Finished paying UAE car loan? No more bank visits
In an agreement with mortgage providers in the UAE, the Road and Transport Authority (RTA) has provided a free service informing the Licensing Department directly when a car loan has been repaid.
As a result, the client will no longer be required to visit the mortgage provider.
Since February 1 this year, more than 70 banks and other mortgage providers have been electronically linked to the RTA. When a mortgage has been repaid, the mortgage provider automatically informs RTA and releases the mortgage. The client will receive an SMS and an email informing of the release.
Ahmed Bahrozyan, CEO of RTA’s Licensing Agency, said: “The Licensing Agency longer needs paper certificates from clients to prove a vehicle debt has been repaid. Banks and other mortgagors provide this information online directly to the Licensing Agency. So there is no need for clients to visit their mortgage provider or visit RTA.”
The move is a welcome initiative for car owners, as the client would previously be required to facilitate the process manually, which in some cases tends to be time consuming
However, the system is currently not a time saver for everybody, as the process is not always completed as fast as it could be, commented Bahrozyan.
“In the early stage of the initiative we have heard of some delays. Some banks seem to take longer now than before the system was implemented. This is not acceptable. We expect the process to take at least the same time as it used to, but not longer. The system is quite straightforward, and we urge banks to consider processing times,” he added.
The RTA stated that the move was aimed at improving convenience of those clients who have paid their vehicle mortgages, while reducing mortgage provider’s business costs.
“This is a free service by RTA to mortgage providers and clients. We have an agreement with over 70 institutions; only a handful remain,” added Bahrozyan.
The agreement between the bank and the customer stands outside the scope of this agreement and might require certain documentation or bank visits.
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