Dubai Islamic Bank Auto Loan
Dubai Islamic Auto Finance comes to you from the house of Dubai Islamic Bank (DIB) and makes you closer to the dream of purchasing your new car. The car loan may be based on Musharaka cum Ijara model, so that a fully Shariah compliant auto finance becomes available to you. Both personal or commercial vehicle or fleet of vehicles for a company or business, passenger cars to busses to heavy machinery and trucks, can be financed. Several financing plans and payment options are offered by Al Islami Auto Finance.
You’re probably eligible for Dubai Islamic Bank Car Loan if you are
Salaried or self-employed with regular income
Earn more than the minimum income required
Minimum income required
AED 3,000 per month
AED 1.5 million
EMIs of other loans lower your eligibility
Increase your eligible Dubai Islamic Bank Car Loan amount by these steps
Pay off your credit card bills
Choose longer tenure loan up to 5 years
Documentation needed to apply for an Dubai Islamic Bank Car Loan
- 1. Personal / Business Bank Statements
- 2. Salary Certificate / Slip
- 3.Passport/Khulasat al Khaid copy
- 4.Valid Visa (Expatriate customers)
- 5.Emirates ID Card
- 6.Trade License / Memorandum of Association/ Partnership Agreement
Dubai Islamic Bank Car Loan Interest RatesUpdated on 24 Oct 2016
|Profit Rate||2.35% p.a. to 17.60% p.a.|
|Processing Fee for Due Diligence and Documentation||AED 750 per application|
|Individual Customers||up to AED 2,500|
|Non - Individual Customers||up to AED 2,500 per vehicle|
|Late Payment Penalty||175|
|Early Settlement Charges||1% of the outstanding principle|
|NOC to Traffic Department||Free|
|Replacement of Existing Post-Dated Cheques with New Post-Dated Cheques||Free|
|Installment Deferment Charges||AED 100 per deferment|
|Placement of Mortgage on Vehicle||AED 100 per vehicle|
|Release of Mortgage on Vehicle||AED 100 per vehicle|
Al Islami Auto Finance
Dubai Islamic Bank offers auto finance facility that will help you get your dream car conveniently with no hassles. Al Islami Auto Finance deals with financing of vehicles for personal and commercial need. It offers finance for passenger cars, business vehicles, buses, heavy machinery and trucks. Al Islami Auto Finance boasts of being the one-stop solution for all your auto needs.
Features of Al Islami Auto Finance by DIB:
- Financing offered up to AED 1million.
- Minimum salary required to apply for the loan - AED 3,000 per month.
- Financing available for new and used cars.
- Financing available for up to 6 months.
- Transfer of salary is not required.
- Finances available for:
- Salaried individual.
- Self-employed individual.
- Heavy machinery.
- Rent a car and other companies.
Documents Required for Loan processing:
- You have to have your last three month Bank Statements
- Your Salary Certificate
- A copy of Khulasat al Khaid or Passport
- For Expatriate customers Valid Visa is required
- A Vehicle purchased Quotation
- Trade License is required in case of Companies, Sole Proprietors and Partnerships
- For companies, Memorandum of Association is required
- Monthly instalment cheques and Standing instructions
- For Partnership, Partnership Agreement is required
- Notarised POA for Self-employed individuals
- If finance is over AED 750,000/-, you need an Audited Balance Sheet.
The documents required might vary on the kind of vehicle being purchased and the customer.
The process of availing auto finance from Al Islami Auto Finance is easy and hassle free. It also offers different payment options to make it easier for their customers
Ease of application and faster processing are the other features of Al Islami Auto Finance.
Ijarah is an Islamic financing principle that allows traders and businessmen to acquire capital goods or assets through hire purchase. With 3-7 years of leasing period the lessee can start using the asset while paying a rent to buyer and at the end of term buy out the asset himself. The auto finance model from DIB may be based on Musharaka cum Ijara model.
Al Aslami Auto Finance confirms to Islamic banking principles and has been approved by the Fatwa and Shariyat supervisory board.
Located in Dubai, Dubai Islamic bank was established in 1975. It is the largest Islamic bank in Dubai, and also the first bank in the Middle East to include Islamic principles in its banking practices. T It is a public joint stock company, listed on the Dubai Financial Market. The bank currently has 62 branches across the seven Emirates, DIB indulges in international as well as domestic partnerships, with its shares listed on Dubai Financial Market. The bank has both local and international partnerships. It has branches in Pakistan and representative offices in Turkey. Its subsidiary called DIB Pakistan Limited, which has 75 branches of its own spread across 27 of Pakistan's major cities. The bank has also received a primary banking licence to operate as an Islamic financial institution in Jordan. A representative office of DIB is located in Turkey, with the Central Bank of Jordan providing it with an initial banking licence to carry operations as an Islamic bank through a distinctive new institution called Jordan Dubai Islamic Bank. The bank not only tries to provide Islamic banking to the world, but also strives continuously to take it to greater heights of success. Dubai Islamic bank maintains transparency and equality in all its activities. Adnan Chilwan is the chairman of Dubai Islamic Bank.
History of Dubai Islamic Bank
Dubai Islamic Bank began operations in 1975. Not only did the financial institution introduce the world to Islamic banking, but continues to match the high standards it has set for itself. It believes in transparency, equality and morality in everything it does and the institution reflects the growth, diversity and modernity of the city in which it was established.
Islamic finance and banking continues to grow and make waves in the economic sectors, with over 400 institutions managing assets worth more than US$ 1 trillion worldwide, and DIB prides itself as the leader in the revolution. Despite experiencing truly impressive growth since its inception in the 1970s, DIB has remained a customer-centred institution and forged relationships with clients and customers based on honesty and personal service. Heritage and tradition in addition to a long-standing commitment to modernity, innovation and flexibility has been observed by the bank so that comprehensive solutions are always available for all kinds of financial needs of their customers.
Dubai Islamic Bank has bagged more than 140 accolades internationally, regionally and locally since 2004. The awards won stretch across diversified sectors, including consultancy services, CSR, investment banking, corporate banking and retail banking.
Branches in UAE
Dubai Islamic Bank has a total of 62 branches spread out across the UAE. There are over 30 DIB branches in Dubai located across the emirate, with Abu Hail and Jumeirah hosting branches that are exclusively for ladies only. The main branch is located in Deira. There are nine branches in Abu Dhabi including a main branch and and a ladies-only branch located at Khalidya. DIB has 12 branches in Sharjah too, with Al Heera playing home to the emirate’s only branch exclusively reserved for ladies.
The banking products offered by Dubai Islamic Bank are in compliance with the Sharia'ah law. Following are the services they provide to customers.
- Accounts – DIB offers personal banking services such as Current Account, Current Account Plus, Savings Account, and a number of others that help customers attain a hassle-free banking experience at DIB.
- Offshore Banking Services and Products
- Investment and Protection Services
- Asset Management
- NRI Services
- Education Services
Johara Ladies – A special scheme developed to improve the personal finances of their female customers, Johara Ladies products include personal banking services as well as a Woman's Critical Illness Plan and special offers for dining, fashion, jewellery and clubs.
Wealth Management – Customers of DIB can avail services such as structured products, income funds, mutual funds and investment plans to manage their funds in a more effective manner.
Business Banking – DIB provides business banking services including cards and accounts for both small-scale and large-scale business operations.
Corporate Banking and FI – DIB's corporate banking services cover the public sector as well as the private sector with options of investment banking available for all kinds of clients.
Treasury – DIB customers have access to foreign exchange, money markets, capital markets and investment products that are easy to understand and convenient to use.
Does my credit score matter of I want to take out a car loan?
Does poor credit history mean that I cannot get a loan?
I am self-employed. Can I apply for a car loan?
Can my insurance be transferred to the new owner in case I sell my car?
What are the reasons for which the bank could reject my application for a car loan?
Does the bank offer any privileges?
Does the bank offer insurance?
What special benefits does DIB offer to women?
What is Wakala Deposit?
What are Islamic Sukuks?
Yes. When the bank starts to process your application for a loan, it checks your credit report to ensure that you are not a risk to the bank. A poor credit score can make it difficult for you to get a car loan whereas a good score will not only ensure that you get the loan, but will also help you get a relatively low interest rate.
Not necessarily. Customers with bad credit history can still avail a car loan if they provide the necessary documents the bank requires to confirm their eligibility.
Yes, self-employed individuals also qualify for a car loan subject to certain credit criteria. The bank will require you to provide the necessary documents for income verification prior to making its final credit decision.
Insurance coverage is determined by the experience of the driver, so your insurance is specially tailored only for your use. It cannot be sold along with your vehicle.
Poor credit history and defaults on previous loans will be taken into consideration. Apart from that, first-time applicants will have to verify their income and prove that they have the means to repay the loan.
Mumayyaz Privilege Banking is one of the services that offers the customers of DIB a better way to carry out all banking activities. It recognises its customers' appreciation for excellence and in essence, makes it easier to connect with everything related to the bank – from priority teller access to relationship managers and several other exclusive services.
Yes, the Takaful+ services offered by DIB ensures that customers secure the future of their loved ones with relative ease. A host of innovative and truly unique products are designed to provide you with the best of financial protection.
DIB offers discounts of up to 50% for women on dining bills at select eateries. You can also avail discounts of up to 60% on jewellery shopping. Moreover, female customers of DIB can join the Dubai Ladies Club or the Sharjah Ladies Club without paying any joining fees in addition to making the most of other amenities at discounted rates. Up to 40% discount on apparel and accessories can also be availed at select fashion outlets.
Customers of DIB can involve in Wakala Deposits to significantly increase returns on investment. The profit rates are attractive and deposit terms can range from one, three, six, nine, 12 and 24 months and the minimum deposit amount is AED 25,000.
A team of experts from DIB are always available to help customers find the most attractive prices on Sharia'ah compliant bonds. They also provide custodial services whilst ensuring that all practices of the bank comply with the Sharia'ah law.
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, only a few have made it to the top.
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.
Even the expats in the UAE can buy the car of their dreams with a car loan. Although, expats need to provide a little more information about themselves in comparison to an Emirati, but still it is an easy business as all the leading banks in the UAE offer car loans for the expats. .
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.
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.
News about Dubai Islamic Bank Car Loan
DIB plans to raise profit by selling shares
Dubai Islamic Bank - one of the leading banks in the UAE plans to raise Dh3.6 billion by trading in shares. The bank has decided to do so after its first quarter profit increased in 2016. In a recent statement released by the bank says that Dubai Islamic Bank would sell 988.4 million shares at Dh3.20 per share. It is expected that selling of shares would support the bank’s growth by doubling its capital. Dubai Islamic Bank reported a profit of 18%, amounting to Dh1 billion in Q1 of 2016. The bank also received profit from lending and selling its five- year Islamic Bonds. The bank’s lending increased to 6% and the profit received by it from Islamic Bonds was $500m in the said quarter.
10th May 2016
Dubai Islamic Bank to boost capital in the wake of lending boom
After having seen a surge in the demand for its credit products, the Dubai Islamic Bank has decided that it will need to increase its capital to meet future needs. It saw an increase in its Shariah compliant loans that was 5% more than what they had projected at 25%. Even the bank’s capital adequacy ratio rose to 16.5% from the 14.9% recorded at the end of 2014. The bank’s Chief Executive Adnan Chilwan also said that the bank had exceeded the projections of analysts by posting a net profit of 43.6% in the third quarter most of which was driven by Islamic lending. The bank's earnings from such lending has risen from AED 1.15 billion to AED 1.43 billion.
29th October 2015
Dubai Islamic Bank reports a 35% Surge in 2015 Second Quarter Profits
Growing in many sectors of its business, the largest government-backed Shariah-compliant lender Dubai Islamic Bank reported a 35% increase in 2015 quarter two profits.
While trading of shares went up to a number of 8.8 million, twice the average of the past three months, and the net income for Dubai Islamic Bank was 902 million dirhams as of June 30. The shares value gained 6.9% in July. There has been phenomenal growth in the loans sector, so much so that it has left the national average lagging behind. The Islamic bonds offered by Dubai Islamic Bank have gained the most in growth and they in turn have helped its shares outperform the DFM General Index.
With the second-most intensive leverage on Dubai’s benchmark stock, Dubai Islamic Bank has proven five analyst estimates wrong and gained 724.8 million dirhams in its stride of growth.
31st July 2015