Get your own set of wheels with a car loan in Dubai

• Eligibility
• Required Documents
• Loan Structure
• Process
• FAQs

Nothing beats the independence of owning your own vehicle. Of course, how quickly you can acquire a car depends on your chosen mode of financing. And while most people love the concept of paying in cash, a car loan turns out to be the more popular form of payment for most buyers. But how do you get a car loan in Dubai? Let’s find out.

How to Apply for a Car Loan in Dubai?

A new car in Dubai can cost you anywhere from a few thousands to millions depending on the make or model. Of course, not everyone can come up with the amount in full. If you don’t have the desired funds or prefer to use the spare cash you have for other expenses, you can always apply for a car loan in Dubai.

But first, you must understand how the process works in the UAE. Whether you are on the lookout for a used car loan in Dubai or are looking to finance a brand new set of wheels, here are some details you need to consider.

Eligibility

Here are the eligibility requirements to get a car loan in Dubai:

• Age: You must be 21 to 65 years old (banks may cap at 60 for expats)
• Minimum salary: For salaried residents, a typical minimum is AED 5,000/month, though some banks require AED 7,000–8,000. Expats applying for used car finance often need a higher income.
• Employment status: Salaried applicants need three to six months of credited salary in bank statements. For the self-employed, a trade licence, audited accounts and often a minimum balance AED 20,000 in bank accounts are required.
• Credit score: Maintain a good Al Etihad Credit Bureau (AECB) score, ideally above 650–700, to secure approval and better rates.

Documents to get a Car Loan in Dubai

Getting the best car finance in Dubai is less about the type of vehicle you desire and more about the loan requirements of the bank or financial institute that will finance it. Most banks in Dubai require the following documents from applicants:

• Passport
• Emirates ID
• Valid residency visa
• Salary certificate
• Labour card
• UAE or valid home country driving licence
• Bank statements for the last 3 to 6 months
• Insurance policy documents
• Valuation certificate of vehicle
• Car registration documents

Self-employed candidates may need a trade licence, audited financials and proof of business income.

Applicants whose licences aren’t valid must apply for a UAE driver’s licence before they are considered eligible for car financing.

Loan Structure and Terms

An important aspect of the car loan process in Dubai is how much you will be expected to pay. Most banks finance up to 80% of the car’s value, so you’d need a 20% down payment. When it comes to auto loan interest rates in the UAE, some lenders may ask for 25–30% to secure better rates. Furthermore:

• Minimum financed amount is roughly AED 20,000, so the car should cost at least AED 25,000.
• Loan tenures typically run between 3 to 5 years (60 months max). For older cars, the bank may shorten the term depending on the vehicle’s age.

Keep Interest Rates in Mind

The best way to acquire the lowest interest car loan in Dubai is to compare interest rates. The rate of interest payable by buyers is determined based on the principle amount and the loan tenure.

The terms of an auto loan repayment have a huge impact on the monthly instalment. For example, shorter repayment terms require you to repay more to the bank every month. However, the longer the repayment term, the more the interest. So, make sure that you consider the status of your finances before you settle for a term. It is the best way to acquire the cheapest car loan in Dubai. You can read more about the benefits of flat vs. reduced interest rates for further clarity.

Car Loan Process in Dubai

First thing you need to do is check your eligibility for the loan. Once you have done that:

• Select your vehicle and get its official dealer quotation.
• Gather and organise documents
• Request quotes from multiple lenders (banks or dealership financial desks).
• Apply and wait for approval, ideally through a bank or dealer who assists you through the process.
• Close the loan by signing and paying the down payment to finalise.

A good start is to look for banks that offer 0% down payment for a car loan in Dubai, offered to specific types of customers. For example, a bank may offer a car loan in Dubai without a down payment to business employees or self-employed individuals. For 0 interest on car loans in Dubai, talk to your dealership.

Also make sure to keep up with repayments as missed payments can lead to your car being repossessed, leaving you liable for charges and late fees.
In some cases, car showrooms and dealerships provide consultations with bank representatives. If your dealership doesn’t offer the service, you can always visit online resources to compare current interest rates. It’s the best way to determine the car loan interest rate in Dubai.

Benefits of Car Loan in Dubai

If you are still on the fence about whether buying a car on loan is the best option for you, consider the benefits:

• You technically don’t need to put up collateral in order to acquire an auto loan. This is because the car itself serves as collateral.
• Car loan repayments actually help your credit history provided that you stay on top of payment deadlines.
• Banks offer flexible payment packages to make it easier for borrowers to finance their loans which gives them full control over how much they spend in monthly instalments.
• Unlike home loans, car loan amounts can be negotiated with lenders provided that they have a good credit history.

FAQs

Can expatriates get a car loan in Dubai?

Yes, expatriates can get a car loan in Dubai, provided they meet certain requirements. Most banks offer car loans to expats who have a valid UAE residence visa, a UAE driving license and a minimum monthly salary, typically starting from AED 5,000–8,000.

What are the current loan interest rates in Dubai?

As of mid-2025, car loan interest rates in Dubai typically range from 1.99% to 3.5% per annum, depending on your profile, salary and employer. Leading banks like ADCB, Emirates NBD and RAKBANK offer competitive flat rates starting at 1.99%, while reducing balance rates range from 3% to 6%. Expats working for listed companies usually get better offers.

Is a down payment mandatory to get a car loan in Dubai?

Yes, a down payment is mandatory for car loans in Dubai, with banks typically requiring at least 20% of the vehicle’s value upfront as per UAE Central Bank regulations. For used cars, some lenders may ask for a higher down payment, especially if the vehicle is older or has high mileage.

A car loan in Dubai is the ideal choice for permanent residents or expats working in the emirate. Tourists or temporary visitors who don’t plan on staying for more than a year are advised to rent or lease vehicles, each of which comes with its own benefits. For example, consider leased cars; besides maintenance costs and gasoline charges, lease agreements typically feature monthly or yearly payment plans instead of down payments.

That’s a wrap of requirements that are essential for acquiring a car loan in Dubai. Keep our tips in mind the next time you want to acquire a loan against a car in the emirate.

Need to have a valid UAE driving license before you can apply for a loan? MyBayut’s guide to getting a driving license in Dubai will help you secure a driving permit. To increase your chances, visit any of our recommendations for best driving schools in Dubai.

Visiting the emirate and need to rent a car instead? Our guide for renting a car in Dubai will help you procure a vehicle that suits your requirements.