Everything you Need to Know about Personal Loan Eligibility

By PolicyBazaar
  | Published: 31 May 2021

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UAE has emerged as a business hub in the gulf with multinational companies and global brands in it. More and more people from different parts of the world migrate to the UAE in search of better job opportunities. But at the same time, cost of living in the UAE has sky-rocketed which is one of the primary reasons behind the increasing number of applications for personal loans in Dubai.

The increased cost of living leads to an obvious reduction in any scope of saving. With almost no savings in hands, it’s likely to have a financial crisis that’s unmanageable. In such a situation expats are left with no option but to opt for a personal loan that will can help them counter the strokes of financial uncertainties.

The eligibility criteria for issuance of a personal loan is provider specific. If you are looking forward to opting for a personal loan in Dubai you must be aware of all the nuances of personal loan eligibility and issuance to make sure that your experience is simple and hassle-free.

In order to make your financial journey a bit easier, we’ve put together an eligibility criteria guide that will make your overall experience simpler and convenient.

Documents Required to Apply for Personal Loan in UAE

To apply for a personal loan in Dubai one needs to gather a couple of documents. The list of documents depends upon the applicant and the status of their residency. Expats and the UAE nationals are required to submit a different set of documents to get an approval over the loan.

The first set of documents required by the financial institutions to review and personal loan application of expats are documents of identity-

  • Emirati Identity card
  • Proof of residence in the UAE
  • Visa
  • Passport
  • Address proof

If you are employed in the UAE apart from the documents mentioned, you will have to submit the following documents as well to the provider-

If you are self-employed in the Emirates and own any sort of business the documents required by you would be different from the documents required by a salaried individual. The list of documents for self-employed individuals is as follows-

  • License of trading
  • Power of attorney
  • Memo of association
  • Bank statements for the past 6 months

As mentioned earlier, the underwriting and issuing process of every provider is different, therefore the documents required might vary from one provider to provider.

Personal Loan Interest Rate in UAE

The most important factor in choosing a particular financial institution is the personal loan interest in UAE. Mainly the rate of interest is classified into two categories i.e. flat interest rate and reducing interest rate.

The major difference between reducing and flat interest rates in UAE is that the reducing rate starts at a higher percentage and then decreases every year during the repayment of the loan. On the other hand, the flat interest rate remains consistent throughout the repayment tenure. While choosing the right financial institution for the loan it is important to analytically analyze the personal loan interest rate in UAE.

In this section, we will take a look at some of the best personal loan providers in the UAE along with their minimum salary requirements and maximum loan amounts.

Bank

Maximum Loan Amount

Minimum Salary Requirement

Emirates Islamic Personal Finance

AED 2 million

AED 5000

Ajman Bank Goods Murabaha

AED 1 million

AED 6500

ADIB Personal Loan

AED 1 million

AED 8000

CBD Personal Loan

AED 750,000

AED 8000

Emirates NBD Personal Loan without salary transfer

AED 500,000

AED 10,000

Mashreq Personal loan for expats

AED 1 million

AED 7000

RAKBANK Personal Loan for expats

N/A

AED 5000

Tips for Getting Personal Loan Application Approved

There are multiple scenarios that can lead to the rejection of a personal loan application in the UAE. To increase the probability of getting your personal loan application accepted one needs to focus on the following criteria-

  • Eligibility Criteria: The first and foremost tip to get your personal loan application accepted is to meet the eligibility criteria set by the bank.
  • Credit Score: If your credit score is not up to the mark the banks will not consider your application as it depicts a high degree of risk in lending the requested amount to the applicant.
  • Repayment: Always choose a loan amount that is easily payable considering factors like expenses, the flow of income, outstanding financial obligations, etc.

In a Nutshell

A personal loan in UAE is an unsecured form of loan that can be used for a plethora of purposes based on the debtors needs. With the right personal loan interest rate in UAE, it becomes easier for the debtor to repay the loan in the repayment tenor which helps them to maintain their credit score in the long-run.