FAB Car Loan Requirements Eligibility Criteria & Application Methods

First Abu Dhabi Bank (FAB) offers some of the most affordable car loans in the UAE, featuring low interest rates and minimal salary requirements. 

This article provides a detailed guide on how to apply for a FAB car loan through both online and offline channels. Additionally, we cover the features, benefits, and various application methods for securing a FAB Bank car loan in the UAE.

Before moving forward, you can check your FAB balance.

First Abu Dhabi Bank Car Loan Key Features You Should Know

Following are the important features of FAB Bank car loan you should know before applying:

1. FAB offers some of the most competitive interest rates in the UAE. For UAE nationals, rates start at just 2.35% (with multi-product package) and 3.19% (with salary transfer but no credit card) flat rates. Expats can benefit from rates starting at 2.59% (with multi-product package) and 3.24% (with salary transfer but no credit card) per annum.
2. FAB provides a seamless digital application process, ensuring quick processing and approval of car loans.
3. Compared to other banks, FAB offers a relatively higher loan amount. Borrowers can avail loans of up to AED 1.5 million or up to 80% of the car’s cost.
4. According to UAE Central Bank guidelines, borrowers are required to pay 20% of the car’s invoice cost upfront as a down payment. FAB car loans cover the remaining 80%, allowing for easy repayment in monthly installments.
5. FAB offers a grace period of up to 90 days from loan disbursement to the first installment payment. This feature helps borrowers plan and manage their finances effectively.

Types of FAB Bank Loan for Car UAE

FAB Auto Loan for Salaried Individuals

• Loan Amount: Up to AED 1.5 million or 80% of the car’s value.
• Interest Rates: Starting at 2.15% (equivalent reducing rate of 4.10% per year).
• Salary Requirement: Minimum monthly salary of AED 7,000.

Read my detail guide on FAB Bank Salary Account.

Green Car Loan

• Switch to an Eco-Friendly Vehicle: Finance your electric car with Tesla and FAB.
• Loan Options: Available for both new and previously owned Tesla cars.
• Interest Rates: Best-in-class rates for electric vehicles.

FAB Car Loan for Self-Employed Individuals

• Loan Amount: Up to AED 1.5 million or 80% of the car’s value.
• Interest Rates: Starting at 3.44% (equivalent to a 6.43% reducing rate per year).
• Balance Requirement: Minimum average balance of AED 25,000 for the last three months.

FAB Car Loan Options Based on Vehicle Type

New Car Loan:

Eligibility: Financing options for almost every new car available in the UAE.

Interest Rates: Low-interest rates with additional rebates when purchasing from a dealership.

Used Car Loan:

Eligibility: Financing options for pre-owned cars.

Interest Rates: Typically higher than new car loans.

Documentation: Additional documents may be required as per the bank’s requirements.

Understanding FAB Bank Car Loan Interest Rate in UAE

Here is a clear and structured explanation of FAB Bank car loan interest rates:

Car Loan Interest Rates Breakdown

1. New Car Loans

FAB provides different interest rates for UAE Nationals and expatriates (expats), depending on the loan package selected.

For UAE Nationals:

• Flat Rate: Starting at 2.35% per annum or 3.19% per annum (depending on the package).
• Reducing Rate: 4.46% per annum or 5.98% per annum (depending on the package).

For Expats:

• Flat Rate: Starting at 2.59% per annum or 3.24% per annum (depending on the package).
• Reducing Rate: 4.9% per annum or 6.07% per annum (depending on the package).

2. Pre-Owned Car Loans

Interest rates for pre-owned car loans are generally higher than those for new car loans. Both flat rates and reducing rates for pre-owned car loans are higher, reflecting the increased risk and lower resale value associated with used vehicles.

Car Loan Interest Rates Table

To summarize the above information, here is a table that outlines the interest rates for new and pre-owned car loans from FAB Bank:

Car Loan Type	Flat Rate	Reducing Rate
New Car Loans	–	–
UAE Nationals	Starting at 2.35% per annum or 3.19% per annum (depending on the package)	4.46% per annum or 5.98% per annum (depending on the package)
Expats	Starting at 2.59% per annum or 3.24% per annum (depending on the package)	4.9% per annum or 6.07% per annum (depending on the package)
Pre-Owned Car Loans	Usually higher than new car loans	Usually higher than new car loans

Key Points to Remember

Flat Rate vs. Reducing Rate:

• Flat Rate: This is a fixed interest rate applied to the total loan amount for the entire loan term. It does not decrease over time.
• Reducing Rate: This interest rate is applied to the outstanding loan balance, which decreases over time as you make repayments. It effectively results in lower interest payments over the loan term compared to a flat rate.

Higher Rates for Pre-Owned Cars: Interest rates for pre-owned cars are typically higher due to increased risk and lower resale value.

Eligibility Criteria for FAB Auto Loan

To apply for a FAB car loan, you must meet certain eligibility criteria set by First Abu Dhabi Bank. While these criteria may vary depending on individual circumstances, the following are the most common requirements:

Age

• Minimum Age: You must be at least 21 years old to apply for a FAB car loan.
• Maximum Age: The upper age limit is typically between 65 to 70 years. This limit may vary based on your employment status and income. It’s advisable to contact the bank for precise information regarding the age limit.

Residency

• Nationality: FAB car loans are available to both UAE nationals and expatriates.
• Proof of Residency: During the application process, you will need to provide proof of your residence and nationality.

Minimum Salary Requirements

• Monthly Income: To qualify for a FAB car loan, you must have a minimum monthly salary of AED 7,000.

Down Payment

• Initial Payment: You are required to pay 20% of the car’s invoice cost as a down payment when applying for the loan.

Credit Score

• Credit Evaluation: The bank will check your credit score as part of the loan approval process. Generally, a credit score above 540 is considered fair. However, final loan approval is at the bank’s discretion.

Documents Requirements for FAB Auto Loan Financing

Once you meet the eligibility criteria for a FAB car loan, gather the necessary documents for submission. Below are the documents needed based on the type of applicant:

For Salaried Individuals

• Your driving license (original and copy)
• Your Emirates ID for record and verification
• Your Valid passport with a copy (Expatriates must also submit visa details and address page)
• Proof of your address (Utility bills or lease agreement)
• Your bank statements (Last 3 to 6 months)
• Your salary slip/certificate issued by your current employer (not required if you have a salary transfer account with FAB)
• Dealer’s quotation or proforma invoice of the car you plan to purchase

For Self-Employed Individuals

• Your driving license (Both original and copy)
• Your Emirates ID (For record and verification)
• Your valid passport with a copy (Expatriates must also submit visa details and address page)
• Your trade license (Copy of the trade license)
• Your bank statements of Last 3 to 6 months for both company and individual accounts
• Dealer’s quotation or proforma invoice of the car
• Valid copy of power of attorney
• Details of company’s balances, expenses, revenue, and active loans

For Companies

• Trade License: Valid copy
• ID Proof of Signatories: Passport ID, visa, or EIDA card copy of all company signatories
• Bank Statements: Company’s bank account statements for the last 3 months
• Power of Attorney: Copy, if applicable
• Company Financial Details: Details of active loans, expenses, and liabilities
• Car Invoice: Proforma invoice of the preferred car or dealer’s quotation

Additional Note

Loan Application Form: Ensure to submit a duly filled loan application form along with the documents mentioned above.

Step By Step Process to Apply FAB Bank Car Loan

Applying for a FAB car loan can be simple if you have all your documents ready. Here’s a detailed guide on the various ways to apply for a FAB car loan, both online and offline.

Apply Offline at a FAB Branch

Visit the nearest FAB bank branch with all your necessary documents. Once there, contact the car loan representative to obtain an application form. Carefully complete the form with accurate details, ensuring all information is correct. 

Next, attach all the required supporting documents, such as your Emirates ID, passport, bank statements, and the dealer’s quotation for the car. Finally, submit the completed form and attached documents to the bank representative for processing.

Apply via FAB Mobile App

Download the FAB mobile app from your app store. Complete a one-time registration on the app to set up your account. Once registered, navigate to the car loan section within the app. 

Fill in your personal and contact details accurately, then upload the necessary supporting documents, such as your Emirates ID, passport, and bank statements. After ensuring all information is correct and all documents are attached, submit your application through the app. A bank representative will contact you for further steps to complete the process.

Contact FAB for Assistance

If you need help or have questions about the car loan application process, you can contact FAB customer service:

Within the UAE: Call 600525500

Outside the UAE: Call +971(2)6811511

FAB Bank Car Loan Fees and Charges

When applying for a FAB car loan in the UAE, it’s important to be aware of the associated fees and charges. Here’s a breakdown of the costs you might incur:

Types of Charges and Fees	Amount in AED
Car Loan Processing Fee	1.05% of total loan amount<br>(Min: AED 525, Max: AED 2,625)
Instalment Deferral Fee	AED 105 per deferment
Instalment Late Payment Fee	2.10% of delayed amount<br>(Min: AED 52.5, Max: AED 210)
NOC to the Traffic Department	Free
Standing Instruction Due Date Change	AED 26.25
Loan Rescheduling Fee	AED 262.5
Advance Payment of Instalment	1.05% of advance payment
Early Settlement Fee	1.05% of outstanding loan amount<br>(Max: AED 10,500)

Terms and Conditions for FAB Vehicle Loan

Understand the terms and conditions associated with the FAB car loan process.

• In the event of defaulting on loan repayments, the bank reserves the right to repossess the vehicle as it serves as collateral for the loan.
• Upon approval, the bank directly transfers the loan amount to the seller, facilitating the purchase transaction through methods like banker’s drafts and payment instructions.
• Prior to finalizing the purchase, applicants are responsible for verifying that the vehicle is in good working condition and suitable for its intended use.
• Throughout the loan tenure, the vehicle must remain registered under the applicant’s name. Any transfer of ownership requires written consent from the bank.
• Applicants are required to maintain comprehensive insurance coverage for the vehicle at their own expense. Failure to do so will result in the bank arranging insurance coverage, with associated costs added to the outstanding loan balance.

Frequently Asked Questions