CBI Car Loan in the UAE
CBI or Commercial Bank International offers unique financial products to cater to different needs of individuals in UAE. The bank offers financial products such as cards, accounts, loans including auto loans or car loans. The car loans offered by the bank comes at a competitive rate of interest and various add-ons to suit the requirement of the customer.
Buying a vehicle is a matter of pride. Adding value to your car investment, the Commercial Bank International Car Loan promises to be one car loan that makes everyone happy. Generally, loans are tied to tiresome processes, mind-boggling schemes and steep interest rates. Rest assured, because with the Commercial Bank International car loans one can avail free add-ons, competitive interest rates and quick approvals.
The Commercial Bank International PSC (CBI), established in the Emirate of Ras Al Khaimah, in 1991, offers unique and easy banking services to UAE Nationals. Today, CBI has 20 branches across the Emirates and has been a long standing industry partner with its commitment towards its customers. From corporate banking to tailor-made retail services, the bank offers a wide range of finance solutions and products to UAE customers. Committed to serve and provide the best of products, CBI constantly innovates and structures itself as per the need of the hour. The Commercial Bank International defines itself by its core values - Relationship building, Simplicity, Efficiency and Convenience - to serve its large clientele.
You’re probably eligible for Commercial Bank International Car Loan if you are
Salaried or self-employed with regular income
Earn more than the minimum income required
Your Commercial Bank International Car Loan amount eligibility is based on these factors
80% of vehicle value
EMIs of other loans lower your eligibility
Increase your eligible Commercial Bank International Car Loan amount by these steps
Pay off your credit card bills
Commercial Bank International Car Loan Interest RatesUpdated on 22 Jan 2017
|Interest Rate: Flat Rate||2.75% p.a.*|
|Interest Rate: Reducing Rate||5.03% p.a.*|
Features and benefits
Commercial Bank International car loans offer affordable interest rates starting from 2.75% per annum flat rate and 5.03% per annum reducing rate, along with a compelling motor insurance rate.
Documents required to avail a CBI car loan
- UAE Nationals require to submit a copy of their passport. Foriegners also need a valid UAE residence visa endorsed in their passport
- UAE Identity Card
- UAE driving license
- Bank statements for the last three months
- Employed professional require a salary Certificate from the current organization
- Quotation from the dealer for new cars
- Valuation certificates from the dealer for used cars
CBI UAE Car Loan Fees and Charges
Listed below are the fees and charges applicable on CBI UAE car loan.
- Processing fee- The bank charges a fee of 1% of the loan amount as processing charges for the car loan, the minimum amount being AED 500 and maximum being AED 2,500
- Early settlement fee- The borrower has to pay 1% of the remaining balance amount as an early settlement fee in case of an early settlement
- Replacement of existing post-dated Cheques with new post-dated Cheques- Replacement of existing post-dated cheques with new ones costs nothing.
- NOC to the traffic department- No charges whatsoever
- Advance payment of Installment- Advance payment of instalment attracts a fee of 1% of the advance amount
- Change of due date on standing instructions- AED 25 is charged for change of due date on standing instruction
- Installment deferment charges- AED 100 is charged per deferment as instalment deferment charges.
- Loan rescheduling fee- The bank charges a fee of AED 250 for loan rescheduling
- Late payment interest charges- 2% over agreed rate, minimum being AED 50 and maximum being AED 200
- Liability letter addressed to other bank- A fee of AED 100 is charged for liability letter addressed to other bank
- Loan rescheduling fee- Rescheduling of Mashreq Bank Car loan attracts a fee of AED 250
- Loan cancellation fee- Cancellation of the loan attracts a fee of AED 100
- Change of PDC- No fee is charged for change of PDC
The first step you need to take is to understand what your budget is - how much can you afford monthly. Next you need to evaluate whether the car of your choice fits into your budget. Then find the right financial deal to buy your dream car. Compare car loans offered by different banks in the UAE before you make your choice. Evaluate all the costs incurred by taking the loan apart from rate of interest. Also keep in mind that time is money when it comes to financing - meaning that the longer your loan term, the more it will cost you.
Other Products offered by CBI UAE are:
If I wish to sell my car, can I also transfer the insurance policy to the new owner?
Is it necessary to take out an insurance policy that spans for 13 months instead of a yearly 12-month policy?
Does third party liability cover my vehicle too?
Can I sell my vehicle before the loan is repaid?
What kind of cover do I receive from third party liability?
No. Firstly you will have to repay the loan before you can sell your car. And even if the loan is repaid, you will not be allowed to transfer your insurance to the new owner as the terms of the policy and the insurance premium are calculated in consideration with the driver’s experience.
Yes, the UAE Traffic Department has set a law that requires you to take out a 13-month policy in order to cover the month-long grace period granted for registration.
No, third party liability is designed to offer coverage to the third party, i.e the vehicle or driver who suffers damages when you are driving.
No, customers are not allowed to sell their cars until the final payment has been made. This is because your vehicle is treated as security for the loan.
Third party liability covers bodily injuries to a third party, or their death. It also covers damage to their property due to collision with your car.
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?
Yes, there are many financial institutions in the UAE which finance 100% of the loan amount, and you do not need to pay any down-payment while buying the car.
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 CBI Car Loans in the UAE
CBI receives its first rating from Fitch
Commercial International Bank in the UAE has received its first rating from Fitch - a leading credit agency in the UAE. The credit agency has given the seventh highest rating to this Dubai based bank. However, currently the bank has no plans for raising debt on capital markets. This is revealed by Mark Robinson- the CEO of Commercial International Bank.
09th May 2016
Capital Intelligence, has increased the Financial Strength Rating, of UAE’s Commercial Bank International (CBI)
The Financial Strength Rating of UAE’s Commercial Bank International (CBI) has been increased by Capital Intelligence. Their rating that stood at BB has now gone forward to BB-, the increase was done due to their improvement in their asset quality ratios in 2015. After several years of strong growth the bank kept their credit expansion in check in the H1 2015, to conserve capital and has now managed to grow at a slower pace. The operating profitability of the bank is reasonably good. Commercial Bank International in one of the smaller banks in UAE, it’s primarily a corporate bank with retail banking as well. But it still has a foundation in Trade finance.
16th October 2015
Commercial Bank International Looking to Expand by Raising Funds
CBI intends on expand its operations and hopes to raise capital for the same within the next year and a half. The expansion plan of the bank revolves around improving lending to individual customers while improving its reach in Islamic and trade finance. The Chief Executive of the bank, Mark Robinson recently stated that the bank can maintain excellent risk discipline to foster its growth. He also said that the bank needs to raise capital as it continues to grow in stature.
More than 65% of CBI's loans are sanctioned to corporate entities, with the remaining being offered to individual customers. The expansion plan aims at attracting a higher number of retail customers and the bank intends on utilising more funds to make state-of-the-art technology easily accessible to customers.
21st September 2015