Personal Loan Interest Rates - Lowest Personal Loan Interest Rates in UAE
Personal loans are the best source of liquid funds for individuals during a financial shortfall. A person may need emergency funds to meet the child’s education, marriage, vacation expenses, etc. Typically, personal loans are unsecured loans where no collaterals are required, and their interest rates majorly depend on the market performance. That’s why individuals have to do some research for availing themselves of the lowest personal loan interest rates in the UAE. These loans are specifically designed to meet an individual’s immediate monetary requirements and are readily available at all banks in the UAE.
To further help the citizens, the banks in the UAE offer multiple loan application channels with complete transparency and leniency. However, individuals need to meet certain criteria to access the loans. Before offering a personal loan, the bank may check an individual’s salary, bank statements, credit history, etc.
According to the banking regulation of UAE, the maximum loan entitled to an individual is 10-20 times his salary with a flexible tenure ranging up to 48 months. Individuals can also opt for fixed rates or reducing repayment interest rates at their convenience.
Interest rates are the amounts that a borrower pays in addition to the principal or loan amount during repayment. Personal loan interest rates in UAE are broadly classified into two categories, namely flat rate and reducing rates. Both the rates are dependent on the principal amount and may fluctuate according to the UAE’s market performance.
Flat Interest Rate - These interest rates remain the same throughout the loan tenure and are based on the loan amount and repayment tenure. Flat interest rates in the UAE range from 2.63 to 22.22% depending on the bank and if you have a salary account with the lender bank. An individual pays a fixed monthly instalment against the loan at a flat rate.
Reducing Interest Rates - In contrast to the flat interest rates, these interest rates decrease every month after the payment of loan instalment. Also, the repayment reduces every month because the banks charge the interest rate on the outstanding loan amount. Reducing interest rates in the UAE ranges between 5.24 to 39.99% for various banks in the UAE. Individuals need to compare all the available loan options to get the lowest personal loan interest rate in UAE.
What is the Personal Loan Tenure in the UAE?
The banks in the UAE generally offer a shorter tenure for personal loans. Depending on the individual’s profile, the bank provides a repayment tenure ranging from 6 months to 48 months. The loan issuing bank allows individuals to choose flat or reducing interest rates for the loan repayment and may include a loan processing fee.
FAB bank offers a personal loan of up to AED 5 million to the residents/nationals of UAE. It is one of those banks that provide the lowest personal loan interest rates in the UAE.
Salary Requirement of AED 7,000 or above
Maximum Tenure of up to 4 years
Reducing Interest Rate of 9.29%
Flat Interest Rate of 4.99%
An Early Settlement Fee of 1.05% (maximum settlement fee of AED 10,500)
Processing Fee: 1.05% (with a minimum cap of AED 525 and a maximum cap of AED 2,625)
Personal life insurance with comprehensive coverage
Quick loan approvals
Variable interest loan rates in UAE as low as 3.99%
ADIB offers a loan of up to AED 3 million to UAE nationals for a maximum tenure of up to 4 years. It offers an attractive profit rate of 4.27% on a flat rate basis. Following are the details personal loan by Abu Dhabi Islamic Bank.
Minimum Salary of AED 8,000 or above
Maximum Loan Repayment Tenure of up to 4 years
Bank offers a reducing profit rate of 7.75%
Bank offers a flat profit rate of 4.27%
Early Settlement Fee: Minimum fee of 1% or up to AED 10,000 (whichever is lower)
The bank does not charge a processing fee
A grace period of up to 90 for repaying the first instalment.
No fine on 2 late instalment payments annually.
Avail of Takaful protection at the profit rate of 1.25% of the loan amount.
No processing fee on loan approvals.
Best Personal Loans With Lowest Interest Rates for Expats In UAE
The table below lists down the best personal loans for expatriates in the UAE with interest rates and requirements.
Personal Loans For Expats in UAE
Personal Loan Amount Offered
Flat Interest Rate
Reducing Interest Rate
FAB Personal Loan
Up to AED 2 million
3.99%
9.29%
Citi Bank Personal
Instalment Loan
AED 175,000
7.71%
14%
Deem Finance
20 times monthly salary
11.01%
19.99%
ADIB Personal Loan
AED 1 million
4.82%
8.74%
Emirates Islamic Personal Loan
AED 2 million
3.90%
6.47%
Dubai Islamic Bank Personal Loan
Up to AED 2 million
4.90%
8.99%
ADCB Personal Loan
Up to 2 times of applicant’s salary
3.45%
6.25%
HSBC Personal Loan
AED 750,000
3.58%
6.49%
Mashreq Bank Personal Loan
AED 1 million
3.58%
6.49%
Note - The interest rates are liable to change without prior notice.
Best Banks Offering Personal Loans to Expats with Lowest Interest Rates in UAE
Following is the list of top banks in the UAE offering personal loans to expats with the lowest interest rates.
First Abu Dhabi Bank
First Abu Dhabi Bank provides attractive interest rates on personal loans for the expats with convenient loan approvals.
Salary Requirement of AED 7,000 or above
Maximum Repayment Tenure of 4 years
Get a flat interest rate of 3.99% per annum on the loan amount.
Get a reducing interest rate of 9.29% per annum.
An early settlement fee of 1.05% with a maximum chargeable amount of AED 10,500
Loan Processing Fee of 1.05% with a minimum fee of AED 525 and a maximum fee of AED 2,625
HSBC is one of the oldest international banks operating in the Middle East. The bank is famous for its low interest personal loans in UAE for expatriates.
Minimum Salary of AED 7,500 or above
Maximum repayment tenure of 4 years
Get a flat interest rate of 3.58% per annum
Get a reducing interest rate of 6.49% per annum
An early settlement fee of 1.05% of the loan amount or a maximum fee of AED 10,500
An arrangement fee 1.05% of the loan amount with a minimum fee of AED 525
Minimum Salary 5000 AED
EMI Tenure up to 48 Months
Lowest Interest Rates
