Before the showroom does the maths for you, do it yourself. This car loan calculator for the UAE works out your monthly auto loan EMI on the reducing-balance method, the minimum 20% down payment and the total interest you’ll pay – for new or used cars. Whether the bank calls it a car loan, auto finance or vehicle finance, the numbers work the same way.
What is the minimum down payment for a car loan in the UAE?
What's the difference between flat and reducing interest rates?
How long can a UAE car loan run?
Car loan interest rates in the UAE (2026)
Headline rates from the big lenders in late 2026. Almost all are quoted as flat rates, so the third column shows the reducing rate to type into the calculator above for a like-for-like EMI.
| Lender | Advertised rate (flat, from) | Approx. reducing equivalent |
|---|---|---|
| Emirates NBD | 2.49% | 4.7% |
| Emirates Islamic (Murabaha) | 2.65% | 5.0% |
| First Abu Dhabi Bank | 2.59% | 4.9% |
| ADCB | 2.69% | 5.1% |
| Typical new car range | 1.9% – 4.5% | 3.6% – 8.3% |
| Typical used car range | 3% – 7% | 5.6% – 12.6% |
The lowest rates usually need a salary transfer and a monthly income of AED 7,000-8,000 or more, even where the advertised minimum is AED 5,000. Dealer “0% finance” deals are real but are usually priced into the car, so compare the total cost, not the rate.
Flat rate vs reducing rate: the trap
A flat rate charges interest on the full original amount for every year of the loan, even as you pay it down. That is why 2.49% flat over five years costs the same as about 4.7% reducing, and 3.99% flat is closer to 7.4%. The calculator above uses reducing rates because that is what you actually pay. Always compare offers on total interest, which the breakdown shows.
Car loan EMI examples
Monthly car payment with a 20% down payment over 60 months at 4.5% reducing (about 2.4% flat).
| Car price (AED) | Down payment | Loan amount | Monthly EMI | Total interest |
|---|---|---|---|---|
| 60,000 | 12,000 | 48,000 | 895 | 5,692 |
| 100,000 | 20,000 | 80,000 | 1,491 | 9,486 |
| 150,000 | 30,000 | 120,000 | 2,237 | 14,230 |
| 250,000 | 50,000 | 200,000 | 3,729 | 23,716 |
Used car loan calculator: what changes
Pre-owned and second hand car finance follows the same EMI maths, but banks price it more cautiously. Expect a rate 0.5-1 percentage point higher than for a new car, a lower loan-to-value (often 60-80% of the valuation rather than the price you agreed) and shorter tenures – many banks cap used car loans at 48 months and only stretch to 60 for cars under three years old. Put a higher rate and a shorter term into the calculator to see the real used car loan cost.
The rules that bind every UAE car loan
UAE Central Bank regulations cap financing at 80% of the car’s value (a 20% minimum down payment) and 60 months maximum tenure. Your car EMI also counts toward the 50% debt burden ratio that governs all your borrowing, so check your take-home salary first. Then budget the full cost of ownership with fuel, Salik and depreciation.
Rates checked 29 October 2026 from published bank offers and are indicative only. This is not financial advice – your rate depends on your salary, employer and credit score, so confirm with the lender before you sign.