Personal Loan with Salary Transfer
Most banks and financial institutions have set criteria for personal loans. It requires the applicant to meet a minimum salary for personal loans in the UAE. The reason for the same is fairly straightforward. As personal loans are typically unsecured in nature, loan issuers have to ensure that the applicant has the ability to pay monthly instalments. This is done by considering the applicant’s monthly salary along with other factors.
A salary transfer loan is one that rewards loan borrower for maintaining an account with the bank and transferring their salary into it every month. While there are numerous options for personal loans in the UAE without a salary transfer, mentioned below are the benefits that personal loans offer in the UAE for salary transfer.
Features and Benefits
The personal loan in uae for salary transfer is available for expats and Emiratis alike. It is the most common type of personal loan in the UAE that comes with the following features and benefits:
Personal loans with a salary transfer enable the loan issuer to monitor funds and charge monthly fees. This guaranteed payment makes salary transfer loans the best personal loans in the UAE for loan issuers. As such, salary transfer personal loan applicant can opt for a larger loan amount.
In order to avail of a salary transfer personal loan in the UAE, the applicant is required to open a bank account with the loan issuer. The loan borrower salary is transferred directly into the account every month.
Note- Salary transfer personal loans require a sign-off from the applicant’s employer as well.
The benefit of a salary transfer personal loans also extends to the rate of interest. Salary transfer loans usually charge the lowest interest rates for personal loans in the UAE.
As the bank is able to directly debit any unpaid amount from the applicant’s bank account, salary transfer personal loans in the UAE usually do not require a security deposit or even a guarantor.
The bonus incentives that salary transfer personal loans offer in the UAE depend on the loan issuer in question. These additional personal loan benefits may include free credit cards, life insurance, and bank accounts and more.
Personal Loan Eligibility Criteria for Salary Transfer
Here is personal loan eligibility in the UAE for salary transfer loans:
Salary transfer personal loans in the UAE come with a minimum and maximum age criteria. For personal loans in the UAE for expats, these are usually set in the range of 21 years to 60 years. For Emiratis, the minimum age varies while the maximum age is set at up to 65 years.
The minimum salary for personal loans in the UAE is much lower for salary transfer loans as compared to personal loans in the UAE without a salary transfer. The borrowers are required to transfer their salary into the bank account provided by the loan issuer.
Salary Transfer Certificate
Most personal loan issuers require a salary transfer certificate. This is an undertaking signed by the applicant and their employer. It is a document that allows the applicant to transfer their salary directly into the personal loan account and permits the loan issuer to automatically deduct monthly installments from the same.
Generally, salary transfer personal loan issuers have a list of approved companies in the UAE. It is tough to get a salary transfer personal loan in the UAE without a company listing.
Personal Loan for Salary Transfer Documents Required
After meeting the salary transfer personal loan eligibility in the UAE, the next step for the applicant is submitting the following documents:
- Application Form: Application form for personal loans in the UAE can be submitted online or offline, depending on the options offered by loan issuer and the preference of the applicant.
- ID and Address: For verification purpose, personal loan applicant will have to submit any combination of Emirates ID, passport, UAE visa and utility bills.
- Employment and Income: Salary transfer personal loans in the UAE usually need the applicant’s bank statement, salary slips and a salary transfer certificate.
Note- Salary transfer personal loan eligibility in the UAE and required documents are subject to change as per the loan issuer’s discretion.
Salary Transfer Personal Loan Interest Rates
The personal loan interest rates in the UAE for salary transfer loans are much lower than those offered to personal loans in the UAE without a salary transfer. These personal loan interest rates are calculated in two ways:
- Flat Interest Rate: This type of personal loan interest rate remains fixed and is charged on the full salary transfer loan amount.
- Reducing Interest Rate: Reducing personal loan interest rates decrease every month when the EMI is deducted from the borrower's salary. This is charged on the outstanding principal of the personal loan.
Frequently Asked Questions
Q1- Do I need approval from my employer to apply for a salary transfer personal loan?
Yes, not all companies allow their employees to avail of salary transfer personal loans in the UAE. Most personal loan issuers require the applicant to submit a salary transfer certificate. This will need to be approved by the applicant’s employer.
Q2- Can self-employed applicants also apply for a salary transfer personal loan in the UAE?
Yes, self-employed individuals may also apply for a salary transfer personal loan in the UAE. However, the required documents may vary slightly for such applicants. Self-employed personal loan applicants will have to submit a trade license, power of attorney (or memorandum of association), bank statements and other documents as required by the loan issuer.
Q3- How can I calculate EMI for my salary transfer personal loan?
There are so many personal loan calculators available online to compute EMIs. Personal loan EMI calculations can be done free of charge.
Q4- I have just started working. Will I be eligible for a salary transfer personal loan in the UAE?
Many loan issuers impose work experience restrictions as part of the salary transfer personal loan eligibility in the UAE. The applicant may be required to have work experience anywhere between 3 months to 1 year to qualify for salary transfer personal loans in the UAE. Please note that the finance experts recommend that the applicant has a stable income before opting for a salary transfer personal loan.
Q5- Can I apply for salary transfer personal loan for non-listed companies in the UAE?
Most loan issuers do not offer salary transfer personal loans for non-listed companies in the UAE. However, employees belonging to respectable organizations may be permitted to avail of personal loans in the UAE without a company listing at the loan issuer’s discretion.
- ADCB Personal Loan
- ADIB Personal Loan
- ADNIF Personal Loan
- Ajman Bank Personal Loan
- Al Khaliji France Personal Loan
- Al Wifaq Personal Loan
- CBD Personal Loan
- CBI Personal Loan
- Citibank Personal Loan
- Deem Finance Personal Loan
- Dubai First Personal Loan
- Dubai Islamic Bank Personal Loan
- Emirates Islamic Bank Personal Loan
- Emirates NBD Personal Loan
- FAB Personal Loan
- Finance House Personal Loan
- HSBC Personal Loan
- Mashreq Bank Personal Loan
- Mawarid Finance Personal Loan
- National Bank of Fujairah Personal Loan
- Noor Bank Personal Loan
- RAK Bank Personal Loan
- Samba Financial Group Personal Loan
- Sharjah Islamic Bank Personal Loan
- Standard Chartered Personal Loan
- UAB Personal Loan