Funding your Higher Studies- Personal Loan VS Education Loan

Getting an education has become quite expensive in today’s world. Not everybody is able to afford that kind of money. Therefore, the option of education loan or personal loan features for education comes as a great relief for the students and their parents.

Therefore, we will discuss the financial institutions that provide the best education loans and personal loan in Dubai / UAE for education.

Best Education loans in UAE

Abu Dhabi Islamic Bank- Education Finance

ADIB education finance covers everything from tuition fees, transportation, library fees, school materials, etc.

Eligibility Requirements of this Education Loan are

  • The applicant should be 21 years of age or above
  • Minimum salary of AED 8000
  • The applicant should be a confirmed employee or 6 months in the current establishment

Benefits of this Education Loan Include-

  • Up to AED 2,50,000 of the finance amount
  • Up to 4 years of finance installment
  • Postponement option is free
  • ADIB cashback credit card offered, which is free for the first year
  • Provides complete finance for a student

Documents Required

  • Original passport and copy
  • Residence Visa proof for expats
  • Original Emirates ID and copy
  • Bank statements of the previous 3 months
  • Quotation addressed to ADIB from university or school

Union National Bank Education Loan

This education loan covers 100% of the yearly tuition fees, admission fees, travel ticket and visa cost (in case of international internship during university/ school) and 50% of the accommodation fee. The rate of interest starts from 9% p.a.

Eligibility Requirements of this Education Loan are

  • The applicant must be 25 years or above
  • Minimum salary of AED 10,000
  • The applicant be a resident of UAE
  • Age of 65 or less at the time of loan maturity
  • Employed at the current company for at least a year

Documents Required

  • Duly-filled application/loan form
  • Applicant’s passport photo in color
  • Copies of passport (both the applicant and guarantor)
  • Residence visa of expats
  • Emirates ID card
  • Employer ID
  • Address proof (utility bills, etc.)
  • Enrolment proof (current school or previous school)
  • Salary certificate
  • Salary slip of the previous 3 months
  • Bank statements of 6 months

Ajman Bank Service Ijarah

Education finance is one of the personal finance provided by the Ajman bank within Service Ijarah. The eligibility requirement for this personal finance is the minimum salary. UAE nationals need to have a minimum salary of AED 8000. While expats should have a minimum salary of AED 6500.

Features of Ajman Bank Personal Finance for Education

  • Education finance up to AED 7,50,000
  • 4 years of repayment tenure
  • Easy processing
  • Simple documentation
  • Lifestyle benefits credit card (pre-approved)

Documents Required for Education Finance

  • Completed application form
  • Quotation of the required services addressed to Ajman bank
  • Copy of Emirates ID
  • Copy of passport
  • Residence Visa proof of Expats
  • Salary certificate/ salary transfer letter
  • Bank statement of 3- 6 months

Charges and Fees

  • 1% of the finance amount is charged as the processing fee (minimum AED 500 AND Maximum AED 2500)
  • 1% of the finance amount is charged as Takaful charges
  • Early settlement is 1 % of the outstanding balance or AED 10,000 (the lower amount between the two)
  • 2% of the late amount is charged as late fee (Minimum AED 50, and maximum AED 200)
  • The partial settlement fee is AED 10,000 or 1 % of the partially settled amount

Best Personal Loans in UAE for Education

Emirates NBD personal loan

The reducing interest rate of this personal loan starts from 5.49% per annum and the flat rate starts from 2.90%.

Eligibility Requirements

  • The applicant must be 21 years of age or above
  • Minimum salary required is AED 10,000

Features and Benefits of this Personal Loan Includes

  • Up to AED 4,000,000 of the finance amount
  • A free account offered (requires no minimum balance)
  • Guarantor or collateral not required
  • 7-day finance return option
  • Double insurance cover

Documents Required

  • Copy of passport
  • Resident visa (for expats)
  • UAE National’s Idbara page
  • Original and copy of Emirates ID
  • Address proof (utility bill)
  • Security cheque (undated)

ADCB Personal Finance for UAE Nationals

The profit rate of ADCB personal finance starts from 5.50%.

Benefits of ADCB Personal Finance for UAE Nationals Include

  • Competitive interest rates
  • Cover for the unfortunate loss of job / Takaful cover
  • High multiples of the salary
  • Finance consolidation is available
  • Easy documentation
  • Free credit card

Note: one-time takaful cover fee is charged

For the personal finance of AED 150,000 or more, a customer is rewarded with 200 TouchPoints on every AED 1000. For the finance amount of above AED 150,000, 300 TouchPoints is awarded on every   AED 1000.

HSBC Personal Loan

The interest rate of HSBC personal loan starts from 7.49% P.A. The maximum interest rate for personal finance is 18%. HSBC personal loan is approved online within 10 minutes. This personal finance doesn’t have any insurance for credit life. After 6 months, the customer has the option of top-up.

The benefits of HSBC Personal Loan Includes

  • Up to AED 7,50,000 of personal finance for UAE nationals
  • Up to AED 600,000 of personal finance for Expats
  • No requirements of credit life insurance
  • Available top-up of personal loan for eligible customers
  • 1-year loan offers renewal options

Eligibility Requirements

An applicant can apply for HSBC personal loans if he meets the below requirements

  • The age limit of 21- 65 for UAE national
  • The age limit of 21- 66 for UAE resident expats
  • Minimum salary per month should be AED 7,500 or above

Charges and Fees

  • The arrangement fee is 1% of the finance amount (Minimum AED 500, Maximum AED 2500)
  • 2% of the late amount will be charged as late fee (Minimum AED 50, Maximum AED 140)
  • The early settlement fee is 1% of the outstanding amount or AED 10,000 (the minimum amount between the two)
  • Cancellation of the personal finance is charged AED 100
  • Rescheduling of the loan is charged AED 250

Final Verdict

It is difficult to decide the better option between the two for education. Each has its own benefits and downfalls too. Education finance doesn’t have many options to choose from. Only a few financial companies provide education finance. While there are many personal finance options to choose from according to the customer’s needs.

The perks of education finance include tax benefits. While personal finance offers better finance amount. The applicant must research properly before opting for any loan.

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