All You Need to Know About Education and Student Loans in the UAE
Who doesn't want to have a high income, own a big house, drive a luxury car, buy expensive things and go on vacations? But, the way to this kind of lifestyle is paved by education. However, the sad reality is that people often find it difficult to raise funds for education. Even though we all know that scholarship is one way to plan education in a land outside the native country, the fact is that not everyone is capable of achieving a scholarship. For those who fail to bag a scholarship, there are several other financing options. One of them is the education loan.
Since the majority of expat students in the UAE have no other option but to fund their studies on their own, several banks in the country offer personal loan for expats students. Personal loans in UAE for expats students are specifically designed to ensure that the education prospects of the expat students are not jeopardized due to financial constraints. These loans allow them to pursue their academic career easily and fulfil the dream of acquiring higher education.
Characteristics Of Personal Loan For Expats Students
The loan amount varies from bank to bank. For instance, the maximum financing provided by Abu Dhabi Islamic Bank is AED 250,000 whereas that of Mashreq Bank is AED 200, 000. This amount also depends on the eligibility of the expat students and their parents. For example, Union National Bank offers the loan amount up to 20 times the salary of an individual and a maximum up to AED 500,000.
It is defined as the time required by the borrower to repay the loan along with the interest. It may vary between one to five years.
To be eligible for a personal loan in the UAE, the expat must fulfil the minimum salary criteria. This criterion may vary from bank to bank. It also depends on the loan amount.
Also known as the interest rate is defined as the percentage of principal that is charged by the lender to the borrower for the use of its money. It varies from bank to bank; Abu Dhabi Bank usually charges 6.78% on the personal loan for expats students and that charged by Union National Bank is 9%.
The processing fee is a one-time charge that is levied by the lender or the bank from the borrower at the time of processing of a loan.
Providers of Personal Loan for Expats Students in the UAE
Expat students in the UAE can apply for a personal loan through banks. Some major banks that provide loan for expat students are:
- Abu Dhabi Islamic Bank
- Union National Bank Education Loan
- Mashreq Bank
- National Bank of Abu Dhabi
- ADCB (Abu Dhabi Commercial Bank)
Some university also provides personal loans to expats students. Some of such universities are:
- UAEU (United Arab Emirates University)
- American University in the Emirates (AUE)
- Abu Dhabi University (ADU)
However, to be eligible for a personal loan from a university, an expat student should fulfil the following criteria:
- Should be a regular student of the university
- Should have a valid student visa of UAE
- Should have a personal bank account in UAE
- Should fulfil the maximum salary criteria specified by the university
- Should have the provision of the monthly income of the family
- If specified by the university, the student should meet the English proficiency standard
- If specified by the university, the student should provide the passport of family members
- If specified by the university, the student should give the copy of Student’s Emirates ID card
Documents required to get Personal Loan for Expat Students in the UAE
Following is the list of documents that should be kept handy while applying for personal loans in the UAE:
- Valid passport in original and a copy
- Valid residence visa
- Bank account statement for the last 3 months
- Copy of University ID card or Enrolment card given by the university
- Quotation addressed to the bank from university or school
- Salary certificate in original
- Bank Statement of Salary for last 6 months in original
- A security cheque with 120% of the loan amount (if asked by the bank)
This completes the basic guide about Education and Student Loans in UAE.