Out-of-pocket car financing has been a hot issue topic the past decades, with many in developed countries opting for the alternative— car loans. This has allowed for a more comfortable spread and interest rates are affordable in most cases.
Several automobile dealers have adopted car financing payment options as a way of boosting sales and making purchases easier for customers. Banks are one of the major institutions that have made car financing possible in most countries across the world, and the UAE is no exception.
Is your aim to purchase a car in the UAE, particularly in the emirate of Abu Dhabi? And a comfortable payment plan and terms are what you’re looking for? The Abu Dhabi Commercial Bank (ADCB) offers some of the best car loan options in the market. Whether you’re employed in the private or public sector, or own a business, ADCB car loans feature interest rates that are easy to pay back.
Let’s explore some of the core intricacies of car loans with ADCB, highlighting the benefits, features, and how you can navigate interest rate calculations using the ADCB car loan calculator.
Key Highlights of ADCB Car Loans and Interest Rate Calculations
If you’re considering getting a loan from the bank to finance your car purchase, below are some of the key details to take note of. They also help you understand how the ADCB auto loan calculator works, highlighting the metrics it utilizes to make its calculations.
New Car Loans
Loan Amount & Financing: Borrow up to AED 1.5 million with financing available for up to 80% of the car's value, giving you flexibility in your purchase while requiring a 20% down payment.
Competitive Interest Rates: Enjoy attractive rates starting from 1.99% per annum (flat rate) with repayment terms extending up to 60 months for manageable monthly installments.
Processing Fees: Standard processing fee of 1% of the loan amount, reduced to 0.75% when you make a minimum deposit of AED 200,000, making larger deposits more cost-effective.
Special Promotions: Access exclusive 0% finance options on select car brands and benefit from deferred payment arrangements to ease your initial financial burden.
Eligibility Requirements: Minimum monthly salary requirement of AED 5,000 with early settlement option available (1% fee on outstanding balance) for those who want to pay off their loan ahead of schedule.
Used Car Loans
Loan Amount & Financing: Same generous loan limits as new cars with up to AED 1.5 million available and financing covering up to 80% of the vehicle's current market value.
Flexible Repayment Terms: Extended repayment period of up to 60 months with competitive interest rates starting from 2.49% per annum (flat rate), slightly higher than new car loans to reflect the vehicle's depreciation.
Fee Structure: Processing fee of 1% of loan amount (reduced to 0.75% with AED 200,000 minimum deposit) and 1% early settlement fee structure identical to new car loans for consistent terms.
Special Benefits: Access to 0% finance deals on select pre-owned vehicle brands and deferred payment options, making quality used cars more accessible and affordable.
Minimum Requirements: Same AED 5,000 monthly salary requirement as new car loans, ensuring consistent eligibility standards across both loan types.
Loan Interest Rates and Fees
The ADCB car loan interest rate is highly dependent on a number of variables which include:
- Amount taken as loan
- Repayment period
- Your profile or reputation with the bank
Usually, interest rates with ADCB start at 2.49% per annum. It’s recommended for you to contact the bank to find out necessary details about their car loan options. Alternatively, you can use the ADCB car loan calculator to estimate ADCB used car loan interest rates or the required monthly payments.
What are the ADCB Car Loan Requirements?
To be eligible for car loans with the Abu Dhabi Commercial Bank, you must meet certain criteria. These include:
Age: Individuals applying for car loans must be between the ages of 21 and 65 years.
Employed: Both employed and self-employed persons are eligible to apply for loans.
Salary: Although the salary requirements may vary, the current benchmark is not less than AED 5,000 monthly. Individuals who meet this salary criteria can apply for car loans.
Documents for Loan Application
When applying for car loans with ADCB, the following documents need to be submitted:
- Completed application form
- Copies of your Emirates ID, valid international passport, and visa
- Valid UAE driving license
- 3 months’ bank statements
- Salary certificate addressed to ADCB within 30 days of application
- Price quotation from the auto dealer
For individuals who are self-employed, some extra documents are required:
- Valid trade license
- Power of Attorney
- Personal or company bank statements (for the past 3 months)
How Do I Complete the Loan Application Process with ADCB?
The car loan application process with ADCB can be completed without any difficulties. You can choose any of the following methods:
Online: To complete your application online, simply fill out the form on the bank’s official website. Make sure you carefully verify the information before proceeding with the application. The process is easy and you can complete it within a few minutes.
Visit One of their Branches: You can visit any of their bank branches with your documents to complete your loan application.
Call or SMS: Applicants seeking loans can also use call or SMS. Check the bank’s website for their contact information.
Loan Repayment Options
The bank offers a number of loan repayments options for flexibility and comfort. Some of them include:
- Payments with fixed or variable interest rates
- Monthly payments of 12 to up to 60 equal installments
- Automatic loan withdrawal from your ADCB bank account
Buy or Rent a Car - The Inner Voice of Reason
Have you decided to buy a car and are wondering if taking a loan is perhaps the best thing to do? Well, there are alternatives, maybe even cheaper — the option to rent a car in the UAE. A car rental might be an option to consider if you’re looking for a hassle-free way to commute in the UAE.
You can rent a car with Beno, and with their rental calculator, estimate the yearly or even 10-year cost of renting a car vs buying one with a loan. Don’t forget it’s not just about buying a car, the cost of maintenance and depreciation are things you won’t have to worry about with a rental.
After thorough consideration and you’ve decided to buy a car with a loan from the bank, use the ADCB car loan calculator to estimate the interest rate and total cost.
Frequently Asked Questions
- What is the minimum salary for an adcb car loan?
To qualify for an ADCB car loan, you must meet the minimum monthly salary requirement of AED 5,000.
- How to get a car loan from ADCB?
Get a car loan from ADCB by applying online or in-branch with documents if you’re 21+ , and having an earning of at least AED 5,000/month. For updated policies, visit the ADCB website.
- What is the age limit for ADCB car loan?
To apply for the ADCB car loan, you must be aged 21+.
- How long does an ADCB loan take?
The ADCB car loan processiong and approval takes between 3 - 7 working days.
Or drop us a mail at help@beno.com
