If you want to take loan for used cars, then following documents are required to avail the loan-

  1. A valuation certificate issued by an approved dealer
  2. An ownership title
  3. A quotation or offer to sell the vehicle to the bank from the current vehicle owner.

If you want to take loan for car and you are a company then the following documents are required

  1. You need to submit your Trade License
  2. You have to submit the Bank Statement for 3 months of the company
  3. You have to submit a list of authorized signatories on behalf of the company (wherever it is applicable)
  4. Memorandum of Association
What are the method in which one can repay the finance?

One can repay the finance using the following prescribed methods:

  1. Online banking
  2. Mobile banking
  3. Phone banking.

What are the important things to remember before taking Vehicle Finance in UAE?

The important things to remember before taking Vehicle finance in UAE

  1. Factors like credit history, documentation and the capability to repay the finance amount can contribute in approval of vehicle finance.
  2. If the auto finance is in your name, you need to be present at the time of receiving the vehicle.
  3. The maximum auto finance amount available is 4 M. Terms and Conditions Apply.
  4. The profit rate ranges from 1.80% to 2.95% for salaried customers.
  5. The processing fees is 1% of the finance amount, with a minimum of 500 AED and a maximum of 2500 AED.
  6. Vehicle Insurance is a mandatory for registration of car. To know the best rates for Insurance of Motor, checkout our Quotation available at Motor Insurance Page.
  7. The grace period for the 1st instalment is up to 60 days.
  8. You cannot reschedule auto finance.
  9. You cannot buy-out your vehicle finance.

What is the eligibility criteria for applying a Vehicle Finance in UAE?

The eligibility criteria for applying for a Vehicle Finance are mentioned below-

  1. Salaried Segment
  2. Self Employed or Companies
  3. AED4K (ALE with Transfer of Salary or Non ALE with Transfer of Salary and good CASA score)
  4. AED 5K (Non ALE, Salary Transfer or ALE, Non Salary Transfer)
  5. AED 7K (Non ALE & Non STL) or  Private deals
  6. AED 15K (Used sports cars)
  7. Min Average Balance of AED 20K

Few Considerations before Applying for a Vehicle Finance in UAE

Some of the considerations to look into before applying for Vehicle Finance consists of the following-

  1. To apply for a Vehicle finance, you require certain documents like your passport, Emirates ID, Labour card, salary certificate, 3 months of bank statements and a driver’s license as well. Along with these documents you need car’s registration number, valuation certificate of the car as well as the insurance policy documents.
  2. In the UAE, you are required to be at least 21 years of age to apply for an Vehicle Finance. Besides, minimum salary requirements can vary from bank to bank but mostly its start around AED 3,000-5,000.
  3. Some banks grants finance for new or used cars for a determined period of 60 months. However, for much older cars the tenure can be even shorter than 60 months.
  4. Banks only finance 80% of the value of the car and need a 20% down payment in advance. The down payment is generally paid to the bank, though some want that the down payments to be settled straight away with the car owner before the bank finances the rest of 80% of the amount.
  5. Many banks require a minimum amount of loan they will finance for auto car loan that is around AED 20,000. And since banks finance 80% of the car’s price, it states that your preferred car of choice should have a minimum value of AED 25,000 to succeed for the finance.

Frequently Asked Questions

A Vehicle Finance is basically a loan that is supported by any financial institution or bank in order to buy a vehicle. With a Vehicle Finance, you are not compensating on the devaluation of the vehicle like you do with a lease. You will be paying on the vehicle purchase price plus interest on it.

The bank or any financial institution provide finance for Vehicle for a period of 5 years for new or old cars. In case the car is much older than the time period is much shorter than the set limit.

Yes, the amount for down payment will be 20% of the car’s price.

Yes, this can be done as per the prevailing policy guidelines.

Dhanguard has an expert group of team that works for the satisfaction and ease of their clients in providing the required services. For acquiring hassle free services contact our well-knowledged team at Dhanguard.

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