Auto Finance FAQ
1. What products do you offer for auto loans?
Ans: Finance House offers loans for new and used vehicles.
2. What is your current Interest Rate for new and used vehicle?
Ans: For new vehicles our interest rate start from 7 % and for used vehicles the interest rate start from 8%.
3. What kind of documentation will I need to provide for verification?
Ans: The following documentation is required
a) Original passport & photocopy thereof (with valid UAE residence visa for expats)
b) Copy of the valid driving license
c) Latest 3 months’ bank statements of account into which salary is transferred
d) Current dated salary certificate from employer
4. For how many months can I get a loan?
Ans: The loan on both new and used vehicles can be obtained for a maximum of 72 months
5. Any restriction on old vehicle financing
Ans: For Japanese and German makes the age of the vehicle at the time of final maturity of the loan should not exceed 8 years (e.g. – 5 year old vehicle loan tenor should not exceed 3 years and vice versa)
For all other makes the age of the vehicle at the time of final maturity of the loan should not exceed 6 years (e.g. – 2 year old vehicle loan tenor not to exceed 4 years and vice versa)
6. Are there any residency requirements?
Ans: Yes the person who is seeking the loan must be residents with valid UAE visa
7. Is there any minimum and maximum finance amount restrictions?
Ans: The minimum loan amount is AED 15,000/- and the maximum is AED 250,000/-. However, exceptions can be made in special cases. The minimum tenor for the loan is 1 year.
8. What about the early settlement cases?
Ans: If the customer is closing the loan to apply for another vehicle loan (basically changing the vehicle) then there will be a small fee. In case the settlement is being done after 3 years then a charge of 3% will be levied on the outstanding loan. If the tenor is beyond that then 4 % will be charged on the outstanding amount.
However, if the buy out is by other financial institution then 5% will be charged on the outstanding balance.
9. Is there any age limit for vehicle owner?
Ans: The minimum age for getting the loan is 21 years and the maximum is 60 years
10. Is there any down payment restrictions?
Ans: For used vehicle the minimum down payment is 10%. For new vehicles it is subject to Finance House approval
11. Is there any processing fee?
Ans: No
12. Do you have 0% Down Payment option for new vehicle?
Ans: Yes
13. Do you provide finance for insurance premium?
Ans: Yes
14. Can I replace my current PDC’s to any other Bank account PDC? If yes what would be the procedure?
Ans: Yes, however the new bank details needs to be handed over to Finance House
15. Is your interest rate fixed or reducing?
Ans: Fixed
16. Can I register my car in my cousin’s name?
Ans: No. You can however register the car in you immediate blood relation like father, mother, sister, brother, wife etc.
17. How long will the approval take?
Ans: If all the documents are in place then it should take 1 day.
18. Is there any other mode of payment apart from PDCs?
Ans: No
19. What is the grace period you are offering for the first installment?
Ans: 60 days
20. What offer you are giving with the auto loan?
Ans: Free credit card for life, with some outstanding benefits and one of the lowest interest rates on comprehensive insurance from Insurance House.
21. Do you allow the 3rd party insurance?
Ans: No
22. Will making a big down payment get you a lower interest rate?
Ans: No
23. Who is the insurance company?
Ans: Insurance House.
24. Can I take the vehicle out of the country?
Ans: Yes, terms and conditions will apply.
25. Any vehicle category restriction e.g. sport cars, luxury vehicles etc.?
Ans: This will be subject to terms and conditions specifically stipulated for this.
26. What is the down payment for 2nd hand vehicle?
Ans: 25 % for luxury and sports cars and 10 % for all other approved vehicle types
27. What are the minimum salary requirements to get an auto loan?
Ans: AED 10,000/- per month
28. Is salary transfer required?
Ans: No
29. Can I register the vehicle in my company’s name?
Ans: Yes you can. The following documentation will be needed, valid trade license in the name of applicant or the applicant’s name is mentioned in the trade license as Partner/Manager. Wherever, the applicant’s name does not appear on the trade license, any other acceptable documents / proof to be submitted to establish his/her involvement in the business.
30. What is the documentation required for self employed customers?
Ans: The following documentation will be needed, valid trade license in the name of applicant or the applicant’s name is mentioned in the trade license as a self employed personnel.
31. Can I finance a truck or passenger vehicle?
Ans: Yes. Semi commercial vehicle can be financed under normal Auto Finance scheme i.e. Pick ups up to 3.5 ton, Buses above 15 seats and Delivery van
Trucks can also be financed under commercial finance i.e. Pick ups more than 3.5 ton and six wheelers
For more details call 80034