An All-inclusive Guide to Apply for a Personal Loan in the UAE

Life is a roller-coaster ride. There are many ups and downs. A  personal loan in the UAE can help you get out of bad a situation. A personal loan is a good way to deal with a financial crisis. It prevents the trouble of irregular interest rates demanded by the local moneylenders. Applying for a personal loan in Dubai has never been easier than it is now. The required documents and the eligibility criteria are simple to meet. In this blog, we will walk you through “how to apply for a personal loan in the UAE?”.

Eligibility Criteria for a Personal Loan in the UAE

It becomes easy to get a personal loan, if the individual is working for one of the companies that are authenticated by a specific bank. However, if the company you are currently working with is not listed with a  specific bank, then it will be a bit challenging to get a personal loan in the UAE. Following are the eligibility criteria for a personal loan in the United Arab Emirates :

• Minimum and Maximum Age Limit

The minimum and maximum age limits for eligibility are 21 to 65, respectively. An individual should meet the minimum and maximum age requirements to get a personal loan. If a person is younger than 21 years and older than 65 years of age, then the person won’t be eligible for a personal loan in Dubai.

• Required Salary Income for a Personal Loan in the UAE

The minimum required salary for a loan in Dubai is around AED 2,500 to AED 4,000. However, the minimum salary requirement is not a standard for every bank. It is recommended to contact your bank to get further details about the minimum salary requirements for a personal loan.

• Employment Background

Getting a loan while being unemployed falls into different categories and is a bit more complex. Several banks in the United Arab Emirates have a term where the applicant must have been employed for a particular length of service to get a personal loan in Dubai. The banks have this term to ensure the borrower has a strong employment background and is able to pay back the loan amount.

• United Arab Emirates Residency

compared to ex-pats, It is easier to get a personal loan in Dubai if you are a UAE national. The personal loan interest rate in the UAE is lower for permanent residents than it is for ex-pats and doesn’t require additional documentation.

• Salary Transfer

Banks in the United Arab Emirates offer personal loans for both salary transfer and without salary transfer accounts. Few banks allow the applicants to make the salary transfers with the bank of their choice. However, for numerous banks, the salary transfer letter is one of the eligibility criteria for getting a personal loan in the UAE.

Note: Having a current account in an authorized UAE bank is a must.

What are the Types of  Personal Loans in the UAE?

In the UAE, both ex-pats and UAE nationals can get a personal loan. The types of personal loans in the UAE are as follows:

• Personal Loan for Expats

Those people who live in the UAE for job and business purposes but don’t have permanent residence can also avail of a personal loan at low-interest rates.

• Personal Loan Without Company Listing

This loan segment is specially designed for professionals who are working in a start-up or in other non-listed companies. However, the salary transfer letter is a basis for a personal loan in the UAE.

• Personal Loan Without Salary Transfer

There are several loan lenders that make the loan requirement flexible by not making the applicant provide a salary transfer letter in the respective bank to obtain a personal loan.

• Personal Loan With Salary Transfer

Several loan providers have a term of getting a salary transfer letter to the bank in order to get the personal loan instantly. This feature makes the loan more secure for the bank.

• Personal Loan for UAE Nationals

The requirement for a personal loan is more favourable for UAE nationals, as additional address proof documents and other extra paperwork are not required.

• Personal Loan for Self-employed Professionals

Those people who are working on their own businesses can also apply for a personal loan in the UAE at certain financial institutions and enjoy great interest rates.

Personal Loan Interest Rate in the UAE

The additional charges that are levied on the principal loan amount are known as the personal loan interest rate. There are basically two types of interest rates applicable to the personal loan in the UAE:

• Flat Interest Rate

The interest rate that remains constant throughout the loan tenure is known as flat interest rate. For instance, if the initial interest rate was about 2.63%, it will remain at 2.63% till the very end of the loan tenure.

• Reducing Interest Rate

Reducing interest rate keeps lessening with the payment of each instalment. However, the reduction in interest in the UAE is charged on the outstanding principal loan amount. The reduction amount ranges from 5.24% to 39.99%. It is recommended to compare the loan online to acquire the lowest interest rate on personal loans in the UAE.

Procedure to Apply for a Personal Loan in the UAE

Applying for a personal loan in Dubai is simple. The below-mentioned steps will guide you on how to apply for a personal loan via offline and online mode:

• Via Bank Branches (Offline Mode)

The steps to apply for a personal loan in Dubai via bank branches are as follows:

Step 1 : Visit your preferred branch of the bank. 

Step 2 : Fill out the form details correctly.

Step 3 : Get the assistance of the bank or customer care representative to know more about the personal loan interest rate in the UAE. 

• Via Online Portal

Applying for a personal loan via an online portal is quick and convenient. It gives you the facility to compare numerous interest rates from different banks before applying for a personal loan in Dubai. Post getting your desired interest rate, you can initiate the loan procedure with the same online portal.

Dos and Don’ts

Dos and Don’t for a personal loan in UAE are mentioned below:

The following table will help you understand what to do and what not to do to get a personal loan from a bank in the United Arab Emirates:

 To Sum Up

Getting a personal loan in the UAE is simple as the eligibility criteria are not  tough to meet. The required documents for a personal loan are relatively less than in other countries. Moreover, in Dubai, ex-pats can also apply for a loan. An individual has to maintain a healthy credit score in order to get a personal loan at the lowest interest rate in the UAE. There are several types of loans available for every individual to choose from. An individual can even apply for a personal loan in Dubai without a salary transfer letter.

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