How can an NRI Apply for a Personal Loan in the UAE?

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  | Published: 16 August 2021

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Applying for a personal loan is the best option for NRIs who face challenges in managing their finances such as emergency medical expenses, debt consolidation, wedding expenses, etc.

Personal loans can either be secured or unsecured. Secured loans need collateral such as a fixed deposit or a property owned by the applicant. On the other hand, unsecured loans are provided without any security and completely based on the borrower’s profile consisting of a few factors, like monthly income, credit score, existing loans, etc.

The banks in the UAE offer a simple application process for individuals to help them get a personal loan without any hassle. Keep reading to find out the basic requirements you need to meet when applying for an NRI personal loan in the UAE.

Interest Rates for NRI Personal Loan in the UAE

The banks and other lenders in the UAE charge interest rates in exchange for offering a personal loan to NRIs. The banks charge a reasonable percentage of interest rate on the disbursed amount. Financial institutions charge personal loan interest rates in two different ways-

  1. Flat Interest Rate: The banks in the UAE charge a flat interest rate on the principal loan amount. The interest rate ranges between 3.03% - 7.71% and remains the same for the entire loan tenure.
  2. Reduced Interest Rate: Unlike the flat interest rate, this type of interest rate reduces every time the borrower pays a personal EMI. The interest rate ranges between 5.50% - 14% and is different for every other EMI.

Eligibility Criteria for NRI Personal Loan in UAE

Most banks in the UAE offer personal loans for non-residents. The best personal loan is the one with longer tenures, a higher loan amount, and a lower interest rate. However, the loan applicants need to meet certain eligibility criteria to avail such benefits.

Here are the main requirements the applicants need to meet before applying for an NRI personal loan in the UAE.

  • Minimum Income Requirement: The applicants must provide proof of income to apply for a personal loan in the UAE. The minimum salary requirement for NRI personal loans in the UAE ranges between AED 3,000 to AED 8,000 for most banks.
  • Age Eligibility: Banks and other financial lenders in the UAE follow certain eligibility criteria when it comes to the age of the applicant. The minimum and maximum age criteria may vary from bank to bank. Usually, it is a maximum of 65 years and a minimum of 21 years.
  • Good Credit Score: The applicant must have a good credit score to apply for an NRI personal loan in the UAE. The credit report of an applicant shows the way they deal with their previous loans and outstanding EMIs. The applicants with good credit history and a healthy credit report are considered as the most eligible individuals.
  • Residency Proof: Not all banks in the UAE offer personal loans for NRIs. However, there are some banks that do need the applicant’s passport with a valid UAE residency VISA as residency proof. The loan is applicable for both salaried and self-employed NRIs residing in the UAE.

Documents Required to Apply for an NRI Personal Loan in the UAE

After the applicant meets the eligibility criteria and fulfils all the requirements for personal loan eligibility in the UAE, they need to gather all the required documents.

Here is a list of documents required to complete a personal loan application.

Applicants

Documents Required

Salaried Individuals

  • Identification and Residency Proof - Passport with a valid Residency Visa
  • Bank statement (of the last three months)
  • Latest Salary Certificate/Salary Transfer Letter

Self-Employed Individuals

  • Identification and Residency Proof - Passport with a valid Residency Visa
  • Bank statement (of the last three months)
  • Trade License
  • Memorandum of Association
  • Power of Attorney

How to Apply for an NRI Personal Loan in the UAE?

Here are some simple ways to apply for an NRI personal loan in the UAE.

  1. Visit Bank’s Website: Most banks in the UAE allow their customers to apply for a personal loan by simply visiting their website and filling out an online application form. The applicants need to submit this form with all the required documents to process the personal loan application.
  2. Visit Bank’s Branch: Another simple way of applying for an NRI personal loan in the UAE is to visit your preferred bank’s branch. All you need to do is fill out the application form and submit it at the branch with all the essential documents in the presence of a bank representative.
  3. Log in to Online Banking: This is an easy way for existing banking customers. If you already have a bank account with your chosen bank, you can simply log in to your online banking portal and fill out the application form to apply for an NRI personal loan.
  4. Call the Helpline: This option is not available with all the banks in the UAE. However, some of the lenders allow the applicants to give them a call if they are in need of funds. Later, a bank representative will visit them at their doorstep to collect the required documents.

The Bottom Line

NRI Personal Loans in the UAE are an instant source for fulfilling immediate financial requirements. Banks in the UAE offer NRI personal loans for both salaried and self-employed individuals. All they need to do is meet the eligibility criteria and submit all the required documents.

If you are an NRI in need of funds, get in touch with our financial experts to explore the best possible loan options. Our well-qualified and experienced professionals first analyse your financial needs and then provide the loan options accordingly.