Personal Loans for UAE Nationals

Overview of Personal Loans for UAE Nationals

Personal loans in the UAE are available for various types of applicants such as for UAE nationals (Emiratis) and for expats. Offered exclusively keeping the needs of Emirati applicants in mind, personal loans for UAE nationals can be availed for numerous purposes such as investment opportunities, travel expenses and more.

The UAE is also home to various Islamic Banking organizations that offer interest-free, Shariah-compliant personal loans in Dubai and the other emirates. Personal loans in the UAE that cater to  Emiratis offer a wide assortment of benefits. Whether it’s the lowest interest rates for personal loans in the UAE or smaller requirements of the minimum salary for personal loans in the UAE, Emiratis are offered the absolute best personal loans in the UAE.

Personal Loan Features & Benefits

Have a look at the premium features and benefits that Emirati-only personal loans offer in the UAE:

Loan Amounts

Most personal loans in the UAE offers loan amount as a multiple of the applicant’s salary, up to a fixed limit. For example, certain personal loans in Dubai offer maximum amounts that are 20 times the Emirati applicant’s salary, for up to AED 2 million.

Note- The maximum amount that personal loans offer in the UAE to Emiratis are usually higher than those offered to expats.

Tenor

The borrowers are expected to pay back the borrowed personal loan as monthly instalments. These instalments are calculated on the basis of the total repayment period, i.e. the tenor. Most personal loans in the UAE give the UAE national borrower up to 48 months to repay the borrowed amount.

Note- One can calculate EMI amount using a personal loan calculator.

Interest Rate

Personal loan interest rates in the UAE are charged on the borrowed or principal amount. These interest charges are calculated on a monthly basis. While Islamic Banking organizations do not charge personal loan interest rates, they charge a profit rate on the borrowed amount. Emiratis enjoy the lowest interest rates for personal loans in the UAE.

Benefits

Money is just one of the many things a personal loan offers in the UAE. Personal loans for UAE nationals also offer additional benefits listed below.

  • Quick Processing: Not only are Emiratis fast-tracked through the application process for personal loans in the UAE, but they are also asked for very little documentation. Emiratis can complete the application process for most of the best personal loans in the UAE within as little as a day.
  • Complimentary Services: Certain personal loan issuers offer additional benefits such as free personal life insurance, no-fee credit cards and debit cards. The most effective way to pinpoint top personal loan offers in the UAE is by conducting a personal loan comparison.

Note- Emirates can conduct online personal loan comparisons to identify benefits that suit their lifestyle.

Personal Loan Eligibility & Required Documents

The personal loan eligibility in the UAE for Emiratis is very simple. Here are the eligibility criteria:

Monthly Salary

Depending on the requested loan amount, the applicant will have to submit relevant documents that show they earn a specified minimum salary for the personal loan in the UAE. Since the UAE nationals can apply for a higher loan amount, the monthly salary requirement is usually higher for personal loans in the UAE for expats.

Age Criterion

Personal loan eligibility in the UAE is also determined by the applicant’s age. Most personal loans in the UAE applicants need to be at least 21 years of age. Furthermore, while personal loans in the UAE for expats restrict the maximum age of applicants to 60 years, some banks allow Emiratis to avail of loans for the age of up to 65 years - 70 years.

Employment History

The employed applicant is required to show an independent source of income, provided by a listed UAE employer. Certain banks waive the minimum required length of service for Emirati applicants. Additionally, they may even let UAE nationals apply for personal loans for non-listed companies in the UAE, provided they work with a well-respected organization.

After fulfilling the above-mentioned criteria of personal loan eligibility in the UAE, the applicant will be required to submit the following documents:

  1. Application Form - The applicant will have to submit a duly filled application form for the personal loan in the UAE. Most personal loan issuers allow the applicants to apply for personal loans online.
  2. Employment & Income- The applicant will need to share the details of their employment and income, which can usually be done in the form of a bank statement and salary slip. Some personal loans in the UAE may require a year’s bank statement.
  3. Salary Transfer- Generally, banks don’t offer personal loans in the UAE without a salary transfer, even for Emiratis. However, salary transfers can actually be very useful, unlocking various personal loan offers in the UAE such as lower salary requirements and smaller personal loan interest rates.
  4. Emirates ID- The applicant will be asked for a valid Emirates ID and passport.

Types of Personal Loan Interest Rates

There are two varieties of personal loan interest rates in the UAE.

  • Flat Interest: This form of personal loan interest rate remains constant through the tenor of the loan.
  • Reducing Interest: Reducing personal loan interest rates decrease as the outstanding principal decreases, They are generally the lowest interest rates for a personal loan in the UAE.

Frequently Asked Questions

Q1- How can I calculate my monthly instalment?

There are numerous personal loan EMI calculators available online, which can be used free of charge. You can simply fill the details and personal loan calculator will display a monthly instalment figure.

Q2- How do I check my credit score?

A credit score is an indicator of a person’s creditworthiness, i.e. their ability to pay on time and maintain open lines of credit. Credit score plays a key role in determining personal loan eligibility in the UAE. A high credit score allows applicants to get larger personal loans.

Q3- Do all personal loans have a minimum salary requirement?

While most loan issuers impose restrictions on minimum salary for personal loans in the UAE, there are a few loan providers with no such requirements. Emirati applicants usually also have lower requirements for the minimum salary for personal loans in the UAE.

Q4- What is the best way to find low-interest personal loans in the UAE?

The easiest way to find the lowest interest rates for personal loans in the UAE is by using an online personal loan comparison tool. Personal loan comparisons in the UAE can be conducted quickly and free of charge available online.