Whether you’re planning to buy a new car or a secondhand car, you are probably looking into financing options, as well. Fortunately, there are quite a number of banks offering car loans in Abu Dhabi.
In this article, we will talk about how you can apply for a car loan in Abu Dhabi, along with the eligibility criteria and requirements involved. We will also present several banks and their car loans, including features such as loan amounts, repayment terms, freebies, and other details.
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Guide to Getting a Car Loan in Abu Dhabi
Of course, before applying for a car loan, you need to make sure that you meet the eligibility criteria of any particular bank. You should also begin to prepare the necessary documents.
Eligibility
The eligibility criteria for car loans may vary from bank to bank. For instance, Abu Dhabi Islamic Bank (ADIB) requires car loan applicants to:
- Be at least 21 years old at the time of application;
- Be 65 (for UAE nationals) or 60 (for expats) years old at the time of completion of loan repayments;
- Be an employee of an approved list of companies in ADIB; and
- Have a minimum salary of AED 5,000 per month.
On the other hand, Hong Kong and Shanghai Banking Corporation (HSBC) requires car loan applicants to:
- Be at least 21 to 65 years old (both UAE nationals and expats); and
- Have a minimum monthly salary of AED 10,000 per month.
Requirements
Similarly, the requirements for a car loan may vary among banks as well. Below are some general requirements, based on the list of Abu Dhabi Commercial Bank (ADCB). Please note that the documents vary slightly between employed and self-employed individuals:
For employed individuals
- Filled-up application form;
- Copy of valid passport, visa, and Emirates ID;
- Copy of valid driver’s license;
- Salary certificate;
- Copy of bank statements for the past 3 months;
- Quotation from dealer; and
- Details of existing loans/liabilities (if any).
For self-employed individuals
- Filled-up application form;
- Copy of valid passport, visa, and Emirates ID;
- Copy of valid driver’s license;
- Copy of valid trade license;
- Copy of bank statements for the past 3 months;
- Quotation from dealer;
- Copy of valid power of attorney (if applicable); and
- Details of existing loans/liabilities (if any).
Banks that Offer Car Loans in Abu Dhabi
And now, here’s a list of the top banks that provide car loans in Abu Dhabi. For each bank, we have included some of the features and benefits of their car loan:
1. Abu Dhabi Commercial Bank
Abu Dhabi Commercial Bank (ADCB) offers up to AED 1.5 million finance options, with up to 5 years repayment tenure. The minimum salary requirement is AED 5,000 per month, and salary transfer is required. For more details about this loan, check out the bank’s official website.
2. Abu Dhabi Islamic Bank
Abu Dhabi Islamic Bank (ADIB) offers auto finance amounts up to AED 500,000. A minimum salary of AED 5,000 is required, although salary transfer is not needed. For the first installment, a 3-month grace period is provided; plus, you can defer one installment per year. Go ahead and visit the bank’s official website for more information.
3. Ajman Bank
Ajman Bank’s car financing facility offers up to AED 600,000 and a maximum term of 5 years. The minimum salary requirement is AED 5,000, although salary transfer is not necessary. There’s also an early settlement fee of 1%.
The bank’s car financing is available for both new and secondhand cars. Moreover, there’s a special offers for those who are planning to buy luxury cars. To learn more about these options, please visit the official website of Ajman Bank.
4. Al Hilal Bank
Al Hilal Bank’s car loan has a repayment tenure of up to 5 years. The minimum salary requirement is AED 5,000; however, salary transfer is not necessary. Joint income (with blood relatives only) is also possible, and a 20% downpayment is required.
If you plan to repay the entire loan early, that’s great because there is zero early settlement fee. What’s more, car loans are available for both new and secondhand cars. Please see the official website of Al Hilal Bank to know more about your loan options.
5. Emirates NBD
To avail of Emirates NBD’s auto finance, the minimum salary requirement is AED 5,000. Flat interest rates start at 1.99%, with flexible payment options. Benefits include a free bank account, free credit card, and free annual registration renewal service. You can also expect roadside assistance… anytime, anywhere!
For more details about this loan, check out the bank’s official website.
6. First Abu Dhabi Bank
First Abu Dhabi Bank offers up to AED 1.5 million car financing for expats, including employed and self-employed individuals. The loan applies for new and secondhand cars as well.
The minimum salary requirement is AED 7,000, and salary transfer is required. The maximum term for the loan is 5 years, and there’s an early settlement fee of 1%. Go ahead and visit the bank’s official website for more information.
7. Hong Kong and Shanghai Banking Corporation
Hong Kong and Shanghai Banking Corporation (HSBC) offers car financing up to AED 600,000 (depending on eligibility), with interest rates starting from 1.99% per annum. Loans are available for both new and secondhand cars.
The minimum salary requirement is AED 10,000, although salary transfer is not necessary. If you are planning to change your car every 2 or 3 years, the balloon repayment option is provided.
To learn more about your car loan options, please visit the official website of HSBC.
8. Mashreq Bank
Mashreq Bank offer car loans up to AED 500,000, with repayment periods ranging from 12 up to 60 months. Loans are available for new as well as secondhand cars. The minimum salary requirement is AED 5,000, and salary transfer is necessary.
The bank’s car financing also comes with a free current account (no minimum balance) and a free Platinum Elite Credit Card (for the first year). Please see the official website of Mashreq Bank to know more about your loan options.
9. Sharjah Islamic Bank
Those earning a minimum salary of AED 8,000 per month can apply for Sharjah Islamic Bank’s car financing. The loan applies to both new and secondhand cards, and salary transfer is required. For more details about this loan, check out the bank’s official website.
10. United Arab Bank
United Arab Bank offers auto loans up to AED 500,000, with repayment terms of up to 5 years. The minimum salary requirement is AED 7,500, although salary transfer is not necessary. Go ahead and visit the bank’s official website for more information.
Summary
With so many car financing options to choose from, you are bound to find a car loan that fits your budget and preferences. If you are keen on buying a new or secondhand car anytime soon, do check out the above banks and their auto loan options.
Meanwhile, if you are a visitor in Abu Dhabi and you’re looking for the best “pasalubong” (gifts) for your loved ones back home, here’s a list of the best souvenirs you can buy in this city!