A car loan is a type of personal financing that helps you purchase a new or used vehicle by paying in installments over a fixed period. It enables you to spread the cost of your car while enjoying immediate ownership.
Age: Typically between 21 and 65 years
Residency: UAE residents with a valid residence visa
Employment: Stable job or business with proof of income
Minimum salary: Usually AED 5,000+ per month (varies by lender)
Good credit history (verified through Al Etihad Credit Bureau)
New Car Loans: Financing for brand new vehicles
Used Car Loans: For purchasing pre-owned vehicles, often with slightly higher interest rates
Dealer Financing: Offered directly through car dealerships with partnered banks
Choose a lender or dealership offering competitive interest rates and terms
Submit application online or in-person with required documents
Provide documentation such as Emirates ID, passport, salary certificate, bank statements, and proof of residence
Loan approval and vehicle valuation
Sign loan agreement and receive funds for the car purchase
Valid Emirates ID
Passport copy
Salary certificate or proof of income
Bank statements (typically last 3-6 months)
Vehicle details and quotation (for used cars or dealer financing)
Proof of residence (utility bill or tenancy contract)
Loan amount: Usually up to 80-90% of car value
Interest rates: Typically 2.5% to 7% per annum (varies by lender and loan type)
Tenure: Usually between 1 to 5 years
Down payment: Usually 10-20% of the car price
Processing fees: May apply, generally 1-2% of the loan amount
Own your car immediately without full upfront payment
Flexible repayment options tailored to your budget
Competitive interest rates with various lenders
Ability to build or improve your credit score with timely payments
Check for early settlement penalties
Understand late payment fees and impact on credit
Ensure loan terms fit your financial capacity
