What is a Car Loan ?
When the time comes to buy that dream car and you realize that the only thing standing between you and pure driving bliss is the lack of money to buy the car, it’s time to head in for a car loan. A car loan makes sure you get the opportunity to make your dreams come true in such a way that you can enjoy the car today and pay for it tomorrow. Some of them may make the repayments even easier on you by reducing the instalments for the first year just so that you don’t experience too much of a financial burden in the initial days of owning the car.
This is the present scenario in Dubai where the real estate market is undergoing tremendous appreciation and it only makes sense to acquire a home loan that will get you a solid asset as well as a great investment in something that will give you greater returns in future.
In order to understand your eligibility for a mortgage loan, monthly installments and the various fees you will have to pay before getting the loan sanctioned, you need to know about the mortgage calculator that gives you these details, so you can ascertain your affordability and decide on how much you need to borrow to invest in your new property.
Features of Car Loans
Benefits of Car Loans
Car loans don’t just act as the financial instrument that get you the car you always wanted. They also provide lots of benefits to customers some of which can include things like :
Types of Car Loans available in the UAE
Since different customers can have different needs, banks in the UAE offer auto loans that are tailored to each one’s needs. These car loans are:
Islamic Car Loans
Islamic car loans are those that are auto finance that follow the rules of Islamic banking. Most of these loans follow the concept of Ijarah wherein the bank purchases the vehicle on behalf of the customer. The customer can then lease the car from the bank and pay a specific amount for a fixed period of time and once the car is paid for, the bank will transfer the ownership of the car to the customers.
Used Car Loans
While many people go in for new cars, there are some who might want to go in for a used car. Even for such purchases, banks in the UAE provide used car loans that work almost the same way as new car loans do however, there can be one point of divergence with these loans. These loans can be taken only for cars that are not older than a specific number of years determined by the bank.
Best Car Loans available in the UAE
While there are a lot of banks that offer car loans in the UAE there are some banks that are considered the preferred places to go to for a car loan.