Buying a car in the UAE is exciting—but unless you’re paying in cash, you’ll need a car loan. The UAE has a wide range of financing options to suit every budget and preference, from Islamic car finance to conventional bank loans with competitive rates.
In this guide, we’ll break down the best banks for car financing in UAE, their interest rates, eligibility requirements, and the perks they offer. Whether you’re looking for low interest car loans in Dubai or a Sharia-compliant car finance plan in Abu Dhabi, this article will help you make the right choice.
In 2025, top picks for car loans in UAE include Emirates NBD, ADCB, Dubai Islamic Bank, Abu Dhabi Islamic Bank, and RAKBANK—all offering competitive rates, flexible tenures, and easy application processes.
How Car Financing Works in UAE
Before choosing a bank, it’s important to understand how car loans work here.
In the UAE, banks offer two main types of financing:
- Conventional Car Loans – You borrow at a fixed or variable interest rate and repay in monthly installments.
- Islamic Car Finance – Sharia-compliant financing based on Murabaha or Ijarah structures, where the bank buys the car and sells or leases it to you at an agreed profit rate instead of charging interest.
Most banks finance up to 80% of the car’s value (as per UAE Central Bank regulations), with repayment terms usually ranging from 12 to 60 months.
Tip: If you’re buying a used car, make sure it passes the required inspections before applying for finance. You can check our car accident history guide for the UAE to ensure the vehicle’s condition.
Top 7 Banks for Car Financing in UAE (2025)
Here’s our detailed breakdown of the best banks offering car loans in the UAE this year.
1. Emirates NBD – Flexible Car Finance Options
Emirates NBD offers both Islamic and conventional car finance options with competitive rates and quick approvals.
Key Details:
- Interest Rate: From 2.49% flat p.a. (conventional)
- Profit Rate: From 2.75% p.a. (Islamic)
- Maximum Loan Amount: Up to 80% of car value
- Tenure: 12–60 months
- Special Offers: Reduced rates for green/hybrid cars
Pros:
- Flexible repayment options
- Special rates for eco-friendly vehicles
- Easy online application and pre-approval
Cons:
- Early settlement fees apply
2. Abu Dhabi Commercial Bank (ADCB) – Low Rates & Quick Processing
ADCB is known for its low rates and quick processing times, making it a great choice for those in a hurry to get their car.
Key Details:
- Interest Rate: From 2.25% flat p.a.
- Maximum Loan Amount: 80% of car value
- Tenure: 12–60 months
- Special Offers: Discounts for ADCB salary transfer customers
Pros:
- One of the lowest rates in the market
- No hidden charges
- Simple documentation process
Cons:
- Requires minimum salary of AED 5,000
3. Dubai Islamic Bank (DIB) – Popular Islamic Car Finance
DIB offers Sharia-compliant car finance that’s competitive and widely accessible, even for expats.
Key Details:
- Profit Rate: From 2.79% p.a.
- Financing Structure: Murabaha-based
- Maximum Finance: 80% of car value
- Tenure: 12–60 months
- Special Offers: Seasonal promotions with lower profit rates
Pros:
- Fully Sharia-compliant
- Transparent profit rate with no hidden fees
- Available for both new and used cars
Cons:
- Limited benefits for non-account holders
4. Abu Dhabi Islamic Bank (ADIB) – Flexible & Sharia-Compliant
ADIB offers Islamic car finance with flexible payment terms and high customer satisfaction.
Key Details:
- Profit Rate: From 2.75% p.a.
- Tenure: 12–60 months
- Special Offers: Deferred first installment up to 90 days
Pros:
- Deferred payment option
- Competitive rates for both new and used cars
- Minimal early settlement charges
Cons:
- Some offers require salary transfer
5. RAKBANK – Easy for Expats & Self-Employed
RAKBANK caters to a wide range of customers, including self-employed individuals and non-salary transfer applicants.
Key Details:
- Interest Rate: From 2.55% flat p.a.
- Maximum Loan Amount: 80% of car value
- Tenure: 12–60 months
- Special Offers: Quick approval in 24 hours
Pros:
- Ideal for freelancers and business owners
- Fast processing times
- No requirement for existing account
Cons:
- Slightly higher rates for non-salary transfer loans
6. Mashreq Bank – Digital-Friendly Car Loans
Mashreq offers fully online car loan applications and attractive packages for digital-savvy customers.
Key Details:
- Interest Rate: From 2.49% p.a.
- Tenure: 12–60 months
- Special Offers: Cashback offers during promotions
Pros:
- 100% online process
- Cashback and rewards offers
- Flexible repayment schedules
Cons:
- Higher minimum salary requirement
7. First Abu Dhabi Bank (FAB) – Premium Service & Rates
FAB is a top choice for high-income customers who want premium service along with competitive rates.
Key Details:
- Interest Rate: From 2.35% flat p.a.
- Tenure: 12–60 months
- Special Offers: Lower rates for FAB salary transfer customers
Pros:
- Premium customer service
- Low interest rates
- Special deals for high-income earners
Cons:
- May not be ideal for low-income applicants
Best Car Finance Banks in UAE (2025)
| Bank | Rate Type | From Rate p.a. | Tenure | Max Finance | Notable Benefit |
| Emirates NBD | Flat/Profit | 2.49% / 2.75% | 12–60 m | 80% | Eco-friendly car rate discount |
| ADCB | Flat | 2.25% | 12–60 m | 80% | Low rates for salary transfer |
| Dubai Islamic Bank | Profit | 2.79% | 12–60 m | 80% | Fully Sharia-compliant finance |
| ADIB | Profit | 2.75% | 12–60 m | 80% | Deferred first installment option |
| RAKBANK | Flat | 2.55% | 12–60 m | 80% | Fast approval for expats/self-employed |
| Mashreq | Flat | 2.49% | 12–60 m | 80% | 100% online application |
| FAB | Flat | 2.35% | 12–60 m | 80% | Premium service and low rates |
Car Loan Eligibility in the UAE
While each bank has its own rules, here’s what most require:
- Minimum Salary: Usually AED 3,000–5,000 per month
- Age: 21–65 years (varies for expats and nationals)
- Employment: Full-time, with salary transfer preferred for best rates
- Down Payment: At least 20% of the car’s value (as per UAE law)
- Documents: Emirates ID, passport, visa copy, driving license, salary certificate, bank statements
Planning your car purchase? See our guide on buying a new vs used car in UAE to decide which suits you better.
Tips for Getting the Best Car Finance Deal
- Compare Multiple Banks – Don’t take the first offer; shop around.
- Negotiate – Some banks may lower the rate if you have a good credit score or transfer your salary.
- Watch Out for Fees – Early settlement, processing, and insurance fees can add up.
- Consider Islamic Finance – If you prefer Sharia-compliant options or want more flexible terms.
- Use a Car Loan Calculator – Many banks offer online calculators to check monthly payments before applying.
Final Thoughts
Choosing the best bank for car financing in UAE depends on your budget, salary, and preference for conventional or Islamic finance.
- Best for Lowest Rates: ADCB, FAB
- Best for Islamic Finance: Dubai Islamic Bank, ADIB
- Best for Flexibility: RAKBANK, Emirates NBD
- Best for Digital Process: Mashreq
If you want a balance between low rates and good service, Emirates NBD and FAB are excellent all-round choices in 2025.
