Introduction
Car Loan or Auto Loan in Dubai is a term used to describe a loan that is given to you so that you can purchase a car in Dubai. You can buy either an old/used or a new car using car loans in Dubai. In either case, the car will be taken as collateral and you can later pay back the loan in easy monthly installments for up to 5 years of time.
Many parties are included when you buy a car using a Car Loan in Dubai, e.g. Manufacture, dealer, insurer and accessory distributors. Hence, when you are going to buy a car using a car loan, ensure that you make everyone compete for your deal so that you can get the best deal possible.
Eligibility
There are certain criteria that you must meet in order to be eligible for auto loans in Dubai:
You must be at least 21 years old.
You must be self employed or salaried individual.
You age must not exceed 60 at the time of loan maturity, if you are a salaried person, and 65 if you are self-employed.
Some banks also see your monthly salary, which is normally dependant on the model of car you are going to buy. Normally having a minimum salary of 6,000 AED is sufficient.
You must have been employed for 2 years, and your latest employment should be over 1 year.
For self-employed personal, the business stability is checked for the period of 3 years.
Required Documentations:
Eligibility is not enough in order to obtain auto loans in Dubai; you must go through and detailed process of documentation as well, in order to finally get an auto loan. Documentation is required in almost all types of loans, mostly just to proof your identity, age and employment status. Here are few of the documents you may need to produce in order to get your Auto Loan approved (though your bank can ask for more documents that are not listed here):
Latest Salary slips
Form 16 of last 2 years.
Self-Employed people need to produce income-tax returns for last 2 years.
Other companies and societies are also required to produce the financial report and income tax returns.
Other documents like Passport, ID card, Proof of signature, etc.
Understanding Interest Rates
