Various local banks in the UAE offer large number of car financing schemes for new and used cars. These car loans vary in terms of interest/profit rate, their on-going offers and other benefits. The main aim of these loans are to provide customers with convenient and easy-to-return car loans and at the same time make a decent profit.
There are a few things one needs to consider when buying. Firstly, whether you want to buy a new or a used car? This entirely depends on your budget and how much loan you want to apply for from the bank. Banks usually offer different loan policies for new and used cars. Second is the down payment: this car financing scheme varies according to the kind of loan you go for. Typically, banks in the UAE require you to pay 20 percent of the car value as down payment and only once that is down the car loan will be given to you. If you wish to get a loan from an Islamic Bank then you may not require to pay any down payment. And thirdly, Islamic or Conventional: The terms of finance for Islamic (offers Shariah compliant) and Conventional vary slightly.
Here below is a list of Best Car loans in the UAE which has great deals to offer to its customers:
- DIB Al Islami Auto Finance (New Cars): DIB Al Islami Auto Finance is a Shariah Complaint auto finance with a profit rate of 2.25% p.a. Monthly income required is AED 3000 per month. Finance on this car loan is offered up to AED 1 million with a tenure of 60 months.
- ADIB Car Ijarah (New Cars): ADIB Car Ijarah is a Shariah Compliant auto finance with 0% down payment. It offers a profit rate starting from 3.99% for both salaried and self-employed. The Car Ijarah finances new or used cars not more than 1 year old. It offers 100% car finance with extended warranty.
- UNB New Car Loan: This car finance offers an interest rate of 2.25% p.a. for salary transfer customers & 3.49% p.a. for non-salary transfer customers. Minimum salary required is AED 8000 per month. For those individuals with salaried equal to or above AED 20,000 get a new car at a flat rate of 1.49% with a repayment period of 12 months.
- RAK Auto Loan for Salaried Individuals (Used Cars) offers 3.75% rate of interest for those individuals whose salary is transferred to the bank and 3.99% for non-salary transfer customers. The bank offers finance up to AED 750,000 for business customers for a 60 month tenure. A minimum of 20% down payment is required for salaried customers and 0% down payment for all businesses & self-employed customers.
- Emirates NBD FD Deposit Auto Loan: This is unique auto loan package that lets your car into a return-yielding asset. The interest rate offered is 2.99%. With this loan you also get a free credit card for the first year