Selling a Car with an Outstanding Loan in the UAE

Jul 11, 2026

61 min

Jul 11, 2026 02:31

Ask Gulf News: Can I sell my car while a bank loan is still outstanding?

## Understanding the Process

If you have a car loan and wish to sell your vehicle in the UAE, there are specific steps you need to follow. Whether you need to inform the bank depends on how you plan to handle the outstanding loan.

## Settling the Loan

If the buyer pays you in cash, you can settle the loan with the bank before selling. Once the loan is fully paid, the bank will issue a Mortgage Release Document or a clearance letter. This document is crucial as it allows the bank to update the RTA system, removing the mortgage from the vehicle.

## Transferring Ownership

After the mortgage is released, you can proceed with transferring ownership at the RTA. This step is necessary to complete the sale legally.

## Transferring the Loan

If the buyer prefers to take over the remaining loan balance, you must inform the bank. Both you and the buyer will need to visit the bank. The bank's approval is required for any loan transfer, and they may impose new terms. If approved, the buyer will enter a new loan agreement, and the bank will provide the necessary documents to facilitate the ownership transfer through the RTA.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents