When we pay the complete amount for the buying of a car, it will disturb our financial budget. The benefits thing is that now the banks and other lenders offer the Car loan in UAE. This kind of loan is with a not high interest rate and even they are with flexible duration of repayment.
Buying cars becomes much easier in UAE. People can achieve their aims of getting popular models of vehicles. It is all possible because of car loans. Emirates Loan gives you numerous options during choosing the best loan. Without any extra charges, you will avail of the debt and decide the payment tenure and also monthly repayments. It is a smoother task that will not require much time.
The minimum amount for a car loan
Not all banks have the same criteria for providing the minimum amount. But mostly, they offer about 80% of the car’s amount. Some banks also directly deal with car owners. You will only need to submit the repayments to the lender. In general, the minimum amount of this loan is 20000 AED. Therefore, the value of a vehicle must be 25000 AED if you want to get approval.
Minimum Salary & age
Any applicant below 21 years old cannot qualify for getting a loan. But, anyone above 21 years of age can easily apply and avail of it. In particular, the criterion of salary is different in every lender’s terms. But, most of the time, it is between 3000-5000 AED. Before applying, check if you meet the requirements or not.
Payment tenure
The model of the vehicle decides the tenure. In UAE, the period of repayment for used cars is sixty months. Usually, the old models of vehicles are with a shorter tenure. If a borrower wants to buy an 8-10 years older model, the monthly installments must complete within two years.
Required Documentation
Just like other types of loans, this loan process also demands essential documents. Without them, the procedure will never start and you cannot get approval. Furthermore, the submission of all valid documents is a reason for getting instant approval in a shorter time. The required documents are:
- Valid Emirates ID
- The driving license must be valid
- Authentic document of registration of the car
- Show proof of your monthly income through the certificate
- Insurance policy documentation
- Valid passport & visa
- A bank statement of latest three to six months
The ex-pats will also submit these documents. But, they need to check the validity of their license in the Emirates. Not every country’s license validates there. In case of invalidity, first, apply for this license in this country. After getting your UAE driving license, you will become eligible to apply for debt also. In some scenarios, banks also demand reference from a borrower’s family or friends.
Easy way to buy your own car
It is an easier way to buy your own car. You can go anywhere and anytime by just driving your car. The prominent cause is that the interest rate is lower for every installment. It eradicates your fear of how to save much money to get your dreamy car. It will bring happiness to your life also.
Easier processing
In UAE, the great advantage of applying for auto debt is the easier processing. Popular banks give numerous flexible choices that are suitable for your financing. There is no need to spend many hours applying. With few formalities of applying, you will get immediate funds.
Things to keep in mind
Now, in this section, we will explain those crucial things that must keep in your mind. Before applying, check out these factors. Moreover, Loansforgulf will give complete guidance on the choice of the exceptional loan with considering these points.
Compare interest rates
Never select the debts with the higher interest rates. So, to get the low-interest rate of debt, you just need to compare this rate. 20% amount of the car will pay by the applicant and the remaining 80% of the amount you will get from the bank as a loan. So, this amount will repay with the addition of the interest amount. The loan terms include the duration of the repayment. Usually, the period is from 48-60 months.
Term of payments
The monthly installments are a major part of the bank’s terms. The longer or shorter term has much impact on the interest amount. When you choose the longer period, you will pay more interest amount to the lender. On the other hand, in a shorter duration, the repayment monthly amount is more. The good idea is to check the salary with your financial budget and then select the terms.
Keep up with installments
Every month, you have to keep up with monthly installments. To miss any payment, you have to bear its consequences. For instance, lenders may add more charges as a penalty for late repayment.
EMI calculations
The process of EMI is to calculate the number of monthly installments. For the calculation, this amount depends on the tenure and the interest rate. Mostly, EMI is fixed for car loans. It is high for longer tenure as compared to short tenure.
