Category: Car Loans

Get the Best Ride: UAE’s Best Car Loan Choices for 2024

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Purchasing a car in the UAE is more accessible than ever, with numerous financing options designed for salaried and self-employed individuals alike. Whether you prefer conventional loans or Sharia-compliant financing, UAE banks offer unique products with flexible terms, competitive rates, and easy application processes. Here’s a look at top car loan options from prominent banks in the UAE, along with eligibility requirements and the application process.

FAB Car Loan for Salaried Individuals

Overview : First Abu Dhabi Bank (FAB) offers a car loan tailored for salaried individuals, featuring competitive rates, high loan-to-value ratios, and fast processing. This loan is ideal for UAE residents with steady income sources looking to finance new or used vehicles.

Key Features :

  • Competitive profit rates as low as 2.29% (equivalent to a reducing rate of 4.35%) per year ( as of Oct 2024, this might change in the future)
  • Loans up to AED 1.5 million or 80% of the car value
  • Up to 90 days before the first installments
  • Loans for New and Preowned car

Emirates Islamic Auto Finance

Overview : Emirates Islamic Auto Finance is a Sharia-compliant financing option designed for those seeking Islamic banking principles. With competitive profit rates and flexible terms, it uses a Murabaha structure to ensure compliance with Islamic finance principles.

Key Features :

  • Sharia-compliant profit rate, avoiding conventional interest
  • Financing for new and used vehicles
  • Flexible repayment plans with competitive profit rates
  • Option to include Takaful (Islamic insurance)

Emirates NBD Fixed Rate Auto Loan

Overview : The Fixed Rate Auto Loan by Emirates NBD provides stability with fixed monthly payments throughout the loan tenure. This option is great for those who value predictable expenses, as the fixed interest rate ensures consistent EMIs.

Key Features :

  • Fixed interest rate for stable, predictable payments
  • Flexible loan tenures to match personal budgeting needs
  • High financing limit, covering a significant portion of the car’s value

ADCB Car Loan

Overview : Abu Dhabi Commercial Bank (ADCB) offers a flexible car loan designed to suit both salaried and self-employed customers. It provides various tenure options and competitive rates, allowing borrowers to tailor the loan to their specific needs.

Key Features:

  • Customizable loan tenures for flexible budgeting
  • Competitive interest rates, including both flat and reducing rates
  • Swift processing to facilitate quick car purchases

DIB Al Islami Auto Finance

Overview : Dubai Islamic Bank (DIB) offers Al Islami Auto Finance, a Sharia-compliant option ideal for those who prefer Islamic finance. This financing model is based on Murabaha, with DIB purchasing the vehicle on behalf of the customer and selling it at an agreed-upon profit margin.

Key Features:

  • Sharia-compliant financing model with a clear profit rate
  • Flexible repayment terms and competitive rates
  • Takaful insurance as an optional add-on

Eligibility Requirements

Eligibility requirements for car loans generally include :

  • Age : Minimum age of 21 years; some banks have an upper limit of 65 for salaried and 70 for self-employed individuals at the end of the loan term.
  • Income : Minimum monthly salary (often AED 5,000-8,000) for salaried individuals; financial proof of business for self-employed applicants.
  • Residency : Valid UAE residency is typically required.
  • Credit Score : A good credit score improves loan approval chances and may result in more favorable rates.

Application Process and Required Documents

Steps to Apply : 

  • Choose Your Preferred Loan : Review different car loan options to determine which best suits your financial goals.
  • Contact the Bank : Reach out to the chosen bank online, via phone, or in person to initiate the application process.
  • Submit Documents : Provide necessary documents for verification.
  • Loan Processing and Approval : Upon approval, funds are disbursed to finalize the car purchase.

Documents Required

  • Identification : Passport, Emirates ID, and a valid UAE residency visa (for expatriates).
  • Income Proof : Salary certificate (for salaried individuals), recent bank statements (usually 3-6 months), or trade license (for self-employed individuals).
  • Proof of Employment : Letter from employer or, for self-employed, proof of business stability.
  • Additional Documents : Some banks may require a down payment receipt or car valuation, depending on the loan terms.

Each of these car loan options provides a unique set of benefits tailored to diverse financial needs, from conventional to Sharia-compliant financing. Choosing the right loan ensures you find the ideal balance between affordability, flexibility, and transparency in your car purchase journey.

Maximise Your Savings with Best Cashback Credit Cards in Dubai

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In Dubai, a city renowned for its luxury and opulence, every transaction can feel like a step towards an extravagant lifestyle. However, beneath the glittering surface lies an opportunity for savvy spenders to turn everyday expenses into substantial savings. With the best cashback credit card in Dubai, each purchase, whether it is dining at a world-class restaurant or fuelling up for a weekend getaway, can be a chance to put money back into your pocket. By understanding and leveraging the best cashback credit cards available in Dubai, you can transform your spending habits and maximise your financial benefits.

The financial landscape in an opulent city like Dubai is dominated by a variety of local and international banks offering a plethora of credit card options designed to cater to diverse consumer needs. These financial institutions understand the unique spending habits of Dubai’s residents and visitors, providing credit cards that not only offer competitive cashback rates but also align with the city’s high standards of living. From dining and travel to everyday purchases, these Dubai cashback credit card are tailored to maximise rewards on common expenditures.

Understanding Best Cashback Credit Card in Dubai: Turning Purchases into Savings

What Are Cashback Credit Cards in Dubai?

Cashback credit cards are a smart financial feature that rewards users by giving back a percentage of what they spend. Imagine getting a portion of your money back every time you shop, whether it is for groceries, dining out, or booking a vacation. This simple yet effective mechanism can help you save significantly over time. Depending on the card issuer’s policies, these accumulated rewards can be redeemed as statement credits, direct deposits, or even gift cards, making your spending work for you.

Different Dubai Cashback credit cards cater to various spending habits by offering varying rates of return for different purchase categories. Some cards offer higher cashback rates on essentials like groceries and fuel, while others provide better rewards for travel or dining. There are also cards with a flat-rate cashback, ensuring you earn a consistent reward on all purchases. Beyond the cashback benefits, these cards often come with additional benefits such as no annual fees, 0% introductory APR periods, and comprehensive travel and purchase protections, making them a versatile and valuable addition to any wallet.

They are a fun and easy way to save more as you spend!

Types of Cashback Credit Cards in Dubai: Find Your Perfect Fit

Cashback credit cards come in several types to suit different spending habits and financial goals. Understanding the differences can help you choose the right card to maximise your savings.

  1. Flat-Rate Cashback Credit Cards: These cards offer a consistent percentage of cashback on all purchases, regardless of the spending category. They are simple and straightforward, making them ideal for those who prefer ease and consistency. Citi cashback credit card, FAB cashback credit card, Mashreq cashback credit cards are some popular cashback credit cards under this category.
  2. Tiered Cashback Credit Cards: Tiered cards offer different cashback rates for different categories of spending. These cards are great if you spend a lot in specific categories and want to maximise your rewards in those areas. CBD Supersaver cashback credit card is one popular credit card under this category.
  3. Rotating Category Cashback Credit Cards: These cards offer higher cashback rates on specific categories that change periodically, such as quarterly. They require more attention to category changes but can offer substantial rewards if you plan your spending accordingly. Emirates Islamic Switch cashback credit card is one such cashback credit card.
  4. Sign-Up Bonus Cashback Credit Cards: These cards offer a large amount of cashback after you spend a certain amount within the first few months of opening the account. This is a great option if you have significant upcoming expenses and want to take advantage of the bonus.
  5. Speciality Cashback Credit Cards: Some cards offer enhanced rewards for specific types of purchases, such as travel, fuel, or online shopping. These are ideal if your spending is heavily concentrated in one area, and you want to maximise your cashback in that specific category.

Each type of cashback credit card has its own advantages, and the best choice depends on your spending habits and financial needs. By selecting the best credit card offers in Dubai, you can make your everyday purchases more rewarding.

The Ultimate Cheat Sheet in Finding the best credit card offers in Dubai

  1. Cashback Rate: Compare the cashback rates for various spending categories. Look for cards that offer high rates on the categories where you spend the most, whether it is groceries, dining, or travel.
  2. Annual Fees: Check if the card has an annual fee and determine if the rewards and benefits outweigh the cost. Some cards have no annual fee, which can be a better option if you want to maximise your savings.
  3. Sign-Up Bonuses: Many cards offer substantial sign-up bonuses if you spend a certain amount within the first few months. This can be a great way to boost your cashback rewards early on.
  4. Redemption Options: Review how you can redeem your cashback rewards. Options include statement credits, direct deposits, or gift cards. Choose a card that offers redemption methods that suit your preferences.
  5. Foreign Transaction Fees: If you travel frequently or make purchases from international merchants, look for a card with no foreign transaction fees to avoid extra charges.
  6. Additional Benefits: Consider other benefits such as travel insurance, purchase protection, and extended warranties. These can add extra value beyond just cashback rewards.
  7. Credit Score Requirements: Ensure your credit score aligns with the requirements for the card you are interested in. Some high-reward cards may have stricter credit score criteria.

By evaluating these factors, you can select the best cashback credit card in Dubai that best fits your financial habits and maximises your rewards.

Supercharge Your Cashback Credit Card: Tips for Maximising Your Rewards

To make the most out of your cashback credit card, strategic planning and smart spending are key.

  1. Know Your Card’s Categories: Many cashback cards offer higher rates in specific categories, such as dining, groceries, or travel. Familiarise yourself with these categories and concentrate your spending in areas where you will earn the most cashback. If your card has rotating categories, make sure to activate them and plan your purchases around these periods.
  2. Combine Cards Strategically: Using multiple Dubai cashback credit cards can help you earn more. For example, you might use one card for groceries and another for dining out. This way, you can take advantage of each card’s highest earning rates and maximise your overall rewards.
  3. Take Advantage of Bonus Offers: Keep an eye out for special promotions and bonus offers. Many cards provide extra cashback for spending above a certain threshold or during promotional periods. Align your big purchases with these promotions to boost your cashback earnings.
  4. Pay Attention to Redemption Options: Some cards offer better redemption value when you choose certain options, such as statement credits or direct deposits. Make sure you are aware of the best ways to redeem your rewards to get the most value from your cashback.
  5. Track Your Spending and Rewards: Regularly monitor your spending and cashback rewards. Many credit card issuers provide tools and apps to help you track how much you are earning. Staying on top of your rewards can help you adjust your spending habits and ensure you are making the most of your card’s benefits.
  6. Avoid Interest Charges: To truly benefit from your cashback rewards, pay off your balance in full each month. Carrying a balance can negate the value of your rewards with interest charges. By avoiding interest, you keep your earnings intact and maximise your savings.
  7. Utilise Additional Perks: Don’t overlook the extra benefits your card offers, such as purchase protection, extended warranties, or travel insurance. These benefits can provide added value beyond just cashback and help you get the most out of your card.

By implementing these strategies, you can effectively enhance your cashback earnings and choose best credit card offers in Dubai.

Redeeming Your Cashback Rewards: How to Make the Most of Your Earnings

Earning cashback rewards is just the beginning; knowing how to redeem them effectively is equally important. Here are some tips to help you get the most value from your cashback rewards:

  1. Maximise Statement Credits: One of the simplest and most effective ways to redeem your cashback is through statement credits. This option directly reduces your credit card bill, making it a straightforward way to save money. Some cards may offer a higher redemption value when you choose this option.
  2. Direct Deposit to Bank Account: Many cashback credit card in Dubai allows you to transfer your cashback rewards directly to your bank account. This option provides flexibility, as you can use the cash for any purpose, from saving to spending.
  3. Gift Cards: Some credit cards offer enhanced value when you redeem your cashback for gift cards, especially to popular retailers. Keep an eye out for special promotions that offer bonus value on gift card redemptions, which can stretch your rewards even further.
  4. Travel and Merchandise: If your card offers the option, consider redeeming your cashback for travel or merchandise. While this can sometimes provide good value, make sure to compare the redemption rates to ensure you’re getting the best deal.
  5. Automatic Redemptions: Some cards offer automatic cashback redemption once you reach a certain threshold. This can be a convenient way to ensure you do not forget to redeem your rewards and miss potential savings.
  6. Combine Rewards: If you have multiple cashback credit cards from the same issuer, check if you can combine your rewards. Pooling your cashback from different cards can make it easier to reach redemption thresholds and maximise the benefits.
  7. Plan Your Redemptions: Timing can be everything. Some issuers offer limited-time promotions where your cashback value is increased if redeemed in a specific way. Keep an eye on these offers to get the most out of your rewards.

By understanding and strategically using your cashback redemption options, you can ensure you are getting the maximum benefit from your credit card rewards.

Choosing the best cashback credit card in Dubai involves understanding your spending patterns and selecting a card that offers the most rewards for your typical expenses. Whether you are a frequent traveller, a dining enthusiast, or someone who wants to save on everyday purchases, there is a cashback card designed to meet your needs.

SoulWallet helps you compare and find the best cashback credit card in Dubai across various banks that are suited to your needs so that you can have an easy and hassle-free experience. The well-researched, solidly structured, unbiased content, along with unique tools at SoulWallet, help you make well-informed financial decisions for your personal and business transactions. In the process, SoulWallet enables you to identify the options that will let you save money and enjoy the best rewards.

Are financial decisions easy?

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After much thought, I decided upon embarking on the second innings of my entrepreneurial journey. The path that took me to reach where I am today hasn’t been a cakewalk. At times an experience alone can unknowingly pave the way for us to take certain decisions. But were those experiences always easy? Well, not really as you would soon find out.

As much as I love venturing outdoors, summers in Dubai literally force me to stay within the limits of my perfectly air conditioned home. Being an avid fitness enthusiast, this means visiting the gym regularly. That day at the gym I was politely reminded about the impending renewal of my annual membership. As I was about to swipe my credit card, the manager informed that the loyalty programs’ benefit of my card entitled me for a complimentary renewal. Needless to say, I was overjoyed hearing this but right at that moment it struck me that all these years I have been burning a hole in my pocket unknowingly. Had I been aware of these benefits earlier, I would not have had to shell out such enormous amounts of money. I would have instead used my credit card to the best of its potential. The banker in me felt a bit cheated for having lost out on a potential savings opportunity. I realized that perhaps I wasn’t the only one carrying unexploited credit cards in their wallets.

The next instance was at the Dubai Airport, my husband was traveling and forgot an important document. Of course, I rushed to the airport in peak traffic and handed over the car to the valet. Once I handed over documents and bid adieu to dear hubby it was time to redeem my car by paying fee. I was pleasantly surprised to see my parking ticket because it offered complimentary valet parking on the credit card neatly tucked in my clutch. I had a feeling of déjà vu.

Haven’t we all faced situations similar to this? Whether we end up using all the benefits or not is a prerogative best left to the person concerned. But we must be aware of what our credit cards can offer as additional benefits apart from only paying bills and taking care of shopping trips.

It wasn’t the only time I realized my mistake and one such experience literally pushed me to the brim of my patience.

Like most expats in the UAE, we sacrifice a lot to realize the dream of building a house back in our home country. We stretch our limits to save each dirham. After my husband and I had finished finalizing the deal of our dream home, we religiously kept paying the pre-EMI. At that point, little did we know that we were in for a rude shock. Almost 2 years down the line, our loan officer informed that we had only been servicing the interest and not paying towards the loan principal. This essentially meant, we had lost out on substantial savings. To top it all, we realized that this was definitely avoidable. Coupled with these experiences, I wondered if my ignorance about the importance of proper investment decisions could affect my long term financial management.

For the uninitiated, it is always a challenge to take the smartest of financial decisions.

Especially in our 20s and 30s, when we have to decide about various financial needs like car loans, home loans, personal loans, etc., it definitely helps to have a portal that compares and assists with our financial decision making.

With a career in HR spanning over 17 years, I have met people from all walks of life seeking a simple, transparent and trusted friend who can help us with financial planning. Somebody who can read the fine print, compare various products and help us chose the best, not necessarily the cheapest. This triggered the inception of SoulWallet, an unbiased and comprehensive comparison portal for the financial products like Credit Cards, Personal Loans, Home Loans and Car Loans and more. At SoulWallet we have earnestly tried to create a virtual friend who helps make financial decisions with confidence.

10 things to know before you take a loan in UAE

10 things to know before you take a loan in UAE

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10 things to know before you take a loan in UAE

It is common today that you need a loan for your day to day expenditures. In every country, banks have different rules and regulations to offer loans to its customers. In the same way, United Arab Emirates (UAE) banks have their own rules and regulations which must be followed to obtain a loan.

There are different types of loans available in UAE, for example, personal loan, car loan, home loan and business loans. For every type of loan, you have different requirements. But you should know what are the steps to take any loan you must consider them. These are the steps or things which you must know before taking any loan

  1. Rate of interest

Different moneylenders offer distinctive measures of credits at different interest rates. Complete an intensive statistical surveying on various banks and their offers. Banks typically offer loans at higher rates than conventional Islamic banks, for example, Emirates Islamic bank for home loans. Ensure you converse with numerous banks previously going to a choice. This will enable you to make a better choice for taking any type of loan.

  1. Know about the required Documents

Documents required for loans are normally

Salaried/Self-employed

  • UAE national ID card or a valid passport
  • In case the applicant is an expat then a valid residency visa for the UAE is also needed.
  • If the bank requires a salary transfer then a letter of salary transfer will also be needed.

Banks may have distinctive prerequisites for age and employing company as well.

In the event that you work for the private sector, requirements for least business period and qualified age might be higher as compared to Government sector.

  1. Know about your creditworthiness

If you have acquired any loan in the past, at that point there will be a record of your financial record with the bank. This is an extremely powerful method for knowing regardless of whether you are able to pay off any loan. If you missed a few due deadlines previously, your record score would have a tendency to be lower and banks may charge higher interest rates or give you a small loan.

In case you’re a first-time borrower, your financial assessment will be dictated by your pay, age, background and so on. : Each UAE bank will have a minimum standard salary they require you to earn in order to give you any loan.

  1. Secured and Unsecured loans

There are secured and unsecured loans which banks usually offer. Unsecured loans, for the most part, are lower in sums and charge higher rates of interests as they don’t include any guarantee to be set against the loans. In any case, acquiring an unsecured loan is generally easier than secured loans.

Secured loans include putting a collateral against the loan amount, which may be reallocated by the bank, on the off chance that you can’t reimburse the loan. Secured loans are esteemed against the estimation of the property/asset kept as collateral against the loans.

Find out your correct necessity with regards to the sort of debt that you have to dispose of, and choose whether you’ll be OK with a higher rate of interest or putting an asset as a guarantee.

  1. Least expensive ain’t the best

Try not to go for the least expensive loans with daze confidence; rather, take time to compute the genuine cost of borrowing which incorporates the loan sum, the length of the loan, reimbursement frequency, fees and interest charges. It is likewise fundamental to understand the financial guidelines the bank will follow in modifying rates.

Guarantee that whoever is advising you by taking a loan can take you through all the charges in detail and explain the total cost and hidden charges.

  1. Have alternatives

As a rule, a bank may not be your solitary alternative to acquiring a loan. On the other hand that you have a strong financial background, you might be qualified for some credit cards, for example, Citibank that would give you a chance to complete your activity and charge 0% interest for a year. Or then again in case you’re a piece of some trading organization, you may have the capacity to get cash from them at lower interest rate what banks offer.

  1. Don’t take a high amount of loan

Sometimes, banks will offer you more cash, in view of your credit assessment. Abstain from falling into these traps as this won’t just raise the weight of loans yet, in addition, you’ll wind up paying more interest on a little amount of money.

Acquiring a loan has something other than just completing the paperwork and getting the cash in hand. Numerous banks charge processing expenses, enrollment charges and so on as a rule in a level of the measure of cash you wish to get. Discover which banks offer the best arrangement, work it out a little and discover the amount you’ll have to pay the bank, including every one of the charges, expenses, and premium and so on.

  1. Know about Islamic Finance

There are numerous banks in UAE that provide sharia compliance products. Utilizing the Murabaha, the bank would typically purchase the product and after that re-sell the product to the client at a higher cost. The profit can be made in regularly scheduled payments and is referred to as the profit rate.

  1. Early settlement fee

If you are intending to take your loan for a long time, however considering paying it off before at that point, the early settlement expense turns into an imperative factor in your choice. This is an expense forced on you in the event that you choose to pay off your loan early.

  1. How you repay your debt

This is the final step to know how you can repay your loan. Banks offer from one year to five long payment plan with an alternate rate of interest for each offer. Be strategic and discover what amount you would be able to pay in EMIs (Equated Monthly Installment).

An informed and cautious approach to borrowing is the need of the hour.