written by Finding the best auto loan in UAE can be overwhelming, with top banks like Emirates NBD, ADCB, and FAB Bank offering competitive financing options. Whether you’re buying a new or used car, understanding loan terms, interest rates, and eligibility criteria is essential for making the right financial decision. Auto loans in UAE Banks like Emirates NBD, ADCB, and FAB Bank provide tailored car loans with varying interest rates, loan amounts, and repayment terms. This guide compares these banks’ auto loan offers to help you choose the best financing option for your dream car in the UAE.
In this blog, we will compare the auto loan offerings from Emirates NBD, ADCB, and FAB Bank to help you determine which is the best option for financing your next vehicle in the UAE.
Overview of Auto Loan in UAE
Before we dive into the specifics of each bank’s Auto loans in UAE, let’s review what you should expect when applying for a car loan.
- Loan Amounts: Most banks offer auto loans ranging from AED 20,000 to AED 1 million or more, depending on the vehicle’s value and the applicant’s eligibility.
- Loan Terms: The repayment terms typically range from 12 months to 60 months, allowing you to choose a term that fits your budget.
- Interest Rates: Interest rates on car loans in the UAE vary, but competitive rates start as low as 49% for top-tier customers and may go higher depending on the applicant’s credit score and loan conditions.
- Eligibility: Banks typically require a minimum salary of AED 5,000 to AED 8,000 per month for expats, and AED 7,000 to AED 10,000 for UAE nationals.
- Down Payment: A down payment of 20% to 25% is usually required, depending on the car’s value.
Let’s now take a closer look at the auto loan offerings from Emirates NBD, ADCB, and FAB Bank.
1. Emirates NBD Auto Loan in UAE
Interest Rates
- Starting rate: 49% (variable interest rate).
- Fixed rates: Available for customers with high credit scores.
Loan Amount
- Emirates NBD offers loan amounts from AED 20,000 up to AED 1 million, making it suitable for financing a wide range of vehicles from economy to luxury cars.
Loan Tenure
- Repayment terms range from 12 months to 60 months, allowing you to tailor your loan term based on your budget and preference for monthly EMI.
Key Features
- No processing fees for auto loans (on select offers).
- The bank provides a quick loan approval process, especially if you apply online.
- Flexible early repayment options with minimal penalties.
- Sharia-compliant financing available for UAE nationals and residents.
- Pre-approved car loans for qualifying customers.
- Special deals for new and used cars.
Eligibility Requirements
- UAE residents with a minimum salary of AED 5,000 per month for expats and AED 7,000 per month for UAE nationals.
- A credit score of 650 or higher is preferred for better interest rates.
2. ADCB (Abu Dhabi Commercial Bank) Auto loans in UAE
Interest Rates
- Starting rate: 99% (fixed and variable options).
- ADCB’s rates are slightly higher than those of Emirates NBD but still remain competitive in the UAE market.
Loan Amount
- AED 20,000 to AED 1.5 million, making ADCB a good choice for those financing high-end or luxury cars.
Loan Tenure
- Loan terms range from 12 months to 60 months with flexible repayment plans.
Key Features
- No processing fees for new car loans.
- Fixed-rate car loan options for more predictable monthly payments.
- Offers high loan amounts and low monthly payments with flexible loan terms.
- Auto loan top-up options are available if you wish to increase the loan amount at any time during the loan term.
- Insurance coverage options available with the loan.
- Instant approval for pre-approved customers, allowing quicker purchase of your desired car.
Eligibility Requirements
- A minimum salary of AED 5,000 per month for expats.
- Applicants must be between the ages of 21 and 65
- Good credit score and stable financial history for the best loan terms.
3. FAB Bank (First Abu Dhabi Bank) Auto loans in UAE
Interest Rates
- Starting rate: 24% (variable rate).
- FAB offers competitive rates, although slightly higher compared to Emirates NBD and ADCB, especially for long-tenure loans.
Loan Amount
- Loan amounts range from AED 20,000 to AED 500,000, suitable for both mid-range and high-end cars.
Loan Tenure
- Repayment terms are available from 12 months to 60 months, and customers have the option to choose between flexible or fixed interest rates.
Key Features
- No down payment on selected cars for qualified buyers.
- Competitive interest rates and easy loan approval for existing FAB customers.
- Quick approval process with online application options.
- Optional car loan protection insurance.
- Sharia-compliant auto financing
- Allows early loan repayment without major penalties.
- Flexible prepayment terms.
Eligibility Requirements
- Applicants need to have a minimum monthly salary of AED 5,000.
- UAE residents between 21 and 65 years of age are eligible.
- Credit score of 650 or above is generally required for better interest rates.
Auto loans in UAE Comparison: Emirates NBD, ADCB & FAB Bank
| Feature | Emirates NBD Auto Loan | ADCB Auto Loan | FAB Bank Auto Loan |
|---|---|---|---|
| Starting Interest Rate | 2.49% (low-interest option) | 2.99% (fixed & variable) | 3.24% (varies by tenure) |
| Loan Amount | AED 20,000 – AED 1 million | AED 20,000 – AED 1.5 million | AED 20,000 – AED 500,000 |
| Loan Tenure | 12 to 60 months | 12 to 60 months | 12 to 60 months |
| Processing Fees | No processing fees | No processing fees | Varies based on the offer |
| Pre-Approval | ✅ Yes (for eligible applicants) | ✅ Yes (fast approval) | ✅ Yes (existing customers get priority) |
| Insurance Options | Available for added protection | Available for all customers | Available, optional add-ons |
| Down Payment | 20%-25% (as per UAE regulations) | 20%-25% | 20%-25% |
| Minimum Salary Requirement | AED 5,000 for expats | AED 5,000 for expats | AED 5,000 for expats |
| Eligibility | UAE residents with a good credit score | UAE residents with a strong financial profile | UAE residents with a stable income |
Which Auto Loan in UAE is Best for You?
Choosing the right auto loan depends on several factors, including interest rates, loan amounts, and special features. Here’s a brief overview of which bank may be the best choice based on your specific needs:
- Emirates NBD: Best for those seeking low-interest rates (starting at 49%) and flexible repayment terms. Ideal for customers looking for a quick loan approval process and zero processing fees.
- ADCB: Suitable for individuals looking for higher loan amounts (up to AED 1.5 million) and those who prefer fixed-rate loans for predictable payments. ADCB also offers top-up loans and other flexibility in the loan process.
- FAB Bank: Ideal for customers looking for a flexible loan tenure, quick approval, and low down payment However, the interest rates might be slightly higher than those offered by Emirates NBD and ADCB.
Conclusion
When financing a car, whether it’s a luxury vehicle like a BMW or a more affordable car, it’s important to compare the various loan options available. Emirates NBD, ADCB, and FAB Bank offer competitive auto loan products, each with its own set of benefits and features.
By comparing interest rates, loan terms, eligibility requirements, and special offers, you can choose the best bank for your car loan and enjoy a seamless financing experience in the UAE.
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