Personal Loan for Self-Employed Individuals/ Professionals

Overview

Being one’s own boss can be extremely rewarding but for new business owners, it can be financially draining. For the UAE residents with the entrepreneurial spirit, a personal loan can offer the much-needed financial support to get their business off the ground and soaring.

Most personal loans in the UAE for expats and UAE nationals can be availed by self-employed individuals.

Features and Benefits of Personal Loan for Self-Employed Individuals/ Professionals

Be it a personal loan in Dubai, a personal loan for Emiratis or personal loans in the UAE for expats, the features and benefits listed below remain nearly identical:

Tenor

Self-employed individuals enjoy the same tenor for the personal loans in the UAE as salaried professionals, regardless of whether they are expats or UAE nationals. The maximum tenor that personal loans offer in the UAE is 48 months.

Instalment Deferment

Some of the best personal loans in the UAE for self-employed individuals offer an instalment deferment option, i.e. the option to postpone payments. For business owners who are facing various risks such as volatile markets and no guarantee of profit, this can be a much-appreciated feature.

Extra Benefits

Self-employed individuals can enjoy a wide mix of extra benefits with certain personal loans in the UAE. Some of the best personal loans in the UAE even offer self-employed individuals free credit cards, free life insurance and more.

Eligibility Criteria and Required Documents for Self-Employed Individuals/ Professionals

From document submissions to personal loan eligibility in the UAE, self-employed applicants have mostly different requirements from salaried applicants:

Age Requirement

Age requirement is one personal loan eligibility in the UAE that remains constant for salaried and self-employed applicants alike. Self-employed personal loan applicants are required to be between 21 years to 60 years of age. Unlike personal loans in the UAE for expats, self-employed Emiratis can enjoy maximum age requirement of up to 65 years.

Income Requirement

The eligibility criterion for the minimum salary for personal loans in the UAE is slightly higher for self-employed applicants. Self-started businesses are big risk investments for personal loan Furthermore, the self-employed personal loan applicant also has to pay the CTC of their employees and various miscellaneous expenses. For these reasons, self-employed applicants are required to have higher monthly incomes.

Work Experience

Self-started businesses have to face various risks. However, a self-started business that has been operating for a few years has stood the test of time. For this exact reason, personal loans in the UAE require self-employed applicants to have a minimum number of years of work experience. The work experience personal loan eligibility in the UAE is for usually 2 years or more.

Annual Sales Turnover

Not to be confused with the income eligibility of personal loan, an annual sales turnover refers to the total revenue that a business generates over the span of a year. Some of the best personal loans in the UAE also ask self-employed individuals for a minimum annual sales turnover.

The documents required for self-employed applicants, be it for personal loans in the UAE for expats or for Emiratis are:

  1. Emirates ID.
  2. Bank statement (for a specified number of months).
  3. Proof of Business ownership (self-employed personal loan applicants can present either a Power of Attorney or a Memorandum of Association signed by all the other partners).
  4. Passport and UAE Visa (only applicable for personal loans in the UAE for expats).
  5. Address proof in the form of utility bills.

Personal Loan Interest Rates for Self-Employed Individuals/ Professionals

The self-employed applicant will have to pay either of two forms of personal loan interest rates in the UAE- flat personal loan interest rates and reducing personal loan interest rates.

While flat interest rates remain constant for the entire personal loan tenor, a reducing personal loan interest rate decreases every time the borrower makes a payment. A reducing rate is generally the lowest interest rate for a personal loan in the UAE.

Frequently Asked Questions

Q1- Will I have to transfer my salary in order to avail a personal loan?

No, not all personal loans in the UAE require a salary transfer. Self-employed individuals can avail of a variety of personal loans in the UAE without a salary transfer.

Q2- Does credit score matter for self-employed personal loan applicants?

Yes, the credit score is an important criterion for personal loan eligibility in the UAE. Whether it is a personal loan in the UAE for expats, for Emiratis, for salaried applicants or for self-employed applicants, credit scores are checked for all the applicants.

Q3- How can I calculate my personal loan EMI?

Self-employed personal loan borrowers can calculate their EMI by using a personal loan calculator. It is available for free online and can be used to calculate EMI for any bank.

Q4- Do all personal loans offer the option of instalment deferment?

No, only some of the best personal loans in the UAE offer payment deferment option. A payment deferment allows the personal loan borrower to pay their instalment later, without incurring any late fee.

Q5- What should I keep in mind before applying for a personal loan in the UAE?

Personal loans in the UAE come in dozens of varieties, with different interest rates, tenors and loan amounts. In order to identify the lowest interest rates for personal loans in the UAE and to find the best personal loan offers in the UAE, financial experts recommend personal loan applicants to conduct multiple personal loan comparisons.

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