Dubai bank launches new loans to drive purchase of electric cars

Emirates NBD unveils Green Auto Loan product as UAE aims to transform into low-carbon economy
Dubai bank launches new loans to drive purchase of electric cars
(Getty Images)
By Staff writer
Fri 03 Feb 2017 11:04 AM

Emirates NBD, Dubai's largest lender, has announced the launch of a Green Auto Loan product in a bid to encourage customers to buy environmentally-friendly vehicles.

The bank said in a statement that the new loan is in line with its commitment to support the UAE’s transformation into a low-carbon economy, as part of UAE Vision 2021.

It added that the Green Auto Loan has been designed in response to the growing interest from residents and seeks to encourage customers to invest in electric and hybrid vehicles.

The launch comes as The Emirates Authority for Standardisation and Metrology (ESMA) work on new regulations to cover electric vehicles in the UAE.

The UAE System for Electric Vehicles, the first of its kind regionally, will come into operation later in the first quarter of 2017 and aims to ensure safety and efficiency of the vehicles.

Suvo Sarkar, senior executive vice president and group head – Retail Banking and Wealth Management, Emirates NBD said: “There is growing global acceptance about the need to earnestly pursue initiatives that enable nations, organisations and individuals to transition to a sustainable low-carbon future.

"While this presents a significant opportunity there is also an enormous challenge in the considerable capital required to transform economies that have been largely reliant on a fossil-fuel based energy system.

"We at Emirates NBD believe that a three-way partnership is imperative between policy, technology and capital to support independent initiatives, and that is why we are taking the step to launch a Green Auto Loan.”

Customers interested in investing in electric or hybrid cars sold from approved auto dealerships in UAE are eligible to apply for the Green Auto Loan, which offers 50 basis points discount on applicable interest rate or up to 25 basis points on flat rate. As an introductory offer, Emirates NBD is also offering cash back on the full processing fee.

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