(MENAFN- Khaleej Times) Published: Thu 25 Jul 2024, 7:28 PM

Last updated: Thu 25 Jul 2024, 7:32 PM

While Dubai's public transport system serves residents quiet efficiently, a car is unmatched when it comes to travelling around the city with ease and speed. Especially during the summer months when soaring temperatures can get bothersome.

For those who may be unable to afford a car in one payment, taking out a loan is always a good option. Banks in the UAE provide auto or car loans to customers. Different financial institutions offer various kinds of loans, ranging from 'green' auto loans to fixed deposit and fixed rate loans.

From eligibility to the documents required, here is a guide to taking out auto loans in the UAE.

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Are you eligible?

While the eligibility criteria may vary from bank to bank, some basic requirements remain the same.

• Applicants are required to be of 21 years of age to apply for an auto loan.
• Most banks also require a minimum salary of Dh5,000. Residents are required to show a proof of salary to confirm this. This amount may vary from bank to bank.

Documents required

Along with documents to show proof of owning a car, the individual's personal documents are needed to apply.

• Driving license
• Car registration
• Car's valuation certificate
• Original Emirates ID
• Passport and Visa
• 3-6 months of bank statements
• Salary certificate
• Insurance policy documents
• Home address in home country

Loan repayment

The duration for loan repayment differs from institutions. Some may offer periods of up to 5 years, while others may offer up to a few months. This also depends on the age of the vehicle.

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