How Important is Your Salary When Applying for a Personal Loan?

Personal Loan up to 8 times your Salary

Personal Loan in UAE
  • Minimum Salary 5000 AED
  • EMI Tenure up to 48 Months
  • Lowest Interest Rates

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In case you are in urgent need of cash and hold a decent credit rating, the majority of banks and financial institutions would agree on offering you a Personal Finance. The eligibility of your personal loan varies from lender to lender. It usually depends upon the age, credit score, financial stability, and most importantly on your salary.

The income you are earing is amongst the primary factors, which impact your eligibility for personal loans. This is the reason why not every applicant qualifies for the loan.

That said, considering the importance for salary for personal loan eligibility, the documents related to your salary or income are important too. Following are the essential salary-related documents you need to possess and might have to present when applying for a personal loan.

  1. Recent salary slips
  2. KYC Certificates
  3. Salary Transfer Letter
  4. Salary Certificate

Apart from these, there can be other documents required (other than salary-related documents too) while applying for a personal loan in the UAE.

Generally, most of the lenders require you to have 5,000 dirhams as minimum monthly salary to be eligible for a personal loan. However, this minimum salary depends upon the discretion of the loan provider.

Some lenders have made it compulsory for you to transfer your salary with them in order to opt for a personal loan while in case of some lenders this is not mandatory.

There are various categories of personal loans available in the UAE. Amongst these categories, there are two types that are based on the transfer of salary- personal loan for salary transfer and personal loan with no salary transfer.

Personal Loan with Salary Transfer

This category of personal loan is counted to be a secured loan for the lender. In this category, your salary is transferred to that bank you have taken the loan from. Since this personal loan helps in making the process secure and easy, the rate of interest is usually lower in comparison to the loans without salary transfer. However, this might vary from one bank to another because each bank has its own structure and policy.

Personal Loan without Salary Transfer

At times, you need only a small amount of Personal loan with no salary transfer. The personal loan without salary transfer is available for both listed as well as non-listed companies. In this category of personal loan, you can avoid the hassle to transfer your salary to the lender. There are various financial institutions and banks that offer non-salary transfer personal loans with low rates of interest.

Other Aspects of a Personal Loan Application

Although this may vary from one lender to another, the general requirements include your occupation, age, residence, the capacity of loan repayment, and income earned (as discussed above).

For availing the personal loan, you should have a regular source of income, no matter you are a self-employed businessman, a professional, or a salaried person. Your eligibility as an applicant is also affected by the organization you are working with. Lastly, but most importantly, the lender reviews your credit history so as to check your creditworthiness.

Following are the other factors considered while applying for a personal loan in the UAE.


In order to be eligible to apply for the personal loan, you should at least be 21 years old. If you are a UAE National, then your age during the maturity of the loan should be 65 years; however, in the case of expats, this age should be 60 years.


You must have confirmed employment with your current employer to be eligible for applying for a personal loan. A few lenders make it mandatory for you to have an employer from UAE only.

At the same time, some lenders even put restrictions on the duration of service, that is, you must have served a minimum time in your current organization. It can be very difficult to avail a personal loan without a company listing in the UAE.


Stating the obvious, only those residing in the UAE are eligible to apply for the personal loan. The UAE Nationals can avail the best benefits in terms of personal loan. These benefits may include longer tenures, high loan amounts, age relaxation, and many more. This, however, does not imply that there is a lack of good personal loan offers for expats in the UAE.

Salary Transfer

Most of the lenders in the UAE do not offer you a personal loan if you do not transfer your salary with them. However, there are a few lenders that allow you to transfer your salary to some other bank of your choice and still offer you a personal loan. You can use comparison websites online to identify lenders that offer personal loans without the transfer of salary and the ones who offer personal loan for salary transfer.

Apart from meeting the eligibility requirements, you will also have to submit certain documents for obtaining the personal loan. Following are some of these documents.

  1. Personal Loan Application Form
  2. A valid UAE Identity Proof
  3. Proof of Residence (UAE Visa in case of expats)
  4. Recent bank statements
  5. Employment confirmation letter
  6. Salary slip or salary certificate

The Bottom Line!

Taking a personal loan is a convenient way to overcome the time of financial strain. Hence, if you plan to opt for a personal loan, you must be aware of the importance for salary for personal loan. Apart from your salary, you must also be aware of the other eligibility requirements. You must ensure that you select a suitable lender and thoroughly research before applying for a personal loan in the UAE.

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