UAE is nestled along the Arabian Sea and has a mesmerising beach offering numerous beachfront properties and water sports activities. That said, residents often used boats either for water activities, tourism or to access remote waterfront communities. However, purchasing a boat is expensive and many residents find it difficult to afford one. To cater to this, a number of financial institutes are offering boat finances for UAE nationals and expats.
Here we have mentioned all the details regarding eligibility criteria, documents required and other necessary information regarding boat finance in the UAE.
Boat Finance in the UAE
Similar to car loans in Dubai, you can get boat loans in the Emirates offered by a number of companies. Mentioned below are the documents and eligibility criteria to avail of the finances.
Eligibility Criteria
The eligibility criteria for acquiring boat finance in the UAE vary from institute to institute. However, here we have mentioned general eligibility criteria.
- The minimum salary of the applicant must be AED 8000 and salary transfer is a must
- Applicant must be of a minimum of 21 years and a maximum of 60 years
- Expats must have valid passports and employment documents
Documents Required
The following documents are required when applying for boat finance in the UAE.
- Emirates ID or passport (Photocopy & Original)
- Income proof with at least 3 months of bank statement
- Bank quotation from the seller
The above-mentioned documents are general and your bank may or may not ask for other documents also.
How to Apply for Boat Finance
To apply for the boat finance you can either visit your nearest bank or opt for the online application submission.
- Visit the nearest branch along with the required documents
- Duly fill out the application form and submit it along with the documents
- Wait for the application approval
- Once the application is approved, the bank will provide the applicant with all the agreed finances
However, for online submission, use the mobile app of the bank. Log in to the app, follow the instructions and submit all the required documents. The bank will review the application and will provide the finance, in case the application gets approved.
Things to Consider for Boat Financing
Several companies offer boat finance in the UAE, and each comes up with its own pros and cons. That being said, when choosing an institute of boat financing, here are some things that you should consider.
Loan Amount and Profit Rates
The loan amount sanctioned by the banks is limited and varies from applicant to applicant. When choosing a bank make sure it offers enough finances to cover your boat expenses.
Generally, the maximum loan amount for expatriates is AED 1 million. Alongside the maximum amount, consider the expected competitive rates offered by the bank.
Flexible Repayments
Negotiate on the repayment plans and divide the repayment plan into 48 or more months for minimum monthly instalments. Moreover, discuss the penalties and other charges for delayed instalment payments. Few banks in the region offer to postpone instalments for a year to support the financial situation of the applicant.
Processing Fees
Banks do not charge processing fees when availing of their boat financing services. However, if there are any processing fees, make sure it is minimum.
Early Settlement
Early settlement of loans includes a number of terms and conditions and even penalties. Therefore, it is recommended to discuss all the conditions of early payments prior to signing the contract.
FAQs
Is it easy to get boat finance in the UAE?
Yes, anyone can apply for the boat finance and avail of it. However, please note that there are certain conditions of the banks like minimum salary and credit score that applicants must cater to.
Can I get a boat loan as an expat?
Yes, expats and UAE nationals both are offered boat financing in the UAE by different institutes.
How to get a boat licence in Dubai?
You can get a boat driving licence also known as a marine driving licence from the happiness centre of DMCA. For more information read our blog on marine driving licence in Dubai.
These were all the steps involved when buying a boat through finance in the UAE. Boat financing in the UAE is a feasible option if you have a limited budget. However, there are multiple terms and conditions associated with financing that can create hassle in the near future. Another option to purchase a boat on a budget is to browse through these used boats for sale in the UAE and buy a boat as per your budget.
Besides, you can also read our blog on tips for buying a boat in the UAE to make your boat-buying process hassle-free.
Stay tuned to dubizzle’s auto blog for more information on Yacht finance in the UAE.
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