Getting a car loan UAE for Nepalese residents has become much easier today. Whether you’re a new worker, a long-term resident, or planning to buy your first vehicle in the Emirates, this detailed guide will help you understand eligibility, required documents, AECB score, and every step to owning your dream car in the UAE.
Key Facts at a Glance
- DBR (Debt-Burden Ratio): Monthly repayments ≤ 50% of income.
- Down payment: Usually 20% of car value.
- Tenure: Up to 60 months.
- Finance amount: Up to 80% of car price.
- AECB Credit Score: 300–900; higher = faster approval.
- Insurance: Motor insurance mandatory before registration.
Quick Tips (नेपालका साथीहरूका लागि)
- DBR ५०% ननाघ्ने गरी सबै EMI राख्नुहोस्।
- Down payment ~२०% राख्ने तयारी गर्नुहोस्।
- AECB score राम्रो बनाउन समयमै किस्ता तिर्ने बानी बसाल्नुहोस्।
- EMI तलव आउने मितिसँग मिल्ने गरी राख्नुहोस्।
- लोन साइन गर्नु अघि Key Facts Statement मागेर कुल लागत बुझ्नुहोस्।
- Insurance बिना Mulkiya (registration) सम्भव छैन।
1. Types of Car Finance in the UAE
A. Conventional Auto Loan
Standard interest-based loans with fixed or reducing rates. EMI depends on the principal amount, tenure, and rate.
B. Islamic Auto Finance (Murabaha)
Sharia-compliant financing—bank buys the car and sells it to you at an agreed profit margin. Repay in fixed monthly instalments.
2. Eligibility Checklist
- Age: 21–65 years
- Employment: Salaried or self-employed
- Residency: Valid UAE visa and Emirates ID
- Valid UAE driving licence
- DBR within 50% limit
- Good AECB credit record
3. Required Documents
For Salaried Applicants
- Passport, visa, and Emirates ID
- Salary certificate (within 30 days)
- Last 3 months’ payslips & 3–6 months’ bank statements
- Car quotation from dealer
For Self-Employed Applicants
- Trade licence & MOA
- Company & personal bank statements
- Audited financials (if applicable)
4. How Banks Decide (DBR & AECB)
DBR: Total monthly repayments (loans + credit cards) divided by income ≤ 50%.
AECB Score: 300–900 range; higher score = lower risk & faster approval.
5. Costs to Budget
- Down payment (~20%)
- Processing fee (flat or %)
- Insurance (comprehensive mandatory)
- RTA registration & testing (if used car)
- Early or partial settlement fees
6. Car Loan UAE for Nepalese Application Process
- Compare offers from banks or Islamic finance providers.
- Obtain a car quotation from dealer or seller.
- Check your DBR and AECB credit score.
- Submit documents and apply for finance.
- Review offer letter and Key Facts Statement.
- Sign agreement and arrange mandatory insurance.
- Register the car with RTA (mortgaged until loan paid off).
- Collect your car and set up EMI auto-debit.
7. Example: Can You Afford It?
- Monthly income: AED 6,000
- DBR limit: AED 3,000 (50% of income)
- Car price: AED 75,000 → Down payment AED 15,000 (20%)
- Tenure: 60 months
Tip: Keep EMI under 45% of income for safety.
8. After Approval: Insurance & Registration
Buy comprehensive insurance first, then register your vehicle at RTA. The car remains under mortgage until full repayment. Dealers often assist with insurance and registration.
9. Common Mistakes to Avoid
- Crossing 50% DBR limit
- Ignoring insurance requirements
- Comparing only EMI, not total cost
- Late payments affecting AECB score
- Forgetting annual insurance & registration renewals
10. Frequently Asked Questions
Can I get 0% down?
Usually 20% is required. Some promotions reduce it, but total cost might be higher. Always check the offer details.
Can I apply if I already have a loan?
Yes, but your total monthly repayments must stay within 50% of your income.
Is Islamic (Murabaha) car finance better?
It’s Sharia-compliant and transparent, with fixed instalments instead of interest.
Who handles registration?
Dealers manage it for new cars; for used cars, you’ll handle it yourself at RTA.