Car Loan by Abu Dhabi Commercial Bank
Owning a car has become a style statement in this day and age. Be it a new car or a used one, driving a car is also a necessity. Abu Dhabi Commercial Bank makes it easy for you to be the proud owner of a car of your choice with its attractive car loan offers and easy pay-back instalment schemes. The bank helps you derive value from your auto investment with its competitive car loan packages.
You’re probably eligible for Abu Dhabi Commercial Bank Car Loan if you are
Salaried or self-employed with regular income
Earn more than the minimum income required
Loan capped is AED 500,000 of the Ex-Showroom price of Car value
EMIs of other loans lower your eligibility
Pay off your credit card bills
Choose longer tenure loan up to 5 years
Abu Dhabi Commercial Bank Car Loan Interest RatesUpdated on 22 Oct 2016
|Interest Rate (Monthly reducing balance)||2.49%-3.25%|
Profit Rates on Conventional Car Loans
ADCB car loans are available at lucrative annual profit/interest rates. The current applicable rates are as follows:
|Loan amount||Interest/Profit rate in %|
|From AED 0 - AED 50,000||4.5 - 11|
|From AED 51,000- AED 100,000||4.5 - 11|
|From AED 101,000 - AED 200,000||4.5 - 11|
|More than AED 200,000||4.5 - 11|
Profit Rates on Islamic Car Finance
Islamic car loans are offered by the ADCB under the Murabaha Auto Finance category, with a flat rate of annual interest. Given below are the profit rates for the loan:
|Loan amount||Interest/Profit rate in %|
|From AED 0 - AED 50,000||2.49 - 5.75|
|From AED 51,000- AED 100,000||2.49 - 5.75|
|From AED 101,000 - AED 200,000||2.49 - 5.75|
|More than AED 200,000||2.49 - 5.75|
ADCB Auto Loans
The convenience of owning a car is both—a statement that you have arrived in life as well as the freedom of mobility it offers. ADCB auto finance makes it easy and fast to obtain a personal vehicle on loan, and you can slowly pay it back over a reasonable period.
ADCB is one of the largest banks that provides car loans for purchase of a personal vehicle. ADCB auto finance is are available for purchase of new, certified or pre-owned passenger cars, Multi Utility Vehicles (MUVs) and SUVs. Easy repayment options and a comparatively lower profit rates, make ADCB auto finance a popular choice.
You can now purchase your dream car with ADCB Islamic Murabaha Auto Finance. This lets you choose your new set of wheels with attractive profit rates and a convenient repayment period. This has an easy approval process and also lets you earn TouchPoint rewards.
Following the ever-changing market trends, ADCB offers UAE nationals easy car loans with low interest rates. ADCB car loans can be availed with simple documentation and quick approvals for new and used cars alike.
ADCB Car Loan interest rates -
- As low as 2.49% rate on new cars **
- As low as 3.25% rate on used cars **
**Reducing balance rate of 4.74% (New Cars) and 6.14% (Used Cars).
Customers can avail a car loan in no time with a special feature provided in the loan process - “One Signature” Application. The tenure of the car loan is up to 60 months, with financing available up to AED 500,000 i.e., 80% of the car value.
ADCB Islamic Murabaha Auto Finance
ADCB also provides Islamic Auto financing options as approved by the Fatwa and the Shariah Supervisory Board. Under this scheme, customers can avail loans for new and used cars with easy documentation and fast approvals. Additionally, the bank also offers competitive profit rates with repayment periods up to 60 months. ADCB covers up to 80% of the car value with a cap on the loan amount from AED 10,000 to AED 500,000. For salaried professionals, to avail a car loan, a salary transfer is not required and ADCB also offers a 3-month EMI deferment.
ADCB’s unique reward scheme ‘TouchPoints’ gives you points for every ADCB product and service you 'touch'. With respect to car loans, an ADCB customer can earn up to 50 TouchPoints for every AED 1,000 of the loan amount. The more ADCB products and services used the more the rewards.
Features & Benefits of ADCB Islamic Murabaha Auto Finance
- DCB Islamic Murabaha Auto Finance lets you take up to 80% as auto finance
- It offers a competitive profit rate for your car
- You can repay in periods up to 60 months
- Simple documentation and faster approval of your application
- Salary transfer is not required.
- Amounts financed can be AED 100,000 - 500,000
- For every AED 1,000 financed, you earn TouchPoints.
- Salaried Individuals can defer EMI payment for up to 3 months
Eligibility Criteria for ADCB Conventional Car Loan
Like most car loans in the UAE, ADCB requires you to meet the following criteria before you can apply for a vehicle loan:
- Valid driver’s licence: You should be above the age of 18 and have a approved UAE driving licence.
- Employment guarantee: You should be employed with a reputed firm or self-employed with a good turnover for your company/business. You have to show your payslips or trade licence, and employment certificate as proof.
- Minimum salary: It must be AED 5,000.
- Good credit rating: Your credit rating or score should be good in order to get approval for a vehicle loan.
- Other loans: The less number of concurrent loans you have in your name, the more your ability to pay off the car loan that you are seeking.
The chances of you getting a car loan are greatly reduced under the following circumstances:
- Offences on the driver’s licence
- Bad credit score
- Multiple loans already taken while applying for a fresh car loan
- Income levels not sufficient to pay the EMI of the car loan
Documents Required for ADCB Conventional Car Loan
As in any bank loan, the applicants have to submit to ADCB proof of identity and address and employment details and payslips. Car loans also require copies of the vehicle’s registration card and insurance policy.
Individuals who are applying for a vehicle loan from ADCB need to furnish the following documents:
- Filled-up application form
- Valid UAE ID card
- Driving licence
- Passport and residence visa (if not a citizen of the UAE)
- Original salary certificate and payslips
- Bank statements
- Post-dated cheques for EMIs or Standing Instruction to your ADCB account number
- Security cheques
- Copy of vehicle registration card, mortgaged to ADCB and certified
- Original comprehensive vehicle insurance policy
- Original invoice/evaluation certificate of the vehicle
- Mortgage letter
Companies applying for an ADCB vehicle loan have to submit copies of valid Trade Licence apart from the ones mentioned above. If there are more than one applicant for the car loan, the joint applicant also needs to provide their personal details, identity and residence proofs, and payslips to get loan approval.
There are seven main sections on the application form for ADCB Car Loan that needs to be filled up before submitting to the bank for loan approval. Here’s a round-up of each section:
- Car Loan Application Form and Loan Agreement: The opening page of the form requires to be filled up with information about the applicant, including marital status, all identity details, complete employment details as well as employer’s details.
- Credit Card: This has to be filled up only if you would like to apply for an ADCB credit card along with the car loan.
- Vehicle Information: Details of the vehicle, such as model and make, engine and chassis numbers, and registration numbers have to be given here.
- Finance Information: You need to fill in the financial details of the vehicle here – estimated cost of the vehicle, insurance premium, service contract, down payment, total loan amount required, etc.
- Guarantor: This part of the form needs to be filled up only if you are taking the loan under the security guarantee of a third person.
- Customer declaration: The borrower – and joint applicant, if any – have to sign this part of the form with the date of application.
- Dealer’s declaration: The dealer has to sign this part of the form confirming the information of cost and quality of the vehicle that is being bought with the loan.
There is a separate form for joint applicants, and for companies. A mortgage document on the vehicle has also to be filled up and given to the bank.
The Abu Dhabi Commercial Bank charges the following fees for various services in relation to a car loan:
- Processing fees: 1 percent of the loan amount.
- Prepayment charges: 1 percent of outstanding loan.
- EMI prepayment charges: 1 percent of advance payment.
- Due date change on standing instructions: AED 25.
- Loan scheduling fee: AED 250.
- Late payment charges on interest: 2 percent more than the agreed rate, with the minimum of AED 50 and a maximum of AED 200.
- Loan liability letter: AED 100, but not applicable to Excellency customers and those who lost their vehicle to accident or theft.
It is important to understand the terms and conditions imposed by a bank before you take a loan from them. Let us look at some of the terms of ADCB Car Loan in brief so that you get a clear idea of the loan facility.
- Payment: The borrower must agree to repay the vehicle loan along with interest and other fees as required by ADCB, in monthly instalments, before the due date each month. The payments will be applied first towards the bank’s fees, then towards interest and lastly, towards the principal amount.
- Interest: The interest will be compounded monthly and charged on the amount remaining in the loan account every month, on a reducing basis.
- Late payments: The bank is liable to charge the borrower with late payment charges and interest, or cheque return fees, if the EMI is not paid by the monthly due date agreed upon at the time of approval of loan.
- Prepayments: You can prepay the car loan amount along with interest and applicable charges, including a pre-closure fee. If you are paying a monthly instalment in advance, the payment is subject to ADCB’s acceptance and it may levy an additional charge.
- Mortgage: The bank reserves the first mortgage of the vehicle. At the time of purchase of a car through a loan from ADCB, the customer is essentially mortgaging the car with the bank. The customer cannot sell off the car or mortgage it to anyone else during the tenure of the car loan.
- The bank’s right to terminate the car loan: Some of the circumstances under which ADCB can end the car loan are as below:
- EMIs are not paid on time.
- Any of the terms are disregarded by the customer.
- Incorrect information is proved to have been provided by the customer.
- The customer goes bankrupt, insolvent or convicted of a crime.
- The vehicle is damaged beyond use.
- The customer is rendered unemployed, deported, or their visa is cancelled.
- Joint liability: If two persons have taken the loan together, the terms and conditions are applicable to both the persons equally, and both are responsible for repayment of the loan and maintenance of the vehicle.
Under Islamic banking, Ijarah is a tool that allows individuals or firms to acquire assets through a lease or hire purchase, instead of direct purchase. This reduces the burden on the business and capital expenditure becomes easier to incur. Auto finance usually follows this practice. The leasing period may range from 3-7 years, and the lessee can have the right to purchase the leased asset at the end of the Ijarah period.
For example, we will buy a car on our name provided that you promise to lease it from us. Once the car is purchased it will be leased to you by us. The rent you pay us for using the car is such that after the lease is over, our purchasing cost and profit is recovered. We then transfer the car ownership to you by sale with a nominal price or as a gift.
ADCB Murabaha auto finance is confirms to Islamic banking principles and has been approved by the Fatwa and Shariyat supervisory board.
ADCB Car Loans – both conventional and Islamic – are among the best in the industry. Knowing all the terms and conditions and profit rates and charges prescribed by the bank will go a long way in ensuring that you are able to pay back the car loan in time. You can extend the tenure of the loan to up to 5 years, making it easier on the pocket with more easily-manageable EMIs.
Abu Dhabi Commercial bank (ADCB) has been serving customers in UAE since 1985 and employs 4.300 people. It has 561,000 retail customers and over 40,000 SME and corporate clients. It has several international offices and claims to have assets worth AED 198 bn.
ADCB offers entire range of banking services such as wealth management, private banking, corporate banking, retail banking, commercial banking, cash management, corporate finance, investment banking, and foreign exchange and so on.
Government of Abu Dhabi (Abu Dhabi Investment Council - 58.08% and Abu Dhabi Government Entity - 2.07%) owns 60.2% shares of ADCB.
Why choose ADCB?
ADCB is one of the leading banks in United Arab Emirates. The bank has shown immense progress ever since 1958 when it was established. The bank not only offers personal banking services but it also offers business and Islamic banking services. The products from the Islamic banking range is tailor made for the UAE customer as it is designed based on the Islamic Sharia principle. The bank has something to offer to every customer with its wide range of financial services and products.
It is one of the top banks in UAE and offers retail, investment, commercial, merchant banking and fund management services all across UAE. The bank also offers Islamic banking services and products which is based on the Sharia law. It is a public joint company and has branches situated in countries other than UAE. The bank has 2 branches situated in India and another branch in the United Kingdom.
Performance History of ADCB
The bank’s commitment to the UAE and its economy has been quite evident over the years. The bank follows a solid corporate strategy that is based on growth and discipline. The percentage of total customer deposits has increased from 24% in 2010 to 45% in 2014. The bank keeps coming up with innovative products and services for its customers. The bank launched Islamic banking services and products in 2008 and offers takaful services, accounts, finance and credit cards that are designed according to Islamic Sharia laws and are 100% sharia compliant. The bank has also won numerous awards over the years.
Products and Services Offered in United Arab Emirates
Listed below are the range of products, services and financial solutions offered by ADCB in United Arab Emirates.
- Personal Loans
- Credit Cards
- Offshore Banking Services and Products
- Investment and Protection Services
- Asset Management
- NRI Services
- Education Services
- Business Banking Services for Small and Medium enterprises
- Corporate Banking Services
- Government Banking
- Financial Situations
- Investment Banking
- Transaction Banking
- Treasury Services
- Takaful and Savings Programme
- Funds and Investment
- Credit Cards
- Privilege Club Services
- Islamic Business Banking
The bank offers financial services and products based on the Islamic Sharia law which are 100% Sharia compliant with its Islamic banking range.
Are the interest rates on car loan negotiable?
Although the bank has set an interest rate for different scenarios when it comes to availing a car loan, interest rates can be negotiated with the bank if you have been a loyal customer and cleared all your previous loans, or consistently made payments on time. It is not guaranteed that you will receive a discount, but the chances are relatively higher if you are in the good books of the bank.
Do I get an option when selecting my interest rate?
While the interest rate is determined by the bank after checking your credit history, customers have the choice whether they want to go in for a fixed rate or a floating rate of interest, similar to the manner in which rates for home loans are selected.
What are the circumstances under which the bank does not accept my application?
There is a chance that your application for a car loan from ADCB will be rejected in case your credit score is not up to par. The reason for a poor credit score could be multiple applications for credit cards or loans, defaults on monthly payments, etc. However, if you are applying for a car loan for the first time with ADCB, factors such as your income and organisation will be taken into consideration before determining whether or not you qualify for the facility.
What happens when EMIs are not paid on time?
EMI payments must be made regularly and within the due date. In case you fail to make payments on time, the bank usually permits one or two late payments, but if you consistently make payments past the due date, the bank will be forced to treat you as a defaulter, which means that charges will be levied, and worst come worst, your vehicle may be seized. Moreover, consistent defaults will result in a bad reflection on your credit score, thus affecting your eligibility for loans in the future.
All the top banks in the UAE offer car loans with lots of attractive features and a wide range of benefits. But out of so many, which car loans have made it to the top list?
You are in luck, if you live in the UAE! There are many financial institutions in the UAE which finance 100% of the loan amount, thus saving you from paying any down payment.
Yes, even expats in the UAE can buy the car of their dreams with a car loan. All the leading banks in the UAE offer car loans for the expats. Although, expats need to provide a little more information about themselves in comparison to an Emirati, but still it is an easy business.
The banks in the UAE offer NRIs staying there to apply for a car loan, especially designed for them, in India for their family or for their personal use. The car loans are modified to make it easier for the NRIs to avail the loans.
Yes, you can. The banks in the UAE provide car loans even for buying commercial vehicle(s). Even these offer a wide range of benefits like high range of financing, flexibility of down-payments and longer tenures.
Car Ijarah is another term for Islamic Car Financing in the UAE. It differs a lot from the conventional banking mode and is based on the Sharia principles of the Islamic law. Interest of fee for loans is prohibited in Islamic finance and the same applies for Islamic car finance or Car Ijarah.
News about ADCB Car Loan in the UAE
ADCB’s Net Profit Down by 18% in Q1
Due to lower income coming from fees and loans, the first quarter profit of Abu Dhabi Commercial Bank fell by 18%. The Net profit of the bank came down to Dh1.02 billion in the first quarter compared to Dh1.24bn in 2015 for the same quarter.
Islamic Financing and Net Interest income of the bank also tumbled by 4% in the 1st quarter. Compared to Dh1.64bn in 2015, the net income from the two sources came down to Dh1.57bn in 2016. The non-interest income of ADCB also dropped to 2% and came down to Dh539 million from Dh551 million in 2015.
10th May 2016
UAE Bank ADCB meet Q3 profits again
Abu Dhabi Commercial Bank have posted a 18.3% growth in the profits in the Q3. With the tightening of liquidity, Abu Dhabi Commercial Bank is the first major bank to show earnings in the quarter, since the low oil prices have put the local governments with less cash. Abu Dhabi Commercial Bank is also the 4th largest lender in the UAE and has made a net profit of Dh 1.2 billion or $326.7 million to be attributed to shareholders in the last 3 months, Dh 1.017 billion was their profit for the same period last year.
20th October 2015
Risk Assessment Model reaffirms AAA rating of Abu Dhabi Commercial Bank
UAE’s fourth largest bank, Abu Dhabi Commercial Bank (ADCB) have had an AAA rating of the senior notes issued under ADCB Finance. ADCB’s loans remain concentrated and have reduced, thanks to their lending portfolio. The bank’s credit-cost ratio had also been reduced to an annualised 0.4%. ADCB have got good transactions, thanks to low-cost savings accounts. The total of these accounts to 49% of customer deposits as of June 2015.
28th September 2015
2015 brings ADCB a Steady Upward Growth
Reporting a major climb in the net profit values, ADCB (Abu Dhabi Commercial Bank) registered a growth from DH2.16 billion in 2014 to Dh2.53 billion in the first half of 2015. That accounted for a 17% increase in the first half of the year itself while the second quarter itself showed an increase of 21%.
The growth factor is consequently observable in various other components of the bank’s financial profile too. The total operating income climbed up a steady 12% rung to Dh4.23 billion in the first half of 2015. While the net interest income went by 14% compared to the last year, the net interest margin registered a 4.5% increase in the first six months of the year by the same comparison. A 7% surge is reported for non-interest income in the first half of 2015 wherein 68% of the same has been attributed to an overall 22% growth in net fees and commission.
An 11% growth in customer deposits, reduced 88.1% and 110.74% stable resources and loan to deposit ratios, a strong 25.1% liquidity ratio could have probably contributed to the better scenario that ADCB is encountering. Needless to say, customers of ADCB also have more of a reason to be happy.
22nd July 2015