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Personal Loan in the UAE
Personal Loan is a kind of finance availed by an individual to meet numerous personal financial needs. The needs may arise due to a wedding in the family, child’s further education, vacation, funding for a new venture, etc.
A personal loan in uae requires no security. The loan amount and interest are determined by factors such as the source of income, credit history, and employment status. Generally, the amount can go up to as high as 8 times the monthly salary of the applicant. The repayment tenure is flexible for up to 48 months. The best part is that the documentation requirement is minimal and the approval procedure is speedy provided the correct documents are submitted.
The income you earn is among the primary factors, which have a heavy impact on your eligibility for these kinds of loans. This is the main factor why not everyone qualifies for this kind of loan. Since salary is one of the major determinants, there are certain salary-related documents that carry a lot of importance, such as:
- Salary Slips
- Salary Transfer Letter
- Salary Certificates
Apart from these, there are other documents required while applying also. These documents vary across the lenders. Generally, they include a completed application form, a copy of all identification documents (Passport, Visa, and Emirates ID), a bank statement of 3-6 months, and in case of self-employment, a copy of the trade license is also required.
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Salary Requirement
The minimum salary requirement varies across banks. Find below a detailed list of different banks’ requirements:
| Bank | Minimum Salary (AED) | Features |
| Dubai Islamic Bank | 3000 | No early settlement fee
Fixed arrangement fee Upfront cash payment to the customer |
| Deem Finance Bank | 5000 | Flexible repayment schedule
No hidden fees Attractive interest rates Relationship officer |
| ADCB Bank | 5000-10000 | Fixed % of an arrangement fee
Fixed % of the settlement fee |
| Emirates NBD | 5000 (with salary transfer)
10000 (without salary transfer) |
Maximum loan amount up to AED 3 million
Attractive reducing interest rate Loan coverage = |
| Emirates Islamic Bank | 7500
5000 |
Flexible repayment period
Fixed early settlement fee Fixed arrangement fee Pre-approved credit cards |
| RakBank | 3000 | Fast approval
Attractive rates Flexible repayment schedule Top-ups available after a year |
Salary Transfer vs No Salary Transfer
Personal Loan with Salary Transfer is considered to be a secured loan for the lender. In this loan, your salary is directly transferred to the lending bank. The rate of interest is attractive because your loan is secured. However, it depends on the lender and the policies.
Personal Loan without Salary Transfer is even available to non-listed companies. This kind of loan saves you from the hassle of transferring your salary to the lender. The rates vary across lenders.
Other Requirements
For availing a personal loan, you must have a constant source of income, it can be from employment with an organization or self-employment. It is very difficult to raise a personal loan without a stable salary.
Although the requirements are different for each lender, the common requirements usually are:
Age
The general age requirement for applying for a Personal Loan is a minimum of 21 years. In the case of a UAE national, the maximum age at maturity should be 65 years, and 60 years for expats.
Residence
Only those residing in UAE are eligible to apply for a Personal Loan in UAE. Benefits can be best availed by UAE nationals. However, expats have a reasonable share of benefits as well.
Employment
You should have confirmed employment in order to be eligible for applying for a Personal Loan. Some lenders may also have a policy regarding the minimum time served.
Salary transfer
Most lenders offer a personal loan with the condition of a salary transfer in UAE. However, there are few providers that let you avail of a loan without salary transfer. It is advisable to use a web aggregator such as policybazaar.ae which will help you find the best suitable options that cater to your preference, requirements, and budget.
Final Say
Personal Loan is a simple and preferred way of raising finance. Therefore, if you are planning to raise a personal loan, you must be well informed about the importance your salary holds. You should also be clear about the eligibility and the documents required. Your research should be well done as per the best offered minimum salary requirements and additional features within your budget. It is key for you to be a hundred percent sure about the lender you choose.
