Cars Under Loan May Face Border Delays Without an NOC: Here’s How to Avoid Them.
Dubai: If you are planning to drive from the UAE to Oman, keep in mind that vehicles purchased through a loan or mortgage may require a No Objection Certificate (NOC) from the financing bank before crossing the border. A recent traveller’s experience at the UAE-Oman border highlights why drivers should check the requirements in advance.
Traveller’s experience:
A long-time UAE resident, who had previously made several trips to Oman without any issues, shared that they were recently stopped at the UAE border and asked to provide an NOC from their bank because their vehicle was under mortgage.
When they contacted the bank, they were informed that they would need to deposit an amount equivalent to the remaining loan balance, along with a 2 per cent processing fee, before the NOC could be issued. The process would also take around three working days, leaving the traveller facing unexpected delays and uncertainty during their journey.
Understanding the NOC requirement
For expatriates planning to drive a mortgaged vehicle from the UAE into Oman, banks and border authorities may require certain documents and approvals before allowing the vehicle to cross the border. These requirements typically include:
A No Objection Certificate (NOC) from the bank.
A refundable security deposit, where applicable.
Compliance with any additional conditions set by the bank.
“In most cases, banks require vehicle owners to obtain an NOC, and may also ask for a refundable security deposit and fulfilment of specific conditions before approving the vehicle’s travel across the border,” said Anudeep Raghuthaman, head of sales at Dollar Car Rental.
The approval process may involve additional paperwork and processing time, so travellers are advised to make the necessary arrangements well in advance of their journey.
“While the Hatta (Al Wajajah) border is among the most commonly used crossings between the UAE and Oman, similar requirements may also apply at other entry points, including Meyzad, Dibba, and Al Darah,” he explained.
Travellers are advised to confirm the requirements with both their bank or financing institution and the relevant border authorities before starting their journey, as documentation rules may vary depending on the vehicle and crossing point.
For those choosing to rent a vehicle, rental companies that allow cross-border travel generally arrange the required documentation and insurance, helping to simplify the process and avoid complications related to border procedures.
— Anudeep Raghuthaman
Head of Sales, Dollar Car Rental
Alternative option: Renting a vehicle to Oman
Travellers looking for a simpler and more convenient option may consider renting a car instead. Rental companies that allow cross-border travel typically arrange the required NOC and provide the necessary insurance coverage for Oman, helping ensure a smoother and more hassle-free journey.
“Renting a vehicle with Oman insurance coverage simplifies the process and helps avoid the complications often associated with taking a mortgaged vehicle across the border,” Raghuthaman said. He added that Dollar Car Rental offers dedicated “Oman-ready vehicles” with insurance coverage included, helping reduce paperwork and uncertainty for travellers at border checkpoints.
Suhale Showkat, head of retail at Thrifty Car Rental, said the company provides dedicated cross-border rental options that include insurance coverage for Oman. “While we ensure a smooth process from our side, we always advise customers to check the latest border regulations to ensure a hassle-free journey,” he said.
“For us, renters are allowed to take vehicles across borders, including Oman, provided they obtain prior authorisation from us. They must also ensure they have the required insurance coverage for cross-border travel,” Showkat added.
He noted that renting a vehicle can help travellers avoid the uncertainty faced by personal vehicle owners regarding NOC requirements and make the overall border-crossing process more straightforward.
“We offer vehicles that are pre-approved for travel to Oman, along with the required permissions and insurance coverage. This allows customers to cross the border smoothly without needing additional approvals or dealing with last-minute paperwork. For travellers planning a trip to Oman, renting a vehicle removes much of the uncertainty and makes the journey more convenient,” said Suhale Showkat, Head of Retail at Thrifty Car Rental.
Required documents
An NOC is generally required for privately owned vehicles that are under a loan or mortgage when crossing the UAE-Oman border. However, requirements can vary depending on the border checkpoint and individual circumstances, and the document is not always requested in every case.
If you plan to drive your own vehicle to Oman and it is financed through a bank, it is advisable to contact your lender in advance and arrange a No Objection Certificate (NOC). Although border officials may not always ask for it, carrying the document can help prevent possible delays or complications during your journey.
To apply for an NOC, vehicle owners should be aware that banks may require a cash deposit equivalent to a certain percentage of the outstanding loan amount before issuing the certificate.
In addition to the NOC, travellers should carry the following documents:
- Valid car insurance with coverage for Oman.
- Valid vehicle registration (Mulkiya) and driving licence.
- Valid passport and Emirates ID.
Car insurance for Oman
If you are planning to drive your own vehicle to Oman, it is important to check with your insurance provider beforehand to confirm whether your policy includes Oman coverage.
According to Hitesh Motwani, Chief Marketing Officer at InsuranceMarket.ae, major UAE insurance providers often include Oman coverage at no additional cost as part of their comprehensive insurance plans, as he previously explained to Gulf News.
If your existing motor insurance does not provide coverage for driving in Oman, you can purchase a policy at the border. Oman motor insurance is commonly referred to as an “Orange Card.”
Motwani explained that the Orange Card can also be obtained at the border; however, it only provides third-party coverage. This means that in the event of an accident, damage to your own vehicle will not be covered.
The minimum period for an Orange Card policy purchased at the border is typically five days, with the cost ranging from approximately Dh106 to Dh150.
