Personal loan in UAE for expats can be the Best option for those who face financial hurdles in managing their expenses in a new country.Expatriates are those people who live in the UAE but aren’t the residents of the UAE. The financial institutions and banks offer a personal loan in UAE in two variants: a personal loan with salary transfer and personal loan without salary transfer.
The maximum amount one can borrow under a personal loan in UAE for expats up to a maximum of 20 times the monthly drawn salary. The amount can be borrowed with a repayment tenor of up to 48 months.
Personal Loan Interest rate for Expats
In exchange for offering personal loan in UAE for expats, banks charge an interest amount on the disbursed amount. Personal loan interest rates in UAE for expats are charged in two ways-
Flat Interest Rate: This type of interest is charged on the principal amount and remains constant for the entire tenure of the personal loan in UAE for expats. This ranges between 3.03% - 7.71%.
Reducing Interest Rate: This type of interest reduces every time the borrower makes a payment on their personal loan for expats in UAE. This ranges between 5.50% - 14%.
Top 10 Banks Offering Personal Loan in UAE for Expats
The personal loan of up to 2x salary overdraft is offered to Expats by the Abu Dhabi Commercial Bank with flexible repayment tenures at attractive interest rates.
This personal loan for Expats in UAE offered by Mashreq is designed to meet the borrowing and unexpected requirements of the salaried expats working in the UAE.
The best personal loan in 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 UAE, the applicant ought to qualify for it. Mentioned below is the eligibility & required documents for personal loans in UAE for expats.
Age Eligibility
Most banks follow a standard age criterion for personal loan eligibility in UAE that may vary from one bank to another but usually it is a minimum of 21 years and a maximum of 60-65 years to apply for a personal loan for Expats in Dubai.
Minimum Income
Providing proof of one’s minimum income is mandatory for availing a personal loan for Expats in UAE. The minimum salary requirement may vary from provider to provider; generally, it is between AED 3000 and AED 8000 for most of the banks.
Credit History
The applicant’s credit history is a major criterion for personal loan eligibility in 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.
While nearly every bank offers personal loan in 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.
Documents Required to Apply Personal Loan in UAE for Expats
Once the applicant has fulfilled all the requirements for personal loan eligibility in 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:
ApplicationForm - Most banks offer application forms for personal loan in UAE for expats
UAEResidencyProof - This can be provided in the form of a passport and visa
Employment & Income Proof - This can be shown by presenting a salary slip. Certain banks also require the applicant to have a specified experience in their job to qualify for a personal loan in UAE for In that case, the applicant will also have to submit the joining letter or letter of experience from their company.
Bank Statement - Depending on the bank, the applicant may have to submit bank statements ranging between the latest 3 months - 6 months.
Salary Transfer - While it isn’t impossible to find a personal loan in UAE without a salary transfer, there are benefits of maintaining a salary transfer with the loan issuer. The salary transfer feature allows the applicant to avail of a personal loan in UAE for expats having larger loan amount and smaller minimum monthly income
Some banks even allow new expats to apply for a personal loan in UAE without a salary transfer and bank statement for smaller loan amounts.
FAQs on Personal Loan for Expats
Q.1. Can I still apply for a personal loan for Expats in Dubai if my company isn’t listed on the bank’s approved company list?
Ans: Most banks do not offer personal loan in 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 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 loan in UAE for expats.
Q.4. Does personal loan for expats in Dubai offer any other benefits?
Ans: Certain personal loans in UAE for expats offer added incentives such as free credit cards, debit cards, life insurance and more. These personal loan offers in 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 loan in UAE is a matter of perspective. Some applicants may consider the lowest interest rates for personal loan in UAE for expats to be an indicator of the best loan, while others may look for personal loan offers in 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.
Hassle-free documentation
EMI Tenure up to 48 Months
Lowest Interest Rates
Expatriates are those people who live in the UAE but aren’t the residents of the UAE. The financial institutions and banks offer a personal loan in UAE in two variants: a personal loan with salary transfer and personal loan without salary transfer.
