Factors Car Loan Interest rates

Factors which determine car interest rate

Acquiring an car loan in UAE is certainly not a basic endeavor. You may need to take certain offensive decisions and if it is not done in the right way it can badly impact on your financial ease.

These are some of the major determinants of car loan interest rate.

1. Age of the Vehicle

An interesting fact is that interest rates of the used cars are more than that of the new car , this is because old cars get depreciated very fast as compared to new vehicles.
Used car loans normally have a shorter duration.
Related: Are you looking for used car loans uae

2. Previous Loans

If you have already certain number of credits and a busy credit history , then there are chances that your banker may feel nervous about giving you a loan.
The more your loans more will be your credit score.
Looking for a person loan in UAE

3. Savings

You savings can be a booster for your car loan. It creates a feeling that you have the ability to return the loan in a timely manner. It can even reduce the interest on your car.

4. Credit Score

You are determined by your credit score rating. It is the estimation factor used by lenders and bankers in order to reduce the risk.
So make sure that you have a healthy credit score and then go to the purchase decision.

5. Your Income

Your income is also a main factor . Minimum salary requirement for car loan is 5000 AED. Most banks in UAE don't give you a car loan unless you meet this salary requirement. So you should have a stable income to get a car loan.

7. Debt to Income Ratio

The larger amount you borrow , tougher will be loan terms. Banks may try to recover as much as possible by giving you tougher terms.
Summing Up
You can compare car loan in uae with the help of compare4benefit

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