Steps to get a Car Finance in UAE

2. 
 However, when it comes to buying a car, local auto
loan interest rates are relatively low at 2 to 4 per cent
versus more than 5 per cent in other markets.
 The first thing they should be aware of is, In UAE
banks have a minimum eligibility criteria for
securing a car loan.
 Factors you should consider when signing up for car
finance in UAE.
Introduction

3. 
 Al most all loans have a tenure of up to a maximum
of 60 months.
 Usually it will be shorter for used cars.
 So an old model you today buy could only secure
finance for under two years.
Tenure

4. 
 You will get up to 80% percent finance for your new
car only finance 80 per cent and you should pay 20%
percent down payment.
 The down payment is generally paid directly to the
bank, which then in turn settles the full value of the
used car with its owner.
 If you are lucky enough you may get 0% down
payment at the time of promotion and campaigns of
dealers.
Down Payment

5. 
 Minimum finance value differs from bank to bank.
With the help of comparison website you can
easily compare car loan in uae.
Minimum Loan Value

6. 
 Your monthly payments will be half of your salary
so that the resulting Equal Monthly Instalments
(EMI) of your used car loan cannot be greater than
half your salary minus existing liabilities, which
includes credit cards.
 If your salary is 12000 a month, your car loan
instalments will not be greater than 6000 in a month.
 If you are already having another loan, then that will
be counted as your existing liabilities.
Monthly Payments

7. 
 To help you calculate how much you can borrow, start off with
half of your monthly salary and subtract any existing monthly
instalments that you already pay.
 Then subtract 5 per cent of all your credit card limits. This will tell
you the maximum monthly car loan instalment you are eligible
for.
 Then multiply this by 60 months, with the resulting figure the
approximate car value you can go for.
 Reduce that number by 3 to 4 per cent to account for the interest
your lender bank will charge you.
 Now that you know the numbers, you can actually start shopping
for a car.
The Car You Can Afford

8. 
 To apply for the loan, you must submit three
months’ bank statements, a salary certificate and a
valuation certificate for the car you want to
purchase.
 You must also be a UAE resident, have a valid UAE
driving license and have a clean financial record,
backed up by a salary certificate
The Documents You Need
For A Car Loan