You don't have to wait or second-guess yourself when it comes to getting your hands on that sleek, gorgeous ride. Getting a new car is now more easier and quicker than it used to be, thanks to the concept of car loans. Furthermore, given the current market conditions, getting financed with a car loan rather than paying cash is a better option. Almost all major banks now offer auto loans in the UAE and Dubai, with attractive interest rates, flexible payback terms, and a variety of other advantages. Given that you are a well-informed buyer, obtaining car finance in Dubai is a pretty simple and painless process in today's world.
Documents Required for Car Loans in the United Arab Emirates
A series of documentation, just like any other loan, is required when applying for a car loan. A checklist to guide you through the documentation process is provided below:
Documents required for Self-Employed Applicants
- Duly filled car loan application form
- Copy of Passport
- Emirates ID
- Visa page from resident Visa proving residency
- Driving license of the applicant
- Bank statements – preferably for the last three months
- Trade license of the business
- Power of attorney (POA)
- Memorandum of Association (MOA) or Article of Association (in case of LLC)
- Partnership agreement (in case of LLC)
Documents required for Salaried Applicants
- Car loan application form filled by the applicant
- Copy of Passport
- Emirates ID
- Visa page from resident Visa proving residency
- Driving license of the applicant
- Bank statements – preferably for the last three months
- Salary Certificate of the applicant (not required if the salary is transferred to the bank providing you with the loan itself)
Some banks may additionally request extra documentation, such as a new car dealer's quotation, a used car dealer's appraisal, and so on, depending on their rules. Confirm the documentation needed with the bank where you're getting your car financed.
Major documents that should be kept in mind while Buying a Car Loan
Major documents required for Buying a Car loan in UAE are as follows-
Proof of Identity
Lenders are obligated by federal law to verify the identity of their customers. For the most part, a driver's license, passport, UAE visa, or other government-issued picture ID with your name and photograph should suffice. Lenders may be able to verify your identification without requiring paperwork in some cases. In some cases, the lender may seek assistance from third parties, such as a consumer reporting agency.
Proof of Income
Before financing an automobile, lenders want to make sure you'll be able to pay back your loan. This is more than merely crunching numbers based on a rate of interest. To decide if you'll be able to repay the loan, lenders will look at your income, assets, employment, credit history, and monthly spending.
Take copies of your last month's pay stubs, which show the amount of what you've been paid year to date, with you when you apply for your loan. You may also be able to demonstrate proof of income with bank statements (be prepared with up to six months of statements) or the lender may call your employer to verify your employment and income in some situations.
Proof of Residence
Lenders are required by law to acquire information about your home, as well as confirmation of residency. Most lenders may be satisfied if your driver's license is current or if the address you supplied on the credit application matches the address on your credit report. However, if you have just relocated, you may be required to present further paperwork. You might be able to use a piece of personalized mail from the previous month, such as:
- Utility bill
- Mortgage statement
- Lease agreement
- Credit card or bank statement
- Property tax bill
- Medicaid or Medicare benefit statement
- Homeowners or renters’ insurance policy
Information of Vehicle
If you finance through a dealership, the dealer will provide the lender with full car details. If you're dealing directly with a lender or buying a car from a private seller, you'll need to get or fill out a bill of sale, purchase agreement, or buyer's order, which should include the following information:
- Price of purchase
- Number assigned to a vehicle (VIN)
- Model, year, and make
If you're buying a used automobile, ask the seller for the above information, as well as the car's mileage, original title, and a list of any liens on the vehicle.
Insurance Proof
You'll be requested to present proof of insurance after signing a bill of sale for a vehicle. Before you may drive the vehicle from the lot, your insurance must comply with your state's standards as well as any additional lender requirements.
If you already have vehicle insurance, your new automobile purchase may be covered for a period under your current policy, so make sure to check.
Eligibility of for Buying a Car Loan in UAE
You must meet the following requirements in order to apply for a car loan in Dubai.
- You must be a citizen or an expat living in the country.
- You must be between the ages of 21 and 65.
- You are in possession of a valid driver's license in the country. If you don't have a driver's license in the UAE, the one you have in your home country should suffice.
A minimum salary of AED 5000 for new automobiles and AED 8000 for old cars is needed by the bank.
How to Apply for Car Loan in UAE?
The world has become a digital playground for various banking goods and services. Here are a few simple ways to apply for a car loan in the United Arab Emirates:
Application over the Internet
The simplest way to apply for a car loan is to do so online. On the vehicle loan page, most banks have a link to the application portal or an application form. All you must do now is fill in the necessary information and submit your application. The bank will contact you to discuss the loan's terms and move the process further.
Application that can be used Offline
The typical way to apply for a car loan in the UAE is to go to the bank's nearest branch and negotiate the terms of the loan. Once you've made your decision, you may pick up an application form at the branch. Fill out the application, attach the relevant documents, and send it to the bank for processing. Make sure you double-check with the bank for all the application's essential paperwork.
Benefits of Having a Car Loan in UAE
Following are the benefits of having Car Loan in UAE-
- When compared to the rest of the globe, the cost of a car loan in UAE is extremely low. You will be charged between 2% and 4% for taking out the loan.
- You do not need collateral to obtain a car loan because the vehicle itself serves as collateral.
- When you pay off your car loan on time, it can improve your credit score. This will make it easier for you to have other loans processed quickly.
Conclusion
Obtaining a car loan in Dubai is not difficult if you are eligible and have all the required documentation. Because Dhanguard have relationships with bank personnel, they can assist you in obtaining the loan that best suits your needs.