Auto Loans

When you dream for your own vehicle & the insufficient money makes it to vanish, Auto Loans helps you there to achieve your dream. A car loan helps you to get the car today and pay for it tomorrow.


  • The car loans can start from AED 500,000 and even go as high as AED 900,000.
  • The repayment period can range from 12-60 months.
  • Approximately flat interest rate will be 2.35% per annum. This interest rate is dependent on the banks.
  • You can choose between flat interest rates or reducing balance interest rates
  • You can Used Car Loan also.
  • 80% to 100% of the money needed to buy the car can be taken as a loan.
  • The car loan can be availed by the residents and even for expats also.


  • If you take car loans, then the minimum balance condition for getting a current account can be waived off by the bank.
  • These loans can be taken for all types of cars including sedans, saloon, 4X4 vehicles, etc.
  • Some banks will even provide car insurance.


Conventional car loan with/without salary transfer

In this, the loan can be taken as similar to the normal loans, based on maximum Auto loans amount bank can provide, tenure & the interest rate. These loans can also be taken with or without a salary transfer.

Islamic car loan or Ijarah

Islamic car loans follow the sharia rules of Islamic banking. In this, bank gets the vehicle on behalf of the customer and in turn he pays a specific amount for a fixed period of time. Once the payment gets over completely, then the ownership will be transferred to the customer. There is no concept of interests. The penalty paid for delayed payment will be given to the charity.

Interest free loans

These loans are similar to conventional loans but the borrower no need to pay the interest rate for a specified period of time

Car Loans without Down-payment: 100% Car Loans

In this type of loans, the banks will offer 100% cost of the car as loan.

Reducing Balance Car Loans

In this, the interest rate charged will be reduced as per the balance loan amount left, once the payment is done.

Used Car Loans

Everybody can’t be able to go for a new car. In such situation also, the customer can get a car with the help of the bank. Yes, Banks offer loans for used car also. This loan also have the same procedure as new car loan, but the banks will provide loans for such cars that are not older than specific time prescribed by the bank.

Difference Between Car Loan & Car Ijarah

  • Car loans can fund up to 80% of the car whereas car Ijarah can provide 100%.
  • Penalty for late payments with a car loan will be with the bank but with car Ijarah, the penalty will go directly to the charity.
  • In car Ijarah you will get Takaful insurance.
  • In car loan, the car will be yours from day 1 but with Ijarah, the car is actually owned by the bank till you complete the payment.
  • In some cases, only UAE Nationals will be allowed to avail this facility.


The documents required are.,

  1. UAE resident;
  2. Emirates ID;
  3. UAE bank account;
  4. UAE driver’s license.
  5. Salary certificate.
  6. 3 months bank statement.


  • The Car Itself : In most cases, the lender assumes the car itself as the collateral.
  • Another Vehicle : If the borrower has a second car, he can use it as a collateral. But the limit of liability with it should be only two.
  • Home Equity : This is a solid collateral given for most number of loans. This in turn makes the interest rate to become much lower.
  • Stock Certificates : Stock or bond certificates can also be used as collaterals.
  • Savings Account : A savings account can also be used as an easy collateral option, but you can withdraw the money other than the collateral /interest amount.


With no proper budget, you can have your own car before even paying the full amount.


Car loan includes higher & different interest rates that one should be aware before getting in to it. And if you delay your payment, then obviously the bank can seize your vehicle with no further considerations.