Fri. Jun 21st, 2024

People prefer to buy their cars because they can easily avail of a car loan in Dubai. But, the paperwork is an important part of applying. It includes all the documentation and also eligibility criteria. Buyers use this way to buy a new or used car, so their budget will never disturb.

Required documents

All Dubai banks give their lists of the required documents. These documents include an ID card copy and a monthly income certificate. The ex-pats will require a copy of a valid visa. In the case of an invalid visa, there is no chance of approval. Besides, they will provide the address in their homeland. Sometimes, the bank wants to know your reference of any relative in Dubai. In addition, you will provide proof of auto registration also.

Car loan minimum salary & age

The applicant’s age must be 21 years. If he is below 21 years, the application will never get approved. Every bank has a different requirement for monthly salaries. But, mostly, the range of salary is between 3,000 and 5,000 AED.

Repayment duration

Some banks give the best duration of repayment of more than sixty months like the policy of Dubai Islamic bank car loan. However, the old car’s loan comes with a shorter duration. As an example, the duration is two years if the vehicle is 10 years older.

The maximum amount for a loan

Bank will not provide the complete money to buy a car. The banks will offer you 80% finance for the vehicle and you have to pay the remaining finance as an advance payment. Many times, the bank will take this payment, and sometimes you have to directly pay the car’s owner. The minimum loan starts from twenty thousand AED. 

Compare interest rates

Every loan has its interest rate including car loans also. The reason for comparing the interest rates is that you will know which bank will offer the lowest interest rate. The calculator will tell exactly what you have to pay at the rate with the original amount. Normally, the time for returning the money is in between 48-60 months.

Role of loan repayment

The repayment process is important because it tells you about the installment each month. The banks that offer you a longer period for repayment will demand more interest rates. On the other hand, the shorter duration will need more paying of money in all installments. Before doing anything, think about your monthly income.

Never miss any repayment

You have to stick in the continuously paying of repayments. If you miss anyone, the banks have the right to take your car. Moreover, you will need to pay more charges.

EMI calculator

The banks use this calculator for all vehicle loans. This Equated Monthly Installment calculator will tell the number of monthly instalments with interest rates. The instalment money will remain the same for all duration.

Car loan Dubai calculator

The purpose of this calculator is to know your eligibility for applying. It calculates all factors and then tells you how much you can take loans. It depends on monthly income also. Not everyone earns similar, so the calculator helps you in knowing of it before applying. In this way, you will find a suitable bank that gives you money as per your need.

Calculator for used car loan Dubai

Sometimes, people want to buy used cars when they are beginners at driving. In this scenario, the criterion is different from the new one. This sort of car is low in price as compared to the new one. The benefit of getting a loan for a used vehicle is that the monthly income demand is not too higher. 

Car loans with a 0% interest rate

Not all banks provide the loan with a 0% interest rate. However, Emirates NBD gives you the offer of 0% interest rates on some specific cars. You can check all the conditions on the official website of the bank.

Conclusion

Now you knew all the major points of taking car loans in this country through this article. Numerous Dubai banks offer good loans with exceptional interest rates. You have the option of both buying a new or used vehicle with the help of Karz.ae loans. Consider your financial condition and then do every step.