Introduction to the Bank of Baroda Car Loan in the UAE
Bank of Baroda UAE offers car loans to purchase both used cars and new cars. The bank offers car loans at attractive rates of interest. With minimal documentation and paperwork, you can apply for a car loan with Bank of Baroda UAE and bring home your dream car. Car loans offered by the bank are a part of its Retail Banking services.
You’re probably eligible for Bank of Baroda Car Loan if you are
Both salaried and non-salaried individuals
Earn more than the minimum income required
Your Bank of Baroda Car Loan amount eligibility is based on these factors
Loan capped is AED 500,000 for new cars and AED 50,000 for used cars of the Ex-Showroom price of Car value
EMIs of other loans lower your eligibility
Increase your eligible Bank of Baroda Car Loan amount by these steps
Pay off your credit card bills
Choose longer tenure loan up to 48 months for new cars, up to 36 months for used cars
Bank of Baroda Car Loan Interest RatesUpdated on 09 Dec 2016
|Interest Rate – Flat||3.00% p.a.|
|Interest Rate - Reducing Balance Rate||6.00% p.a.|
Features of Bank of Baroda UAE Car Loan
The Bank of Baroda UAE Car Loan comes with the following attractive features:
- Enjoy competitive and lower rates of interest. The bank charges 3% at flat rate and 6.00% at reducing balance rate for car loans. However, these interest rates are subject to change.
- Enjoy flexible repayment period which is 48 months for new cars and 36 months for used cars.
- Enjoy fast processing and quick disbursal.
- Minimal documentation.
- Car loan is offered to both salaried and non-salaried individuals.
Benefits of Bank of Baroda UAE Car Loan
You can enjoy the following benefits:
- The bank offers car loans for both used and brand new cars.
- For new cars, Bank of Baroda offers up to 80%, and for used cars it offers up to 70% of the car value.
- Get car finance up to a maximum amount of AED 500,000 for new cars and AED 50,000 for used cars.
Eligibility Criteria for Bank of Baroda UAE Car Loan
In order to apply for a car loan with Bank of Baroda UAE, You need to fulfil the eligibility conditions set the bank. However, both salaried and self-employed individuals can apply for car loans with Bank of Baroda UAE.
Documents Required for Bank of Baroda UAE Car Loan
The bank requires the following documents to process your car loan application:
For salaried employees:
- A filled in loan application form.
- Latest bank statements of last six months. The Bank of Baroda customers need not submit this.
- Proof of identity.
- Copy of passport
- Latest salary slips.
- Vehicle invoice.
- Driving license (should contain the UAE address).
- Vehicle valuation report (applicable for used cars).
- An undertaking from the borrower allowing bank to receive terminal benefits.
- An undertaking from your employer to pay salary and terminal benefits to bank at the end of the loan tenure.
For self-employed individuals, businessmen, company and firm:
- Copy of passport.
- Copy of the latest balance sheet form your company.
- Latest bank account statements for last three months. This is not applicable for Bank of Baroda customers.
- Copy of professional or trade license.
- Invoice of vehicle
- Copy of UAE driving License.
- Copy of Power of Attorney.
- Valuation report (applicable for used cars).
- Copy of partnership contract (if relevant).
Charges and Fees Applicable to Car Loans from Bank of Baroda
- A processing fee equivalent to 1% of the amount you wish to borrow will be charged before the loan is sanctioned
- Prepayment fees equivalent to 1% of the amount you borrow, or a minimum of AED 250, will be have to paid in case the customer wishes to close the loan before the expiry of the loan tenure.
The personal data form is the first application that must be filled in if you wish to avail a personal loan from Bank of Baroda. The first section of the form will require you to enter details such as your name, your father’s name, your passport number, the date on which the passport was issued, the validity of the passport, the place at which it was issued, your VISA issue date, its validity, your driving license number, its validity, your nationality, marital status, full residential address, telephone number (residence and/or mobile number), and email.
The second section of the form will require you to fill in your occupation details such as occupation, the name of your current employer, the address of your organisation, company or firm, your work telephone number, the number of employees working in your company, the line of work carried out by the firm or company, your designation, the duration for which you have been with the current employer, works permit number, its validity, trade license number, its validity, monthly income, deductions on monthly income, loans from your employer (if any), outstanding loans from employers (if any), name and location of your previous employer.
The third section of the form will require you to fill in your bank details, starting with the kind of account you hold – S/B account with BoB or Personal account or NRE account or Business account. For any of the accounts you may hold, you will have to fill in details such as the account number, the branch of the bank, the time period for which the account has been maintained. Other details that will have to be entered in this section include the average monthly balance of your business account (if any), the yearly credit turnover business account (if any), the type of loans you have previously availed, the principal amount, the outstanding amount, the date on which the loan was availed, the date on which it was repaid, and the bank from which it was taken.
The bank will also require references if you wish to avail your loan at a quicker rate and at an attractive interest rate. Two names along with their contact numbers and your relationship with them must be disclosed in the form along with their signatures.Bank of Baroda Application Form
The application form is just as easy to fill up as the personal data form. All you have to enter is your name, the kind of loan you wish to avail, the purpose for taking out a loan, the total cost of the loan, the repayment period, your signature, the name of a guarantor (if any), and a signature of the guarantor. A checklist of documents to be submitted is present in the form, and customers are expected to tick against the documents they can furnish for the verification of eligibility.
Car loans offered by Bank of Baroda UAE come with a host of attractive features and benefits. Not only the bank offers attractive rates of interest, it also charges very nominal prepayment fees and charges. The most important advantage is that you can apply for a car loan with Bank of Baroda UAE online, instead of physically visiting its branch. Headquartered in Vadodara, Bank of Baroda is one of the leading banks in India. The bank has a strong international presence with its huge network of branches spread over the world. The bank has its presence in countries like the UAE, Hong Kong, London, New York and Singapore etc. Bank of Baroda UAE offers a wide range of financial products and services to its retail and corporate customers which include NRI Services, Retail Banking, SME Loans, Corporate Finance and different deposit accounts.Products and Services Offered in United Arab Emirates
Can I prepay my car loan taken from Bank of Baroda UAE?
Yes, you can prepay your car loan with Bank of Baroda UAE by paying a prepayment charge of 1%.
I am an existing customer of Bank of Baroda UAE. Do I need to submit my lasts bank account statements to apply for a car loan?
No, you don’t have to submit your latest bank account statements while applying for a car loan.
Does the Bank of Baroda charge processing fees on car loans?
Yes, the Bank of Baroda charges a processing fee of 1% on car loans.
If I want to purchase a used car, will Bank of Baroda UAE grant me a car loan?
Yes, the bank provides car loan for used cars as well.
How much finance does Bank of Baroda offer for new car loans?
The bank offers up to 80% of the car value as car loan.
I am not a salaried employee. Will I be eligible to get a car loan from Bank of Baroda UAE?
Yes, you are eligible to get a car loan from Bank of Baroda UAE. The bank offers car loans for both salaried and self-employed individuals.
What is the maximum amount Bank of Baroda UAE offers for used cars?
The maximum amount offered for used cars is AED 50,000.
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.