Emirates NBD Car Loan in the UAE
With Emirates NBD’s car loan schemes, now buying a car has become easier in the UAE. The bank offers car loans at attractive rates to help you purchase your dream car. Different car loan schemes such as Fixed Deposit Car Loan and Feature Packed Auto Loan are available under the car loan section of Emirates NBD. These schemes are customized to best suit your needs.
Emirates NBD provides you different types of car loan based on your requirements. It provides the following car loan services to you:
- Feature Packed Auto Loan
- Fixed Deposit Auto Loan
- Auto Protect Loan
- Staggered Installment Plan
- Balloon (50:50) Buy Back Programme
- Business Vehicle Loans
You’re probably eligible for Emirates NBD Car Loan if you are
Salaried or self-employed with regular income
Earn more than the minimum income required
Your Emirates NBD Car Loan amount eligibility is based on these factors
Minimum income required
AED 3 Million
EMIs of other loans lower your eligibility
Increase your eligible Emirates NBD 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 Emirates NBD Car Loan
- 1. Salary Certificate/ Documentary evidence of source of other Income.
- 2.Last three Bank Statement from the Salary Account
- 3. Letter from your employer confirming salary transfer and benefits.
- 4. For UAE Nationals - Copy of valid passport including last page.
- 5. Copy of Driving License.
- 6. Security Cheque / Guarantee as a part of the documentation.
Emirates NBD Car Loan Interest RatesUpdated on 09 Dec 2016
|New Car – Flat Rate||2.49% p.a.|
|New Car – Reducing Rate||4.61% p.a.|
|Used Car – Flat Rate||3.00% p.a.|
|Used Car – Reducing Rate||5.55% p.a.|
Emirates NBD Auto Loans
Emirates NBD has long been among the leading banking institutions in the UAE. Their diverse products and portfolios cater to a wide range of customers and their products include offerings for personal banking, corporate banking, wealth solutions, investment products and insurance policies. Among the more sought after products from Emirates are their Auto Loans. These auto loans have been designed to offer the borrower high loan amounts while keeping payment terms flexible and also providing various initiatives to reduce the EMIs or provide added benefits such as insurance policies bundled into the loan package. The features of the Emirates NBD Auto Loans are as follows.
Features of Emirates NBD Auto Loans:
- The loans offer a flexible payment tenure that goes up to a maximum of 5 years. The minimum loan tenure offered is 1 year.
- The loan amounts offered under the auto loans has a minimum loan amount of AED 25,000 and a maximum loan amount of AED 300,000.
- The loan approvals are completed within half a day making the entire process quick and hassle free.
- Upon availing a feature packed auto loan, the borrower will be provided with a free bank account as well as a free credit card for the first year.
- Preferential motor insurance rates are provided to the borrower.
- The borrower can avail a 24 hour roadside assistance service.
- The fixed deposit auto loan package offered by Emirates NBD provides the borrower with the added benefit of turning the down payment into a fixed deposit converting the car which is viewed as a depreciating asset into a return yielding asset.
- The Emirates NBD auto loans provide flexible payment options through SIP or staggered instalment plans.
- The SIP is also a first of its kind initiative where the borrower can pay reduced instalment amounts in the first period and then pay higher instalments in the latter half of the tenure.
- The first year instalments can be reduced by as much as 50% of the standard instalment amount and allows customers to manage their finances more effectively.
Requirements for Emirates NBD Auto Loans
- The applicant will have to provide a copy of their salary certificate along with disclosing any additional income sources.
- The latest bank statements dating back at least three months and reflecting salary credit should be provided
- Confirmation letter from the employer disclosing details such as name, designation, salary drawn by the borrower
- If the applicant is an UAE National then a copy of the valid passport including last page is required and for expatriates, a copy of the valid passport along with a valid UAE Residence Visa should be provided.
- Photocopy of the Driving License
- If residing in Dubai, then a set of utility bills such as Water bill or electricity bill should be provided.
- A security cheque should be provided as a form of guarantee.
- If the vehicle being purchased is new then a quotation from an authorised vehicle dealer is required and if the car being purchased is used then a valuation certificate issued by an authorised dealer should be provided.
- Upon loan disbursement, a verified copy of the permanent registration showing the vehicle being mortgaged to Emirates NBD should be provided.
- The borrower has to provide the original insurance policy for 13 months that covers the full value of the vehicle
- The Hire purchase clause favouring Emirates NBD with letter of undertaking should be provided.
Fees and Charges
|Type of Charge||Amount|
|Deferring an Instalment||AED 100|
|Early Settlement of the Loan||1% of the outstanding loan amount|
|Partial Settlement||1% of the settlement amount made|
|Request for liability or no liability letter||AED 100 per request|
|Request for Auto loan Mortgage release letter||Free of Charge|
|NOC to change vehicle colour or number plate||Free of Charge|
|Change the mode of payment||Free of Charge|
|Request for temporary Auto loan Mortgage release letter||Free of Charge|
|Clearance letter||Free of Charge|
Emirates NBD Fixed Deposit Auto Loans
Emirates NBD Fixed Deposit Auto Loan is one among the many car loan plans offered by Emirates NBD. This auto loan package will help you turn your car into a return yielding asset. The down payment made in this plan will be made into a profitable fixed deposit thus turning your loan into a return yielding asset.
Features of Fixed Deposit Auto Loans
- Down payment converted to a return yielding fixed deposit.
- Competitive auto insurance rates.
- Free bank account.
- Free credit card for the first year.
- Online Salik recharge.
- RTA fine payment facility.
- A pre- approved Emirates NBD Skywards card.
- Free annual registration renewal.
- Round the clock roadside assistance.
- Loan repayment period is up to 60 months.
- Early settlement is 4% on outstanding amount.
- The rate starts at 2.49% based on a flat rate.
- Processing fee is 1% of the loan amount.
Documents Required for Features of Fixed Deposit Auto Loans
- Salary certificate.
- Letter from employer confirming salary transfer.
- Copy of driving license.
- Security cheque.
- Latest three bank statement from salary account.
- Post-dated cheques.
- Copy of valid passport with UAE Residence Visa for expatriates.
- Pro-forma invoice from the vehicle dealer for new vehicles.
- Murabaha finance made available to suit individual needs.
- Copy of water and electricity bill for people residing in Dubai.
- Valuation certificate issued by an approved dealer for used vehicle.
Emirates NBD Fixed Deposit Auto Loan not only provides finance to buy a car but also helps you earn from the down payment that you make for your car loan thus making it a very worthy plan.
ENBD Auto Protect Loan
An insurance policy combined into the Auto Loan to provide peace of mind for the borrower and their family. The features of the Auto Protect Insurance policy are as follows.
- It is the first of its kind initiative in the auto loan industry and combines the benefits of family protection, loan protection and disability protection all under one roof.
- The premiums are affordable and offer high cover for low premiums.
- The premiums which are as low as 1% of the loan amount will be covered by the bank and is over and above the loan amount availed.
- In unfortunate scenarios where claims have to be made, the policy provides a quick claim and settlement which involves paying off the outstanding loan and providing an equal amount to the borrower’s family.
- The claims procedure is simple and hassle free and provides a quick payout.
- The signup process is quick and simple and the premiums are adjusted along with the EMI’s paid for the auto loan.
- Medical questionnaires need to be answered only if the borrower has exceeded the age of 65 years.
- The cover provided by the policy has a worldwide validity and covers events such as death by any cause or a permanent total disability of the borrower in case of an accident.
ENBD Staggered Installment Plan
Staggered Installment Plan is a type of car loan offered by ENBD. Staggered Installment Plan (SIP) is not only a unique product for ENBD but it’s the first of its kind for UAE. This plan allows the customers to pay smaller instalments of the loan in the beginning and gradually increase the amount over time. The first year instalment can be reduced to 50% of the standard instalment in this car loan plan.
ENBD Balloon (50:50) Buy Back Program
How It Works:
This car loan from Emirates NBD in collaboration with 'Al Futtaim Motors' and 'Arabian Automobiles Company' is offered to customers who wish to reduce their monthly instalments. Under this loan, Emirates NBD will pay for 50% of the value of the car which can be paid back in instalments over a 24 month tenure or a 36 month tenure. At the end of the tenure, the dealer will guarantee the buyback of the vehicle at a pre-determined residual value. If the borrower however does not wish to sell the car, they can make a one-time balloon payment for the remaining balance of 50% of the car value or can convert the balance amount into a standard car loan.
The models that can be purchased under this loan are all new Toyota vehicles. The vehicles which have been purchased under a 24 month tenure will have a buy back value of 60% of the value of the car and the vehicles which have been purchased under a 36 month tenure will have a buy back value of 50% of the value of the car.
ENBD Business Vehicle Loans
ENBD Business Vehicle Loan is one among the many kinds of auto loans offered by the Emirates NBD. Business Vehicle Loan from ENBD will give your business the boost it needs to grow and flourish. It provides loans for companies interested in transport and non-transport sector.
Features of Business Vehicle Loans
- Low interest rates starting at 4.25% p.a.
- High loan amount up to AED 3,500,000
- Option of 90 day first payment holiday.
- Best suited for companies that have recurring requirement for vehicles.
Fees and Charges for Business Vehicle Loans
There might be additional charges levied on the loan taken. Listed below are some of the additional payable charges.
- Processing fee- 1% on the loan amount.
- Early settlement fee- 1% on the outstanding amount.
- Late Payment fee- AED 50
- Deferment fee- AED 100
- Rescheduling fee- AED 250
Free services offered with Business Vehicle Loans
ENBD Business Vehicle Loan plan offers some services for free.
- Change in mode of payment.
- Change in PDC’s.
- Change of due date on standing instructions.
- Change of registration.
- Temporary release of mortgage.
Benefits of Business Vehicle Loans
- Finance available for a wide range of vehicles
- Passenger vehicles.
- Commercial vehicles.
- Finance can be extended through a loan or a credit facility.
- Offers an option of 90 day first payment holiday.
Terms and conditions of Business Vehicle Loans
The deferment form has to be filled and the deferment charges to be paid to the bank. The form can be submitted at any Emirates NBD branch. Maximum of 2 deferments permitted per loan year.
Loan closure form has to be filled and the outstanding amount and charges to be paid to the bank. Customers with PDC mode of payment should submit the request minimum 8 working days prior to the EMI date.
Change in mode of payment
The request to change the mode of payment should be submitted to the bank. Payment mode cannot be changed from auto debit to PCD.
Thus, you can choose among these different loan schemes offered by Emirates NBD depending on your personal requirements.
The fees and charges related to vehicular loans from Emirates NBD are mostly limited to 1% of the loan amount, but a more detailed description of the same is given the following paragraph.
1% of the loan amount is charged as processing fee if a loan is availed for any vehicle, be it a used car, new car or business vehicle. The minimum processing fee charged will be AED 500 while the maximum will be 2500 dirhams. In case an early settlement of the loan is being done, 1% of the outstanding amount will be charged extra and a loan insurance will be charged at 1% of the loan amount. Late payment fees are limited to 50 dirhams per overdue instalment. If the payment date is going to be deferred, an amount of AED 100 will be charged. If instalments are 3 or more, a partial payment can be done and the associated charge is 1%of the payment that is made. If there are going to be changes in the schedule of dates of payment, AED 250 will be charged. Authorisation charges for cheque payment or direct debit mode will be AED 100.
Emirates NBD Auto Loan Services and Schedule
There are certain requests that are entertained once a loan application for auto loan is approved for any customer or corporate. The nature of service requests and the requirements and details of the same are mentioned in the following points –
1. Instalment Deferral – One needs to fill up the deferral form and pay the required charges of AED 100 at any Emirates NBD branch or through online banking. The maximum number of deferments is limited to 2 per year out of which 1 deferment should happen during a promotional period. The request can only be done by direct debit customers before 7 days of the EMI payment. The request will be processed within 2-3 days.
2. Early Settlement – 1% of outstanding amount will be paid as charges along with a duly filled loan foreclosure form needs to be submitted at a physical branch or online. For customers with PC mode of payment, the request should be made 8 days before the EMI date. The request processing time could be 2-3 days.
3. Partial Settlement – A filled form for partial settlement needs to be filed, charges of 1% of the payment need to be submitted either online or offline. For PDC payment, this request will not be entertained. The process will be completed within 2-3 days.
4. No Liability Letter – Issuance of this letter comes at a charge of AED 100 and a request needs to be made at an Emirates NBD branch. The processing takes around 5 days.
5. Auto Loan Mortgage Release Letter – This letter is issued for free provided the relevant form is submitted at any Emirates NBD branch and the request will be processed within 3 days.
6. No Objection Certificates – These can be issued within 5 working days for free provided the request and registration copies are submitted at the bank’s branch.
7. Change in Payment Mode – If the payment mode is to be changed from PDC to auto-debit, it can be processed for free within 5 working days upon submission of relevant request in written form at the bank’s branch.
8. Temporary Auto Loan Mortgage Release Letter - This letter is issued for free provided the relevant form is submitted at any Emirates NBD branch and the request will be processed within 5 days. Relevant request form and registration copy need to presented.
9. Request for Clearance Letter – Request submitted in written form at any Emirates NBD or through a call centre or online and can be used for a single product only. The processing time will be 2-3 days.
Established in 2007, Emirates NBD is the biggest banking group based in the Middle East. The banking group celebrated its 50th anniversary in 2013 with its exceptional achievements in the financial domain. With more than 220 branches and almost 885 ATMs and cash deposit machines, the group has spread across the country and also to the overseas. The main vision of this banking group is to achieve global recognition as the most sought-after financial service provider in the world.
Emirates NBD supports many corporate social responsibility programmes which work for the betterment of UAE population in the areas such as environment, culture, charity, sports and art. Emirates NBD is the chief player in the corporate banking sector in the Middle East. It has received many awards in the past years for the outstanding services that it provides to its customers and stakeholders. By the end of 2014, the group’s total asset was AED 353.9 billion. The group’s operations has spread to the countries like Qatar, Singapore, the United Kingdom, Egypt, the Kingdom of Saudi Arabia, apart from UAE. It also has its representative offices in China, Indonesia and India. With almost 9000 employees working with it from different nationalities, Emirates NBD is the largest and the most diversified banking group in UAE.
History of Emirates NBD
Emirates NBD was formed in 2007 when the shares of the bank was listed on Dubai Financial Market. A merger between two of the most important banks in UAE, Emirates International and National Bank of Dubai created Emirates NBD, a bank with the largest base in the entire Middle East. The bank last reported assets more than AED 282 billion in 2008, which was the highest among banks in UAE at that time. The bank operates in UAE, Saudi Arabia, Qatar and the UK. The bank also has representative offices in India and Singapore.
Performance history of NBD
Emirates NBD became the largest bank (by assets) in the Middle East a year after it was formed. The bank celebrated its 50th anniversary in 2013 marking the bank’s historic and financial foundation and its achievements in the financial field.
The group is an important contributor to the corporate banking sector. The bank aims to be recognised globally for its exceptional banking ways. The bank’s total asset as of June 2015 were AED 388.1 billion. Emirates NBD acts as an ambassador of economic and social progress of UAE.
Listed below are some of the important rewards received by Emirates NBD.
- The bank won 'Largest bank in the Middle East' award at the Global Finance awards in 2010.
- The bank also won an award for ‘The best use of technology’ in 2010 at the Banker Middle East Award 2010
- Emirates NBD won Asia's Best Brand awardin 2012
- Emirates NBD won Three Global Finance Awards for 2012
- Emirates NBD was named ‘Bank of the year’ at Gulf Business Industry awards in 2014
- Emirates NBD won Banking and Finance customer care excellence awards in 2014
- The bank was named UAE’s Best Bank by Euromoney in 2015
- Emirates NBD asset management won at Fund Selector Asia awards 2015
Listed below are the products and services offered by Emirates NBD in UAE.
Accounts-The bank offers various banking account options to choose from. The accounts help you attain financial freedom. Savings account, Gold investment account, Deposits and value accounts are among the accounts offered by the bank.
Banking Packages-The bank offers personal banking packages specially designed to suit the needs of the customer. The packages can either be set up as a salary transfer or saving relationship. The bank offers three types of banking packages.
Cards-The bank offers credit cards, debit cards and commercial cards. Each card comes with its own set of benefits and rewards. The bank also offers a very attractive reward programme with its credit cards.
Insurance-Emirates NBD offers Insurance products that ensure that you stay protected and secures your future. The insurance product also offers financial protection to your family in case something unfortunate should happen to you. Emirates NBD offers Insurance in the following categories:
Loans-Emirates NBD offers finance to its customer with comprehensive loan packages designed to suit the financial needs of the customers in UAE. The bank offers attractive interest rates on its loans. The bank offers four kinds of loans including personal loans and mortgage loans.
Foreign Exchange-The bank offers a wide range foreign exchange services and solutions for customers who require foreign exchange transactions.
What happens in case I fail to make my monthly payments on time?
It is essential for customers to pay their EMIs on time as it affects their credit score and makes it harder to secure a loan in the future. Moreover, customers will also face immediate action if they keep defaulting on their payments. The bank usually charges a late fee for each payment that has been made after the due date, but continuous late payments may result in a termination of the loan. The bank may also be forced to seize your vehicle if you do not repay the loan.
What options do I get when choosing the interest rate?
The interest rate applicable to you for your car loan will be determined by the bank after an assessment of your credit report. However, you can choose whether you want a floating or fixed rate of interest.
Can I transfer the insurance to the new owner when I sell my car?
No, insurance cannot be transferred or sold to another driver as the terms for each policy have been determined by taking consideration of the driver’s experience, so you can only use it for your own vehicle and not transfer it to someone else.
Is my vehicle also covered under third party liability?
No, third party liability is designed to provide exclusive coverage to the third party that is at the receiving end of your vehicle. Any damages to life or property of the third party will be covered under third party liability, but the policyholder will not receive any coverage.
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?
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 as all the leading banks in the UAE offer car loans for the expats. It is an easy business.
Whether for their family or for their personal use, the banks in the UAE offer NRIs staying there to apply for a car loan, especially designed for them. The NRI 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.
Islamic Car Loan or Car Leasing or Car Ijarah these all are just another terms 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. Best thing, its interest free!
News about Emirates NBD Car Loan in the UAE
Improvement noticed in Dubai’s private sector economy
The private sector economy has recorded a rebound in its business conditions in March, followed by a slowdown in the previous month. The data released by Emirates NBD Dubai Economy Tracker Index indicated a rise in the sector’s operating conditions.
The index rose from February’s 48.9 to 52.5 in March. The composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy also reflected improvements in the business scenario since November 2015, with staff hiring, new order growths and output.
The travel and tourism arena was the strongest performing category of activity, followed by wholesale & retail and construction. A return to growth was recorded across all three key sub-sectors monitored by the survey in March.
12th April 2016
InstaLoan Introduced by Emirates NBD
Emirates NBD recently revealed that the innovative InstaLoan has launched, making the first ever paperless as well as instant loan disbursal facility. The facility can be accessed 24/7 through online banking and it allows customers’ accounts to get direct credit in a matter of seconds. The introduction of the facility is an attempt to offer instant cash solutions to borrowers, especially for medical and other kinds of emergencies.
The ‘Borrow Wisely’ initiative complements the loan service, thus enabling customers to find easy financial solutions in case of emergencies. The VP and senior executive of Emirates NBD, Suvo Sarkar, reminded that the bank was the first to provide personal loans through online banking and that the innovative InstaLoan facility is yet another product pioneered by Emirates NBD.
13th October 2015
Loan Growth of 5-7% Expected in 2015, Says ENBD
The largest bank in Dubai, Emirates NBD, forecasts a five to seven per cent growth in its loans this year, stating that 2015 is expected to be highly profitable regardless of the decline in oil prices. Recent quarters have recorded impressive earnings growth among lenders in the UAE, supported by resilient domestic economic conditions, decrease in levels of cash assigned for covering bad debts, and staunch credit growth.
Few analysts, however, say that the growth may be lower than forecast by ENBD as the decrease in oil prices adversely affects economic growth in Middle-Eastern countries. But the bank remains confident, explaining that Dubai relies very little on oil, and that growth is expected not only for ENBD, but for the banking industry as a whole.
07th September 2015
Good news! Emirates Money offers cashback on new loans!
Emirates Money which is a subsidiary of Emirates NBD, has launched a promotional offer where customers can avail cashback up to AED 50,000 on all new loans. The bank has taken it further by providing a free Emirates Money MasterCard Business credit card that meets the credit needs of the new customers. The cashback offering is further extended with a lifetime cashback up to AED 2,000 per month on the Emirates Money MasterCard Business credit card along with guaranteed cashback on all Emirates Money loans.
25th August 2015
Emirates NBD’s long term ratings affirmed by Moody’s investors! Outlook is positive!
Moody’s investors changed the outlook on Emirates NBD’s long term ratings from stable to positive on 6th August 2015. Moody’s affirmation indicates the bank’s retail business operations in UAE, through the biggest bank/financial network in UAE drives its profit and funding metrics. ENBD’s asset quality and funding profile is supported by a robust risk management framework.
The change in the bank’s outlook from stable to positive shows Moody’s investors confidence that the bank will strive to improve its loss-absorption capacity despite the low oil-price operating environment. Moody’s view that the bank will improve its overall quality of its assets was the primary driver for the change in outlook from stable to positive. ENBD remains to be the largest bank in UAE when it comes to the distribution of loans and deposits.
07th August 2015