Personal Loan in UAE

Personal loans, offering individuals immediate access to funds, are characterised by competitive interest rates, flexible repayment plans, and swift approval processes.

Personal Loan in UAE

T&C Apply

  • Minimum Salary 5000 AED
  • EMI Tenure up to 48 Months
  • Lowest Interest Rates

Get personal loan at Lowest Interest Rate

  • Dubai
  • Abu Dhabi
  • Sharjah
  • Ras Al Khaimah
  • Ajman
  • Other

Personal Loan: A General Overview

Whether for unexpected expenses, debt consolidation, or pursuing personal goals, you can obtain personal loans for diverse financial requirements. With that said, judicious utilisation is key to maximising their benefits. 

A comprehensive understanding of terms and conditions, responsible financial planning, and adherence to repayment schedules contribute to a positive borrowing experience. This page will dive into the advantages and features of personal loans UAE, helping you wisely leverage this financial resource to meet your aspirations and navigate financial challenges effectively.

Types of Personal Loans Offered in the UAE

Discussed below are the two main types of personal loans in UAE -

  • Personal Loan with Salary Transfer – As the name suggests, a salary transfer personal loan requires the borrower to transfer their paycheck to the lender. With this arrangement, one can take advantage of attractive interest rates, flexible payback options, higher loan amounts, and more. Lenders, meanwhile, can have a greater sense of security due to salary transfers each month.
  • Personal Loan with Non-Salary Transfer – Whether you work for yourself, receive cash payments, are employed under contract, or are a freelancer, several financial institutions in the UAE provide personal loans to UAE nationals without requiring them to transfer their money. 

Those who receive a regular salary but don’t wish to send it to the bank providing the loan in UAE can also choose this alternative.

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Top Personal Loans in the UAE 2024 - Bank Name, Minimum Salary & Fixed rate

Explore these top-rated personal loan bank options available in the UAE for 2024 -

Bank Name Minimum Salary Fixed Rate Apply
Emirates NBD Loans for Expatriates & UAE Nationals AED 5,000 per month 0 Apply Now

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Commercial Bank of Dubai Quick Loan AED 8,000 per month Starting from 7.6% p.a. Apply Now

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Deem Finance Personal Loan AED 5,000 per month 0 Apply Now

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ADCB Personal Loan  N/A 3.45% p.a. Apply Now

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Emirates Islamic Bank Personal Finance for Expats AED 10,000 per month 2.89% p.a. Apply Now

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Emirates Islamic Bank Personal Finance for UAE Nationals AED 10,000 per month 2.79% p.a. Apply Now

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FAB Personal Loan for Expats AED 7,000 per month 2.82% p.a. Apply Now

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FAB Personal Loan for UAE Nationals AED 7,000 per month 2.58% p.a. Apply Now

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FAB Non-Salary Transfer Personal Loan for Expatriates AED 15,000 per month 8.7% p.a. Apply Now

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FAB Non-Salary Transfer Personal Loan for UAE Nationals AED 15,000 per month 5.72% p.a. Apply Now

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HSBC Personal Loan  AED 7,500 per month 0 Apply Now

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FAB New to Country/ New to Employment Loans AED 7,000 per month 3.24% p.a. Apply Now

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Dubai Islamic Bank Personal Loan AED 7,000 per month 4.9% p.a. Apply Now

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RAKBANK Personal Loan AED 10,000 per month 2.85% p.a. Apply Now

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ADIB Personal Loan for Expatriates N/A - Apply Now

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ADIB Personal Loan for UAE Nationals N/A - Apply Now

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ADIB Personal Finance AED 8,000 per month 0 Apply Now

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Key Features of Personal Loans in the UAE

Here are the salient features of personal loans UAE —

  • Get loans of a higher amount based on your salary and your employment tenure. The loan amount can go up to 20 times your monthly salary. 
  • Most banks provide personal loans in Dubai at affordable interest rates based on your monthly salary and loan amount. 
  • The majority of the banks offer loan repayment tenure of up to 48 months. 
  • You must have a monthly salary of at least AED 5,000 to apply for a personal loan in UAE.
  • Optional insurance coverage is available with personal loans UAE. 
  • Most banks provide free-of-cost lifetime credit cards. 
  • There is a top-up facility option that depends on your salary increase and requirements. 
  • Some financial institutions provide a deferment period for the first two months. 
  • Some banks also offer free debit cards with personal loans. 

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Benefit to Apply for a Personal Loan from Policybazaar

With options from the leading personal loan banks in the UAE in one place, Policybazaar.ae helps you get the best personal loan rates in the UAE in just a few clicks. Compare your options and if you get confused somewhere, the industry experts are there to help!

Documents Required to Apply for a Personal Loan in the UAE

Personal Loan For Expatriates Personal Loan For Self-Employed Personal Loan For UAE Nationals Personal Loan For Salary Transfer
Passport copy Duly filled-in loan application form Filled up application form Passport Copy
Identity proof or Emirates ID  Memorandum of Association  Emirates ID copy Bank statements for the last 3 to 6 months
Salary certificate Salary Transfer Letter or Salary Certificate Bank statements for the last 3 to 6 months Salary transfer letter or salary certificate
Bank statements for the last 3 to 6 months Passport Copy Passport copy Emirates ID
- Trading Licence Salary Transfer Letter or Salary Certificate Salary proof
- Power of Attorney - -
- Bank Statement for the last 3 to 6 months - -
- Emirates ID - -

Eligibility Criteria to Apply for Personal Loans in the UAE

Nationality UAE Nationals and expatriates
Employment Status Self-employed and salaried individuals
Minimum Age 21 years
Minimum Salary AED 5,000

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Hacks to Successfully Apply for a Personal Loan

To successfully apply for a personal loan in Dubai or any other Emirate, you need to consider the following aspects —

  • Determine whether your loan is necessary.
  • Check the personal loan eligibility requirements of your preferred options.
  • To get the finest deal, do thorough research and compare personal loan options.
  • Examine your credit report.
  • Pay close attention to the fine print in your loan agreement.
  • Determine the length of your loan by evaluating your capacity to repay.
  • Select a personal loan with low interest rate and choose a loan amount that works best for you.
  • Examine your EMIs thoroughly.
  • Evaluate the processing charge.

How to Compute Your Personal Loan EMI? 

You can use Policybazaar.ae’s personal loan calculator UAE to know your instalments for the loan. As an online automated tool, a personal loan calculator provides you with an estimated EMI amount based on the information that you enter. 

Using a personal loan calculator UAE, you can make an informed decision and get the best personal loan as per your requirements. 

How to Improve Your Chances of Getting Personal Loan Approved?

Here are some tips to improve your chances of getting a personal loan approved —

  • Credit Clean-up: Your credit score is one of the primary considerations for lenders — a high credit score makes it easier to obtain a personal loan. 
    You need to review your reports to look for any problems if your score is poor. Simple errors can occasionally have a negative impact on your score — if this happens, you must report it to the AECB.
  • Readjust your debt-to-income ratio: When you apply for a personal loan, lenders want to see proof of income so that they can calculate your debt-to-income ratio and check whether you clear the personal loan eligibility requirements. 
    To raise your annual income, think about selling liquid investments like stocks or taking on a part-time job that pays more. This way, you will decrease your ratio of debt to income and improve your loan application prospects.
  • Think About Co-signers/Guarantors: If obtaining a personal loan in Dubai on your own is difficult for you, you may apply for one by including a co-signer or guarantor. Keep in mind that you need to select someone with a high credit score to serve as a guarantor. Choosing a candidate with a credit score higher than 750 can significantly improve your chances of being approved for a personal loan.
    Additionally, ensuring that you will return the loan is the responsibility of the said individual. Thus, in case you are unable to return the loan, they will also be responsible for it. 
  • Minimise the amount you borrow: It could be risky to request more money than you need to reach your financial goals. For this reason, you should first determine how much you actually need and limit your application for a personal loan in UAE to that amount.
  • Select the Correct Lender: Credit scores and income levels are two factors that lenders consider when considering your application for a personal loan in UAE. Choose a lender and apply for a personal loan with them if you fulfil their requirements. 

Applying with several lenders has the drawback that when your credit record is pulled for each application, your credit score is lowered.

Personal Loan FAQs
  • General
  • Eligibility Criteria and Documents
  • Features and Benefits
Q1: How much can you get as a personal loan in the UAE?
Ans: Your personal loan amount can be up to 20 times your monthly salary. The loan repayment tenure, meanwhile, can be up to 48 months.
Q2: Do Shariah-compliant banks also offer personal loans in the UAE?
Ans: Yes, Islamic banks in the UAE also offer personal loans. However, they are different from conventional loans. For starters, they are called ‘personal finance’ — banks charge a profit on the amount instead of interest.
Q3: Can you transfer your personal loan from one bank in the UAE to another bank that offers a loan at a lower interest rate?
Ans: Yes, you can take the buyout facility from a new bank offering a lower interest rate to settle your loan in the existing bank.
Q4: What can you use a personal loan for?
Ans: Personal loans offer instant funds — these funds can be used for higher education, travel, or any other requirement. These loans can also be utilised for your wedding or home renovation.
Q5: How is a personal loan EMI amount calculated?
Ans: You can use an online personal loan EMI calculator to figure out the instalment that you would need to pay each month.
Q6: What is the early settlement fee against the personal loan?
Ans: Usually, most banks charge an early settlement fee of 1% against the outstanding loan amount.
Q1: Can a student apply for a personal loan in Dubai?
Ans: No, a student cannot apply for a personal loan. For these loans, the applicant must be at least 21 years old and have a regular income source.
Q2: What should be the debt burden ratio to apply for a personal loan?
Ans: As per the Central Bank of UAE, your debt burden ratio should be less than 50% if you want a personal loan at favourable interest rates.
Q3: Can you get a personal loan even without a salary certificate?
Ans: Till the time you show income proof like bank statements, you can apply for a personal loan even if you are a freelancer or a self-employed individual.
Q4: Can you get a Dubai personal loan if you have a bad credit score?
Ans: You cannot get a personal loan if you have a poor credit score. The only way to get a personal loan is to work on improving your score. For this, you can follow steps like regularly making repayments, maintaining low credit utilisation, having a good credit mix, and more.
Q5: Can Indians in the UAE apply for a personal loan?
Ans: Yes, most banks in the UAE offer personal loans to non-residents as well.
Q6: What should be the minimum monthly salary to apply for a personal loan?
Ans: You should have a monthly salary of at least AED 5,000 to qualify to apply for a personal loan in the UAE.
Q1: Can you repay your credit card debt using your personal loan amount?
Ans: Yes, you can use your personal loan to repay your credit card bills. This can be a feasible option if your personal loan has lower interest rates than credit cards.
Q2: Should you take insurance against personal loans in the UAE?
Ans: While not mandatory, it is generally advised to get personal loan insurance. By covering you in case you lose your job or become disabled for the worse, this type of insurance eliminates the need to repay the instalments and saves you from becoming a defaulter amidst unfortunate circumstances.
Q3: Can you use your personal loan in the UAE to fund your startup?
Ans: Yes, a personal loan in UAE can be used to fund a startup. However, it is important to remember that you should be able to pay the EMIs and that the loan should match your requirements and preferences.

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