You decide it’s time to apply for a personal loan, and now what? Getting a personal loan in the UAE is easy. The whole process is simple and straightforward as banks work tirelessly to create a seamless experience and allow clients to get access to their products and services without too much hassle. In this post, you will learn what to expect i.e., how to get a personal loan in UAE with ease. Scroll down to see what it takes.
Is it possible to get a personal loan in UAE for expats?
We can easily say that the United Arab Emirates is the land of expats. People from different parts of the world come to the UAE to work and set up a good life. It’s not uncommon for people to wonder whether personal UAE loans are reserved for nationals only or expats can get them too. If you’re an expat you’ll love the answer – many banks do offer personal loans specifically to expats. Good banks offer a number of personal loans to current and potential clients, and one of them is a specialized personal loan for expats only. Keep in mind that you will need to meet certain criteria and submit documents such as valid UAE visa and passport.
What is the minimum salary for a personal loan in UAE?
The minimum salary is probably one of the most important criteria for getting personal loans in UAE. The specific amount varies from bank to bank. But in general, banks require AED 3000 or AED 5000 as the minimum salary for their personal loans. Get informed and compare different banks and loans to determine where you’ll have the best chances.
What is personal loan eligibility?
Every bank has its own set of personal loan eligibility criteria. The first thing you need to do is to carry out a little research where you will check different banks and their requirements. Compare those criteria to see whether you can meet them. This is an important indicator of whether you could get your application for a loan approved.
So what are the criteria?
The most common criteria for nationals include:
- Minimum age limit is 21
- Salary slip/proof of employment
- Minimum monthly income as per bank requirement
- Completed application form
- Bank statements of 3-6 months
- Salary certificate or transfer letter
- Copy of United Arab Emirates ID
- Copy of passport
If you’re an expat, as mentioned above, you will need to provide documents such as visa and passport in addition to other files.
Getting a personal loan in UAE without salary transfer
Most banks will give you a personal loan only if you transfer your salary there. People who do salary transfer are considered more reliable, and thereby banks often give them more favorable rates. But let’s say you don’t want to salary transfer. What happens then? Some banks don’t require transferring salary to give you a loan. However, you will have to meet some important criteria and show them you do have a steady income. This way, the bank won’t see you as an unstable client.
Personal loan in UAE without company listing
Generally speaking, banks that offer personal loans in UAE have the list of approved employers or companies whose employees can get credit cards and loans more easily. Most banks prioritize company listing, and rare are the instances where you can get the loan if your company isn’t listed. Rare, but not impossible! As new organizations are formed, this aspect is also changing, and nowadays, there are some banks in the UAE where you can get a personal loan without company listing.
Which bank is the best for a personal loan in UAE?
It would be difficult to pinpoint a certain bank and say it’s the best for a personal loan in UAE. Why? The reason is simple; the needs and preferences of each client play a major role. Two people may have different reasons for loans, amounts they want, salaries, among other things. A bank that’s the best for you may not be for someone else.
However, some banks stand out with the quality of their services like First Abu Dhabi Bank, EmiratesNBD, CitiBank, Rakbank, just to name a few from many banks provide such quality service.
Personal loan interest rates
Two types of interest rates are available with personal loans in UAE: flat rate and reducing rate. The flat rate remains unchanged the whole time, from the moment you start paying off the loan until the moment you’re done. Reducing rates are entirely different. These rates include different installments each month. Reducing rates are based on the fact that the main amount reduces. While the interest percentage remains the same, it’s charged with a reduced amount every month.
The rates may vary from one bank to another, as well. The flat rate can be as low as 2%, and the reducing rate can be about 5% low. They go up from there.
Tips to get a personal loan in the UAE
As seen throughout this post, once you decide to get a personal loan, you may expect a simple process and certain criteria you need to meet. Getting a personal loan in UAE isn’t so difficult, but we’re going to simplify it below. Here’s how to make this process as smooth as possible:
- Research and learn more about different banks and personal loans they offer
- Find out about the minimum salary.
- Check to see whether company listing is obligatory.
- Check to see whether you will be required to transfer your salary if you are not their client.
- Read eligibility criteria to see whether you can meet them.
- Use calculator (most banks have them on the website) to calculate monthly installments based on your salary and amount you want to loan
- Make sure you have the necessary documents before you apply.
Getting a personal loan in UAE isn’t that difficult, whether you’re a national or expat. Simple eligibility criteria allow you to understand immediately whether you are a good fit for a certain loan or not. Opt for the bank whose loan options appeal to you the most and meet your needs the best.