Personal Loan

Be it for education bills, sudden medical expenses, vacation funding or even to pay off pre-existing debt, a personal loan allows customers to handle immediate and upcoming financial burdens alike, for a fixed cost. Personal loans in UAE are a form of financial lending that may be either secured or unsecured, depending upon the requested loan amount.

Unlike the variable interests and revolving credit charges of a credit card, personal loans in UAE offer fixed terms and fixed interest on the borrowed amount. Mentioned below are some of the commonly used jargon and their respective definitions, as used across personal loan lending:

  1. Requested Amount: This is the amount of money requested by the personal loan applicant.
  2. Disbursed Amount: While smaller personal loans in Dubai and other emirates may receive immediate approval, requests for large personal loans are usually vetted through a series of financial checks to determine the customer’s riskiness. The final approved or ‘disbursed’ amount may not necessarily be the same as the requested amount, depending on how well the loan-applicant performs in these checks.  Note that the disbursed amount is also referred to as the principal amount. The UAE government has further restricted the total disbursed amount for personal loans in Dubai and the other emirates to no more than 20 times that of the applicant’s total income.
  3. EMI: An EMI or Equated Monthly Instalment is the monthly amount that loan holders must pay in exchange for availing of a personal loan in the UAE. This EMI amount usually consists of a principal repayment component as well as the applicable interest or profit charges (for Islamic Banking customers). Personal loan interest rates in the UAE can be fixed or reducing as discussed later. Interested loan applicants should refer to the lender’s personal loan EMI calculator for an accurate assessment of their monthly obligation. Alternatively, applicants may also enter their relevant tenor and interest details on any generic personal loan calculator to calculate the EMI. As per the UAE government, the EMI charged on a personal loan cannot be more than half of the applicant’s salary.
  4. Tenor: Personal loans are issued for a fixed term or ‘tenor’, during which loan holders are required to repay the entire amount (borrowed amount and interest) in the form of monthly instalments. The UAE government forbids lenders from offering personal loans in the UAE with tenors greater than 48 months in total.
  5. Fixed & Reducing Interest Rate: In exchange for offering funds, banks and other financial lending organizations may charge either a fixed or a reducing interest on the borrowed amount. Fixed personal loan interest rates in the UAE are ones that remain constant. Reducing personal loan interest rates on the other hand, start off high but decrease as the principal amount decreases. The lowest interest rate for a personal loan in UAE can be as little as 5.25%, which increases in direct relation to the borrowed amount. Note that while personal loan interest rates in the UAE are subject to change as per the bank’s discretion, loan holders will always be informed of the same.
  6. Debt Consolidation: Many loan providers allow customers to group or ‘consolidate’ their pre-existing loan amounts into a single personal loan. Lenders do this to help alleviate the loan holder’s financial burden and to ensure they focus on making repayments to only them. This is referred to as debt consolidation and is a regular feature offered for personal loans in the UAE. Before consolidating any loan, we would recommend applicants to make use of a personal loan calculator to determine their outstanding dues.
  7. Foreclosure: Occasionally customers may want to close their personal loan before the set tenor. Doing so can cost the lender a lot in future interest charges. As such, personal loans in UAE usually charge a small fee in order to be settled early, or ‘foreclosed’.  Foreclosure charges may vary depending on the lender’s policy and on the number of monthly instalments that have already been paid. These charges are normally broken down and presented to the loan holder, but can also be calculated for free with a personal loan calculator.

Features & Benefits of a Personal Loan

Over the last decade, UAE has been witness to an enormous surge in financial lending. This emergence of various banks and lenders has led to the creation of diverse loan amounts and competitive personal loan interest rates in the UAE. The best personal loans in UAE offer nearly every one of the features and benefits mentioned below:

Secured & Unsecured Loans

While most personal loans do not ask for a security deposit, larger personal loans in the UAE may require the applicant to submit collateral in exchange for the required funds. The difference between a secured and unsecured personal loan is that secured loans require a security deposit and in return, offer larger ticket sizes and some of the lowest personal loan interest rates in the UAE.

Salary Transfer vs Non-Salary Transfer

Banks reward loan holders who maintain an account balance with them with lower interest rates, higher loan amounts and various other benefits. These personal loan offers in the UAE can be availed of by making a simple salary transfer to the respective bank account. Some lenders even mandate this, making it impossible to get a personal loan in the UAE without a salary transfer.

Reducing Interest

Rather than comparing banks to find the lowest interest rates for personal loans in the UAE, we would suggest that readers focus on the types of personal loan interest rates in the UAE instead. Namely, there are two types of interest charged on personal loans in the UAE. They are flat interest and reducing interest. A flat personal loan interest rate in the UAE charges the same interest month on month till the tenor expires. A reducing personal loan interest rate in the UAE, on the other hand, observes decreasing interest every month, chargeable on the reduced principal amount that remains to be paid. Flat interest rates at first glance seem to be much cheaper, but this may not necessarily be the case.

For example, a flat interest personal loan in Dubai may charge 6% interest every month. On the other hand, a reducing rate of personal loan may offer an initial 14% interest, but this may fall to as low as 5% by the end of the tenor. Reducing interest is usually the lowest interest rate for a personal loan in UAE. Applicants should instead consider the total payable interest over the stipulated tenor as a more accurate indicator of the costs they will bear. This can be estimated by using a personal loan calculator.

Minimum Monthly Salary

Many lenders also impose restrictions such as a required minimum salary for personal loans in the UAE. Restrictions of a minimum salary for personal loans in the UAE are generally imposed on larger personal loans and are used to assess the applicant’s ability to repay the borrowed amount. Personal loans in UAE for expats usually carry higher salary requirements than those offered to UAE nationals. Some lenders waive the minimum salary requirement for customers who make a salary transfer. Similarly, applicants may also notice smaller offered loan amounts for personal loans in UAE without a salary transfer, as opposed to those with one.

Phone & Online Banking

Personal loans in the UAE have reached a level of sophistication that would never have been possible without high-speed internet and secured online transactions. From application to disbursement and right up to settlement, applicants may avail of the best personal loans in UAE from the comforts of their very own home. Secured online and phone banking allows lenders to stay connected with customers digitally, informing them of approaching payments, the applicable interest rate for the month and much more. Personal loans availed through phone banking usually also employ an automated voice response feature, to allow applicants to share confidential information.

Renewed / Top-Up Loans

Recipients of a personal loan in the UAE can enjoy benefits such as lower interest rates, higher tenors and larger loan amounts by requesting for a top-up personal loan, where available. Top-up personal loans in the UAE for expats and Emiratis alike are offered only to existing loan holders and usually, require the loan holder to have made a fixed number of payments in the pre-existing loan. A top-up loan effectively adds on to the existing personal loan, but with the added advantage of the lowered interest and higher tenors. It may be thought of as an incentive for customers who remain loyal to the lender by continuing to use their services.

Loan Cancellation

This rare feature is one that only a select few of the best personal loans in UAE offer. Certain lenders allow loan holders to cancel their availed personal loan in the UAE if done so within a specified grace period. Personal loans cancelled within this grace period are not charged any interest or fees, given that the cardholder returns the borrowed amount in full.

Instalment Deferment

Unforeseeable circumstances can derail payments for even the most regular of customers, and luckily many personal loan lenders understand this. The instalment deferment option is one that allows loan holders to postpone their monthly payment for a personal loan in Dubai or any other emirate, up to a specified period of time. These deferred payments still need to be paid but can be done so at a more convenient time for the cardholder. This personal loan feature can be especially useful for loan holders who have not received their monthly salary from employers.

On the Spot Loans

With such severe competition in the market, lenders aim to offer the best personal loans in UAE by reducing their turnaround time to mere minutes. Moreover, the introduction of secured internet banking portals has made it possible for personal loans in the UAE for expats and nationals alike to be disbursed quickly within the hour.

Debit & Credit Cards

Our personal loan comparisons in the UAE have revealed the incredible incentives lenders offer to loan applicants. Some of these personal loan offers in the UAE even include free debit and credit cards. However, loan applicants should be careful when making use of these offered cards. Even though personal loans in the UAE may offer free debit and credit cards, some of these are in fact only free for the first year of use, after which they levy an annual fee upon the customer.

Insurance

Even low interest rate personal loans in UAE can cost the loan holder a fortune if the monthly payments are not made. And unfortunately, the unpredictability of life makes this a very real concern for lenders and loan holders alike. This is why so many lenders offer life insurance in conjunction with the personal loan. This insurance policy covers the loan holder’s payments in the event of an accident that leaves them unable to pay. Certain policies even reimburse the loan holder’s family with an amount equal to that of the outstanding loan, in the event of death. These life insurance policies are usually offered free of charge with personal loans in Dubai or for a minimal monthly fee as per the lender’s discretion.

Foreclosure Charges

As mentioned in the section above, foreclosed loans are personal loans in the UAE that are closed before the specified tenor expires.  By foreclosing a personal loan, loan holders are effectively closing the loan before lenders can charge the full interest amount. Most lenders charge customers a foreclosure fee, but some personal loans in the UAE waive these foreclosure charges entirely.

Cashback & Statement Credit

Certain personal loan offers in the UAE reward new customers with incentives such as cash back or statement credit. Such personal loan offers in the UAE are rolled out during specific times of the year and are available for a limited time only.

Personal Loan Interest Rates

The first thing applicants should understand about any personal loan is its two components: the principal and the interest. The principal is the personal loan amount that is borrowed by the applicant, while the interest is an additional charge that is levied upon the principal amount and is what lenders need to make a profit. As such, it is not possible for a lender to disburse a personal loan in the UAE without charging interest.

There are two forms of interest that are charged on personal loans in the UAE. These are flat interest and reducing interest rates. The difference between both is explained below:

Flat Interest

A flat personal loan interest rate in the UAE is one that does not change regardless of how much the loan holder has repaid. Flat interest is easier to calculate, as it doesn’t change over the course of the tenor. However, flat interest is also charged on the entire personal loan amount every month, and as a result, is much costlier than reducing interest rates.

Reducing Interest

A reducing personal loan interest rate in the UAE, as the name suggests, is one that reduces over the tenor of the loan. Unlike the flat interest rate, reducing interest rate is charged only on the outstanding principal amount of the personal loan. Reducing interest rates may seem higher at first, but as the outstanding principal reduces over the course of the personal loan tenor, so too does the interest.

Top 10 Providers for Personal Loans in the UAE

We have created a list of the 10 best banks for a personal loan in the UAE. This is purely our opinion and should not be misconstrued in any other way. Note that personal loans in the UAE for expats are usually smaller than those provided to UAE nationals. The 10 best personal loans in the UAE are as follows:

Name of Bank Loan Offered Interest Rate / Profit Charges Tenor Salary Transfer
Emirates NBD Up to AED 4 million (for Emiratis). Up to AED 2 million (for Expats). Starting at 5.50% (reducing). 12 months - 48 months Not Mandatory
HSBC Up to AED 750,000 (for Emiratis). Up to AED 600,000 (for Expats). Starting at 7.49% (reducing). 6 months - 12 months (renewable after 12 months) Mandatory
RAKBANK Up to 20 times the applicant's salary. Starting at 5.99% (reducing). Up to 48 months. 60 months (for Armed Forces) Mandatory
Citibank Up to AED 175,000 or up to 8 times the applicant's salary. Starting at 13.99% (reducing), or at 6.99% (reducing) with salary transfer. 6 months - 48 months Mandatory
ADIB Up to AED 3 million (for Emiratis). Up to AED 1 million (for Expats). Profit rate starting at 6.75% (reducing). Up to 48 months (unconfirmed) Mandatory
Commercial Bank of Dubai (CBD) Up to AED 3 million (for Emiratis). Up to AED 750,000 million (for Expats). Starting at 5.50% (reducing). Up to 48 months  
United Arab Bank Up to AED 2 million. Starting 5.25% (reducing). Up to 48 months Mandatory
Standard Chartered Up to AED 500,000. Starting at 7% (reducing) Up to 48 months Mandatory
Dubai Islamic Bank (DIB) Up to AED 4 million (for Emiratis). Up to AED 2 million (for Expats). Profit rate starting at 11% (reducing). Up to 48 months Not Mandatory
Commercial Bank International (CBI) Up to 20 times the applicant's salary for a maximum of AED 1 million. Starting at 5.25% (reducing). Up to 48 months Mandatory

(Updated as of May 2019)

Overview of Banks Offering Personal Loans in the UAE

Given below is a brief overview of some of the best banks for a personal loan in the UAE:

Bank Name Overview
ADCB Also known as Abu Dhabi Commercial Bank, ADCB was formed in 1985 as a public shareholding organization. It is currently owned majorly by the Abu Dhabi Investment Council with a more than 62.5% stake. ADCB provides various financial services including education, car, mortgage and personal loans.
ADIB Abu Dhabi Islamic Bank (ADIB) offers a completely Shariah-compliant Islamic Banking platform for UAE residents. With a vision of introducing Islamic Banking processes to the world, ADIB values transparency, mutual gain and tolerance above all. ADIB offers home, education, travel, car, boat and personal loans in the UAE for expats and nationals alike.
Ajman Bank Ajman Bank is an Islamic Banking organization that has served UAE residents faithfully for close to a decade. Established in 2009, Ajman Bank has carved a name for itself in various financial sectors including those of personal loans, credit cards and more. Ajman Bank offers auto, property, salary advance and personal loans.
CBD CBD or the Commercial Bank of Dubai was established in 1969 as a joint venture between three leading banks: Chase Manhattan, Commerzbank and Commercial Bank of Kuwait. Soon thereafter, CBD turned into a publicly trading organization with approximately 80% of its shares in possession of UAE nationals. CBD provides car, mortgage and personal loans in the UAE.
CBI Opened in 1991, the Commercial Bank International (CBI) prides itself on innovative technology-based practices, which have helped catapult it into the UAE's financial spotlight. CBD is headquartered in Ras Al Khaimah and trades on the Abu Dhabi Securities Exchange. CBD offers auto, home and personal loans in the UAE for expats and Emiratis both.
Citibank As a subsidiary of the world-famous Citigroup, Citibank UAE enjoys both, an international customer base, as well as a local UAE in the emirates of Dubai, Abu Dhabi and Sharjah. Citibank provides best in class financial services for consumer and corporate banking alike. Citibank offers salary transfer loans, instalment loans and low interest rate personal loans in the UAE.
DIB As the largest Islamic Bank in the UAE, Dubai Islamic Bank (DIB) leads the way for Sharia-compliant financial services. Opened in 1975, DIB was also the first financial institution to have incorporated Islamic Banking practices across all of its practices. DIB offers Shariah-compliant home, auto and personal loans in Dubai and the rest of the UAE.
Dunia Finance Dunia Finance was founded in 2008 by the financial guru Rajeev Kakar, who is known for his role as a non-exec director at the Gulf International Bank in Bahrain. Under his guidance, Dunia Bank has focused on a customer-first approach and grown into a highly-approachable and trustworthy organization. Dunia Finance offers quick personal loans in the UAE.
Emirates Islamic Emirates Islamic was opened in 2004 and ever since, has been dedicated to providing the utmost quality of Shariah-compliant financial services. Emirates Islamic has a slew of Islamic Banking products, catered to every form of customer, from individuals to small business owners to large corporations. Emirates Islamic offers commercial property, residential property, automotive and personal loans in Dubai and other emirates.
Emirates NBD Established in 1963, Emirates NBD became the first National Bank in the UAE. With over 200 branches in the UAE and multiple rewards from leading financial agencies such as Global Finance, The Banker and more, Emirates NBD's banking products are focused on offering the very best. Emirates NBD provides home, auto, overdraft and personal loans in the UAE.
Finance House As a Public Joint Stock Company, Finance House is a prime example of an organization that relies on innovative practices to create space for itself in the market.  Finance House also presents various value-added services that make its financial services even more appealing. Finance House provides personal loans, commercial loans and numerous investment opportunities.
HSBC As one of the top ten largest banks in the world, HSBC is a giant that anyone with a bank account would have heard of. HSBC entered the UAE in 1946. The HSBC Middle East office is headquartered in the Dubai International Financial Centre, offering car, overdraft and personal loans in the UAE and the Middle East.
Mashreq Mashreq Bank is another long-standing financial organization in the UAE. Mashreq Bank offers an extremely popular set of financial instruments and services such as credit cards and loans, which are available in dozens of countries across the globe. Mashreq Bank offers its UAE residents various automotive and personal loans.
Noor Bank Noor Bank is one of the select few banks in the UAE that does not publicly list its shares in a public stock exchange. Formed in 2007, Noor Bank is an Islamic Banking institution that offers a plethora of financial products that are 100% Shariah-compliant. Noor Bank provides car and personal loans in the UAE.
RAKBANK RAKBANK was created in 1976 and derives its name from the emirate it is headquartered in - Ras Al Khaimah. While the bank initially catered to business entities exclusively, it made the shift to personal banking nearly a decade ago. RAKBANK offers a wide variety of services such as auto loans, personal loans, mortgage loans and more.

(Updated as of May 2019)

Eligibility Criteria & Required Documents for a Personal Loan

Not every bank carries the same criteria for personal loan eligibility in the UAE. But it is safe to say that most of the best personal loans in the UAE commonly ask for the following requirements:

Age Limit

Personal loan eligibility in the UAE usually includes a minimum age of 21 years and maximum age of up to 65 years. This eligibility criterion is more relaxed for UAE nationals than those seen across personal loans in the UAE for expats. Nationals are offered the lowest interest rate personal loans in the UAE and can also receive the best personal loans in the UAE right up to the age of 70 years.

Minimum Income

Applicants will also have to meet a certain minimum salary for personal loans in the UAE. This minimum salary requirement varies from issuer to issuer and on the basis of the requested personal loan amount.

Employment History

One cannot avail of a personal loan in the UAE without being employed. Some banks make it necessary for the applicant to have a UAE employer, while others even set restrictions on the length of service – i.e. a required minimum number of months served in the organization. It is extremely difficult to get a personal loan in the UAE without a company listing.

UAE Residency

It goes without saying that only UAE residents may apply for a personal loan in Dubai or any other emirate of the UAE. And when it comes to a personal loan, UAE nationals are offered the best of benefits. These benefits can include higher loan amounts, longer tenors, relaxation on age criteria and much more. However, this does not mean that there is any shortage of excellent personal loans in the UAE for expats either.

Salary Transfer

While it is rare to find a bank that offers personal loans in the UAE without a salary transfer, some banks allow applicants to make transfers to a bank of their choosing instead. It should be noted that making a salary transfer with the bank can unlock huge benefits. Some of the best personal loan interest rates in the UAE are offered to customers that make regular salary transfers to the loan-issuing bank. Online personal loan comparisons can help easily identify banks that offer a personal loan in the UAE without a salary transfer.

Applicants will also be required to submit the following documents to avail of a personal loan in the UAE:

  1. Application Form: The very first document that applicants will be required to submit is the personal loan application form.
  2. ID Proof: A valid UAE id.
  3. Residency Proof: Expat applicants will be required to submit a valid UAE visa that proves their residency.
  4. Bank Statement: In order to prove their earning potential, applicants may be asked to submit a bank account statement for anywhere between 3 months to 1 year.
  5. Salary Transfer Letter (Optional): Personal loans in the UAE that mandate salary transfer will also require the applicant to submit a salary transfer certificate (or letter). It is very rare for a bank to offer a personal loan without a salary transfer and bank account statement.

How to Apply for a Personal Loan in the UAE

Applying for a personal loan in the UAE has never been simpler than it is today. Personal loans can be applied in one of two ways:

Through Bank Branches

Simply visit any of the bank’s branches in the UAE to begin the application process. Applicants are advised to print out the personal loan application form and fill it in before visiting the branch for a faster process. Branch applications are especially useful for new applicants who can benefit from talking to a customer representative about the various calculations for personal loan interest rates in the UAE and more.

Through the Online Portal

A small indicator of the best personal loans in the UAE is the bank’s attention to their online banking. Most modern banks today employ the highest level of online security to ensure safe and convenient banking. Personal loans in the UAE may also be applied for online, provided the bank has such a portal. Online personal finance platforms are host to generous personal loan offers in the UAE and can be used to quickly make personal loan comparisons.

But before applying for any personal loan, customers should first remember to use a personal loan EMI calculator (usually available on the bank’s site itself) for an accurate estimate of how much they’d be paying every month. Secondly, the lowest interest rate for a personal loan in the UAE can only be found by making thorough personal loan comparisons.

 

Name of the Bank

Loan Offered

Interest Rate/ Profit Rate

Eligibility

Processing Fee

ADIB

ADIB Personal Loan for Expats- up to 1 million AED

6.75- 20 percent (reducing)

  • Age: 21 to 60yrs
  • Emp: Status- 6 months’ service/job confirmation
  • Sal Req: 8,000AED/month

NIL

ADIB Personal Loan for UAE Nationals- up to 3 million AED

  • Age: 21 to 65yrs
  • Emp: Status- 3 months’ service/job confirmation
  • Sal Req: 8,000AED/month

Citibank

Citibank Personal Installment Loan- up to 175,000 AED

With salary transfer: 6.99- 14.99 percent per annum (reducing)

Without salary transfer: 13.99- 24.99 percent per annum (reducing)

 

 

  • Sal Req: 8,000AED/month

 

One percent of loan amount

(Minimum- 500 AED

Maximum- 2500 AED)

Citibank Salary Transfer Personal Loan- up to 250,000 AED

6.99- 14.99 percent per annum (reducing)

 

  • Emp: Status- 6 months’ service/job confirmation
  • Sal Req: 8,000AED/month

Emirates Islamic Bank

Emirates Islamic Bank Personal Loan for Expats- up to 2 million AED

5- 7 percent per annum (reducing)

  • Age: 21 to 60yrs
  • Emp: Status- minimum one month or credit first salary to Emirates Islamic Account
  • Sal Req: 5,000AED/month

0.75 percent of finance amount on Certificates Murabaha

One percent of finance amount on Goods Murabaha/ Shares Murabaha/ Services Ijarah (Minimum- 500 AED

Maximum- 2500 AED)

 

Emirates Islamic Bank Personal Loan for UAE Nationals- up to 4 million AED

  • Age: 21 to 60yrs
  • Emp: Status- minimum one month or credit first salary to Emirates Islamic Account
  • Sal Req: 5,000AED/month

CBD

CBD Personal Loan for Expats- up to 750,000 AED

Starts from 5.50 percent (reducing)

  • Age: 21 to 65yrs
  • Emp: Status- 6 months’ service/job confirmation
  • Sal Req: 8,000AED/month

Flat one percent of loan amount (Minimum- 500 AED

Maximum- 2500 AED)

CBD Personal Loan for UAE Nationals- up to 3 million AED

  • Age: 21 to 65yrs
  • Emp: Status- 6 months’ service/job confirmation
  • Sal Req: 8,000AED/month

Noor Bank

Noor Bank Personal Loan for Expats- up to 20 times the salary

Starts from 3.49 percent

  • Age: 21 years & more
  • Emp: Noor Bank approved employer
  • Sal Req: 8,000AED/month

One percent of loan amount (Minimum- 500 AED

Maximum- 2500 AED)

Noor Bank Personal Loan for UAE Nationals- up to 20 times the salary

First Abu Dhabi Bank (FAB)

FAB Personal Loan for Expats- up to 2 million AED

From 6.75 percent per annum (reducing)

 

  • Age: 21 years & more
  • Emp:Employed at semi-government, government, or reputed private organization
  • Sal Req: 8,000AED/month

1.05 percent of loan amount

(Minimum- 525 AED

Maximum- 2,625 AED)

FAB Personal Loan for UAE Nationals- up to 5 million AED

Emirates NBD

Emirates NBD Personal Loan for Expats and UAE Nationals- up to 800,000 AED

NA

  • Banking Relationship: 12 months’ minimum
  • Emp- 6 months with current employer & six salary credits
  • Sal Req: (AED per month):6,000(12,000 for account holders having no auto loan or credit card)

One percent of loan amount (Minimum- 750 AED)

Emirates NBD Personal Loan for Salary Transfer- up to 2,000,000 AED (4 million for UAE Nationals)

Starting from 5.19 percent (reducing) and 2.90 percent (flat) per annum

  • Emp: approved by Emirates NBD
  • Status- Minimum six months of service
  • Sal Req:5,000AED/month

Emirates NBD Personal Loan for Self-employed Professionals &
Individuals- up to 300,000 AED

Starting from 18.99 percent (reducing)

  • Avg Bal for min.six months: 20,000 AED/25000 (for self-employed professionals)
  • Sal Req:NIL AED/month

HSBC

HSBC Personal Loan for Expats- up to 600,000 AED

Starting from 7.49 percent per annum (reducing)

 

  • Age: 21 to 65yrs
  • Sal Req: 7,500AED/month

1.05 percent of loan amount

(Minimum- 525 AED

Maximum- 2,625 AED)

HSBC Personal Loan for UAE Nationals- up to 750,000 AED

Al Wifaq

Al Wifaq Personal Loan for UAE Nationals and Expats

N/A

  • Emp: Semi-government, government, or private employer (approved)
  • Status: 3 months’ service or job confirmation
  • Sal Req:(AED per month): 10,000- 20,000 based upon the employer of the applicant

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

Union National Bank

UNB Personal Loan for Expats- up to 20 times the salary

Starting from 5.68 percent per annum

  • Age: Minimum- 20 years five months and seven days (while applying)
  • Maximum: 59 years eleven months (while maturity of loan)
  • Sal Req:5,000AED/month

1.05 percent of loan amount

(Minimum- 525 AED

Maximum- 2,625 AED)

UNB Personal Loan for UAE Nationals

Starting from 4.50 percent per annum

  • Emp: Semi-government, government, or privat employer (approved)
  • Status- 3 months’ service or job confirmation
  • Sal Req:(AED per month): 10,000- 20,000 based upon the employer of the applicant

Mashreq Bank

Mashreq Bank Personal Loan for Expats- up to one million AED

6.49- 31.99 percent

  • Employment: approved by Mashreq
  • Status- 6 months’ service or job confirmation
  • Sal Req:(AED per month): 7,000- 10,000 based upon the employer of the applicant

1.05 percent of loan amount

 

Mashreq Bank Personal Loan for UAE Nationals- up to 3 million AED

 

5.99- 12.99 percent

  • Empl: approved by Mashreq
  • Installments: Loan Installments and overall regular installments (per month) shouldn’t be more than 50 percent of the salary (per month)
  • Sal Req:10,000AED/month

National Bank of Fujairah

NBF Personal Loan for expats- up to 20 times the salary

5.25 percent per annum (reducing)

  • Age: 21 to 60yrs
  • Other: Salaried Individual
  • Sal Req:5,000AED/month

 

0.5 percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

NBF Personal Loan for UAE Nationals- up to 20 times the salary

  • Age: 21 to 60yrs
  • Other: Salaried Individual
  • Sal Req:5,000AED/month

Abu Dhabi Commercial Bank

ADCB Personal Loan for expats

Starting from 6.25 percent per annum

 

  • Sal Req: N/A

1.05 percent of loan amount

(Minimum- 525 AED)

ADCB Personal Loan for UAE Nationals

Starting from 5.25 percent per annum

Al Hilal Bank

Al Hilal Bank Personal Finance

N/A

 

 

  • Sal Req:12,000AED/month

1.05 percent of loan amount

(Minimum- 525 AED

Maximum- 2,625 AED)

Al Khaliji France

Al Khaliji France Personal Loan

N/A

  • Net Salary Transfer: 25,000 AED and above
  • Monthly Balance: Minimum 300,000 AED in personal deposits (average)
  • Sal Req: N/A

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

Finance House

Finance House Personal Loan for expats and UAE Nationals- up to 250,000 AED

Starting from 12.99 percent (reducing)

  • Age: 21 tO 60yrs
  • Residence: Expatriate residents of UAE and UAE Nationals
  • Emp Status: 6 months’ service or job confirmation
  • Sal Req:5,000AED/month

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

Dunia Finance Bank

Dunia Finance Personal Loan

Up to 39.99 percent p.a.

  • Identity Proof: Should have Emirates ID
  • Other: Monthly salary transferred to bank account
  • Sal Req:5,000AED/month

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

Ajman Bank

 

 

 

 

 

Goods Murabaha Personal Finance- up to 3,000,000 AED

N/A

 

 

 

 

 

  • Age: 21 to 60
  • Sal Req:65,00AED/month

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

Murabaha (settlement of debt/ standard personal finance)- up to 3,000,0000 AED

Services Ijarah: Umrah & Hajj Finance for UAE Nationals & Expats- up to 300,000 AED

Services Ijarah- up to 3,000,0000 AED (for UAE Nationals), up to 1,000,0000 AED (for expats)

Services Ijarah: Education Finance for UAE Nationals & Expats- up to 750,000 AED

Murabaha (Take-over Finance for UAE Nationals)- up to 4,500,000 AED

  • Age: 21 to 60
  • Sal Req:20,00AED/month

Mawarid Finance

Mawarid Finance Personal Finance- up to 100,000 AED

N/A

  • Residence: Offered to the residents of the UAE
  • Emp: approved by Mawarid Finance
  • Sal Req: N/A

N/A

Samba Financial Group

Samba Financial Group Salary Transfer Personal Finance- up to 600,000 AED

9- 26 percent (reducing)

  • Empl: 6 months’ service or job confirmation
  • Sal Req:5,00AED/month

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

Sharjah Islamic Bank

Sharjah Islamic Bank Personal Finance

N/A

  • Residence: UAE residency
  • Bank Account: Should have an account with Dubai Finance Market, Sharjah Islamic Finance Services, and Abu Dhabi Securities Exchange
  • Sal Req: N/A

1.05 percent of loan amount

(Minimum- 525 AED

Maximum- 2,625 AED)

Dubai First Bank

Dubai First Personal Loan- up to 250,000 AED

18- 25.99 percent (reducing)

  • Age: 21 to 60yrs
  • Other: Salaried Individual
  • Sal Req: N/A

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

United Arab Bank

UAB Personal Loan for Expats- up to 2 million AED

5.25 percent (reducing)

  • Age: 21 to 60 yrs
  • Empl: UAE employer that is UAB approved, or semi-government/government companies
  • Sal Req: 7,500AED/month

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

UAB Personal Loan for UAE Nationals- up to 2 million

  • Age: 21 to 65 yrs
  • Emp: UAE employer that is UAB approved, or semi-government/government companies
  • Sal Req: 7,500AED/month

Dubai Islamic Bank

DIB Personal Loan for Expats- up to 2 million AED

11- 21.99 percent per annum

  • Sal: Transferring salary to DIB or other bank
  • Sal Req:3,000AED/month

Minimum- 1050 AED

Maximum- 2620 AED

DIB Personal Loan for UAE Nationals- up to 4 million AED

Standard Chartered Bank

Standard Chartered Personal Loan- up to 500,000 AED

7.05 percent (reducing) per annum

  • Age: 21 to 65 yrs
  • Sal Req: 30,000AED/month

1.05 percent of loan amount

(Minimum- 525 AED

Maximum- 2,625 AED)

Commercial Bank International

CBI Personal Loan for expats- up to one million AED

6- 12 percent (reducing)

  • Age: 21 to 60 yrs
  • Status: 6 months’ service or job confirmation
  • Sal Req: 8,000AED/month

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

CBI Personal Loan for UAE Nationals- up to one million AED

  • Age: 21 to 65 yrs
  • Status: 6 months’ service or job confirmation
  • Sal Req: 8,000AED/month

 

RAK Bank

RAK Bank Personal Loan for expats

Starting from 5.99 percent

  • Age: 21 to 65 yrs
  • Sal Req: N/A

One percent of finance amount (Minimum- 500 AED

Maximum- 2,500 AED)

RAK Bank Personal Loan for UAE Nationals

  • Age: 21 to 65 yrs
  • Sal Req: N/A

How is the Personal Loan EMI amount calculated?

Ans:

The EMI for the personal loan is calculated using the personal loan EMI calculator. You will need the principal amount, the rate of interest and the repayment tenure to calculate your EMI. The calculation is done using a simple formula-

                P * R * [(1+R) ^ N] / [(1+R) ^ N-1]

Here, 'P' is the principal amount. 'R' is the rate of interest and 'N' is the repayment tenure

Which is better, personal loan or a credit card loan in UAE?

Ans:

This would depend on the situation and the finance amount. The credit card is suitable when you need a small amount of loan instantly. With one swipe of the card, you have the loan. However, the credit card loan includes high-interest rates.

The personal loan is the best option when you need a large sum of money within a few days. For example, to renovate your home or to pay the school or medical fees, a personal loan is what you should opt for. It offers up to 48 months of repayment tenure with low-interest rates per annum.

How can I bargain for a better rate of interest for a personal loan in UAE?

Ans:

To bargain for personal loan interest rate in UAE, you should make sure to have a high credit score.  Credit score makes all the difference in the world of finance. As it is, banks offer a low-interest rate to the applicants with good credit score as they are considered as a person with low-risk appetite. However, if you are not satisfied with it, you will need to have excellent negotiation skills and a high credit score.

How to deal with credit card debt using personal loans in Dubai?

Ans:

You can pay credit card debt by personal loan. As it happens with credit cards, as debts are left unpaid, over time the interest rates and the debt increases. It can help pay the credit card bill by consolidating the debt. It has lower interest rates compared to credit cards. You can repay the loan amount in easy monthly installments over the next few years.

Are personal loans taken as tax exemptions in Dubai?

Ans:

The system of Income-tax does not exist in the UAE. However, the VATs are charged on certain situations. Therefore, the VAT on personal loans would depend on particular banks and their charges.

Can a student apply for a personal loan in UAE?

Ans:

No, a student cannot apply for a personal loan unless specifically implied by the bank or he/she has a guarantor. The eligibility requirements of the personal loan include the minimum monthly salary and the age limit between 21-65 years. Also, some also require salary transfer or proof of employment. You can always apply for student/ education loan as a guarantor.

Should I take a personal loan to fund my startup in UAE?

Ans:

That would depend on personal preference. You should know that you are required to pay the EMI for the personal loan from the following month of the funding. However, you can take a loan, ensuring you’ve sufficient amount to pay the monthly EMIs at least.

Can we use a personal loan for marriage purposes in Dubai?

Ans:

Yes, you can use a personal loan to fund marriage ceremonies. These loans are given to anyone who needs it as long as they meet the eligibility criteria. To get a personal loan, you should have a minimum monthly salary as specified by the bank. Your age should be 21 years or above. You should be employed at one of the listed companies in the bank or salary transfer should be done.

If your application for the loan is accepted, you will have up to 48 months to repay the loan in easy monthly installments.

Can I take a personal loan in UAE from two different banks at the same time?

Ans:

Yes, you can take two different loans at the same time. However, there are some requirements to be met.

  1. You should have a very high credit score
  2. Your debt to burden ratio should be more than 50%
  3. You should also meet the eligibility requirements of the particular banks

What if I don’t pay the EMI of a personal loan in Dubai?

Ans:

If you are unable to pay the personal loan EMI, get in contact with the bank and try to find a solution. If you try to avoid the situation, it will become worse for you. The banks will start by warnings. If you don't respond, they will send debt collectors. If there is still no response from your end, they will mark you as a defaulter or drag you to the court. With a defaulter tag, you’ll not be able to take any loan further.

Therefore, it would be better for you to contact the bank and explain your situation. Sometimes, they may lower your EMIs.

Is there any way to calculate my obligations before applying for a personal loan?

Ans:

It is extremely wise to calculate your obligations before applying for a personal loan in the UAE. This can be done through a personal loan calculator, which is usually available on the loan issuer’s site itself. If this is not available, customers may instead enter their details into any generic personal loan calculator in the UAE for a reliable figure.

Is it good to pay off credit card debt with a personal loan in UAE?

Ans:

Yes, it is a good idea to pay off your credit card debt with a personal loan. Not only will this help you get rid of the high credit card interest rates, but you can also consolidate the debts and pay it off in one go. You won't have to worry about the increasing interest rates as personal loan interest rates are fixed. You will also have a few months or years to pay off your entire loan.

Can I prepay my personal loan without any extra charges in Dubai?

Ans:

Most of the banks in the UAE charge a fee for an early settlement of the personal loan. This can be anywhere between 1-3% of the outstanding balance or AED 10,000 approximately (whichever is lower). There are not many banks in the UAE who offer an early settlement with no fee.

Is there a prepayment penalty on personal loan in UAE?

Ans:

It's not a penalty, rather a fee for the early settlement of the personal loan. It can be any one of the two- approximately AED 10,000 or 1-3% of the outstanding amount. The banks charge a lesser amount between the two options.

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