Top 6 Banks Offer 0 interest on car loans in UAE

Buying a car is a dream for many people in UAE. Your dream can come true with 0 interest car loans offered by many banks in UAE. To get the best deal, you should do some research before applying for a car loan.

Every bank has a different interest rate and different terms & conditions for car loans. Some banks provide 0% interest rates on car loans to encourage people to buy new cars.

Can I Get a 0 Interest Car Loan in UAE?

Yes, you can get a 0 interest car loan in UAE if you meet its eligibility criteria and have required documents. Any UAE resident who has all documents needed for a car loan is eligible to obtain a car loan.

The processing of all car loans is in the hands of banks. So, it is important to understand that every car loan is subject to approval by the loan department of the bank.

6 Banks for 0 Interest on Car Loans in UAE

There are many banks in UAE that offer car loans at attractive interest rates. Some banks offer zero interest car loans on specific car models. If you wish to buy a car on finance, you must know about best 0 interest car loans in UAE to choose your suitable car loan.

1. Emirates NBD Bank

The Emirates NBD Bank provides 0% interest car loans for some specific car brands and models. The ENBD is ready to offer an interest free car loan for New Toyota, New Audi, New Lamborghini as well as New Volkswagen Passat and Teramont.

You must check the eligibility criteria and terms & conditions mentioned by Emirates NBD Bank. Thereafter you can apply for a car loan at zero interest to buy a new car and pay its EMI in the tenure of 3 years to 5 years i.e. 36 to 60 months.

In case you want to buy any other car that is not mentioned above, you can get a low interest car loan. The Emirates NBD offers car loans with interest rates starting from 1.99% per annum.

For more details, visit Emirates NBD official website @www.emiratesnbd.com.

2. Emirates Islamic Bank

Emirates Islamic Bank offers 0 interest car loans with 0 processing fee. Moreover, there are no hidden charges in any car loan given by the Emirates Islamic Bank, UAE.

You can choose your desired new car and get it financed by an interest free car loan. The Emirates Islamic Bank provides zero interest car loans with the tenure of up to 5 years (60 months). The loan tenure can be extended maximum up to 10 years (120 months).

For more details, go to Emirates Islamic Bank official website @www.emiratesislamic.ae.

#3. Abu Dhabi Commercial Bank

Abu Dhabi Commercial Bank is a well known bank in UAE. It provides all banking services including 0 interest car loans with a tenure of up to 5 years i.e. 60 months.

You can apply for a zero interest car loan at Abu Dhabi Commercial Bank for AED 50,000 to AED 200,000. The ADCB Bank does not charge any processing fee which is another benefit for you.

For more details, visit Abu Dhabi Commercial Bank official website @www.adcb.com.

#4. Al Hilal Bank

The Al Hilal Bank is a reputed bank in UAE. You can apply for a zero interest car loan at Al Hilal Bank to experience its fast and simple approval process. It does not have any hidden fees or charges.

The loan tenure can be flexible as per your needs from 1 year to 5 years i.e. 12 months to 60 months. The Al Hilal Bank does not require salary transfer for your car loan approval. It also offers the possibility of considering joint income with your blood relatives.

For more details, go to Al Hilal Bank official website @www.alhilalbank.ae.

#5. Ajman Bank

Ajman Bank is a popular private sector bank in UAE. It helps you to buy your dream car under the Sharia Compliant Structure of Murabaha. The Ajman Bank buys customer car from dealer or owner and sells it to the customer at affordable installments.

The Ajman Bank Sharia Compliant Finance has tied up with all leading auto dealerships in UAE. It provides easy & quick car loans with zero markup rates. The Ajman Bank car loan tenure is up to 5 years i.e. 60 months and the maximum loan amount is AED 500,000.

For more details, go to Ajman Bank official website @www.ajmanbank.ae.

#6. Dubai Islamic Bank

Dubai Islamic Bank also provides Sharia Compliant Finance Products at 0 markup rates. It provides easy car loans with the loan amount up to AED 200,000. The loan tenure is up to 5 years i.e. 60 months.

You can apply for buying a new car or used car with a car loan from Dubai Islamic Bank. You don’t need to transfer salary to get a car loan and you can repay it easily in installments.

For more details, kindly visit Dubai Islamic Bank official website @www.aib.ae.

In this way, you can choose one of the banks given above to obtain a car loan at 0% interest in UAE. Do read all terms & conditions carefully before you apply for an interest free car loan in any bank.

Eligibility Criteria for Car Loans in UAE

Almost all banks in UAE provide car loans at zero interest rates or markup rates. Some banks offer 0% interest car loans with zero processing fee to attract your attention. There are some eligibility criteria for obtaining car loans, here I share them with you.

• The applicant must be a UAE Resident or UAE National or Both.
• The applicant must be at least 21 Year Old at the time of application.
• The applicant must not be older than 65 years (60 years for expatriates).
• The applicant must be earning a monthly salary of minimum AED 3000 or AED 5000.
• The applicant must have the credit score of 600 or as mentioned by the bank.

The eligibility criteria may differ a little from one bank to the other bank in UAE. But the above 3 conditions are most common in all banks in UAE that offer interest free car loans.

Documents Required for Car Loans in UAE

In order to apply for a car loan in UAE, you must have all documents required for the car loan application. Here I provide the list of documents you need to apply for a car loan at any bank in United Arab Emirates.

1. Original Emirates ID
2. Proof of Income i.e. Salary Certificate or Salary Certificate Letter
3. Valid Passport and/or Visa
4. Valid Driving License (Not Required at Some Banks)
5. Bank Statements of Last 3 to 6 Months
6. Vehicle Insurance
7. Security Cheque and Post-dated Cheques
8. A Quotation or Proforma Invoice from the Car Dealer
9. Valuation Certificate and Ownership Title (for a Used Car)
10. Any other documents as demanded by the bank.

Make sure that you have all valid documents to apply for a car loan at a bank in UAE. A loan application with incomplete documents will be Rejected by the bank.

What to Consider Before Applying for a Car Loan in UAE

The car loans are available at all banks in United Arab Emirates. Every bank has its terms & conditions to provide a car loan and you must agree with all of them. Here I provide some important points to consider before applying for a car loan in UAE as under.

Eligibility Criteria:

You must check the eligibility criteria for a car loan. The minimum age, maximum age, minimum salary, credit score and other criteria are different in each bank. So, you must check it carefully and apply only if you meet the eligibility criteria of respective bank in UAE.

Required Documents:

The car loans are approved after checking eligibility and documents of the applicant. You must check the list of documents needed for a car loan applicant in UAE. Thereafter you should get your documents ready and then apply for your car loan to avoid rejection by the bank.

Interest Rate or Markup Rate Comparison:

Some banks offer car loans at 0% interest rates, while other banks charge low interest on car loans. You should check and compare the car loan interest rates of different banks.

Some banks provide car loans at zero markup rates, you can also compare markup rates. At the end, you will get to know which bank offers the best deal on car loans and the you can apply there.

Processing Fee and Other Charges:

The processing fee is charged by the bank for doing the process of loan application, approval and other formalities. Some banks don’t charge any processing fee, while others charge it from the customer.

You should check the processing fee and other charges carefully. You should also ask the loan officer about hidden charges if any. After knowing everything, you are ready to apply for a car loan.

Loan Amount and Car Valuation:

The bank does not give 100% loan of the car value. The maximum car loan amount is 70 to 80% of the car value. The rest amount is the down payment that you have to pay by yourself at the time of purchase.

For example: If you buy a car worth AED 150,000 on finance/loan, you have to pay 20% (AED 30,000) as down payment. The bank will provide AED 120,000 as a car loan to you. Then you will have to pay the car loan in easy installments every month.

Loan Tenure:

The loan tenure can be as small as 1 year i.e. 12 months and as long as 10 years i.e. 120 months. You should check the minimum and maximum loan tenure (duration) offered by different banks in UAE.

Early Repayment Fees/Charges:

The bank may charge early repayment fees if you repay your car loan before completion of its tenure. I strongly recommend not to repay your car loan early.

In case you want to repay your car loan one or two years before its tenure ends, you must consider that now. It means that you should check the early repayment charges for car loans before you apply for a car loan.

In this way, you should check all these important points before you apply for a car loan in UAE. After getting your car loan approved, pay its installments on time to avoid late fees and any legal action by the bank.

Conclusion

The 0 interest car loans are available at various banks in United Arab Emirates. There are some terms & conditions and eligibility criteria for interest free car loans. You should meet all eligibility criteria and agree to all T&C to get a car loan in UAE.

To make it easier for you, I have explained best zero interest car loan options/deals in UAE. You can choose a bank from my suggested list to apply for a car loan and pay it in interest free installments later.

FAQs

Here I provide some common questions about car loans in UAE and their answers as well. You should read all questions and answers to clear your doubts about interest free car loans and their procedure.