Owning a car in Dubai is often seen as a necessity rather than a luxury, given the city’s expansive layout and limited public transport options. Whether you’re a UAE national or an expatriate, buying a car—new or used—often involves applying for an auto loan.
In this guide, we’ll walk you through everything you need to know about getting an auto loan in Dubai, including eligibility requirements, documentation, how much you can borrow, and tips for approval.
Why Consider an Auto Loan in Dubai?
Car loans in Dubai offer a convenient way to finance your vehicle while keeping your savings intact. Key reasons people opt for auto loans in Dubai include:
- Flexible repayment terms (usually 12 to 60 months)
- Competitive interest rates (starting from 2.49% annually)
- Easy availability from banks and car dealerships
- Options for both new and used cars
Key Loan Requirements for Auto Financing in Dubai
Whether you’re an expat or a UAE national, banks in Dubai have specific criteria you must meet to qualify for an auto loan.
1. Minimum Age Requirement
- Applicants must be at least 21 years old at the time of application.
- Some banks may require you to complete 6 months of employment if you’re below 25.
2. Minimum Monthly Income
- Most banks require a minimum monthly salary of AED 3,000 to AED 5,000.
- Higher loan amounts require higher income thresholds.
- Proof of income (e.g., salary slips or bank statements) is mandatory.
3. Employment Status
- Salaried Employees: Must be employed for at least 6 months in the UAE.
- Self-Employed Individuals: Must have been operating their business for at least 2 years.
- Company Listing: Your employer must be listed with the bank, or additional documentation may be required.
4. Valid UAE Residency
- Expats must have a valid UAE residence visa.
- Emirates ID and proof of address are required.
- Nationals must provide a copy of their Emirates ID and family book (in some cases).
5. Credit Score (AECB Report)
- A healthy credit score is crucial for loan approval.
- Banks check your credit report via the Al Etihad Credit Bureau (AECB).
- Scores above 650 are generally acceptable, but higher scores offer better interest rates.
Required Documents for Auto Loan Application
To process your loan application, banks in Dubai usually require the following documents:
For Salaried Individuals:
- Valid passport copy with residence visa
- Emirates ID
- Latest salary certificate
- Bank statements (last 3 to 6 months)
- Car quotation from dealer or seller
- Driving license (UAE valid)
For Self-Employed Individuals:
- Trade license copy
- MOA (Memorandum of Association)
- Emirates ID and passport with visa
- Bank statements (last 6 months)
- VAT registration documents (if applicable)
- Audited financial statements (sometimes required)
Maximum Loan Amount & Down Payment
Loan-to-Value Ratio
- The Central Bank of the UAE mandates a 20% down payment.
- You can borrow up to 80% of the car’s value.
Maximum Loan Amount
- Banks typically offer loans ranging from AED 20,000 to AED 1,500,000.
- High-end luxury cars may be subject to stricter eligibility criteria.
Repayment Period
- Loan tenures range from 12 to 60 months (1–5 years).
- Shorter terms = higher monthly payments but lower total interest.
Interest Rates and Fees
Types of Interest Rates
- Flat Rate: Fixed rate applied to the original loan amount (2.49%–4.5%)
- Reducing Rate: Calculated on the remaining balance; typically higher (4.99%–7.5%)
Other Charges
- Processing fee (typically 1% of loan amount)
- Early settlement fee (1% of remaining balance)
- Insurance (mandatory—can be included in the loan)
Can You Get an Auto Loan Without a Down Payment?
While most banks require a 20% down payment, some dealers or lenders offer “zero down payment” promotions. However, these usually come with:
- Higher interest rates
- Limited vehicle selection
- Stricter approval conditions
- Minimum salary or company listing requirements
Special Offers for Expats and UAE Nationals
UAE Nationals
- Easier approval process
- Lower income threshold in some cases
- Preferential interest rates
Expats
- Must have a stable job and residency
- Some banks have special expat loan programs (e.g., Emirates NBD, RAKBANK)
Best Banks for Auto Loans in Dubai (2025)
Here are some top banks offering competitive car loan products in Dubai:
| Bank | Flat Rate | Loan Tenure | Minimum Salary |
|---|---|---|---|
| Emirates NBD | From 2.49% | Up to 60 months | AED 5,000 |
| ADCB | From 2.75% | Up to 60 months | AED 5,000 |
| RAKBANK | From 2.85% | Up to 60 months | AED 3,000 |
| Dubai Islamic Bank | From 3.00% | Up to 60 months | AED 5,000 |
| FAB | From 2.99% | Up to 60 months | AED 7,000 |
Note: Rates may vary depending on vehicle type, credit score, and employer.
Tips to Increase Approval Chances
- Check Your Credit Report: Know your score before applying.
- Pay Off Existing Debts: Low debt-to-income ratio helps.
- Provide a Higher Down Payment: Shows financial stability.
- Choose a Listed Employer: Speeds up processing.
- Apply at the Right Bank: Compare options and prequalify online.
FAQs: Auto Loan Requirements in Dubai
Q1: Can I get a car loan as a freelancer?
Only if you’re registered as self-employed with a valid trade license.
Q2: Can I transfer my car loan to another bank?
Yes, most banks allow auto loan balance transfers if better rates are offered.
Q3: Can I apply for a car loan without a driving license?
Generally, no—you must have a valid UAE driving license.
Q4: Is Islamic car finance available?
Yes, banks like Dubai Islamic Bank offer Sharia-compliant auto financing.
Q5: Do banks finance used cars?
Yes, but usually for vehicles under 5 years old.
Conclusion
Getting an auto loan in Dubai is a straightforward process if you meet the eligibility criteria and prepare your documentation in advance. Whether you’re buying your first car or upgrading to something better, understanding the loan requirements for auto financing in Dubai helps you make informed decisions.
Always compare banks, use online calculators, and negotiate where possible to get the best terms.