Personal Loan in UAE for Expats

Personal loan in UAE for expats can be a lucrative offer for those who face financial hurdles in managing their expenses in a new country.

Personal Loan in UAE for Expats

Expatriates are those people who live in the UAE but aren’t the residents of UAE. When a huge portion of UAE population is comprised of expats, offering personal loans only the Emiratis doesn’t fulfill the financial needs of the various people of the UAE. This is why banks and financial institutions offer personal loan under various categories such as personal loans in the UAE for expats, personal loans for Emiratis etc. The maximum amount one can borrow under personal loan in UAE for expats up to a maximum of 20-times of the monthly drawn salary. The amount can be borrowed up to a repayment tenor of 48 months.

Personal Loan Rate of Interest rate for Expats

In exchange for offering personal loans in the UAE for expats, banks charge an interest amount on the disbursed amount. Personal loan interest rates in UAE for expats are charged at two rates-flat rate of interest and reducing rate of interest.  Kindly consider the following table to check the rate of interest of various banks for personal loan in UAE for expats.

Top 10 Banks Providing Personal Loan in UAE for Expats:

Types of Personal Loan in UAE for Expats Loan Amount Rate of Interest Minimum Salary Required

ADIB Personal Loan

AED 1 million

6.75%-20% 

AED 8000

Citi Bank Personal Loan

AED 175,000

Competitive interest rate

AED 8000

Emirates Islamic Personal Loan

AED 2 million

Competitive Rate of Interest

AED 5000

Dubai Islamic Personal Loan

Up to AED 2 million

11-21.99%

AED 3000

Abu Dhabi Commercial Bank Personal Loan

Up to 2 times of applicant’s salary

6.25%

-

HSBC Personal Loan

AED 750,000

Starts at 7.49%

AED 7500

CBD Personal Loan

AED 750,000

Starts at 5.50%

AED 8000

Mashreq Bank Personal Loan

AED 1 million

Competitive and reducing rate of interest

AED 7000 for listed companies

AED 10,000 for non-listed companied

First Abu Dhabi Bank

AED 2 million

Starts ate 3.99%

AED 7000

Noor Bank Personal Loan

20 times of applicant’s salary

Starts at 3.49%

AED 8000


Features & Benefits of Personal Loan in UAE for Expats

Here are the features and benefits of personal loan in UAE for expats:

Minimum Loan Amount

When it comes to offering personal loan in UAE for expats, almost every bank provides higher loan amount up to AED 2 million or higher or 20 times of the monthly drawn salary.

Rate of Interest

Rate of interest for personal loan in UAE for expats is charged wither at flat rate of interest or reducing rate of interest. In case of flat interest, it remains content throughout the loan tenor, while in case of reducing rate of interest the ROI gets reduced every time the borrower pays the loan installment. The rate of interest for Personal loans in the UAE for expats can range from 3.49% to 21.99% based on the bank.

for expats are offered at competitive rates.

Tenor

The tenor of a personal loan is the time period the loan has been availed for. Usually it is 48 months for most of the banks in UAE.

EMI

Also referred to as the Equated Monthly Instalment, EMI is the amount of money a borrower is required to pay back every month to the lender. EMI is inclusive of both principal and interest. The applicant can calculate their monthly EMI by using a personal loan EMI calculator. Personal loan calculators can usually be found on the bank’s website.

Benefits

In addition to the disbursed amount, certain banks also offer other benefits such as complimentary insurance, free-of-charge credit and debit cards and much more with personal loans in the UAE for expats.

Personal Loan in UAE Eligibility for Expats

Best personal loan in the UAE is the one with low personal loan interest rates, high loan amounts, and long tenors. However, in order to enjoy the lowest interest rates for a personal loan in the UAE, the applicant ought to qualify for it. Mentioned below is the eligibility & required documents for personal loans in the UAE for expats.

Age Eligibility

Most banks follow a standard criterion for personal loan eligibility in the UAE that requires applicants to fall within a minimum and maximum age group. These personal loan criteria vary from one bank to another but usually is between 21 years to 60 years.

Minimum Income

Providing a proof of one’s minimum income is mandatory for availing a loan for expats. The minimum salary requirement or income requirement may vary from provider to provider. However, the slab can be between AED 3000-AED 8000 for most of the banks.

Credit History

The applicant’s credit history is a major criterion for personal loan eligibility in the UAE. A credit report  (usually obtained from the Etihad Credit Bureau) shows the applicant’s past payment history and all of their currently active loans (if any). A good credit score means the applicant can repay the loan.

Residency Proof

While nearly every bank offers personal loans in the UAE for expats, it is impossible to find one that offers personal loans to non-residents. Personal loan for expats in UAE only can be availed if the applicants furnish their residency proof by submitting their passport with a valid UAE visa.

Required Documents to Apply Personal Loan in UAE for Expats

Once the applicant has fulfilled all the requirements for personal loan eligibility in the UAE, the next step would be is to gather the required documents. The documents commonly required to complete an application for a personal loan in UAE for expats are as follows:

  1. Application Form - Most banks offer application forms for personal loan in UAE for expats
  2. UAE Residency Proof - This can be provided in the form of a passport and visa
  3. Employment & Income Proof - This can be shown by presenting a salary slip or a bank Certain banks also require the applicant to have a specified experience in their job to qualify for a personal loan in the UAE for expats. In that case, the applicant will also have to submit the joining letter or letter of experience from their company.
  4. Bank Statement - Depending on the bank, the applicant may have to submit bank statements ranging between the latest 3 months - 1 year or
  5. Salary Transfer - While it isn’t impossible to find a personal loan in UAE without a salary transfer, the benefit of maintaining salary with the loan issuer is The salary transfer feature allows the applicant to avail of personal loans in the UAE for expats having larger loan amounts and smaller minimum monthly income requirements.

Some banks even allow new expats to apply for a personal loan in the UAE without a salary transfer and bank statement for smaller loan amounts.

Personal Loan FAQs

Q.1. Can I still apply for a personal loan if my company isn’t listed on the bank’s approved company list?

Ans: Most banks do not offer personal loans in the UAE for expats without an approved employer. However, some banks may make an exception and offer personal loans for non-listed companies in the UAE on the basis of the applicant’s income and reputation of the employer.

Q.2. What is a top-up loan?

Ans: Top-up personal loans are a type of loan offered to the borrower after they have paid a certain number of payments of the total tenor. Top-up personal loans in the UAE extend the tenor of an existing loan, increase the borrowed amount and may even offer lower personal loan interest rates. They are only offered to borrowers that make payments on-time.

Q.3. What is a credit score?

Ans: A credit score is a value that is calculated on the basis of the applicant’s past payments, currently active loans (if any) and any form of credit they may have availed of within the last decade or more. A credit score helps personal loan issuers determine the risk profile of an applicant. A higher credit score gives an applicant a better chance of qualifying for personal loans in the UAE for expats.

Q.4. Does personal loan for expats in Dubai offer any other benefits?

Ans: Certain personal loans in the UAE for expats offer added incentives such as free credit cards, debit cards, life insurance and more. These personal loan offers in the UAE vary depending on the respective loan issuer.

Q.5. How can I find the best personal loan for expats in UAE?

Ans: The best personal loans in the UAE are a matter of perspective. Some applicants may consider the lowest interest rates for personal loans in the UAE to be an indicator of the best loan, while others may look for personal loan offers in the UAE. The best way to identify such a loan is to conduct your own personal loan comparisons and use a personal loan calculator to accurately determine the monthly EMI.

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