Rates are the starting rates banks advertise, checked on 3 November 2026. Your own rate depends on your salary, your employer, salary transfer, the car and the dealer, so always ask the bank for a quote. Processing fees are about 1% of the loan unless the bank publishes its own. RTA fees are for Dubai; other emirates are similar. Car prices in the UAE usually already include 5% VAT.
Flat rate or reducing rate?
UAE banks usually advertise car loans with a flat rate: the interest is worked out on the full loan for the whole period, even though you pay it back month by month. The reducing rate is charged only on what you still owe, so it shows the true yearly cost. A 2% flat rate over 5 years is about 3.7% reducing. The calculator shows both.
The UAE rules for car loans
- The bank can lend at most 80% of the car’s value, so you need at least 20% as a down payment.
- The longest loan is 60 months (5 years).
- If you pay the loan off early, the bank can charge at most 1% of what you still owe, up to AED 10,000.
- Most banks ask for a monthly salary of AED 5,000 or more, and the best rates usually need a salary transfer.
Questions people ask
Which bank has the lowest car loan rate?
The note above the results shows the lowest advertised starting rate for the loan length you choose. Banks change their offers often, and dealers sometimes have special rates with one bank.
What is the total interest?
It is what the loan costs you: everything you pay the bank, minus the amount you borrowed.
What else do I pay when I buy a car?
The down payment, the bank’s processing fee, the first year of comprehensive insurance, and the RTA registration, plates, Salik tag and, for your first car, a traffic file.
Can I get a car loan with no down payment?
Under UAE Central Bank rules banks lend up to 80% of the car’s value. Some dealer offers pay part of the deposit for you, but the loan itself still has to follow the 80% rule.