Car Loan Calculator UAE | 2025

Buying a car in the United Arab Emirates (UAE) often requires financing, and a car loan calculator helps potential buyers estimate their monthly payments. This guide explains how the UAE Car Loan Calculator works, its benefits, eligibility criteria, and frequently asked questions for 2025.

1. What is a Car Loan Calculator?

A Car Loan Calculator is an online tool that helps individuals calculate their monthly car loan payments based on the loan amount, interest rate, and loan tenure. It simplifies financial planning by providing an estimate of the total repayment cost.

2. Why Use a Car Loan Calculator in UAE?

• Helps budget effectively before purchasing a vehicle.
• Compares loan offers from different banks.
• Avoids financial strain by selecting an affordable loan plan.
• Provides a breakdown of monthly payments, including principal and interest.

3. How Does the UAE Car Loan Calculator Work?

The calculator requires the following details:

Step-by-Step Process:

1. Visit a bank’s website or a car loan comparison platform.
2. Enter the car price or loan amount.
3. Select the down payment percentage (typically 20% as per UAE regulations).
4. Choose the loan tenure (1 to 5 years).
5. Enter the interest rate (varies by bank and credit score).
6. The calculator displays monthly installments and the total loan repayment amount.

4. Eligibility Criteria for Car Loans in UAE

To qualify for a car loan in the UAE, applicants must meet the following conditions:

• Minimum monthly salary: AED 3,000 – AED 5,000 (varies by bank)
• UAE resident (Emiratis and expatriates with valid visas)
• Age: 21 years or older
• Minimum down payment: 20% of the car price (as per UAE Central Bank regulations)
• Salary transfer to the bank (some banks may require this)

5. Car Loan Interest Rates in UAE (2025)

Interest rates for car loans in UAE vary based on bank policies, credit score, and loan tenure. Below is a general range:

Loan Type	Interest Rate (Per Annum)
New Car Loan	2.0% – 4.0%
Used Car Loan	3.0% – 5.0%

6. UAE Car Loan Repayment Example

For a car loan of AED 100,000 with an interest rate of 3% over 5 years (60 months):

• Loan Amount: AED 100,000
• Interest Rate: 3% per annum
• Loan Tenure: 60 months
• Estimated Monthly Installment: AED 1,796
• Total Repayment Amount: AED 107,760

7. FAQs About the UAE Car Loan Calculator

1. What is the minimum salary for a car loan in UAE?

Most banks require a minimum salary of AED 3,000 – AED 5,000 to qualify for a car loan.

2. Can expatriates apply for a car loan in UAE?

Yes, expatriates with a valid UAE residence visa can apply for car loans.

3. What is the maximum loan tenure for car financing?

The maximum loan tenure for a car loan in UAE is five years (60 months).

4. How much down payment is required for a car loan?

The UAE Central Bank requires a minimum 20% down payment on the car’s value.

5. Is it possible to get a car loan without a salary transfer?

Some banks offer car loans without salary transfer, but they may have higher interest rates.

6. Can I prepay my car loan before the tenure ends?

Yes, but early settlement charges may apply, typically 1% of the remaining loan amount.

8. Conclusion

A UAE Car Loan Calculator is an essential tool for estimating monthly payments and planning car financing efficiently. Understanding loan terms, interest rates, and eligibility criteria helps buyers make informed decisions. Always compare different bank offers before applying for a car loan.

For official calculations, visit the bank websites or UAE financial portals and use the Car Loan Calculator to get an accurate estimate for 2025.