Zero Down Payment Car Loan in UAE

What is a Zero Down Payment Car Loan?

Financing a car can be challenging, depending on the price of the car you choose. In such circumstances, you can apply for a loan from a lending institution. Banks grant you a loan after determining your eligibility. If they agree to pay off the entire car value, you have to make a zero down payment.

In Zero Down Payment the banking institution agrees to finance the full asset value. You are not required to pay any upfront amount.

However, it is important to note that not all financial institutions fully finance your car. Your bank grants you a loan amount depending on your profile.

Top Car Loan Plans in Dubai

Are There Any Zero Down Payment Car Offers in UAE?

Unfortunately, you cannot get a zero down payment facility for your car loan.

According to the guidelines of the UAE Central Bank, financial institutions can grant you a loan of up to 80% of your car value.

In the next section, we have explained how you can get a car loan with a low down payment!

How Can I Get a Car Loan with a Low Down Payment?

While you cannot get a car loan with zero down payment, you can certainly get one with a low down payment.

Lending institutions review your financial profile to evaluate your ability to pay the upfront amount (down payment) and the monthly EMIs. Having a strong profile represents you as a reliable borrower, in terms of timely loan repayments.

Banks consider the following factors into account to assess your profile:

• credit Score - A higher credit score indicates financial responsibility, making banking institutions more likely to offer favourable terms, including lower down payments. It reflects a timely repayment history and low debt levels.
• Income Level - A stable and sufficient income reassures the bank of your ability to repay the loan, potentially resulting in lower down payments. In this case, banks assess your debt-to-income ratio to your financial stability.
• Loan-to-Value Ratio - A lower loan amount relative to the car's value (higher LTV ratio) may reduce down payment requirements. This ratio helps lenders manage their risk exposure. 
• Car Age and Type - Newer cars or those with higher resale values often require lower down payments as they are considered as lower risk by your loan provider. 
• Loan Term - Shorter loan terms can lead to lower down payments since they reduce your bank’s risk exposure over time, though they may increase monthly payments.

Top Car Loans with a Low Down Payment in UAE

Given below are the top car loans with low down payments: 

1- Abu Dhabi Commercial Bank- Car Loan

Now get your dream car with an Abu Dhabi Commercial Bank car loan. The loan offers a high finance amount. On top of that, you can enjoy a flexible repayment tenure without worrying about hampering your everyday expenses.

Feature	Description
Down Payment	20% of the car value
Finance Amount	Up to AED 1.5 million
Finance Tenure	Up to 60 months
Application Benefits	One-signature application Instant approvals Easy documentation
Additional Benefit	Insurance finance option

Click Here to Apply Now

2- Abu Dhabi Islamic Bank- Car Finance

Finance your car with ADIB. The loan not only offers a flexible tenure but also offers a deferment period before paying off the first instalment. Besides, enjoy easy loan application process with quick approval.

Feature	Description
Down Payment	A minimum of 20% of the car value
Finance Amount	Up to AED 1 million
Loan Repayment Tenure	Up to 60 months
Profit Rate	Starting from 2.25% per annum
Loan Deferment Period	Up to 210 days before the first instalment

Click Here to Apply Now

3- RAKBANK- Auto Loan

Get your car loan with minimal formalities and quick approval with RAKBANK’s loan. It is a low-cost loan without any hidden charges and competitive interest rates. Additionally, enjoy loan deferments.

Feature	Description
Down Payment	At least 20% of the car value
Interest Rates	Starting from 2.70% per annum
Salary Transfer	Not Required
Loan Deferment	Up to 2 deferrals; once in a year

Click Here to Apply Now

4- Emirates NBD- Green Auto Loan

The Emirates NBD Green Auto loan is exclusively designed for hybrid and electric cars. As a part of the bank’s Green Auto initiative, the bank encourages its customers to buy electric cars to save the environment.

Feature	Description
Loan Application Benefits	Quick process and minimal documents
Instalment Plan	0% instalment plan on all automatic vehicles. Additionally, a free credit card
Bank Presence	Extensive offline reach across the UAE; online presence globally

Click Here to Apply Now

5- Emirates NBD- Auto Cash Loan

The Auto Cash loan by Emirates NBD allows you to apply digitally with minimal documents. You can get up to 75% of the car’s invoice value instantly.

Feature	Description
Loan Tenure	Up to 60 months
Loan Approval	Same day approval
Encashment	Up to 75% of the vehicle invoice value
Loan Availability	For salaried and self-employed individuals
Loan Deferment Option	One deferment in the loan cycle

Click Here to Apply Now

Why Get a Car Loan Via Policybazaar UAE?

Policybazaar UAE provides you with a convenient and advantageous way to apply for a car loan with the following benefits:

• We partner with the top UAE banks to offer you a range of car loan options.
• Our customer service representatives are available round the clock to assist you.
• You can easily apply for your car loan through our portal.
• With our website user interface, you can access any related information you want.

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