Compare Car Loan in Dubai with Bank Interest Rates for Local and Expats

  August 23, 2022    

Obtaining an auto Loan in Dubai is so manageable if you have the nationality of UAE, everyone wants to take a loan here to facilitate their lives. Whether it’s about the personal loan to handle all personal responsibilities or whether it’s about the personal vehicle in UAE. In every situation, loans can be very helpful and can make everyone’s life much easier than before. There is a craze about auto loans in UAE, especially due to the huge strength of youngsters here. They mostly do not want to depend on local governmental means of transport. They like to ride their car without depending on other means. These all youngsters are mostly job holders that can not afford to buy a new car directly. Therefore, they usually prefer the online car loan in Dubai, which would be the best option for their future.

Interest Rates for Car Loan in Dubai UAE

In UAE, anyone can avail the chance of an auto loan, expats or citizens, both can be eligible for car loans. They just have to prepare themselves according to the demands of the UAE banking system, bank may demand many things before giving loan approval. The auto loan comprises both loans, the new car loan, and the old car loan, both will be allowed according to their terms. Both consists of separated and well-maintained basic terms and conditions specifically made for auto loans. If we talk about the interest on both cars, so it will rely on their real prices and kind of loan. Because the ratios of interest and prices of both are not the same, new car interest is a bit more than the old car. you will find out a clear difference between these two loan categories associated with car loans in Dubai.

Factors connected with Auto finance in UAE

• Easy access
Most people think that getting auto finance from the bank is not easily accessible. Especially, when outsiders come to UAE, they usually think like that but in reality, it is a misconception. Auto finance in Dubai and even the whole emirates of UAE can easily be reachable. No matter, where you came from and what kind of job you are doing, you can apply for this loan without any interruption.

• Reasonable installments
The installments are manageable and perfectly affordable for all people living in UAE. Whether you are taking a new car loan or an old one the installment will never irritate you in both cases. Even if anyone is doing the job on a low level and does not have enough income, no problem at all. Anyone can avail the Auto finance with less income also, but people misunderstood auto finance actually. For your kind information, many people take car loans with their low income also on regular basis. So, it is just a rumor about the banking system of the UAE.

• Good for maintaining credit history
It is the biggest advantage associated with your future loan activities. If a candidate pays his or her all debt according to the mentioned duration of the bank without teasing at any point. So, it will be beneficial for candidates in the future, this credit history will increase their value in terms of future loans. If they apply for any kind of loan in the future, this history will make their position stable in front of the bank. The bank will give the loan on behalf of this good status record without further deep examination.

• Car of your own choice
Another advantage is that anyone can obtain the car by their own specific choice. Some people like to choose the new branded car in good condition with zero meters, but some like to select a used car. Via this loan facility, a candidate can get a new car loan and the old car as well.

• Interest vs credit score
This is how your good credit score will facilitate you with less interest on the loan. According to the terms of the bank, if a candidate maintains the credit score very well, their interest will decline. This means the fluctuated interest rate will be given to you if you gain a well-worthy credit score. Fluctuation means the decreased value or ratio of interest with the increased value of credit score.

• Expats can get an equal chance
Now expats should get excited because they can also obtain an equal chance of auto finance with all citizens of UAE. Nobody will ask them about their staying duration within UAE before approving your car loan. Now expats will not face any issues regarding the matter of new car loans or used car loans in UAE.

Bank's Interest Vs New and Old Cars

Interest rates of different dubai banks are also varied and dependent on the number of car loans. This comparison will prominent the rates and how these rates work with these banks on fluctuated rates.

• Abu Dhabi Commercial Bank ( ADCB)

It is considered the most important and popular commercial bank in the banking sector, the main branch is located in Abu Dhabi, UAE. If you want to apply in this bank for a new car make sure your minimum salary should not be less than 5000 AED. The loan for the new car will be not more than 500000 with an interest rate of 2.80. The time of repayment for the new car loan will be given to you for about 60 months.

When it’s about the matter of an old car loan, so the demand for salary will be also up to 5000. The maximum used car loan is about 500000 with a maximum duration of 48 months.

• Duniya Finance Car Loan

The second popular financial company is Duniya finance, which is serving the new auto finance facility with a minimum salary of 3000. Duniya finance is giving the new car loan of 200000 AED with the 9.6 ratios and a 1% processing fee. The candidate will have to pay the debt within 60 months without further delay.

For an old car loan, Duniya will give you 75000 as the maximum amount of auto finance with a time limit of 60 months. The interest rate will be the same with the new car and fee for processing is also the same.

• CBI Auto Finance

This bank will allow you to obtain a loan for a new car only if you earn 10000 AED on monthly basis. You will get the amount of loan for a branded new car up to 500000 with a ratio of 2.5. You should be punctual regarding the matter of installment, which is almost up to 60 months with 2% of the amount of processing.

For an old car, the salary and loan amount will be the same as a new car, respectively 10,000 and 500000 AED. But the ratio of interest will be not equal to a new car, it will be up to 3.5 with the 2% fee for processing.

• Arab Bank Car Loan

The next bank is the Arab bank which will give the 4.0 rate of interest for the new car with minimal pay of 10,000 AED. It will provide the loan up to 250000 with a repayment time of 60 months.

Similarly, the monthly payment required for a used car loan will be also 10,000 with a period of 48 months. The bank will allow you to take the maximum amount of loan in the form of 175000 AED along with the ratio of 4.25. The processing fee for both cars is balanced, up to 3%.

Relevant Papers

• You need to gather all relevant papers including, ID, and copies of your visa/passport.
• A certificate of your monthly salary is a fundamental need for this loan.
• The most important thing is your driving license, which is an essential part while applying for an Auto loan.