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Finance

CHECK ELIGIBILITY

Do you have any existing loans (including cash advance from employer)?

Enter how much you are paying for each installment? *

Do you have any credit cards?

Enter how much you are paying for each installment? *

Does your company have a signboard and land line number? *

How many employees in your company? *

Do you have any record of bounced cheques / loan instalments, defaulting credit cards or criminal record in UAE?*

How do you receive salary? *

OUR FINANCE FLEXIBILITY

DRIVE YOUR DREAM CAR IN THE RIGHT DIRECTION!

With the help of our expert financial advisor, financing your dream car will be simple and stress-free. At First Choice Cars, we offer financing options that fit every budget and help you secure the right finance package that suits your needs. Our services are delivered using a well-established network of specialist lenders, insurers, and related service providers. With the latest and most attractive interest rates, you can quickly obtain a car loan in the UAE that matches your budget and lifestyle.

When buying a car, most people consider car loan / auto finance. Some advantages of a loan for a used vehicle in UAE include:

  • Typically, fast approval.
  • Flexible repayment plans.
  • Up to AED 1,000,000 AED in financing (up to 80% of the car value)
  • Competitive rates.
  • Low-Interest rates.

ELIGIBILITY FOR AUTO LOANS IN THE UAE

In UAE, auto loans are granted to those who meet the minimum eligibility requirements established by the banks. The eligibility requirements for a car loan vary from bank to bank or financial institution.
However, the following eligibility requirements for auto loans in the UAE will most likely apply in every case:

  • The minimum age requirement for obtaining a loan in the UAE varies depending on the bank offering the loan. However, most banks require a minimum age of 21. A number of banks also have upper age restrictions (based on a person's employment status) that can go as high as 65 or 70 years old.

  • Although the banks in the UAE provide loans to UAE nationals, resident visa holders, and expats, nationality may sometimes limit the amount of loan available. Nevertheless, UAE residents, UAE nationals, and foreigners with long stays can expect to fulfill other eligibility requirements before obtaining a car loan from most banks.

  • You must also meet the minimum income requirements as an applicant. For most car loans, a minimum monthly income of AED 3,000 is required. The income requirements vary depending on which bank and financial institution you apply for the loan.

  • As per the UAE Central Bank's guidelines, you need to pay 20% of the car cost in the form of down payment, with the remaining 80% amount being borne by the bank on your behalf.

  • Although the credit score criterion is secondary, financial institutions and banks in the UAE often consider your Al Etihad Credit Bureau (AECB) credit score before offering you a car loan. Besides ensuring a higher loan amount, a decent credit score also begets your preferential car loan interest rates. In addition, the banks may also reject or limit your loan application based on your credit score and history.

FAQs

1) What Is The Credit Score?

Your Credit Score, from Al Etihad Credit Bureau (AECB), is a three-digit number that predicts how likely you are to make your loan and credit card payments on time. The number ranges from 300 to 900. A low score indicates a higher risk, whereas a higher score indicates a lower risk.

2) How Can You Improve Your Credit Scores?

To improve credit scores, you need to ensure the following

  • Make payments on or before the due date
  • Avoid bouncing cheques
  • Reduce the number of credits cards and loans
  • Reduce outstanding balances and credit cards utilization

3) What Is Debt-Burden Ratio (DBR)?

The debt-burden ratio (DBR) is the ratio of your total monthly outgoing payments (including installments towards your loans and credit cards) from your total income. This number is used by banks to calculate your eligibility for Auto loans, as it shows your current liabilities and your ability to pay back.
According to the UAE Central Bank, the DBR ratio must not exceed 50% of your total income, as you can only use half of your income to pay your debts. Banks check your credit score before lending finance to determine your DBR.

4) What Is An EMI?

EMI (Equated Monthly Instalments) is an easy way to pay off your car in fixed monthly installments over a set period. The EMI amount is added to the price of the vehicle, and since it's a fixed interest rate, this option makes paying off your car much more manageable. At First Choice Cars, we strive to make the car-buying process as straightforward and transparent as possible, ensuring you know exactly what you are signing and how much you will pay.
Advantages of car financing through EMI in the UAE:

  • Precise budgeting – knowing when the payments are due
  • Allows for determining what kind of car you can afford
  • Ensures financing is in order
  • Avoids financing difficulties down the road

5) What Happens If I Miss One EMI?

Missing the payment may incur additional charges. We advise you to speak to your bank if you suspect you might miss next month's installment. They may be able to help you to resolve the issue.

6) Isn't It Cheaper To Pay The Total Amount For The Car At Once?

You may save money by avoiding interest charges & loan processing fees if you have total funds to pay for your car.

7)Does First Choice Car Offer Car Finance Options?

We offer finance for used cars up to eight years old. These are available through our partnerships with leading UAE banks and other financial providers. Our scale means we can offer you the most competitive rates available in the market, with bank terms and conditions applying.

8) What Should I Expect From First Choice Cars When Financing A Vehicle?

First Choice Car is a one-stop solution for buying and selling used cars in UAE. We offer a vast range of Certified Vehicles (Luxury Vehicles, SUVs, Sedans, 4WD, Sports Cars, and Commercial Use Vehicles), which makes us a renowned car dealership in UAE with customers worldwide. Our company's sole aim is to ensure our customers are satisfied and ready for success. We deal with an extensive handpicked collection of used cars as our team thoroughly verifies and inspects the vehicles we sell.
In case you have any further questions or queries about financing options, kindly get in touch with our team so we can adequately discuss the financing options with you and help you secure the best deal. Otherwise, don't hesitate to check our thoroughly prepared FAQs page for more information.

9) Am I Eligible For More Auto Loans?

This will depend on your debt-burden ratio (DBR), the ratio of your total monthly outgoing payments (including installments towards your loans and credit cards) to your total income. A bank in which you apply for an auto loan will use this number to calculate your eligibility for loans and credit cards as it shows current liabilities and your ability to pay back. According to the UAE Central Bank, your DBR ratio must not exceed 50% to be eligible for more finance. Put simply, you can only use half of your income towards paying your debts. Banks check your credit score before lending finance to determine your DBR.

Eligibility


Credit score 50%

You are eligible for car loan. For more enquiry please contact our customer care helpline no.


We are sorry, at the moment the banks in UAE do not finance car loans for employees not getting their salary via WPS