RAKBANK Auto Loans
RAKBANK is one of the oldest and most dynamic bank in UAE. It was founded in 1976 and in 2001 it shifted their focus from corporate banking to small and retail banking. RAKBANK offers a wide range of products and services through its 35 branches.
You’re probably eligible for Rakbank Car Loan if you are
At least 18 Years old
Less than 60 years old
Salaried or self-employed with regular income
Earn more than the minimum income required
Your Rakbank Car Loan amount eligibility is based on these factors
Minimum income required
Loan capped upto AED 3 Million
EMIs of other loans lower your eligibility
Increase your eligible Rakbank Car Loan amount by these steps
Pay off your credit card bills
Choose longer tenure loan up to 5 years
Rakbank Car Loan Interest RatesUpdated on 04 Dec 2016
|Interest Rate (Monthly reducing balance)||3.99%-4.50%|
RAKauto Loan is a loan that is granted to purchase a motor vehicle. The loan is an asset secured loan that is mortgaged to RAKBANK over the vehicle that is registered with UAE Traffic Department.
Types of RAKauto Loan
RAKauto Loan is available for new and used vehicles.
New Vehicle – First hand vehicles that are manufactured and sold during the same year via the authorised dealer in the country. The cars can occasionally be sold by reputed car dealerships but must be supported by proper documentation.
Used Vehicle – Second hand cars, excluding commercial vehicles and the car is to be evaluated from dealers as per the RAKBANK’s approved list of dealers.
Features of RAKauto Loan
The following are the features of RAKauto Loan:
- The maximum loan tenure offered is up to 60 months for new vehicle.
- The maximum loan tenure for used car depends on the age of the vehicle and the maximum is 10 year cycle up to loan maturity.
- The loan can be repaid by giving standing order or post-dated cheques.
- Insurance cover is required for loan that goes beyond 13 months.
- 20% minimum down payment is required for salaried customers.
- 0% down payment is required for business and self-employed customers.
- The first instalment is to be paid after 60 days.
- Finance is available for new companies whose business life is 6 months and above.
- Business customers get First Relationship Finance of up to AED 750,000.
- Business customer get finance up to AED 3,000,000.
- Finance is also available for rust proofing, insurance, service and maintenance contracts.
- There are no hidden charges.
- Loan is approved within 60 minutes.
- Car can be registered anywhere in the UAE but it must be approved by RAKBANK and the Traffic Department.
Benefits of RAKauto Loan
The following are the benefits of RAKauto Loan:
- RAKBANK offers a variety of service to their RAKauto customers. The services offered are change of number plate, change of registration from one Emirate to another, change of vehicle colour, change of registered owner, change of post-dated cheques, temporary release of mortgage, change of address and due date, loan deferment, temporary and permanent release letter.
- Salary transfer is not required.
- Down payment is not required by customers of a certain profile. Certain approvals will be given with a percentage of down payment that is required from the customer.
Eligibility Criteria of RAKauto Loan
The eligibility criteria to avail RAKauto Loan is as follows:
- UAE Nationals
- GCC Nationals
- Expatriates holding a valid UAE Residence Visa.
- Individuals and company can also avail RAKauto Loan.
- Minimum gross monthly salary requirement is AED 5,000.
- Minimum age requirement is 18 years for registration and it is 20 years for 6 months cheque payers.
- The maximum age at loan maturity for expatriates is 60 years and 65 years for UAE Nationals.
- Loan is available in UAE Dirhams only.
- Standard vehicles, saloon cars, 4 wheel drives, non-standard vehicles and commercial vehicles up to 4.5 tonnes and luxury cars are financed.
RAKBANK is a business and retail bank based out of Ras Al Khaimah Emirate. It is a publicly traded company listed on the Abu Dhabi Stock Exchange. RAKBANK is among the largest banking corporations in UAE. It is the top ranked bank in the Emirates in terms of Return on Assets (ROA), and is ranked 17th in the world under the same criteria. At the end of 2014, its total assets figure stood at $34.6 billion. RAKBANK is the name used for trading by National Bank of Ras Al Khaimah.
What is RAKBANK car loan?
RAKBANK car or auto finance is a loan that is provided for the purchase of a motor vehicle, new or pre-owned. It is an asset-secured loan where the vehicle registered with the UAE Traffic Department is mortgaged to RAKBANK
Can the car financed be registered in any Emirate?
Yes, the car can be registered anywhere in the UAE subject to the approval of both RAKBANK and the Traffic Department.
What vehicles will RAKBANK finance?
Standard vehicles, namely saloon cars and 4 wheel drives (passenger vehicles) and non-standard vehicles, namely sports and commercial vehicles up to 4.5 tons and luxury cars.
What is the repayment method?
By standing order for existing RAKBANK customers and post-dated cheques for customers banking with other banks.
What is the insurance cover requirement?
Full comprehensive insurance cover is required for a minimum of the loan amount for a period of 13 months.
Who is eligible for a RAK auto Loan?
RAK auto Loans are offered to all UAE nationals, GCC nationals and expatriates holding a valid UAE residence visa. It is available for individuals as well as company purchases.
What is the criteria for RAK auto finance?
RAK auto Loan is a finance facility for new and used vehicles. New vehicles are defined as first hand vehicles which are manufactured and sold during the same year through an authorized dealer in the country, and sold occasionally by reputed car dealerships and supported with proper documentation. Used cars are second hand and above cars that exclude commercial vehicles, and must be evaluated from dealers as per RAKBANK’s approved list of dealers.
What is the maximum loan tenor for RAK auto finance?
For existing RAKBANK customers, the maximum loan tenor is up to 60 months for new vehicles. For new customers, the maximum loan tenor is 60 months for new vehicles. For used cars, the loan tenor will depend on the age of the vehicle, which should be a maximum of 10-year cycle up to loan maturity.
What are the types of auto loan offered by RAKBANK?
RAKauto Loan finances Used and New cars.
Who can avail RAKauto Loan?
RAKauto Loan can be availed by UAE Nationals, GCC Nationals, Expatriates holding a valid UAE Residence Visa, Individuals and company.
What is the minimum salary required to avail RAKauto Loan?
The minimum salary required for salaried individual to avail RAKauto Loan is AED 5,000.
What are the cars that are financed under RAKauto Loan?
RAKauto Loan finances standard vehicles, saloon cars, 4 wheel drives, non-standard vehicles and commercial vehicles up to 4.5 tonnes and luxury cars.
What is the minimum age requirement to avail RAKauto Loan?
The minimum age requirement is 18 years for registration and it is 20 years for 6 months cheque payers.
What is the maximum age required at loan maturity?
The maximum age at loan maturity for expatriates is 60 years and 65 years for UAE Nationals.
Is insurance cover mandatory?
Insurance cover is required for loan that goes beyond 13 months.
Is salary transfer necessary?
No, salary transfer is not necessary.
Is RAKauto Loan available in various currencies?
No, RAKauto Loan is available in UAE Dirhams only.
What is the maximum loan tenure offered for RAKauto Loan?
The maximum loan tenure offered is up to 60 months for new vehicle. The maximum loan tenure for used car depends on the age of the vehicle and the maximum is 10 year cycle up to loan maturity.
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, even though the expats will need to provide a little more information about themselves.
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 RAKBANK Car Loans
Net profit of AED 1.1 billion for RAKBANK in the first 3 quarters of 2015
RAKBANK or The National Bank of Ras al Khaimah, today announced that in the first 3 quarters of the year 2015 they have made a net profit of AED 1.1 billion. The increase is of 1.5% above that of the year 2014. The income base of the bank still continues to grow, and is focusing on cost optimisation, cost to income ratio despite global and regional conditions. Their loans and advances have increased by 15.5% every year and are now at AED 28.8 billion. The total assets of the bank has grown by AED 4.1 billion making it a total AED 39.0 billion as of September 2015.
29th October 2015
RAKBANK’s financial strength rating goes up to ‘A-’ from ‘BBB+’
Capital Intelligence finally raised the Financial Strength Rating (FSR) of RAKBANK from ‘BBB+’ to ‘A-’ considering the bank’s consistent good track record and financials which has remained strong over the last couple of years. Factors such as strong profitability, strong customer franchise, good coverage and satisfactory liquidity has contributed to the change in rating. The outlook for FSR has been changed from ‘positive’ to ‘stable’.
RAKBANK has a diversified loan book that covers a number of products. The investment book though small, is of a relative high quality. RAKBANK’s asset quality remains strong despite the growth in deterioration. RAKBANK’s portability still remains to be one of the strongest in UAE when compared to the other banks in UAE.
25th August 2015