Can a New Expat Apply For Personal Loan in the UAE
From all around the world and especially from the subcontinent, many people come to the United Arab Emirates (UAE) to work as an employee or labor of multinational organizations to support their families financially. And some of them migrate to the UAE with dreams of a better lifestyle than in their native countries. Many people aspire to own a car, house, and a business that can support them to live a happy and balanced life. But there is one thing that holds them back to fulfill all of their desires and that is money. Not all people are financially strong that they can buy the things they desire. That is where a personal loan comes in.
There are numerous banks and financial institutions that offer a personal loan in UAE for expats. The consumer finance obtained from these lenders can be utilized ranging from vacation and home renovation to debt consolidation. But these institutions have particular criteria that expats need to meet in order to avail consumer finance in the UAE.
You may be eligible to obtain a PL for expats from one or more banks in the UAE if you meet the following eligibility criteria:
Majority of the banks in the UAE have common age criteria. The minimum age of the applicant must be between 21 years to 60 years to be eligible for a personal loan in UAE for expats.
Before sanctioning consumer finance, banks or lenders take into consideration your credit score to check your creditworthiness. A credit rating is basically a three digit number that works as a validation of how well you have handles the repayment of finances or credit cards in the past. If you have been regularly paying your credit card bills and other loans on time then you will have a good credit score as each payment adds a point to your credit rating. However, delaying or missing your repayments can take a significant toll on your credit score.
Keep in mind that your personal finance application might get rejected if you have a poor credit score. And even if the lender will ready to offer you finance then they will offer you a high personal loan interest rate. That is why, it is vital to maintain a good credit score so that the lender can easily approve your PL application.
Monthly income is yet another factor that lender considers before offering a personal loan in UAE for expats. Based on your monthly income, the lender basically determines your repayment ability that you are enough capable of paying the EMIs on time. However, minimum income requirements vary from bank to bank. But the minimum income criteria are higher for the self-employed individual as compared to salaried individual keeping the uncertainty with a business start-up in mind.
The borrower must be self-employed or salaried to meet the eligibility criteria. But keep in mind that income eligibility criteria for self-employed individuals differ from the salaried individuals. Salaried individuals working with a well-renowned company or government employees are mostly preferred by PL providers because of their job stability.
Some banks may or may not offer consumer finance without a salary transfer. Moreover, there are a few banks that make it compulsory for the borrower to transfer their monthly salary into an account held with the respective bank or in any other bank’s account to avail PL in the UAE. Reason being, they want to see whether you have a steady source of income or not. However, some lenders do not make it compulsory for the borrower to transfer their salary held with them so it completely varies from one bank to another.
Another important factor that banks consider before offering a personal loan in UAE for expats is the reputation of the organization that they are currently working with. Applicants who work with a renowned company are considered stable and more responsible towards repaying their monthly installments on time. Henceforth, lenders are willing to sanction a PL to such applicants even at the low rate of interest.
Documents required for Personal Loan in UAE for Expats
Following are some of the common required documents that expats need to submit documents in order to avail consumer finance in the UAE:
- Resident Visa
- Valid Passport
- Salary Transfer letter
- Bank statement of the last three or six months.
However, the applicant may need to submit some additional documents as per the sole discretion of the respective bank as the document list may vary from lender to lender.
In A Nutshell
So, new expats can also avail finance as there are multiple banks and financial institutions that offer a personal loan in UAE for expats. All they need to meet the eligibility criteria requirements and submit the required documents successfully to procure a loan in a hassle-free manner.