Volkswagen Car Loan

Most leading banks in the UAE offer convenient financing options to help customers purchase the Volkswagen cars they have been interested in.To help you purchase your new car with maximum convenience, covered below are the top Volkswagen car loan options that you can navigate through.

Features and Benefits of Volkswagen Car Loan

• High Finance Amounts: Depending on the kind of vehicle you wish to get financed, you can avail of up to AED 5 million as a car loan amount from banks in the UAE. Most banks in the UAE offer exceptionally high loan amounts that can help you buy your dream Volkswagen car with ease. The key aspect here is that compared to passenger vehicles, business and commercial vehicle loans often get higher amounts sanctioned due to the higher price of the vehicles or the larger number of vehicles to be financed.
• Convenient Loan Tenure: Banks in the UAE generally offer up to 60 months as car loan tenure, with the available minimum loan tenure generally being of 12 months. Thus, applicants are free to select any tenure between 12 and 60 months at their convenience. The tenure can also be adjusted once the application is approved to have the monthly installment amounts fit your budget.
• Swift Processing: Volkswagen car loans are generally processed within a few hours as the processing begins as soon as you submit your application form with the documents. The bank receives your application, runs an eligibility check, examines your loan requirements, and calls you back for further procedure – all done quickly so that the customer can receive the required funds without much delay.
• Customised Loan Products: Volkswagen car finance products are available in the UAE with favorable car loan interest rates, flexible loan repayment tenure, choice of car loan amount, and various other benefits. A majority of banks also offer separately catered products to finance different types of vehicles related to personal, business, or commercial usage. Moreover, you will also find separate loan solutions for salaried and self-employed individuals.
• Special Rates for Volkswagen Loans: Several banks apply certain discounts on car loans for different car models. You can often find discounted car loan interest rates for your new Volkswagen car with several top banks in the UAE. The discount is generally applied to the approved flat interest rate that you receive from the bank after the processing of your application. You can then choose to convert this rate into a reduced rate to ideally match your needs.
• Easy Online Application Process: All the top banks in UAE offer a seamless online application process for Volkswagen car finance. Applicants can easily submit their loan application form and documents using the official website of their bank. For further benefits, attractive rates, and convenient comparison of the top plans, one can use another online platform like Policybazaar UAE. Using policybazaar.ae, you can easily secure the best car loan product for your car with minimal effort and formalities.

Top Banks Offering Volkswagen Car Loans in UAE

Several banks in the UAE offer convenient financing solutions for Volkswagen car loans in the UAE. Given below are a few details of the top 5 banks offering car financing options for Volkswagen car finance and Volkswagen car loan interest rates:

1. Emirates NBD Car Laon

Emirates NBD Volkswagen Car Loan Particulars	Details
Maximum loan amount	AED 3.5 million as per the loan type (business vehicle or personal vehicle loan)
Volkswagen car loan annual interest rate	1.99% onwards
Maximum loan tenure	60 months
Maximum finance ratio	90% (again depending on the loan type)
Special benefits	Salik Recharge Roadside assistance  RTA fine payments  Free bank account  Free credit card for the first year

Click Here to Apply Now

2. Emirates Islamic Bank Car Laon

Emirates Islamic Volkswagen Car Loan Particulars	Details
Maximum loan amount	AED 1.5 million
Volkswagen car loan interest rate	Starting from 1.80%
Maximum loan tenure	60 months
Maximum financing ratio	80%
Special Benefits	Up to 60 days of grace period for the first instalment

Click Here to Apply Now

3. FAB Car Loan

FAB Volkswagen Car Loan Particulars	Details
Maximum loan amount	AED 1.5 million
Volkswagen car loan interest rate	2.49% (per annum) onwards
Maximum loan tenure	60 months
Maximum financing ratio	80%
Special Benefits	Up to 180 days of grace period for the first instalment

Click Here to Apply Now

4. Abu Dhabi Commercial Bank (ADCB) Car Loan

ADCB Volkswagen Car Loan Particulars	Details
Maximum loan amount	AED 1.5 million
Volkswagen car loan interest rate (per annum)	1.99% onwards
Maximum loan tenure	60 months
Maximum finance amount	80%
Special Benefits	Earn 50 TouchPoints for every AED 1,000 of your loan amount

Click Here to Apply Now

5. RAKBANK Car Loan

RAKBANK Volkswagen Car Loan Particulars	Details
Maximum loan amount	As per bank regulations
Volkswagen car loan interest rates	2.37% onwards
Maximum car loan tenure	60 months
Special benefits	60 days grace period for the first loan payment

Click Here to Apply Now

Volkswagen Car Loan Eligibility

• Nationality: Most banks in the UAE offer Volkswagen car finance to both UAE nationals and residents. However, the applicants must be ready with the required identity proof documents like Emirates ID, Passport, and resident Visa.
• Age: All applicants over 21 years of age can apply for car loans in the UAE, and this applies to both UAE nationals and residents. Banks also apply a maximum age limit which can range between 65 and 70 years as per the applicant, their income, and bank regulations.
• Income: A minimum income criterion will be applicable for your Volkswagen car loan, although the exact requirement will differ for each bank. The minimum salary requirements can range between AED 4,000 and AED 20,000 per month as per the bank and the Volkswagen car loan product of your choice.
• Employment: Generally, both salaried and self-employed individuals are eligible to apply for Volkswagen car finance in the UAE. However, with some banks, you can expect different loan products and terms and conditions for self-employed and salaried individuals.
• Credit History: Most banks may offer Volkswagen car loans even if you have a low credit Score and bad credit history, albeit at higher interest rates and stricter conditions. However, extremely low credit scores can lead to immediate rejection. Scores ranging from 300 to 540 are categorised as very low in the UAE by the AECB. So if your credit score ranges in the 300s, there is a high chance of rejection of your application.

Application Process for Volkswagen Car Loan

The application process for Volkswagen car finance is quite simple, as you will simply need to fill out the application form for the loan, attach the required documents, and submit all of them. The bank of your choice will receive the application and contact you once the processing is complete.

If your Volkswagen car loan application is approved, you can proceed further by deciding the particulars of the loan. The bank will send you a pre-approved schedule of the loan with the approved interest rate and loan amount. Generally, banks approve the tenure that you request in your application.

The next section covers how you can send your Volkswagen car loan application.

How to apply for Volkswagen Car Loan?

You can easily apply for Volkswagen car finance in UAE online in just a few steps from our website. You can find below a detailed description of the steps involved in the same:

Via Policybazaar.ae

Applying for a best car loan in UAE could often appear challenging, with the sheer number of available options sufficient to confuse even experienced loan seekers. With Policybazaar UAE, you can easily cut through all the confusion and simplify your search in the most convenient way.

With policybazaar.ae, you will be able to thoroughly compare the best loan plans for your Volkswagen car in just one place. Moreover, you can also apply for a particular plan once you decide on it from our website. Thus, you can get the best deals for your car most comfortably from Policybazaar UAE.

To apply for a Volkswagen car loan in UAE, simply follow these steps:

• Visit Policybazaar.ae and head to the car loan section from the drop-down menu of banking products
• Fill out the lead form on this page using your personal information and submit it
• You will be redirected to the quotes page of car loans after you submit the form
• Navigate through the available options and compare them to find the most suitable one for your Volkswagen
• Once you have chosen the car loan product, click on the application button
• Provide further information and documents, if required
• Submit everything after verifying all the information
• Policybazaar UAE will soon get in touch with you after verifying the details mentioned in your application
• Follow the instructions of the executive connecting with you to complete the

Documentation Required to Get Volkswagen Car Loans

The documents required to apply for Volkswagen car loans in UAE depend on the bank that you choose to finance your car. Some banks ask for multiple stacks of documents, while others may require only a handful.

The following sections cover all the plausible documents you may need to get a Volkswagen car finance in the UAE:

Common Documents for all Applicants

• Emirates ID of the applicant - original and a copy
• Passport and resident Visa - original and a copy
• Price quotation from the dealership
• Driving licence of the applicant
• Properly filled and signed application form
• Valuation certificate of the car for used vehicle finance
• Post-dated cheques and/or security cheques
• Insurance documents

Special Documents Required for Salaried Individuals

• Salary certificate from the employer
• Bank statement for the past 3 to 6 months (as per bank’s requirements)

Special Documents Required for Self-Employed Individuals

• Trade licence of the company
• Bank statement for the past 3 to 6 months

Special Documents Required for Companies

• Trade licence of the company
• A proper list of authorised signatories of the company
• Passports and emirates IDs of all co-signatories of the loan
• Bank statements for the past 3 to 6 months
• Memorandum of Association

What are Advantages of having Volkswagen Car Finance in UAE?

• Helps in Building Your Savings: The first and foremost benefit of buying your Volkswagen car using a car loan in UAE is that you can save your liquid cash and bank balance for emergencies and other expenditures. With a proper loan for your car, your hard-earned money can be better invested in other promising ventures that yield higher returns. Moreover, besides saving enough for your emergency funds, you can also build your wealth and have a leisurely ride for your daily commute by using car finance to buy your Volkswagen.
• High Financing Amounts: Volkswagen car loans in the UAE come with high financing amounts, which ensure that borrowers can easily get any Volkswagen car they desire. Borrowers can get up to AED 3.5 million to finance any personal Volkswagen car in the UAE. The loan amount, however, can depend on the bank you have chosen and your repayment capabilities as gauged by the bank.
• Low Interest Rates: You can easily secure a car loan in UAE for Volkswagen cars at low rates, with the interest rates for Volkswagen car loans beginning at as low as 1.80% per annum only. Several banks also run occasional Volkswagen finance deals on their car loan products for different brands which can help you get even lower interest rates for your Volkswagen car loans. The key factor to consider here is that banks decide interest rates for each borrower depending on their risk profile and credibility. Consequently, if you have high credit scores, you will be able to finance your Volkswagen at almost negligible interest rates.
• Improves Credit Score: Choosing to finance your Volkswagen car instead of paying upfront for it can be immensely beneficial for your credit score. Your score improves significantly when you diversify your credit portfolio. By building your credit score using small car loans, you can score lower interest rates for a bigger loan in the future. Car loans are excellent options to build credit scores for people with medium to high credit scores.
• Unsecured Loans: Being unsecured loans, you don’t have to arrange for collateral when you wish to have your Volkswagen financed using car loans. The car that you get financed using Volkswagen car loans in UAE acts as the collateral itself. So if you fail to repay your car loan, the bank will have the right to sell off the car to cover the loan amount due. However, this also means that a higher resale value of your car can fetch better loan interest rates for you.

How to Calculate EMI for Volkswagen Car Finance?

Calculating the equal monthly payment amount for your Volkswagen car finance is a matter of seconds using online car loan calculators. Car loan calculators are easy-to-use online tools that can help you estimate the monthly payment amount as per the car loan specifics chosen by you.

To use most of these online car loan calculators, you will need to provide the repayment tenure of your loan, loan amount, and interest rate. Notably, some calculators may require you to enter down payment amounts as well.

After entering all the required information, hit ‘calculate’ to get an estimate of the monthly installments for your car loan. You can also get a payment schedule drawn up as per flat and floating interest rates if the calculator of your choice has this feature.

Charges and Fees Applicable for Volkswagen Car Loan & Finance

Banks and finance houses may charge several fees or fines related to your Volkswagen car loans in the UAE. And while some differences may be observed, the fees and charges applied by most banks are generally the same.

The following are the fees generally applicable to car loans in UAE as per the situations and requirements:

Particulars	Details of the Fee
Advance Payment of Monthly Instalment	1% of the amount being paid in advance
Late Payment Charges	Different for almost all banks
Early Settlement Fee	1% of the outstanding loan amount
Processing Fee	1% of the total loan amount requested in the loan application (to be paid at the time of application form submission)

Note: 5% VAT is applicable on the Volkswagen car loan fee and charges applied by the banks. 

Other applicable charges that generally differ for most banks include:

• Partial settlement fee
• Liability letter fee
• Instalment deferment charges 
• Loan rescheduling fee
• Issuance of liability letter

Volkswagen Car Finance Repayment Options

• Equal Monthly Instalments: Charged and calculated as per flat rate interest rates, equal monthly payments allow you to slowly repay the loan amount by paying a pre-decided amount each month that stays the same throughout the loan tenure. Equal monthly instalments are the most common way to pay off Volkswagen car loans in UAE.
• Reducing Monthly Instalments: Reducing instalment amounts are calculated using a reducing rate of interest on the remaining due balance of the total loan amount. The monthly payment amount is initially higher since the total due loan amount is high. However, the amount keeps reducing towards the end of the tenure as you keep paying off the loan slowly.
• Balloon Payments: In a balloon payment set-up, banks allow borrowers to make lump sum payments of their loan amount towards the end of the loan tenure. Before that, however, the borrowers will be required to keep paying off the loan using the common equal monthly payment set-up in the beginning.

This payment option is generally considered suitable for individuals who like to switch cars within 3-4 years.

Methods to Pay Volkswagen Car Finance Monthly Instalments

• Net banking portal of the bank
• Mobile banking portals
• AutoPay using debit card accounts
• Cheque or cash deposit at the bank branch

Most Popular Volkswagen Cars in UAE

Car Models	Ex-Showroom Price
Volkswagen Golf	AED 96,000 to AED 116, 445
Volkswagen Touareg	AED 192,000 onwards
Volkswagen Tiguan	AED 102,000 to AED 141,000
Volkswagen Passat	AED 96,500 to AED131,000
Volkswagen Jetta	AED 79,900 to AED 98,500

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