UAE Car Loan Calculator 2026

Reference rates: July 03, 2026 · Verify with your bank before decisions.

Calculate your monthly car payment in AED. Supports conventional auto loans and Islamic Ijarah (lease-to-own) across Emirates NBD, First Abu Dhabi Bank, Dubai Islamic Bank, ADIB, and Mashreq.

UAE car loan basics

UAE auto financing is regulated by the Central Bank of the United Arab Emirates (CBUAE). Because AED is pegged to USD, interest rates closely track the US Federal Reserve. As of April 2026, CBUAE base rate is 4.40%.

Car dealers and banks typically quote flat rates (simple interest on the full loan amount for the whole tenure), not reducing-balance rates. This makes the advertised number look much lower. The actual equivalent rate on a reducing-balance basis is roughly 1.8× to 2× the flat rate.

Conventional vs Islamic Ijarah

Conventional auto loan

The bank lends you money to buy the car. You pay it back with interest over the tenure. Straightforward — same as anywhere else in the world. Providers include Emirates NBD, First Abu Dhabi Bank (FAB), Mashreq, HSBC, Citibank.

Islamic Ijarah (lease-to-own)

The bank buys the car and leases it to you. You pay monthly rent. At the end of the lease, ownership transfers to you (usually for a nominal AED 100 final payment or via a binding promise to sell). Providers: Dubai Islamic Bank (DIB), ADIB (Abu Dhabi Islamic Bank), Emirates Islamic, Sharjah Islamic Bank.

Economically, the monthly payment is similar to conventional. The Shariah structure avoids riba (interest) by recharacterizing the transaction as a lease rather than a loan.

Example: AED 150,000 new car

Take a new Toyota Camry priced at AED 150,000. You put 20% down (AED 30,000) and finance AED 120,000 over 5 years at 3.5% reducing-balance:

• Monthly installment: approximately AED 2,183
• Total interest paid: approximately AED 10,990
• Total cost of car: AED 160,990

For the same car with an Islamic Ijarah from Dubai Islamic Bank at 3.6% effective, monthly lease rent would be approximately AED 2,188 — nearly identical.

Requirements for UAE residents

To qualify for a car loan in UAE you typically need:

• Valid UAE residence visa with at least 6 months validity
• Minimum salary of AED 5,000–8,000 (varies by bank)
• Bank account with salary transfer for 3+ months
• Emirates ID and passport
• Salary certificate or bank statement
• Clean AECB (Al Etihad Credit Bureau) credit report

Non-residents (tourists, visitors) generally cannot finance a car in UAE. Some banks offer UAE national preferential rates — if you're an Emirati, expect rates 0.25–0.5% lower.

Choosing your tenure

UAE caps car loan tenure at 5 years. Shorter tenure = higher monthly payment but much lower total interest. For example, the same AED 120,000 loan:

• 5 years @ 3.5%: AED 2,183/mo, total interest AED 10,990
• 4 years @ 3.5%: AED 2,684/mo, total interest AED 8,820
• 3 years @ 3.5%: AED 3,518/mo, total interest AED 6,652

If you can afford the higher monthly payment, a 3-year loan saves you AED 4,338 in interest. Many UAE expats prefer 3 years for this reason — and to match typical employment contract durations.