Personal Loan Interest Rates - Lowest Personal Loan Interest Rates in UAE

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  | Published: 26 October 2021

Personal Loan UP To 8 Times Your Salary

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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. 

Related Article What is a Low-Interest Personal Loan? How to Apply?

Types of Personal Loan Interest Rates in UAE   

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. 

Know Abot How to Choose the Best Bank for Personal Loan in the UAE

Best Personal Loans with Lowest Interest Rates for UAE Nationals/Residents

The following table depicts the top ten personal loans for UAE nationals and residents with their respective interest rates and salary requirements. 

Personal Loan in UAE

Reducing Interest rate

Flat Interest Rate

Minimum Salary Required in AED

Salary Transfer Option

RAKBANK Personal Loan

5.99% 

3.99%

AED 3,000

Required

ADCB Personal Loan

8.86%

4.75%

AED 5,000

Required

Emirates NBD Personal Loan 

4.79%

2.55%

AED 10,000

Not Required

Dubai Islamic Bank Personal Loan

11.00% 

6.00%

AED 3,000

Not Required

Mashreq Bank Personal Loan 

6.49% 

3.43%

AED 7,000

Required

FAB Personal Loan

9.29%

4.99%

AED 7,000

Required

ADIB Personal Loan

Expats: 8.74% 

UAE Nationals: 7.75%

Expats: 4.82% 

UAE Nationals: 4.27%

  AED 8,000

  Required 

Deem Finance Personal Loan

14.00%

7.72%

AED 5,000

Not Required  

Finance House Personal Loan

9.99%

5.45%

AED 8,000

Not Required

Note: The interest rates are subject to change without prior notice. 

Best Banks with Lowest Personal Loan Interest Rates in UAE for Residents & Nationals

Given below is the list of top banks in the UAE providing personal loans at the lowest interest rates in the UAE. 

RAKBANK 

RAKBANK is one of the most popular banks in the UAE that provide personal loans at competitive interest rates and an easy documentation process.  

Minimum Salary Requirement of AED 5,000

Loan Tenure of up to 4 years

Reducing Interest Rate of 5.99%

Flat interest rate of 3.99%

An Early Settlement Fee: 1% or AED 10,000 (whichever is lower)

Arrangement Fee: 1% (a minimum of AED 500 and a maximum of AED 2,500)

Free debit card from RAKBANK

Free for Life Credit Card

One free Chequebook

 

Emirates NBD 

One of the biggest banks in terms of capital, Emirates NBD offers quick personal loans with convenient documentation. 

Salary Requirement of AED 10,000 or above

The maximum tenure of loan is up to 4 years

Reducing Interest Rate of 4.79%

Flat Interest Rate of 2.55%

Early Settlement Fee of 1% (maximum fee of AED 10,000)

Processing Fee of 1% (a minimum of AED 500 and a maximum of AED 2,500)

Loan return option within 7 days 

Double insurance coverage with the personal loan

Mode of repayment via Direct Debit System for a loan in Dubai

Option of early settlement 

First Abu Dhabi Bank

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%

 

Abu Dhabi Islamic Bank

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

Citi Bank

Citi Bank is one of the international banks operating in the UAE. It offers easy personal loans with low interest rates and zero processing fees.

Minimum Salary of AED 8,000 or more

Maximum Repayment Tenure of 4 years

Avail of a Flat Interest Rate of 7.71% per annum

Get a reducing interest rate of 14% per annum

An early settlement fee of 1% of the loan amount or maximum settlement fee of AED 10,000

The bank does not charge a loan processing fee.

HSBC Bank

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

Mashreq Bank

Mashreq Bank is well known for its digital services in the Middle East. The bank offers quick and convenient loan approval for salaried expats in UAE. 

Minimum monthly income of AED 7,000 or above for salaried individuals

Maximum repayment tenure of 4 years

Get a flat interest rate of 3.58% per annum

Avail of a reducing interest rate of 6.49% per annum

An early settlement fee of 1.05% of the principal amount with a maximum chargeable fee of AED 10,500 

Loan processing fee of 1.05% on the principal amount