There are certain companies in the UAE that do not create a salary account in the bank for their employees and they pay salaries either through cheque or cash due to whatsoever reason.
It might not create any problem for an employer but it can be problematic for an employee especially when they approach a bank or financial institution for a personal loan.
You know, why?
One of the most important requirements that lenders require is your valid income proof to know whether you are capable of repaying the loan. Therefore, they ask for the proper documentation that verifies your loan repayment ability. The documentation includes a salary transfer letter, proof of employment, bank statement, etc. In addition to this, lenders also check your credit score to see your payment history. As personal loans are offered on no guarantor or collateral, lenders expect the applicant to transfer their salary to their respective bank accounts to reduce the risk in getting the owned funds back.
However, there are few lenders that provide a personal loan in UAE without a salary transfer keeping the basic requirements of its customers in mind. All you need to meet the eligibility criteria of the respective lender and submit the required documents to procure consumer loan.
Eligibility Criteria for Availing Non-Salary Transfer Consumer Loan in the UAE
To avail consumer finance without a salary transfer in the UAE, you need to meet the following eligibility criteria requirement determined by the respective lender:
- Age Criteria: Age is one of the most important factors to avail PL. The minimum age of the applicant is 21 years to be eligible for a personal loan in UAE without a salary transfer. However, the maximum age is 60 years for expats while it is 65 years for UAE nationals at the time of loan maturity.
- Income Eligibility: Every lender has its minimum income requirement for salaried and self-employed individuals to ensure the applicant’s capability of repaying the loan amount. Therefore, the borrower must meet the minimum income criteria of the respective bank to avail consumer finance without a salary transfer.
- Credit History:A good credit score is always required for procuring any kind of loan since the lender check your creditworthiness through this. A credit history lists down all of your financial records thereby making it easier for the bank or financial institutions to check whether you have paid your credit card bills or other existing loan repayments on time.
- Employment Stability: Stability is yet another major factor for availing a personal loan in UAE without a salary transfer. Few of the lenders require minimum work experience of six months at the present employer to check the job stability of the borrower. However, an employment record for salaried and self-employment individuals varies from bank to bank.
- Employer: Working with an organization with a good reputation and high turnover makes it easy for you to avail consumer finance. Because a well-known employer with whom the applicant is currently working helps in gauging the trust factor of the borrower.
You need to submit the following documents for availing a personal loan in UAE without a salary transfer:
- Valid passport copy with a valid resident visa page.
- Emirates ID
- Address proof (utility bills)
- Updated security cheque in favor of the bank
- Bank statements of the last 3-6 months
Please note that lender may ask for additional documents as the list of the required documents varies from one lender to another.
Some Useful Tips to Improve Your Chances of Consumer Finance Approval
Apart from meeting the minimum eligibility requirements and submitting the required documents, you need to follow some important tips to increase your chances of getting approved for non-salary PL in the UAE:
- Maintain a Good Credit Score: Your credit score is one of the primary factors that bank or financial institution consider for sanctioning you PL to verify your credential. However, not every lender requires an excellent credit score. Be sure, you at least maintain a good credit score to improve your chances of loan approval. More consistently you pay your bills on time, higher is your credit rating. And if you have a low creating rating, you can wait for a few months and complete your bill payments to refine your credit score.
- Pay Your Bills on Right Time: If you have opted for finance debt, be sure you pay the equated monthly installments on time in order to avoid a default. Also, if you have a credit card, then pay your credit card bill before the payment due date. Delaying or missing your payments on time may increase your debt burden. Plus, it will leave a negative impact on your credit score.
- Pay off Your Existing Debts: Before you apply for new PL, make sure that you have cleared off your existing debts. Because a large amount of debt shows in your credit report and it can make the lender hesitate while giving you new consumer finance.
- Maintain the Right Mix of Debt: Be sure that the percentage of your secured debt (such as car finance, home finance, etc.) is greater than the percentage of your unsecured debt such as personal loan and credit card.
- Choose The Loan Amount Reasonably: It is quite important that you choose the finance amount reasonably after keeping your repayment ability in mind. Every lender check your repayment ability based on your monthly income. Henceforth, if you apply for a finance amount that you won’t able to capable to repay in the decided tenor period, chances are that lender might reject your loan application.
While it might be difficult for you to avail a personal loan in UAE without a salary transfer, it is not impossible. All you need to meet the minimum eligibility requirements and submit the required documents determined by the respective lender to avail PL without any hassle. But please note that this type of consumer finances are approved on low limitations but the interest rates may vary when compared to the borrower whose salary transferred into the bank account.