At the point when you plan to buy a dream car, and you understand that the main thing stopping you is the lack of money to purchase the car, it is an ideal opportunity to set out in toward a car loan. A car loan ensures you get the chance to make your dreams work out so that you can buy the car today and pay for it later. Some of them may make the reimbursements significantly simpler on you by reducing the first year installments just with the goal that you don't encounter an over the top financial burden in the beginning days of owning a car.
Every customer may have different requirement. Therefore, banks in the UAE provides auto loans that are made to satisfy every customer needs. The available car loans in the UAE are:
The conventional car loan is the the loan option where the applicant can apply for car loans depending on the highest amount that the bank offers. The applicants, once availed the loan can pay back the loan within a period of 60 months or more along with a specified interest rate. The conventional car loan can be availed either with or without a salary transfer to a held bank account.
Islamic car loans is another auto finance that strictly adher to the rules of Islamic banking. Majority of these loans is based on the concept of Ijarah. The bank buys the vehicle on behalf of the customer that allows them to lease the car from the bank. The customers have to pay a particular amount for a fixed time period. When the car is paid for, the customers can avail the ownership of the car from the bank will transfer the ownership of the car to the customers.
There are several people who choose buying a used car instead of buying a new one. UAE banks offer loan services even for buying used cars. Even for such purchases, banks in the UAE provide used car loans. Used car loans also works almost as same as new car loans. However, there can be divergences. The used car loans can only be availed for the cars that are less older than a particular number of years which is defined by the bank.