Clearing Your Loan: The RTA’s Step-by-Step Guide to Selling a Mortgaged Car in Dubai (Bank NOC & Settlement)
Introduction
Selling your car in Dubai is easy — until you realize it’s still under a bank loan.
If you’re one of the many UAE residents with a financed vehicle, don’t worry. You can sell it legally and safely by following the RTA’s official process for clearing the mortgage and obtaining a bank NOC (No Objection Certificate).
Let’s go step by step through how to sell a car under finance in Dubai — plus answer the most common questions car owners have.
Step-by-Step: How to Sell a Mortgaged Car in Dubai
Step 1: Request a Loan Settlement Figure from the Bank
Contact your bank and ask for a loan settlement amount — this is the total amount you must pay to clear the car loan.
Most banks give a settlement quote valid for 7 to 15 days, depending on your lender.
Step 2: Get the Bank’s No Objection Certificate (NOC)
Once the loan is cleared, the bank issues an electronic NOC through the RTA system (or via a physical letter in some cases).
This certificate confirms the bank has released its financial claim on the vehicle.
Tip: It usually takes 1–3 working days for the NOC to appear in the RTA system after settlement.
Step 3: Confirm Mortgage Release with the RTA
You (or the buyer) must visit an RTA Customer Happiness Center or use the RTA app to confirm the mortgage release.
Once approved, the car is now officially free of any financial lien.
Step 4: Transfer the Vehicle Ownership
After the mortgage is cleared:
- Complete a vehicle inspection at an RTA-approved center.
- Bring your Emirates ID, vehicle registration card (Mulkiya), and insurance.
- Pay the ownership transfer fee at the RTA or authorized service center.
The car can now be legally transferred to the buyer.
Q&A: Your Top Questions Answered
Q1: Can I sell my car if it’s still under a bank loan?
Yes — but the loan must be settled before ownership transfer.
You can either pay off the loan yourself or let the buyer pay the settlement amount directly to the bank (common for serious buyers).
Q2: What if the buyer wants to pay part in cash and part to the bank?
That’s allowed. Usually, the buyer pays the settlement amount directly to the bank and the balance to the seller once the bank confirms release.
Always make sure the transaction is done in writing or through a trusted dealer.
Q3: Can I check if a car is still under mortgage?
Yes — you can check via the RTA website or Dubai Drive app by entering the vehicle details.
If it shows “under mortgage,” the NOC must be issued before any ownership change.
Q4: What happens if I don’t get the NOC from the bank?
The RTA will not process ownership transfer until the bank electronically releases the car.
Even if the loan is paid, the NOC must be submitted to finalize clearance.
Q5: Can I sell a financed car through a dealership?
Yes — many authorized dealers and Auto Trader UAE partners handle the entire process for you, including loan settlement, NOC collection, and RTA transfer.
This saves time and ensures the deal is handled safely.
Expert Tip
Keep a copy of your NOC and final loan closure confirmation from the bank — you may need them for insurance cancellation or future reference.
Explore More:
- How to Transfer Car Loan to Another Person in UAE | 2025 Guide
- Sell Your Used Car on Auto Trader UAE | Tips for Success
Verdict
Selling a mortgaged car in Dubai doesn’t have to be stressful.
By following the RTA’s step-by-step guide and obtaining a bank NOC, you can clear your car loan, release the mortgage, and complete ownership transfer smoothly — whether selling privately or through a verified dealer.
Final Paragraph
If you’re planning to sell a mortgaged car in Dubai or need guidance on bank NOC and RTA clearance, visit Auto Trader UAE — your trusted resource for verified car listings, dealer support, and expert advice on car finance and ownership transfer in the UAE.
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