Driving a new car seems like a dream for many, especially those who
are unable to afford to buy a vehicle by cash. While a personal or car loan
seems to be the ideal solution for people who wants to drive a new set of
wheels, those who are national self-employed in the UAE often find themselves
at a disadvantage.
Fortunately, there are some banks in the region that allow
self-employed UAE Nationals to apply for a car loan. These interested
individuals should take note of the minimum requirements and understand how
much they will be expected to pay back.
<h2 Requirements For
Self-Employed Car Loans In UAE
Those who are looking to get approved for a car loan need to ensure
they meet at least a set of minimum criteria before submitting an application.
The first step would be to find a bank in the UAE that does offer these
services to self-employed individuals. Once this type of financial institution
has been identified, learning more about the specific criteria that they might
have is important.
Generally, the self-employed individual will need to be at least 21
years old. They will also be required to have a driving license that is valid
in the UAE since the applicant is looking to buy a car with the loan.
The person will also need to present some kind of ownership
documentation to provide the bank with evidence that they are true, the owner
of the business that they are running. In most cases, bank statements or
another type of document that serves as proof of income will be a requirement
as well. These are important as it allows the bank to see that the person is
getting a monthly income and that they will be able to repay the money that is
needed for the new car.
Those individuals who meet the minimum requirements for a self-employed car loan will
need to provide the bank with identification documents, as well as a quotation
for the vehicle that they are interested in buying with the car loan. An auto
loan application form also needs to be completed.
<h2 Typical Repayment Plans
The specific repayment terms depend on a few factors, such as the
amount needed, the current interest rate, the number of months the customer
needs to pay back the money, and the individual’s current credit status.
Here is a basic example just to help you get an overview of what is
taken into the calculation:
Car price: AED 200,000
Car loan amount: AED 150,000
Repayment terms: 72 months
Annual interest rate: 5%
In this scenario, the monthly installment will be approximately AED
2,279, and the total amount repaid by the end of the terms would be AED
164,092.
<h2 Conclusion
Applying for a car loan can help a person get a new set of wheels,
perhaps when their old car has broken down or when they simply feel like
getting an upgrade. Those who are self-employed often find it hard to get
approved for these loans, as a referral letter from an employer is often
needed. Fortunately, some banks to offer self-employed car loans to UAE
Nationals, but it is important for the person to meet the minimum criteria.
