Car Loan Eligibility in UAE

What is a Car Loan?

A car loan allows you to purchase vehicles by borrowing funds from banks or financial institutions. This type of loan comes with fixed or reducing interest rates, making it easier for you to manage your payments and budget.

Car loan eligibility in UAE depends on various factors such as the applicant's age, salary, nationality, credit Score, employment status, and debt-to-income ratio. These criteria help lenders determine the risk of lending and your ability to repay the loan. This ensures responsible and transparent lending practices.

Top Car Loan Plans in Dubai

What are Car Loan Eligibility Criteria in the UAE?

We have mentioned the general car loan eligibility to help you get started:

Eligibility Criteria	Requirements
Minimum Age	21 Years
Minimum Salary	AED 5,000
Nationality	UAE National and expatriate
Employment Status	A self-employed individual or salaried employee
Credit Score	As per the bank’s requirement

Car Loan Eligibility for Top Banks in UAE

When applying for a car loan, you need to fulfil the above-mentioned eligibility criteria. However, different banks can have their own requirements that you may need to meet during a car loan application. Let’s have a look at car loan eligibility criteria for top banks in the UAE. 

1- Emirates NBD Car Loan Eligibility Criteria

Emirates NBD provides a high loan amount for purchasing your dream car. Additionally, the bank offers preferential rates if you hold a salary transfer account with them. However, you need to satisfy the car loan eligibility criteria before acquiring the loan. Emirates NBD car loans are available to the following individuals.

• Individual Applicants
• Self Employed individuals
• Businesses and corporates

Following are the car loan eligibility criteria for Emirates NBD bank.

Car Loan Eligibility	Requirement
Age	21 years
Monthly Income	AED 4,000 per month with salary transfer and a good CASA score AED 5,000 without salary transfer AED 7,000 for self-employed
Nationality	UAE Nationals and Residents,  and Expatriates
Minimum Average Balance in Bank Account	AED 20,000
Down Payment	20% of Car invoice cost
Salary Transfer Required	No

Click Here to Apply Now

2- ADCB Car Loan Eligibility Criteria

ADCB car loans are amongst the most affordable loans in the UAE. With a salary transfer account, you can also ensure a high loan amount at preferential rates. The bank offers both new and used car loans for almost every car model available in the country. ADCB car loans are available to salaried and self-employed individuals, businesses, and corporate entities. Following are the eligibility criteria for ADCB car loans in the UAE.

Car Loan Eligibility	Requirements
Age	21 years
Monthly Income	AED 5,000 or above for salaried individuals
Nationality	UAE nationals Residents with visa permit Expatriates
Down Payments	20% of the car invoice cost
Salary Transfer Required	Optional

Click Here to Apply Now

3- DIB Car Loan Eligibility Criteria

Dubai Islamic Bank is renowned for providing convenient and affordable car loans with competitive profit rates.  The bank also offers lenient eligibility criteria along with low salary requirements. Depending on your relationship with the bank, you can get a high loan amount of up to AED 1 million and a repayment tenure of up to 60 months. Given below are the key requirements to apply for car loans in Dubai Islamic Bank.

Car Loan Eligibility	Requirements
Age	21 years
Monthly Income	AED 3,000 or above for salaried individuals
Nationality	UAE nationals Residents with visa permit Expatriates
Down Payments	20% of the car invoice cost
Salary Transfer Required	Optional
Minimum Finance Amount	AED 10,000
Other Requirements	Salaried individuals need to be employed for at least a month in the current company

Click Here to Apply Now

4- ADIB Car Loan Eligibility Criteria

Abu Dhabi Islamic Bank car loans are easy to acquire thanks to their lenient eligibility criteria and documentation. In addition, you can obtain up to AED 1 million as a car financing amount depending on your relationship with the bank. Notably, you don’t need to hold a salary transfer account with the bank in order to apply for car loans. The bank also offers financing options for used cars in the UAE. Following are the eligibility criteria to apply for ADIB car loan.

Car Loan Eligibility	Requirements
Age	21 to 65 years (for UAE Nationals) 21 to 60 years (for Ex-pats)
Monthly Income	AED 5,000 or above for salaried individuals
Nationality	UAE nationals Residents with visa permit and Expatriates
Down Payments	20% of the car invoice cost
Salary Transfer Required	Optional
Other Requirements	Employees of approved employers list in ADIB

Click Here to Apply Now

5- HSBC Car Loan Eligibility Criteria

HSBC bank offers new, used, and green car loans as per the type of car you are purchasing. Their green car loan is one of its kind, as this remarkable loan provides rebates on purchasing hybrid and electric vehicles. HSBC provides affordable interest rates along with easy application and HSBC car loan eligibility criteria. If you are a Premier or Advance account holder, you get additional rebates on car loan interest rates. Being an international bank, it offers car financing to individuals from every nationality residing in the UAE, provided that they have all the required documents.

Here are the key eligibility criteria to apply for HSBC car loan.

Car Loan Eligibility	Requirements
Age	21 to 65 years
Monthly Income	AED 10,000 or above for salaried individuals
Nationality	UAE nationals Residents with visa permit Expatriates
Down Payments	20% of the car invoice cost
Salary Transfer Required	Optional
Other Requirements	Car loan approval subject to furnishing of required documents

Click Here to Apply Now

6- RAKBANK Car Loan Eligibility Criteria

RAKBANK car loans are easy to obtain and you don’t even need to have a salary transfer account for financing your car. The bank offers auto loan for almost every car model including sports, luxury, and supercars. However, the eligibility criteria remain lenient and you can easily apply for car financing through online and offline channels. If you hold a salary transfer account in RAKBANK, the interest rates on your car can go as low as 1.79%. Following are the eligibility criteria for RAKBANK car loan in the UAE.

Car Loan Eligibility	Requirements
Age	21 to 65 years
Monthly Income	AED 5,000 or above for salaried individuals
Nationality	UAE nationals Residents with visa permit and Expatriates
Down Payments	20% of the car invoice cost
Salary Transfer Required	Optional

Click Here to Apply Now

Factors Affecting Car Loan Eligibility in UAE

The following are the top factors influencing your auto loan eligibility in the UAE:

• Age - Age is a key factor in car loan eligibility. Generally, banks have a minimum age criteria of 21 years to qualify for auto loans. The maximum age limit for loan repayment usually falls between 65-70 years, depending on your nationality and other factors. 
• Salary - A stable and sufficient income is crucial for car loan approval. Banks generally require a proof of a minimum salary of AED 5,000 and above. Higher incomes increase eligibility and loan limits, representing the applicant's ability to repay the loan.
• Nationality - Nationality affects car loan eligibility in the UAE. Expatriates may face stricter criteria or higher interest rates compared to UAE nationals. This is often due to perceived risks related to job stability, which can affect the lender's ability to recover the loan.
• Credit Score - A good credit score is essential for loan approval, impacting interest rates and loan terms. Scores above 650 are generally considered good, indicating reliable credit behaviour. Lower scores can lead to higher interest rates or loan denial, as they indicate a higher risk of default.
• Employment Status - Banking institutions prefer applicants with permanent jobs and a minimum of six months to a year of tenure with their current employer. Self-employed individuals may have additional requirements or need to provide detailed financial documents to prove their yearly revenue.
• Debt-to-Income Ratio - The debt-to-income ratio (DTI) measures an individual's debt relative to their income. A lower DTI, typically below 50%, is preferable as it indicates  that the borrower has a manageable level of debt compared to their income.Conversely, a high DTI can signal financial strain, making it harder to secure a loan.

Documents Required to Process a Car Loan Application

Tabled below are the checklists of documents required for car loan application processing in the UAE:

For Salaried Individuals	For Self-Employed Individuals
Emirates ID Passport Residence visa (Applicable to expatriates) Salary Certificate (For salaried employees) Latest 3-6 months’ personal bank account statements   Property ownership documents Liability Letter (if applicable)	Emirates ID Passport Residence visa (Applicable to expatriates) Trade Licence (For self-employed individuals) Latest 3-6 months’ bank account statements   Property ownership documents Liability Letter (if applicable)

How to Check Car Loan Eligibility in the UAE?

You can visit the official website of the banks to do a car loan eligibility check. Alternatively, get in touch with one of the concerned bank officials and get your auto loan eligibility check.

For personalised support, reach out to our team of experts. Our representatives will guide you through the entire process and assist with your loan application.

Dial 042472904 or drop an email at communication@policybazaar.ae to connect with our officials.

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