Used car loan in UAE and Dubai - Get pre-approval on auto financing in minutes!
Looking to get a car financing / EMI loan but don’t know if, and for which cars, you’ll be approved in the UAE? Look no further! CarSwitch helps thousands buy used cars with bank finance every year, training our AI engine on credit history to pre-qualify you online! Just truthfully answer a few simple questions, and we’ll:
1Qualify you for a used car loan
2Share the car finance EMI you’re eligible for
3Show you cars you’d be approved for
Alternatively, if you know the finance EMI you are eligible for, use CarSwitch’s finance mode to narrow down your search for your dream car!
How we pre-approve you for bank finance / EMI
CarSwitch helps thousands of used car buyers get an auto loan with bank financing / EMI every year from our broad panel of partner banks including HSBC, Dubai Islamic Bank (DIB), Abu Dhabi Commercial Bank (ADCB), Emirates NBD (ENBD) and many more. We help our customers find the safest pre-inspected used cars, get the best car financing & insurance rates, process the paperwork and issue required valuation certificates (all free of charge, but that’s another topic). Our AI engines train on credit data and approval outcomes to predict (or pre-approve) your eligibility for bank finance.
Bank financing rates for used cars
*If you have a good profile then flat rates will be lower. Additionally, rates may vary so please confirm with your bank.
CarSwitch is a trusted partner of many leading banks across the UAE for used car valuations (we know what we’re doing), and so if you need a car valuation we’ll travel to the car location anywhere in Dubai, Abu Dhabi, and Sharjah and handle it for you hassle free! Call 045061300 to get a valuation certificate now!
Frequently Asked Questions
What is Early Settlement and when does it apply?
Banks in the UAE give you the option to apply for early settlement on your auto loan in case you want to pay the loan off early. An advantage of doing this is saving on interest charges for the remainder of the car lease. In an early car loan settlement, banks charge an early settlement fee which is usually 1% of the outstanding loan amount.
What is the difference between Flat and Reducing Rate?
You can choose from 2 types of Interest Rate when financing your used car in the UAE, Flat Rate orReducing Rate
A flat rate means that the Interest Rate is calculated on the original amount of the car loan; it is fixed and the interest to be paid will not reduce over the tenure.
A reducing rate means that the Interest Rate is calculated on the outstanding car loan amount on a monthly basis. Therefore, as your outstanding auto loan amount decreases each month so will your interest payments.
Think carefully about which interest rate you choose when buying a car under finance in UAE as lower flat rates can be misleading. It can be more expensive than a reducing rate over your auto financing tenure. To get the best deals, see CarSwitch’s Bank Financing Comparison Table for the flat and reducing rates.
What is a processing / arrangement fee?
Processing / arrangement fee (also known as application fee) is the amount banks in the UAE charge as an administrative fee to take an auto loan for your used car. Banks either ask you to pay this upfront or add it to your car loan amount. This fee is usually 1% of your principal car loan amount, and may have minimum (or maximum) amounts of AED ~500 (or AED ~2,500)
What documents are needed to buy a car through bank financing and how long does it take?
We’ve generally seen the end to end process take 1-2 weeks for an auto lease, though the largest contributor is the time buyers take to get all the correct documents. So it helps quite a bit to get that started quickly.
Document requirements may vary from bank to bank, but most banks in the UAE require:
- Proof of income - Salary Certificate / Salary Transfer Letter if salary is not assigned to the bank where you will be taking your car loan
- 3 Months of bank statements showing regular salary deposit
- Valid Passport and Visa copy
- Valid Emirates ID
- Valid UAE Driving Licence
- Valid Valuation Certificate
- Free Zone Card (If applicable)
Of course before you get this far on your auto financing application, don’t forget to thoroughly review these 7 things before buying any used car
What is the eligibility criteria for car financing in UAE?
Eligibility criteria vary from bank to bank in the UAE, though generally banks require
- You are a UAE National or Resident aged between 21 and 65 years.
- A minimum monthly salary of AED 3,000
- 20% of the car value paid as an up-front down payment (central bank requirement)
- The total car loan amount is at least AED 20,000 or so
- You have a healthy credit history and are likely able to repay the auto loan
What costs should I be aware of when choosing to take car financing in the UAE?
There are several costs to be aware of when financing a car in UAE. Some of the main costs for your car financing include:
- Bank Processing Fee: A one-time administration fee banks charge at the beginning of your auto financing
- Downpayment: An upfront payment usually made to the bank. Banks in UAE usually finance upto 80% of the car’s value, therefore, 20% must be paid upfront.
- Interest Payable:The amount of interest you owe to the bank for your auto loan, based on the amount financed for your used car, the loan duration and whether you opt for a flat or reduced rate.
- EMI: The equal monthly installments, including interest payable and loan principal amount, over the tenure of your loan. Use CarSwitch’s EMI calculator in the car detail screen of any car to calculate the specifics for that car
- Car Valuation Certificate: Banks require an independent expert to validate the value of the car you are looking to finance. CarSwitch is a trusted valuation partner of several banks and can travel to the cars location to inspect and value it for you hassle free
- Penalties: Be aware that banks charge a fee for late payments towards your auto financing. However, some banks allow you to defer the first few payments for free. Contact CarSwitch for the latest / best deals available now.
Before purchasing your used car, it is important to keep these additional costs in mind. Review these here.
Can I change the repayment schedule on my car loan?
Yes, this is an option with some banks, although a small processing fee may apply
Do I have to transfer my salary to the bank where I’m taking out an auto loan?
No, most banks in the UAE allow you to take an auto loan without having to transfer your salary to that bank. Though you may get a lower interest rate if your salary is transferred to the bank as they have more confidence in your ability to repay the car loan.
What are the factors influencing your car loan Interest Rate?
There are various factors that determine which interest rate you pay for your auto loan. Here are some of the main ones:
- New vs Used Car - Interest rates are lower for a new car in UAE
- Car Type - Passenger cars tend to have lower interest rates than light commercial vehicles
- Car Age - The newer the car, the lower the Interest Rate due to lower maintenance costs.
- Salaried vs Self Employed - Auto financing interest rates differ depending on the amount of salary or health of your company. Individuals with a higher salary / good credit scores and credit history will receive lower interest rates.
- Bank where salary is deposited - You will obtain a better interest rate if your salary is deposited in the same bank that you take your auto loan as you are seen as a less risky customer.
- Your car financing tenure - The shorter the tenure of your car loan, the lower your interest rate
- Your Down Payment - The higher the amount you pay upfront, the lower your interest rate.
Read our full tips to save money on car financing before buying a used car in the UAE
AED / monthGo back to EMI calculator
AED / month
Down paymentAED 10,000
Loan period (years)
Are you self-employed?
Contact your bank, as the eligibility decision will depend on the financial history and health of your business
Is your salary paid into a UAE bank monthly?
Have you received 3 (or more) monthly salaries from your current employer?
Check with your bank if they’ll make an exception to their 3 month requirement for you.
Have you ever defaulted (did not pay) any loan, check or credit card payment in the UAE?
Do you have any existing loans (cars, houses, or personal loans)?
What is your total monthly payment for all existing loans?
Do you have any existing credit cards?
|Min Salary (AED)||10,000||3,000||5,000||4,000||7,000|
|Flat rate, starts from*||2.85%||3.70%||3.50%||3.25%||3.99%||3.49%|
|Early settlement fee||1% of remaining loan balance|
|Min financing amount (AED)||30,000||20,000||30,000|
|Max Financing Amount (AED)||918,000||1.5 Million||1 Million||1.5 Million||500,000|
|Need account with bank||Yes||No|