With a personal loan, you don’t have to worry about financing your personal needs. However, you must meet certain eligibility criteria, including the salary requirement to get a loan in the UAE. Let’s see if you can get a personal loan in UAE 3000 salary:
How Much Personal Loan Can I Get on AED 3000 Salary?
A personal loan serves as one of the best financial solutions that enable individuals to address a variety of personal expenses. This type of loan provides the necessary funds to meet the expenses related to education, marriage, or even emergency funds.
Individuals have the flexibility to borrow a fixed amount from a lending institution and repay it over a predetermined period. Personal loans in the UAE are typically unsecured, requiring no collateral and minimal documentation.
However, individuals must meet specific eligibility criteria, which include meeting salary requirements as well. In this article, we will explore the possibility of obtaining a personal loan in the UAE with a salary of AED 3,000.
Why is it Hard to Get a Personal Loan with 3000 AED Salary?
We have stated the top reasons explaining why it is challenging to obtain a personal loan with 3000 AED salary in the UAE:
Salary Requirement
In the UAE, banks and financial institutions often set a minimum monthly salary of AED 5,000 for personal loan eligibility. This benchmark ensures that borrowers have sufficient income to handle repayment amounts.
With a salary of AED 3,000, meeting this requirement can be challenging, as lenders may view the lower income as a higher risk of default.
Credit History
Your credit history significantly affects your chances of getting a personal loan in the UAE. Lenders examine credit reports to gauge your financial reliability. A history of missed payments, defaults, or excessive debt can reduce your chances of loan approval and may result in higher interest rates or less favourable loan terms.
Affordability
Affordability is a critical factor in loan approval. It reflects the borrower's ability to repay the loan without financial strain. With a monthly salary of AED 3,000, the borrower's income may be limited after accounting for living expenses and loan repayments comfortably. Lenders consider this to prevent financial strain on borrowers.
Debt-to-Income Ratio
The debt-to-income ratio is a key indicator used by banking institutions to determine your financial health. It measures the percentage of monthly income used to pay your debts.
A high DTI ratio indicates that a substantial portion of your income is already into debt repayments, which increases the risk of defaulting on additional loans. For someone earning AED 3,000 monthly, this ratio can be a significant barrier to loan approval.
Is It Possible to Get a Personal Loan at a Salary Of AED 3,000 in the UAE?
No, individuals possessing a monthly salary of AED 3,000 are not eligible for a personal loan in the Emirates. To apply for a personal loan, the minimum requirement is to have a salary of AED 5,000.
Although certain bank websites mention personal loans at a monthly salary of AED 3,000, they still require the applicants to have a salary of at least AED 5,000. Thus, you should have a monthly salary of AED 5,000 or more to get a personal loan in UAE.
Personal Loans With a Salary of AED 5000
Here are some banks offering personal loans with a minimum monthly salary of AED 5,000 -
Depending on your eligibility, the applicable interest rate on the personal loan offered by Deem Finance may vary between 15.99% and 34.99% per annum.
You can repay your loan amount within 1, 2, 3, or 4 years.
Simple and quick approval process
With Deem personal loan, you get the service of Deem Credit Life Plus. This feature has been curated to cover the loan’s outstanding amount in case of an unfortunate event such as death or terminal illness. This service also compensates for repatriation due to death by taking care of the repatriation expenses.
Easy documentation, with minimal paperwork involved during the loan application process
What are the Documents Required to Obtain a Personal Loan with a Salary of AED 3000?
Here is the set of documents generally required to apply for a personal loan in the UAE -
Filled out and signed personal loan application form
Valid Emirates ID
Valid passport
Valid residence visa
Original and valid salary transfer certificate
Previous 3 or 6 months’ bank account statements
A valid proof of salary like a salary slip (applicable to employed individuals)
Valid and original trade licence (applicable to self-employed individuals)
What are the Eligibility Criteria for a Personal Loan in the UAE?
The eligibility requirements for each financial institution regarding personal loans vary. However, you can have a look at some of the general criteria required to obtain a personal loan in the UAE -
The minimum age to apply for a personal loan is 21 years.
The maximum age to apply for a personal loan is 60-65 years depending on your nationality.
You must fulfil the minimum monthly salary requirement.
You must be employed when applying for a loan and need to be working with your current employer for the past 1-6 months.
You must have a satisfactory credit Score as mentioned by your concerned lending institution.
Note: Depending on the requirements of your bank, you may or may not be required to make a salary transfer.
In a Nutshell
There are multiple banks and lending institutions in the Emirates that provide personal loans, making them easily accessible with minimal documentation and eligibility requirements.
To obtain a personal loan, you will be required to submit a few mandatory documents and meet the eligibility criteria set by the respective bank. Additionally, your monthly income holds significant importance in determining your eligibility for a personal loan.
With a monthly salary of AED 3,000, you will not be eligible for a personal loan in the UAE even though certain financial institutions mention it. Consequently, personal loans in the UAE are predominantly available to individuals with a salary of AED 5,000 or higher.
Frequently Asked Questions
Q1. Is it mandatory to show a salary certificate as well as a bank statement to apply for a personal loan in the UAE?
Ans: Income proof documents vary for each bank. Some banks may require you to submit either of the documents, while others may require you to present both.
Q2. Do I need to possess a specific credit score to apply for a personal loan in UAE-based banks?
Ans: Each financial institution has different requirements for credit score. It is suggested to contact the bank of your choice to know the exact credit score requirement.
Q3. What is the highest amount a bank offers in a personal loan?
Ans: Financial institutions offer personal loan amounts depending on your eligibility criteria. However, the highest that they can offer is mostly 20 times your salary value or your total income.
Q4. Can I get a loan with a 3000 AED salary in the UAE?
Ans: No, a salary of AED 3,000 is not sufficient to get a loan in the UAE. Banks have strict salary criteria for granting you a personal or any other loan — you must have a salary of AED 5,000 or more to apply for a loan in the UAE.
Q5. Which banks offer a personal loan with 3000 salary in the UAE?
Ans: Unfortunately, no banks offer a personal loan in UAE 3000 salary. However, you can get a loan with a salary of AED 5,000. Some of these banks are -
ADCB
RAKBANK
Emirates Islamic Bank
First Abu Dhabi Bank and more
Q6. Who is eligible for a personal loan in the UAE?
Ans: The general criteria for personal loan eligibility include -