What are the features and benefits of an ADIB car loan in the UAE?

 Do you want to acquire quick funds to buy your most desired car? 

If you answered yes, you are correct because ADIB vehicle loans are among the most economical loans in the UAE, with flexible repayment terms and low-interest rates. It will be easy for you to receive cash by submitting a loan application.

We must understand the features and benefits of ADIB car loans in the UAE as mentioned below:

• Low-Profit Rates - We believe that ADIB vehicle loans are among the most cost-effective in the UAE. ADIB vehicle loans have modest profit rates starting as low as 1.99 per cent based on certain factors. Low-profit rates are one of the most significant advantages of ADIB vehicle loans in the UAE since they assist keep your entire loan cost within your budget.

• Higher Finance Amount - ADIB vehicle loan in UAE offers loans up to AED 1 million for UAE nationals and AED 500,000 for ex-pats.

• Flexible Loan Tenure - ADIB provides loans for up to 60 months. You may thus arrange the term of your vehicle loans based on your financial demands. You should be aware that a longer loan term results in financial expenses. Though, you may get a vehicle loan with modest monthly payments.

• Finance up to 80% of Car Value - You may finance up to 80% of the value of your vehicle with ADIB. UAE Central Bank regulations, this loan amount is the maximum amount you may borrow to finance an automobile in the UAE.
• Convenient Loan Processing and Approvals - With an online loan application procedure, you can apply for loans in a few simple clicks and avoid time-consuming paperwork. The process is straightforward and rapid, generating a win-win-win situation.
• Loans without Salary Transfer - The good news is that an Abu Dhabi Islamic Bank salary account is not required to apply for a car loan. The bank will give you loan money to finance your automobile if you have a salary account with ADIB. 

• Instalment Postponement - The Abu Dhabi Islamic Bank allows you to postpone one yearly payment. This payment postponement benefit simplifies your financial management even further.
• Attractive Motor Takaful or insurance coverage: With an ADIB vehicle loan, you may get exceptional motor takaful coverage for a low monthly payment. The bank also provides affordable profit rates and 60-minute online policy issuance for your convenience.

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ADIB Car Loan Interest Rates

A low-interest vehicle loan from ADIB allows you to obtain the car of your dreams quickly and easily.  Individuals with salary accounts at ADIB might earn as little as 1.99 per cent per year in interest. But loan charges fluctuate between new and secondhand automobiles. ADIB have the following information about ADIB Car Loan Interest Rates in the UAE:

ADIB Car Loan Interest Rates - Murabaha

ADIB Car Loan Type	Flat Rate	Reducing Rate
New Car Loan	2.59% per annum	4.7% per annum
Used Car Loan	3.09% per annum	5.61% per annum

ADIB Car Loan Interest Rates - Ijarah

ADIB Car Loan Type	Flat Rate	Reducing Rate
New Car Loan	3.99% per annum	7.23% per annum
Used Car Loan	3.99% per annum	7.23% per annum

While applying for an ADIB car loan, you must fulfil a few eligibility criteria. The requirements include the applicant's age, nationality, and financial situation. Your eligibility may change depending on a variety of factors. You may qualify for an ADIB auto loan if you meet the following criteria.

Age: 

The minimum age to obtain any loan in the UAE is 21 years, and the rules for auto loans remain the same. Furthermore, the bank establishes an upper age restriction based on work status and other considerations. ADIB vehicle loans typically have an upper age limit of 60 to 65 years.

Minimum Salary Requirements:

To obtain a vehicle loan in the UAE, you must have a monthly salary of at least 5,000 AED.

Need for Proof of Residency:

ADIB auto loans are available to Emiratis, residents, and ex-pats. The individual's residency determines the maximum loan amount. 

Credit Score

The bank may check your AECB score before accepting your auto loan. You may be able to obtain a loan based on your credit score and history. In the UAE, vehicle loans require credit scores of 700 or higher.

Down Payment - 

You must pay an advance sum, commonly known as a down payment, for loans such as vehicle finance. You may need to pay a down payment of at least 20% when financing a car.

Documents Required for ADIB Car Loan in the UAE:

After your eligibility confirmation, you must acquire a few papers to show your identity, nationality, domicile, and other details. Here is a short breakdown of the list of documents to apply for an ADIB auto loan in the UAE:

For Salaried Individual

• An original copy of Emirates ID for verification
• An original passport ID along with a copy
• of an original driving license
• Salary certificate issued by your current employer addressed to ADIB (not required if your salary gets credited to an ADIB bank account)
• utility bill as proof of residence
• last 3-6 months' bank account statement
• A dealer's quotation.

For Self-Employed Individuals

• An original Emirates ID,
• An original passport ID
• Car copying by Visa and EIDA
• An original driving licence
• A valid business licence
• A proforma invoice of the car or dealer's quotation
• A legal copy of the POA (if applicable)
• last three months' bank statements for both individual and company accounts
• Details of existing loans and liabilities

You may need to submit additional proofs depending on your income and employment status.

• How to Apply for ADIB Car Loan in UAE?

ADIB car loan applications are simple. You can apply online for car financing through the official website of ADIB in just a few simple steps. Otherwise, you can apply for a car loan by visiting the bank's branch in person at your ease. Following are the various ways to apply for an ADIB car loan in UAE:

• Car loan Application Online

You may apply for a car loan by visiting the Abu Dhabi Islamic Bank's official website. After that, you can scroll down to the auto loans section and complete the online application form with your contact and personal information that appears alongside it. The bank will contact you later to complete the application process.

• Car Loan Application Offline

If it is more convenient to visit the bank, you can apply offline by bringing the necessary papers to the local bank branch. After that, you must complete an offline loan application form and attach all before submitting it. With approval, the bank puts the loan funds into the dealer's account, allowing for a quick transaction.

• Through Customer Support -

You may also contact the support staff to apply for an ADIB auto loan. You can touch the support team, dial the numbers below and enter your personal and contact information. After that, the agent will walk you through the application procedure. The ADIB support helplines are also open 24 hours a day and seven days a week.

ADIB Car Loan Calculator One of the simplest methods to determine your auto loan instalment and total loan cost is to use an ADIB car loan calculator. As a result, you may access the calculator through many internet platforms. After that, you must fill in different parameters like the car's worth total loan amount, the provided interest rates, and loan term before pressing the 'Submit' button. The loan calculator then calculates your estimated monthly instalments and the loan cost you must repay during the loan term. You should bear in mind that the expenses are estimations because the ADIB vehicle loan includes processing, finance, and takaful contributions. Although, you will not get the exact loan amount and specific, equal monthly instalments until the loan is authorized.

Important Terms and Conditions for ADIB Car Loans in the UAE

The ADIB car loan also includes specific terms and conditions that follow while financing your car with the bank. Let's have a look at a few crucial terms and conditions of the ADIB car loan in the UAE:

• The firm provides automobile Murabaha and Mussawama loans.
• The bank buys the automobile from the local vendor, either constructively or physically, for Murbaha financing. The company then sells the car to the consumer on a Murabaha basis, which includes the car's cost and profit margin as agreed upon with the customer.
• The bank either purchases a car constructively or physically from a local dealer in Automobile Mussawama. The company then sells the car to the purchaser on a Mussawama basis without disclosing the vehicle's cost.
• ADIB calculates the overall Murbaha profit for the financing period, including the grace period before the first instalment date.
• Before the first instalment payment, the bank gives a 30- to 60-day grace period. If a client takes advantage of the 30-day grace period, the client is only allowed one EMI postponement in the first financial year. 
• The bank settles the monies received against the remaining balances and may partially or waive the unearned profits in the case of early settlement.
• ADIB bank has the right to approve or reject any auto loan application.
• All bank service costs are non-refundable.

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