A zero-interest loan may sound like a very hollow statement. However, many people still ask whether you can get and how to acquire the best zero interest car loans in the UAE.
Since you are already here, you should worry no more, for zero car loans really exist. In this section, we will be taking you through some of the best zero interest car loans provided in the UAE you can go for and the procedures required.
Top Best Zero Interest Car Loan Providing Banks In UAE
UAE has been considered a country that offers loans at the best interest rates due to the stiff competition on interest rates. Also, due to its good economy, one can quickly build good credit ratings by paying loans in time.
Below are the top 6 banks offering the best zero interest on car loans.
1.   Emirates Islamic BankÂ
The Emirates Islamic Bank provides interest-free loans on cars for five years. In addition, the bank also offers zero interest on the new vehicles they offer.
This offer is genuinely breath-taking because you are given ten years to repay the loan with no processing fee attached. Thus, it remains one of the best options you can pick.
2.   Abu Dhabi Commercial Bank
The bank also provides zero interest rates on car loans in UAE. The offer is, however, valid for three years only.
Moreover, the bank charges no processing fee, and you can be availed of a loan quantity varying from AED 50,000 to AED 200,000 making it one of the most ideal banks to get a car loan.
3.   Al Hilal Bank
This is one of the banks you can look for if maybe you are looking for a second-hand vehicle loan at a zero percent interest rate.
It also offers a new vehicle zero-interest loan and gives you up to five years to repay with zero processing fee.
4.   Ajman Bank
Being one of the biggest private category banks, Ajman bank lends sharia-compliant car financing commodities with a zero percent dividend fee on a Murabaha basis.
It also offers loans on both new and second-hand vehicles, and the loan repayment period runs for five years with no processing fee. Also, you can get up to OMR 300,000 in car loans.
5.   Bank Muscat
The bank offers Islamic car loans at a zero percent interest rate on a Murabaha basis. In addition, it provides car loans on both first-hand and second-hand vehicles at no processing fee.
The bank gives you up to seven years to repay the loan and a maximum loan award of OMR 100,000.
6.   Dubai Islamic Bank
Based on Murabaha, the bank provides sharia-compliant vehicle finance products at a zero percent interest rate.
In addition, it also offers loans on both new and used vehicles. The loan repayment period is one to five years, and a maximum loan amount of AED 200,000 can be approved. Therefore, it’s an ideal zero interest car loan you can check out.
Things That Influence The Car Loan Interest Rates In UAE
Many things influence the interest rates on vehicle loans in the UAE. The most crucial one is the credit record of the borrower. The loan providers will check the credit record to determine how risky it is to lend the cash to the borrower.
other factors like the length of the loan in terms of the repayment period, the car’s age, and if a deposit is required or not also affect the interest rate.
Averagely, the interest rates for vehicle loans in the UAE stand at 6%. Although this varies because different lenders give different interest rates on vehicles, you should check out the best offer suitable for you.
Emirates NBD Auto Loan Minimum Salary
To be awarded a zero car interest loan, banks require you to be earning a minimum salary of AED 5000.
The minimum wage also determines the maximum loan amount you can be awarded. In addition, banks consider credit card dues and installments on repayment plans among other factors that may vary from one bank to another.
Car Loan Application Protocol In UAE
If you live in the UAE, you can follow a standard car loan application procedure to get your loan approved and disbursed. They include;
- A ratified AECB form – This form entails your private individuality data, your credit certificate details, loans, and other credit facilities, in addition to your income and cheque history. This form would give the lender an overview of information about you.
- Presenting a visa or a passport – For easier recognition, you will need to provide a passport to the lender, which will verify that it is genuinely you taking the loan.
- Providing an Emirates ID – If you are a resident of the UAE, you must have the United Arab Emirates ID. The biometric identification system can also be used to easily identify you as a citizen.
- Presenting a valid quotation – This is a document containing evidence that proposes to trade goods or services under specific conditions. presenting this document will increase your chances of qualifying for the car loan.
- Driving license – A driving license might be required if you are based in the transport sector. It also gives you an upper advantage since it’s a good reason for borrowing a car loan.
- A salary receipt or a bank statement – These documents are required to determine how much loan you can be awarded based on the data of your salary receipt. In addition, the bank statement shows your trends in the loan payment.
- A trade license – If you plan to take a loan to purchase a car for business purposes, you must have a trade license to confirm it in handy. This is also crucial for self-employed individuals to qualify for a zero car interest loan in the UAE. In addition, the trade license will enable the lender to gain trust that you will repay the loan.
- A good credit score – Even with all the documents presented, banks will still look at your credit score before issuing you the requisite loan.
Conclusion
Getting a car loan should be well considered. Before you decide, you need to compare the interest rates of different lenders and pick a competitive one that suits your interests. You can do this by visiting several bank branches or checking their websites to get reliable information.
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