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Car Finance Advice & Providers in the UAE

Car Finance Advice & Providers in the UAE

Looking for car finance in the UAE?

Read our advice on getting car finance in the UAE and view the full list of car loan providers in the UAE below.

Car Finance UAE

Taking an auto loan is the most popular way of financing a new car purchase in the UAE, and for good reason – car buyers can take advantage of extremely competitive interest rates making it a great option to buy your dream car.

But what do you need to consider when applying for finance, and how do you if you’ll get approved?

Find out below.

Who will give me car finance in the UAE?

Any financial institution in the UAE can provide car finance. See the full list of banks that provide auto finance in the UAE below, or ask your local dealership if they have their own registered finance company which may also be able to help.

What do I need to pay up front?

The UAE Central Bank dictates that all buyers must pay 20% of the vehicle value as a downpayment, however some dealerships are able to offer assistance with this payment.

Click here if you would like us to have your chosen dealership contact you for more information.

How long will I have the loan for?

You can take car finance in the UAE for periods from 12-60 months (5 years) with most banks.

The length of the loan will be dependent on how much you are willing to pay back per month – the more you pay each month the shorter the overall term of the loan will be, and the less interest you will pay.

How much can I borrow as a car loan in the UAE?

Most banks offer loan amounts high enough to cover almost any new car purchase, so you need to base your calculations on your monthly salary.

Start by taking half of your monthly salary then subtract any existing monthly loan repayments from that figure.

Next, take 5% of all of your credit card maximum limits, and subtract that as well. The resulting figure is the maximum monthly amount you will be allowed to pay.

Multiply the result by 60 (the maximum term offered by most banks) to see the total amount you can afford. Note that you will need to take 3-4% off this figure to account for the interest you will pay on the loan.

Car Loan in the UAE Example:

Monthly Salary15,000
Half of Monthly Salary-7,500
Existing Personal Loan Repayment-1,200
5% of 1st Credit Card Limit (20,000 x 0.05)-1,000
5% of 2nd Credit Card Limit (25,000 x 0.05)-1,250
Maximum Monthly Installment4,050
5 Year Loan Term60
Maximum Loan Amount (before interest considered)243,000

What other conditions are there for me to take a car loan in the UAE?

Each bank has its own criteria for how it decides if it will approve a finance application in the UAE. See our list of all banks below with some of the conditions specific to each lender.

There are some exceptions to this, but in general you will need to satisfy the following criteria for car loan approval in the UAE:

  • Minimum salary of AED 5,000 per month
  • Minimum age of 21
  • At least 6 months with your current company
  • A good credit score (see more below)

What does my credit score need to be to have a finance application approved?

Your credit score is stored and calculated by the Al Etihad Credit Bureau (AECB), which is a Public Joint Stock Company wholly owned by the UAE Government. The AECB collects information from financial and non-financial institutions in the UAE such as banks, credit card providers, and government agencies such as DEWA to calculate your credit score.

Each car loan provider in the UAE will make its own decision on what credit score it deems acceptable, but you can use the following as a rough guide:

  • Clients with a score above 600 will likely be approved
  • Clients with a score between 450 and 600 will likely be subject to further scrutiny and discussion to determine approval
  • Clients with a score below 450 will likely be declined

You can visit the AECB website here to find out your credit score. Please note it costs AED 31.50 for a basic credit score report.

What documents do I need to apply for car finance?

You will generally need the following documents to apply for car finance in the UAE.

Please note that requirements may differ slightly from bank to bank.

  • Last 3-6 months bank statements
  • UAE driver licence copy
  • Salary certificate no less than 30 days old
  • Copy of Emirates ID, passport, and visa page
  • Proof of the car sale price

Are there any hidden costs I need to watch out for?

Most banks charge a 1% processing fee for new car loan applications in the UAE. This fee is calculated as a percentage of the loan amount and is usually capped at around AED 2,500 (although this varies from bank to bank).

Always ask your car finance loan provider for a copy of their fee schedule up front to avoid any surprises when you decide to commit to the loan.

We hope you have found this advice helpful! If there’s anything else you would like to ask please contact us and we’ll be happy to help.

Read on for a full list of car loan providers in the UAE.

List of Car Loan Providers in the UAE

See below the full list of car loan providers in the UAE.

We only list banks here, if you are interested in finding out if your local car dealership offers finance please make an enquiry and we will be in touch to help.

This list is in alphabetical order.

Abu Dhabi Commercial Bank (ADCB)

Rate (From)2.25%
Max Loan Value1,500,000
ADCB Website >

Abu Dhabi Islamic Bank (ADIB)

Rate (From)2.75%
Minimum Salary5,000
Salary Transfer Required?No
ADIB Website >

Ajman Bank

Max Loan Value600,000
Minimum Salary5,000
Salary Transfer Required?No
Ajman Bank Website >

Al Hilal Bank

Minimum Salary5,000
Salary Transfer Required?No
Al Hilal Bank Website >

Arab Bank

Rate (From)2.49%
Arab Bank Website >

Bank of Baroda

Rate (From)2.75%
Max Loan Value1,250,000
Minimum Salary4,000
Bank of Baroda Website >

Commercial Bank International (CBI)

Max Loan Value500,000
Minimum Salary5,000
Salary Transfer Required?No
CBI Website >

Commercial Bank of Dubai (CBD)

Rate (From)2.18%
Minimum Salary8,000
CBD Website >

Dubai Islamic Bank (DIB)

Max Loan Value1,500,000
Minimum Salary3,000
Salary Transfer Required?No
DIB Website >

Emirates Islamic Bank

Rate (From)2.49%
Max Loan Value1,500,000
Salary Transfer Required?No
Emirates Islamic Website >

Emirates NBD

Rate (From)2.69%
Max Loan Value300,000
Minimum Salary4,000
Emirates NBD Website >

First Abu Dhabi Bank (FAB)

Rate (From)2.35%
Max Loan Value1,500,000
FAB Website >

HSBC Bank Middle East

Rate (From)2.59%
Max Loan Value918,000
Minimum Salary7,500
Salary Transfer Required?Yes
HSBC Middle East Website >

Mashreq Bank

Rate (From)3.45%
Max Loan Value500,000
Salary Transfer Required?No
Mashreq Bank Website >

National Bank of Fujairah (NBF)

Rate (From)2.20%
Max Loan Value1,000,000
NBF Website >

National Bank of U.A.Q (NBQ)

Rate (From)2.75%
Max Loan Value500,000
NBQ Website >

Noor Bank

Rate (From)2.64%
Max Loan Value500,000
Minimum Salary8,000
Salary Transfer Required?No
Noor Bank Website >

RAKBANK

Rate (From)2.35%
Minimum Salary5,000
Salary Transfer Required?No
RAKBANK Website >

Standard Chartered Bank

Max Loan Value1,000,000
Minimum Salary20,000
Salary Transfer Required?No
Standard Chartered Website >

United Arab Bank (UAB)

Rate (From)2.99%
Max Loan Value500,000
Minimum Salary7,500
Salary Transfer Required?No
UAB Website >