Looking for the best banks for car loans in the UAE? These top banks offer competitive rates, flexible terms, and tailored financing options to help you drive away with confidence.

Buying a car in the UAE is a major milestone, whether you’re upgrading your ride or purchasing your first vehicle. With so many banks offering car loans, choosing the right one can feel overwhelming. But don’t worry—we’ve done the homework for you. In this friendly guide, we’ll explore the best banks in the UAE for car loans in 2025, highlighting their standout features, eligibility criteria, and why they’re worth considering.

🚗 Why Choosing the Right Car Loan Matters

Before diving into the top banks, let’s talk about why your choice of lender is so important. A car loan isn’t just about borrowing money—it’s about finding a financial partner that offers:

Low interest rates
Flexible repayment terms
Minimal fees
Quick approval
Great customer service

Whether you’re buying new or used, the right bank can make your car purchase smoother and more affordable.

🏦 Top Banks for Car Loans in the UAE (2025 Edition)

Here are the standout banks offering car loans in the UAE this year, based on competitive rates, customer satisfaction, and unique perks icartea.com yallacompare Compare4Benefit:

1. First Abu Dhabi Bank (FAB)

FAB is a favorite among salaried individuals thanks to its fast processing times and high loan-to-value ratios. You can finance up to 80% of your car’s value with competitive interest rates starting as low as 2.25% flat.

Why FAB?

Quick approval process
No salary transfer required
Financing available for both new and used cars

2. Emirates NBD

One of the largest banks in the UAE, Emirates NBD offers car loans with flexible repayment terms up to 60 months. Their rates are competitive, and they often run promotional offers for new car buyers.

Highlights:

Flat rates from 2.49%
Optional insurance bundling
Online application and tracking

3. Dubai Islamic Bank (DIB)

If you prefer Sharia-compliant financing, DIB is a top choice. Their auto finance solutions follow Islamic principles and offer competitive profit rates.

Perks:

Murabaha-based financing
No hidden fees
Financing up to AED 500,000

4. RAKBANK

RAKBANK is known for its low flat rates and no salary transfer requirement. It’s a great option for self-employed individuals or those with non-traditional income sources.

Key Features:

Flat rate as low as 2.35%
Reducing rate around 4.46%
Minimum salary requirement: AED 5,000

5. Abu Dhabi Islamic Bank (ADIB)

ADIB offers Islamic car finance with flexible terms and high transparency. Their Murabaha-based loans are ideal for those seeking ethical banking solutions.

Benefits:

Up to 5-year repayment period
No early settlement fees
Financing for both new and used cars

💡 Tips for Choosing the Best Car Loan

Here’s how to make sure you’re getting the best deal:

Compare flat vs. reducing rates: Flat rates are easier to understand, but reducing rates may save you more over time.
Check for hidden fees: Look out for processing fees, early settlement charges, and insurance costs.
Consider your salary: Some banks require salary transfers or minimum income thresholds.
Look for extras: Some banks offer roadside assistance, bundled insurance, or service packages.

🧾 Documents You’ll Need

To apply for a car loan in the UAE, you’ll typically need:

Emirates ID and passport
Salary certificate or proof of income
Bank statements (last 3–6 months)
Car quotation from the dealer

🚙 New vs. Used Car Financing

Most banks offer financing for both new and used cars. However, interest rates and loan terms may vary:

New cars: Lower interest rates, longer repayment terms
Used cars: Slightly higher rates, shorter terms, more documentation

🏁 Final Thoughts

Choosing the right bank for your car loan can save you thousands of dirhams and make your car-buying experience stress-free. Whether you’re looking for conventional or Islamic financing, the UAE’s top banks offer a wide range of options tailored to your needs.

Ready to hit the road? Start by comparing rates, checking eligibility, and applying online. With the right bank by your side, your dream car is just a few clicks away.