Best Car Loan Calculator UAE | Estimate Auto Loan Monthly Payments

Want to cruise down Sheikh Zayed Road in your new car? Cool! But before you hit the road, you need to know your way around car loans in the UAE to Get Your Dream Car. This will be your guide, taking you through everything from calculating monthly installments via Dubloan Car Loan Calculator UAE to getting the best deals.

Car Loan Calculator UAE On Dubloan

A car loan calculator in UAE is a simple tool to understand your car loan.

Auto Loan Calculator UAE

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How To Use This Car Loan Calculator For UAE?

Here’s how to use it:

Step 1: Car Price (AED): Enter the total amount of the car.

Step 2: Processing Fees (%): Enter any processing fees as a percentage of the car price.

Step 3: Interest Rate (%): Enter the annual loan interest rate offered by the bank. This is also called the rate per annum.

Step 4: Loan Tenure (Years): Select your loan tenure or loan repayment period.

Step 5: Down Payment (%): Enter the percentage of the car price you’ll pay upfront.

Step 6: Click “Calculate”!

The car loan calculator UAE will then show you:

1. Monthly Installment: Your estimated car loan EMI.
2. Loan: The amount you’ll borrow.
3. Interest: The total interest paid over the loan period.
4. Total: The total amount including loan and interest.
5. A Pie Chart For Better Explanation.

Car Loans in the UAE

The UAE has many auto finance options for residents and expats. Whether you want a sports car or an SUV, you need to know the basics.

Types of Car Loans:

Feature	Islamic Car Finance	Conventional Car Loans
Principle	Sharia-compliant, profit-based	Interest-based
Common Types	Murabaha (cost-plus), Ijarah (leasing)	Flat rate, reducing balance

Which Loan is Best For You?

In the UAE you have 2 options to finance your car:

Islamic car finance is Sharia-compliant so it’s interest free. Instead you agree on a fixed profit rate upfront. This gives you peace of mind knowing exactly what you’ll pay.

Conventional loans use interest which can fluctuate if you choose a variable rate. Both have their own terms for ownership and early settlement so make sure to compare and choose what suits you and your finances best.

Feature	Islamic Car Finance	Conventional Car Loans
Principle	Sharia-compliant, no interest	Interest-based
Profit/Interest	Fixed profit rate, known upfront	Interest rate can be fixed or variable
Ownership	You may own the car from the start (Murabaha) or after the financing period (Ijarah)	You typically own the car from the start, but the bank holds a lien until the loan is repaid
Early Settlement	May have options for early settlement with potential rebates	May incur penalties for early settlement
Payment Calculation	Usually fixed monthly payments	Fixed or variable monthly payments depending on the interest rate type
Where to find it	Offered by Islamic banks and some conventional banks with Islamic windows	Offered by all conventional banks and finance companies

What Affects Loan Interest Rates?

• Credit Score: Your credit history and credit score is the first thing that determines the interest rate you’ll get. A higher score means lower rates and better terms.
• Loan Tenure: The loan tenure or loan period is the time you’ll take to repay the loan. Longer tenure means lower monthly installments but higher total interest paid.
• Down Payment: A bigger down payment reduces the loan amount and can get you lower interest rates.
• Salary Transfer: Some banks offer lower interest rates if you transfer your salary to their bank.
• Eligibility Criteria: Lenders have specific requirements for car loan applicants:
• Minimum Salary: A minimum salary requirement is common and may vary with lender and loan amount.
• Credit History: A clean credit history with no defaults.
• Documents: You’ll need to provide some documents like a salary certificate, Emirates ID, and bank statements.

Best Car Loan Rates in UAE

Don’t settle for the first offer you see! Compare loan plans from different providers.

• Shop Around: Check with multiple banks and financial institutions.
• Negotiate: Don’t be afraid to negotiate for better rates or terms.
• Look for Promotions: Keep an eye out for offers or discounts.

Top Car Loan Providers in UAE

• RAKBANK Auto Loan: Wide range of auto loans with competitive rates and flexible repayment terms. You can even apply online through their online platform or mobile banking.
• Emirates Islamic Vehicle Finance: Sharia-compliant Islamic vehicle finance with various benefits.
• Dubai Islamic Bank: Islamic auto finance options with competitive profit rates.
• Abu Dhabi Commercial Bank: Auto loans with flexible repayment terms and features like phone banking.

Application and Approval Process

• Simple Documentation: Most banks aim for minimal documentation and formalities.
• Loan Approvals: The approval process involves a credit bureau check through Etihad Credit Bureau. Your credit score, monthly income and existing debt will be considered.
• Apply: You can apply online or visit a branch. Some banks have dedicated loan advisors to help you.

Beyond the Car Loan Calculator UAE: What to Consider?

• Extra Costs: Vehicle Mulkiya (registration), insurance and prepayment charges to be considered.
• Early Settlement: Check the bank’s policy on the settlement of the loan and the fees involved.
• Managing Your Car Loan: Pay on time through loan settlement Direct Debit to avoid late fees and maintain a good credit score.

Final Words

Car loans in UAE can be confusing but with the right info and tools, it’s a breeze. Use the Dubloan Car Loan Calculator Dubai, to check the interest, EMI, and % of Amount you need to pay, compare loan options and choose the cheapest car loan for you.

Car Loan Calculator FAQS