Car loans have become a necessity nowadays for purchasing a car in UAE. There are a number of factors, such as interest rates, benefits included and processing time, that needs to be considered before selecting a particular loan. A number of banks offer car loans for both new and used cars.
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Favorable car loans offered by some of the banks in UAE
Is a sharia-compliant car finance. They provide car finance for both used and new cars with an interest rate of 2.35%. The reason it is made to the list is because of its feature that allows you to repay the loan early with 0 early settlement fee. Hence if you think you have the capability of repaying the loan early, then this is the loan for you.
Other features/benefits of Al Hilal car loan are:
- Competitive profit rates
- No salary transfer required
- Joint income possibility (with blood relatives only)
- Takaful (Islamic Insurance) arrangements and financing
The Emirates NBD offers a package deal for their auto finance, which includes half-day approval, flexible payment options, online Salik recharge, free annual registration renewal service, round the clock roadside assistance, free bank account etc.
Other features/benefits of Emirates NBD car loan are:
- Flat interest rate starts at 2.49%
- Minimum salary requirement is AED 10000
Availing a car loan from Standard Chartered bank is very convenient. It covers the financing of both new and used/ pre-owned cars. It has a fast processing service, allows flexibility with a tenure of 60 months.
Other features/benefits of Standard Chartered car loan are:
- Borrow up to AED 1 Million depending on your monthly income.
- Waives the minimum balance requirement on your transaction account during your loan period.
- Interest rates of 2.49 percent.
- For used cars, the minimum salary requirement is AED 8000 on a flat 3.5% p.a rate.
- Down payment of 20% necessary.
ADIB provides car loan options with 0% down payment. It has partnerships with auto dealers, bringing exclusive car deals. It also provides up to 3 months grace period.
Other features/benefits of ADIB car loan are:
- Flat Rate starts from 2.59%
- Free ADIB VISA Cashback Card
- Full comprehensive Takaful cover
Along with providing financing for both used and new cars. HSBC provides an additional feature such as Balloon payment option for new cars:
A balloon payment is a lump sum amount owed to the bank at the end of a loan term after all regular monthly repayments have been made, this offers benefits such as lower monthly installment, increased affordability, cash flow management.
Other features/benefits of HSBC car loan are:
- Interest rates starting from 2.49% p.a. for a new car and 3.49% p.a for used cars.
- No salary transfer
- No account opening is required
- Loan amounts up to AED 918,000 depending on eligibility.
These are few loans that you can consider. However, it is advisable that you do a thorough check and compare every loan before finalizing one.