Finance tools

Car Loan Calculator

Calculate your monthly EMI, total interest and repayment in seconds — then compare the best auto finance deals from UAE banks.

Loan Details

Vehicle PriceAED 150,000

30,000500,000

Down Payment20% (AED 30,000)

050

Loan Term48 months (4.0 yrs)

1260

Annual Interest Rate3.50% p.a.

Rates shown are indicative. Actual rates depend on your bank, credit profile and vehicle type. Contact your bank or a UAE-licensed auto finance broker for a personalised quote.

Monthly Payment

AED 2,683

for 48 months

Loan AmountAED 120,000

Total InterestAED 8,771

Total RepaymentAED 128,771

Repayment Breakdown

Principal 93.2%Interest 6.8%

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UAE banks 2026

Car Loan Interest Rates

Indicative reducing-balance rates from major UAE banks. Actual rates depend on your income, credit history, loan amount and vehicle type.

Bank	Interest Rate	Max Term	Notes
Emirates NBD	From 2.29%	Up to 60 months	Salaried & self-employed
First Abu Dhabi Bank (FAB)	From 2.49%	Up to 60 months	Min. salary AED 7,500
ADCB	From 2.49%	Up to 60 months	Pre-approval online
RAKBANK	From 2.49%	Up to 60 months	Min. salary AED 5,000
Mashreq Bank	From 2.75%	Up to 60 months	Same-day approval
Dubai Islamic Bank	From 2.99%	Up to 60 months	Shari'ah compliant
Abu Dhabi Islamic Bank	From 3.19%	Up to 60 months	Murabaha auto finance
Commercial Bank of Dubai	From 2.99%	Up to 48 months	New & used cars

* Rates are indicative as of 2026 and subject to change. Always confirm directly with the bank.

How Car Loans Work in the UAE

Car financing in the UAE works similarly to other countries, but with a few important local distinctions. UAE banks offer auto loans on a reducing balance basis — meaning your monthly interest charge decreases as you pay down the principal — though some Islamic banks structure their products as Murabaha (cost-plus-profit) agreements.

The UAE Central Bank regulates car lending and sets maximum loan-to-value limits: expatriates must put down at least 20% of the car's value, while UAE nationals can borrow up to 85% of the purchase price. Most lenders cap loan terms at 60 months, though some offer 72 months for specific vehicles or high-income borrowers.

What Documents Do You Need for a UAE Car Loan?

✓Passport copy and UAE residency visa
✓Emirates ID
✓3–6 months of bank statements
✓Salary certificate or employment letter
✓3 months of pay slips (salaried employees)
✓Trade licence (self-employed applicants)
✓Vehicle purchase agreement or pro-forma invoice

Tips for Getting the Best Car Finance Deal in the UAE

Compare multiple banks

Never accept the first offer. Get quotes from at least 3 UAE banks — rates can vary by over 1% for the same profile.

Check the APR, not just the rate

Some banks quote flat rates which look lower. The Annual Percentage Rate (APR) is the true cost of the loan and allows fair comparison.

Maximise your down payment

A larger down payment reduces your loan amount, your monthly EMI and the total interest paid over the loan life.

Consider loan term carefully

A longer term lowers your monthly payment but significantly increases total interest paid. Use our calculator above to see the difference.

Maintain a good credit score

UAE banks check your Al Etihad Credit Bureau (AECB) credit score. Paying existing loans and credit cards on time improves your score and secures better rates.

Pre-approval before shopping

Get a pre-approval letter from your bank before visiting the dealership. This puts you in a stronger negotiating position on the car price.

Frequently Asked Questions — Car Loans in the UAE

What is the minimum down payment for a car loan in the UAE?+

The UAE Central Bank mandates a minimum down payment of 20% for expatriates and 15% for UAE nationals on new car loans. Some banks require up to 30% for used vehicles or higher-value cars.

What is the maximum car loan term in the UAE?+

Most UAE banks offer loan terms of up to 60 months (5 years). Some institutions offer up to 84 months for certain vehicles, though longer terms usually carry higher interest rates.

Can expatriates get a car loan in the UAE?+

Yes. Most major UAE banks offer car loans to expatriate residents with a valid UAE residency visa. You will typically need 3–6 months of bank statements, proof of employment, and a minimum monthly salary (usually AED 5,000–10,000 depending on the bank).

What is the difference between flat rate and reducing rate interest?+

A flat rate applies to the original principal throughout the loan, while a reducing rate applies only to the outstanding balance. A 3% reducing rate is typically equivalent to a 5–6% flat rate. Always compare the Annual Percentage Rate (APR) to compare loan offers accurately.

Do UAE banks charge early repayment fees?+

Most UAE banks charge an early settlement fee of 1–2% of the outstanding balance. Check your loan agreement before making early repayments. Islamic banks may have different structures under Murabaha agreements.

Can I get a car loan for a used car in the UAE?+

Yes, most banks finance used vehicles, though the car must typically be less than 5 years old at the time of application and not older than 10 years at the end of the loan term. Used car rates are usually slightly higher than new car rates.

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