Things to know before applying for a car loan


How often have you thought of buying a car but put those thoughts away. Few things you need to keep in mind before applying for a car Finance in UAE?
While there are some criteria of banks and financial institutions that will help you to get loans easily
If you too have applied for a vehicle loan or are planning to apply for one, then here are a few things you must know:

1. Shop online
Shopping for auto loan online is a great time saver. You can get almost all information at a click of a mouse and pick the best deal by comparing car loans in dubai on compare 4 benefit among the different banks in uae.
2. Know thyself!
You must know the basic criteria for applying for a loan. You must be above 18 years of age. Best is if you earn at least AED 3,000 per month and have your three-month bank statement ready for your lender's perusal. This will help your lender understand your spending and saving habits better and may help you in getting loan at a cheaper rate of interest.
3. Check your Credit score
Credit score these days has become one of the most important criteria in sanctioning loans. The credit score of a person defines his/her loan repayment ability. Thus, a low credit score would mean less loan amount or higher interest rates. Better check your credit score before applying for a car loan.
4. Down payments
This varies from lender to lender, and some don't even require you to make a down payments. But typically it's about 20 per cent of the price of the vehicle you want to purchase.

5. Eligibility
While applying for a loan, there are some eligibility conditions which one must fulfil, including age, minimum salary requirements, employment type and residence area.



6.Islamic or Conventional?
While there isn’t a major difference in Islamic and conventional car loans, the terms of both financing vary slightly. You must check with your bank that the Islamic financing scheme they are offering is Shariah compliant.

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