# car loan in dubai processing



## rhealistica (May 24, 2013)

How long does it takes to have a car from day 1 of handing over the required docs to the bank.


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## Stevesolar (Dec 21, 2012)

Hi

We have bought two new cars in last three months - both were available to collect within 5 days of handing over all the required documents.

Cheers

Steve


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## Tropicana (Apr 29, 2010)

Thought of using this thread instead of creating a new one 

1) What are the pros/cons of taking a car loan from a bank where your salary is transferred. Only -ve I can think of is that your acct can be frozen if an EOS Notice is received. But is there any advantage I have missed?

And, 
2) Is it customary to hand over 48/60 cheques for the monthly instalment or just 1 cheque for the auto loan amount? And do you get the cheque(s) back when the loan is settled?

Thanks!


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## Mclovin oo7 (Sep 25, 2012)

It took just 24 hours for us. I still have to give them just one cheque for the entire loan amount. Though the experience was not great as the bank representative was did not know what he was doing.


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## Chocoholic (Oct 29, 2012)

Tropicana said:


> Thought of using this thread instead of creating a new one
> 
> 1) What are the pros/cons of taking a car loan from a bank where your salary is transferred. Only -ve I can think of is that your acct can be frozen if an EOS Notice is received. But is there any advantage I have missed?


Under new regulations from Central Bank, which came in last year - banks are no longer allowed to freeze accounts. Plus companies are NOT obliged to send an end of service notification - none of the companies I've worked for ever have.


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## dizzyizzy (Mar 30, 2008)

Is easier to have it approved by your salary transfer bank and in theory they should give you a lower interest rate. You will be asked for one cheque for the full amount of the loan. The monthly installment will be automatically deducted from your account. 

If you get the loan with another bank without salary transfer then you will have to give the cheques for the monthly installments plus one for the full loan amount. Also the interest rate you get may be a little higher.


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## Chocoholic (Oct 29, 2012)

Since when do you write cheques for the full amount for car loans? I never have, no one I know ever has - but you have to put 20% down payment down now.


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## fcjb1970 (Apr 30, 2010)

Chocoholic said:


> Under new regulations from Central Bank, which came in last year - banks are no longer allowed to freeze accounts. Plus companies are NOT obliged to send an end of service notification - none of the companies I've worked for ever have.


I have changed jobs twice (once terminated, once resigned) in the last couple years and my bank was never notified so accounts never froze or any issues. Had heard so many horror stories, but no issues.

I would think you could get a better rate at the bank that your salary is deposited. Although I am a firm believer in the no loans in the UAE policy and if you cannot buy in cash do not buy.


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## Chocoholic (Oct 29, 2012)

fcjb1970 said:


> I would think you could get a better rate at the bank that your salary is deposited. Although I am a firm believer in the no loans in the UAE policy and if you cannot buy in cash do not buy.


Sadly for most people that's just not possible here. The UAE is a country that thrives on people using credit.


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## Mclovin oo7 (Sep 25, 2012)

fcjb1970 said:


> I have changed jobs twice (once terminated, once resigned) in the last couple years and my bank was never notified so accounts never froze or any issues. Had heard so many horror stories, but no issues.
> 
> I would think you could get a better rate at the bank that your salary is deposited. Although I am a firm believer in the no loans in the UAE policy and if you cannot buy in cash do not buy.


Car loans are pretty safe. They always ask you for 20% down payment and depreciation should not be more than that in the first year, if you lose your job. So you end up losing your down payment but that is a risk you always take when buying a new car.

Only problem would be freezing you bank account. However, this can always be avoided if one can have another account in spouse's name and have saving in that account.

People always tell to keep only necessary amount here in UAE and transfer whatever is extra to your home country.


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## Chocoholic (Oct 29, 2012)

Mclovin oo7 said:


> Only problem would be freezing you bank account.


Again, this is NOT allowed anymore as per regulations by Central Bank. An account may ONLY be frozen if a person misses 3 payments. Account CANNOT be frozen on final payment of salary.


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## dizzyizzy (Mar 30, 2008)

Chocoholic said:


> Since when do you write cheques for the full amount for car loans? I never have, no one I know ever has - but you have to put 20% down payment down now.


I was asked for one 4 years ago by Emirates NBD (even with salary transfer!) and more recently by ADCB.


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## Mclovin oo7 (Sep 25, 2012)

Chocoholic said:


> Again, this is NOT allowed anymore as per regulations by Central Bank. An account may ONLY be frozen if a person misses 3 payments. Account CANNOT be frozen on final payment of salary.


That is good news then, however it would only matter if it is being followed by the banks.


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## Chocoholic (Oct 29, 2012)

dizzyizzy said:


> I was asked for one 4 years ago by Emirates NBD (even with salary transfer!) and more recently by ADCB.


I guess it depends on the bank then. Certainly a MEFCO loan you don't need one, or with FGB. Wasn't asked for one with EIB either, so it's certainly not across the board.


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## dizzyizzy (Mar 30, 2008)

Chocoholic said:


> I guess it depends on the bank then. Certainly a MEFCO loan you don't need one, or with FGB. Wasn't asked for one with EIB either, so it's certainly not across the board.


Lucky you  I think is a despicable practice and it was a PIA to recover the actual cheque once I paid off the loan, but at the time only Emirates NBD were willing to lend me money, as I had just arrived here. Then last year ADCB offered me a very good interest rate but since I do not have an account with them that was one of their conditions...


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