The National looks at the benefits and pitfalls when it comes to financing a car purchase using UAE banks.
Three of the best UAE car loans that don’t require transfers of salary
Al Hilal Bank Used Vehicle Finance
Benefits: This Sharia-compliant financing requires a minimum salary of Dh5,000 per month for eligibility but you can combine the income of a spouse to qualify. The repayment period is up to 60 months and a flat fee of Dh250 applies. You will get a free for life pre-approved credit card as well. There are no early settlement fees on this loan. The maximum amount you can borrow is Dh1 million. The advertised flat interest rate is 2.49 per cent per annum.
Watch out for: You are required to put 20 per cent down.
Reem Finance New Auto Finance
Benefits: This Islamic product requires a 20 per cent down payment and includes a 1 per cent upfront fee to a maximum of Dh2,500. A minimum salary of Dh10,000 is also required and repayment can be up to a period of 60 months. The maximum amount that can be borrowed is Dh500,000. The bank promises a quick approval time of up to 48 hours. The flat interest rate is 3.99 per cent per annum.
Watch out: for There is an early settlement fee of 1 per cent of the outstanding balance.
Standard Chartered New Auto Loan
Benefits: You can borrow up to Dh750,000 and there is a threshold of a monthly salary of Dh5,000 to qualify for this loan. The advertised flat rate of interest is 2.99 per cent per annum. An arrangement fee of 1 per cent applies with a minimum of Dh500 and maximum of Dh2,500, depending on the loan size. There is an early settlement fee of 1 per cent and a minimum down payment of 20 per cent.
Watch out for: This is a conventional product.