By clicking on "Proceed to personal Details" you, agreed to our Privacy Policy and Terms of use

Personal Loan in UAE

Personal loan is an unsecured loan meaning there is no collateral or guarantor required to avail it. Personal loan in UAE is a type of loan procured by an individual from a bank or financial institution in the Emirates to meet their various personal financial needs. personal loan in uaeThe needs may include wedding, higher education, international trip, starting a new business, and even for debt consolidation.

The maximum loan amount can be equal to 20 times of the monthly salary, which can be availed with a repayment period of 48 months. The personal loan interest rate in UAE or the permissible loan amount is decided based on the factors such as source of income, credit history, age, employment status of the applicant etc.

Personal Loan Interest Rate in UAE

Personal loan interest rate in UAE is an additional charge that is levied upon the principal loan amount.   There are two types of interest rates applied by the banks in UAE- Flat Interest Rate and Reducing Interest Rate.

Flat Interest

Flat interest is charged on the total loan amount, which remains constant throughout the loan tenor. It is costlier than the other one, as it is charged on the entire loan amount. The interest rates may range from 2.63% - 22.22%.

Reducing Interest

Opposite to the flat interest rate, this rate of interest rate gets reduced every time the loan borrower pays the installment. Reducing interest rate is charged only on the outstanding principal amount of the loan, which can be ranged between 5.24% - 39.99%.

Best Personal Loans in UAE

Please find below the list of 10 best personal loan in UAE.

Personal Loan Interest Rates Comparison:

Personal Loan Provider Personal Loan Offered Personal Loan Reducing Interest Rate / Profit Charges Personal Loan Tenor Salary Transfer
Emirates NBD Personal Loan UAE Nationals: AED 4 millionExpats: AED 2 million Reducing Rate: 5.49% Flat Rate: 2.90% 12 months - 48 months Not Mandatory
HSBC Personal Loan UAE Nationals: AED 1,000,000Expats: AED 750,000 Starting at 7.49% 12 months -48 months Mandatory
RAKBANK Personal Loan Up to 20 times the applicant's salary Starting at 5.99% Up to 48 months. 60 months (for Armed Forces) Mandatory
Citibank Personal Loan Up to AED 175,000 or up to 8 times the applicant's salary

Without Salary Transfer: 14%-30%  With salary transfer: 8%-15%

6 months - 48 months Not Mandatory
ADIB Personal Loan UAE Nationals: AED 3 millionExpats: AED 1 million Starting at 6.75% Up to 48 months Mandatory
Commercial Bank of Dubai (CBD) Personal Loan UAE Nationals: AED 3 millionExpats: AED 750,000 Starting at 5.50% Up to 48 months Mandatory
United Arab Bank Personal Loan Up to AED 2 million Starting 5.25%  Up to 48 months Mandatory
Standard Chartered Personal Loan Up to AED 500,000 Starting at 7.55% Up to 48 months Mandatory
Dubai Islamic Bank (DIB) Personal Loan UAE Nationals: Up to AED 4 million Expats: Up to AED 2 million Starting at 11%  Up to 48 months Not Mandatory
Commercial Bank International (CBI) Personal Loan Up to 20 times the applicant's salary for a maximum of AED 1 million Starting at 5.25% Up to 48 months Mandatory

Disclaimer: Interest Rates are subject to change any time.

Personal Loan Tenor:

Personal Loan can be classified as a short to medium term finance, offered to an individual. As opposite to the other type of loans, it generally comes with a shorter tenor for repayment; minimum repayment period 6 months and maximum 48 months in most cases. Based on the profile of the individual applicant as well as the lender, the Annual Percentage Rate or APR of a personal finance can vary from 8% to 34% in the UAE.

Processing Fee: 0.95 percent of the loan amount.

Documentation Charges: Nil

Types of Personal Loan in the UAE

This multi-purpose loan is offered for both expats and the UAE Nationals. Listed below are the different types of personal loans available in the UAE.

1)   Personal Loan in UAE for Expats

The people who are not the residents of the UAE but live in the country due to job or business are called expatriates., Expats have the option to request for a personal loan in order to meet their financial obligations.

2)   Personal Loan for UAE Nationals

For the UAE Nationals, obtaining a personal loan is quite simple. The terms & conditions are also more favorable in comparison to those offered on the personal loan in UAE for expats.

Further, the personal loan can be classified on the basis of salary transfer.

3)   Personal Loan in UAE with Salary Transfer

Most of the loan providers in the UAE have a pre-determined criterion for availing personal finance. Salary transfer is one of the eligibility requirements for many personal loans, where banks expect the applicants to have a salary account with the bank.

4)   Personal Loan in UAE without  Salary Transfer

While most of the banks need the applicant to transfer their salary with them in order to obtain this loan, there are some providers who do not make this a hard & fast rule.

5)   Personal Loan in UAE for Self-employed Professionals

Self-employed professionals are those who have their own business. These professionals may sometimes find it difficult to get loans as they do not earn a fixed income. However, they may also apply for a personal loan with certain financial institutions in the UAE.

Personal Loan in UAE Eligibility Criteria

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 loan in UAE commonly asks 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. As the benefits are flexible to UAE Nationals, they can avail the best personal loans in UAE right up to the age of 70 years.

Minimum Income

Applicants will also have to meet a certain requirement of minimum salary for personal loan in UAE to avail this loan. This minimum income requirement varies from lender to lender and on the basis of the applied loan amount.

Employment History

One cannot avail of a personal loan without being employed. While some banks require the applicants to have employment under UAE employers, some other set a particular length of service at least up to a couple of months. In this case, availing get a personal loan in UAE without company listing is impossible.

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 for UAE nationals, they are offered the best of benefits including higher loan amounts, longer tenors, relaxation on age criteria and much more.

Salary Transfer

While banks in UAE offer both personal loans in UAE without a salary transfer or with salary transfer, some banks allow applicants to make transfers to a bank of their choice instead. Note that making a salary transfer with the bank can unlock huge benefits such as apt personal loan interest rates in UAE, online comparison and check if any bank is offering loan without salary transfer etc.

Documents Required for a Personal Loan in UAE

Applicants will also be required to submit the following documents to avail of a personal loan in Dubai or other Emirates:

  • Application Form: The very first document that applicant will be required to submit is the application form
  • ID Proof: A valid Passport, Visa and Emirates ID
  • Residency Proof: Expat applicant will be required to submit a valid UAE visa that proves their residency
  • Bank Statement: In order to prove their earning potential, applicant may be asked to submit a bank account statement for anywhere between 3 months to 6 months
  • 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).

How to Apply for a Personal Loan in the UAE

Applying for the best personal loan in UAE has never been simpler than it is today. These loans can be applied through one of the two ways:how to apply for a personal loan in uae

Through Bank Branches

Those who want to apply directly through the bank:

  • Simply visit the branch of the preferred bank
  • Fill the loan application form on spot
  • Take help from the customer care representative or bank person to know about personal loan interest rate in UAE and more
  • Apply instantly

Through the Online Portal

How to apply personal loan online is amongst the most common question asked by people. In this regard, applying personal loan online is the most convenient and less time taking. Almost all banks offer their services online. Online platforms are host to generous personal loan rates in UAE and can be used to quickly make personal loan comparison UAE. While comparing, the use of personal loan EMI  calculator is recommended to calculate the EMI amount. Well, online comparison is the best way to find the lowest interest rate for personal loan in UAE

Considering the aforementioned ways of applying, let’s consider the processing of personal loan here.

Processing of Personal Loan in the UAE

A personal loan is amongst the best solution when in need of quick cash for any financial emergency. Here’s how this loan gets processed in the UAE.

1) Eligibility

In order to process the loan application, the foremost thing is to check the eligibility such as age, employment status, credit score, minimum salary requirement etc. Once the applicant meets the eligibility, they can move for the next step.

2) Loan Calculator

The next step is to know the loan EMI. Using the loan calculator, the applicant can calculate their EMI, which they will have to pay towards principal as well as interest payment during the tenure of the loan.

3) Online Application

After calculating an estimate of the monthly installments, the applicant can apply for the loan online. They just have to fill in their basic details in the online application form.

4) Submitting the Documents

In order to take their application ahead, the applicant has to submit the required documents to the loan provider along with the form.

5) Verification

The concerned loan provider will then verify the loan application as well as the documents submitted.

6) Approval

If the application gets successfully verified, then the loan provider will approve the loan request. The loan gets sanctioned after the approval.

7) Disbursal

Once the applicant receives the approval, the amount is transferred to their bank account. They are free to use this amount for any purpose they like unless it’s illegal.

Features & Benefits of  Personal Loan in UAE

Over the last decade, UAE has been witnessing an enormous surge in financial lending. The emergence of various banks and lenders has led to the introduction of competitive personal loan interest rate in UAE. The features and benefits of these loans are mentioned below:benefits of personal loan in UAE

Secured & Unsecured Loans

Personal loans are usually unsecured loans, which don’t ask for any collateral. However, this clause may vary in case of a larger amount is disbursed with the lowest interest rate for personal loan in Dubai or other emirates.

Salary Transfer vs Non-Salary Transfer

By making their salary transferred to the respective banks, loan holders can be eligible for a loan with lower rate of interest, higher loan amount or other benefits. Salary transfer clause is even mandatory by some lenders in the UAE, making it impossible to get a personal loan in UAE without salary transfer from them.

Rate of Interest

Rather than comparing banks to find the lowest interest rate for personal loan in UAE, one must focus on the types of personal loan interest rates in the UAE instead. Usually, there are two types of interest charged on these loans- flat interest and reducing interest. While flat interest is charged on the total loan amount and remains constant throughout, reducing rate of interest gest reduced every time an installment is paid. Reducing interest is usually the lowest interest rate from personal loan in UAE.

Phone & Online Banking

Banks offering best personal loan in UAE also ensure the high-end facilities. With phone and online banking, from loan application to disbursement and right up to settlement, applicant may avail of the best personal loan from the comforts of their own home

Renewed / Top-Up Loans

The loan holders can apply for top-up loan and enjoy interest rates, higher tenors and larger loan amounts, provided a fixed number of payments in the pre-existing loan is made regularly.

Loan Cancellation

A few lenders offering the best personal loan in Dubai allow loan holders to cancel their availed personal loan in the grace period. No interest or fee is charged during this time, given that the complete loan amount is returned by the borrower.

Instalment Deferment

With deferment feature, the borrower can postpone their monthly installments for a personal loan in Dubai or any other emirate, in case of an emergency situation. This is allowed up to a specific period.

Quick Loans

With the constant competition in the market, lenders aim to offer the best personal loan in Dubai by reducing their turnaround time to mere minutes. Availing consumer loans in the UAE for expats and Emiratis is a matter of few clicks now.

Debit & Credit Cards

Some personal loans offer free debit and credit cards as a part of their perks. However, most of these cards are free for the first year only, so be careful.

Insurance

Insurance or Takaful benefit is another unique feature which covers the outstanding dues of the loan in the event of an unforeseen event leading to loss of income. Certain policies even compensate the family of the borrower with an amount equal to the outstanding loan, in case of the untimely demise of the borrower.

Cashback & Statement Credit

Certain consumer loan offers in the UAE reward new customers with incentives such as cashback or statement credit.

Personal Loan Repayment Tenure

Personal finance comes with a repayment tenor, which is decided by the lenders depending on the borrowed amount. The maximum repayment tenor can be 48 months within which the borrowed amount has to be paid back. Let’s consider some of the related terms of loan tenor:

EMI

The EMI (Equated Monthly Installment) is a monthly fixed payment, which is used for clearing off the outstanding loan amount. The personal loan EMI is based on the interest rate, loan tenure, and the loan amount.

Full Pre-payment

If the borrower makes the prepayment of the loan in full relatively early into the loan tenure, they can save a lot on interest. After the end of lock-in period, the borrower can make the prepayment of the complete outstanding amount.

Part Payment

Part-payment of the loan can be done when the borrower has a lump sum amount of money, but not equal to the entire outstanding amount. This is a good option as it helps to reduce the unpaid personal loan in UAE, which further helps in bringing down the total interest to be paid as well as the EMI.

Personal Loan Rules to be Followed in the UAE

The Central Bank in the UAE has stipulated a few rules and regulations for personal loan in Abu Dhabi and other Emirates. Mentioned below are some of these rules.

1)   Repayment Tenure

The tenure for repayment of these unsecured loans should not exceed 48 months.

2)   Limit

Usually, the maximum loan amount offered in the UAE is 20 times the monthly income or total salary of the borrower.

3)   Debt Burden Ratio (DBR)

The deductions from the regular salary or income of any borrower for each kind of loan issued by the financial company or provider should not be more than 50 percent of the regular as well as gross income from a defined source at one time.

4)   Loans for Self-employed Individuals

The loans provided to the sole proprietorship and companies that are secured by the incomes of partners or owners are considered in the same manner as the personal loan.

Security Check

Banks or financial institutions may only take a certain number of post-dated cheques from the customer that cover the installment & value below 120 percent of the debit balance or loan value.

5)   Application Forms

The borrower has the option to avail this loan on getting approval on their application from the bank or financial institution along with a standard agreement.

6)   Loan for Armed Forces

There is a fixed DBR of 50 percent. If the banks do not stick to these rules, the Armed Forces can transfer their income to some other bank with no obligation to refer to the bank that has provided the loan.

7)   Processing Charges

The processing charges levied by the banks in the Emirates must not exceed 2,500 dirhams.

Personal Loan Dos and Don’ts

By considering the following dos and don’ts one can avoid rejection of personal loan application:

Things to Consider

Things to Avoid

Maintain a stable employment history

Don’t furnish an unstable employment history

Make the payments on time without fail

Don’t degrade credit score as it marks a negative impact

Maintain  a good credit score as personal loan without credit check in UAE is impossible

Don’t fill the application form in rush.  A small mistake can lead to loan rejection

Check for a steady source of income

Don’t miss an installment

Clear the existing outstanding loans before applying for a new one

Don’t apply for a new loan without clearing the outstanding loan amount

Try maintaining a lower debt-to-income ratio

Don’t ignore eligibility criteria such as age, minimum salary transfer etc.

Quick Tips to Avail the Right Personal Loan in the UAE

Getting a personal loan in Abu Dhabi or any other Emirate for that matter could be a tedious task. Here are some tips to obtain this loan in the Emirates.

1) Shop Around

The first step to avail a suitable loan with the lowest interest rate for personal loan in Dubai is shopping around at different lenders.

2) Checking and Reviewing the Terms & Conditions

The terms & conditions of the loan are as essential as the personal loan interest rate in UAE may vary from one provider to another.

3) Types of Rate of Interest

There are two types of rate of interests applied by various loan lenders, reducing and flat rate of interest. Considering this, the maximum ROI cap up to which a loan can be availed is:

  • Reducing rate:24% - 39.99%
  • Flat Rate:63% - 22.22%

4) Stay Aware of Added Products

Some of the lenders automatically register the borrower for added products such as payment protection or credit insurance right after the loan disbursal. Checking the insurance terms carefully may assist the borrower in identifying whether they should continue with it or not.

Reasons to Apply for a Personal Loan at Policybazaar.ae

Policybazaar.ae is one of the most trusted financial marketplaces for products such as personal loan. With its wide-spread connection with various leading banks or financial institutions in the Emirates, it offers a user-friendly platform to compare various financial products including personal loans. With Policybazaar UAE, one can buy or apply for personal loan, compare the banks based on their offerings and get the best deal ever.

How to Apply for a Personal Loan at Policybazaar?

Loan seeker in UAE can easily apply for personal loan through Policybazaar.ae by following the below steps:

  • Just visit the official website of Policybazaar.ae
  • Go to the personal loan section
  • Fill in the required application form by providing certain information such as name, email ID, contact number and click on the proceed button
  • After submitting the information, this will lead to the loan detail page, with the banks offering personal loans with their interest rate, loan features, and more
  • The applicant can select the one as per their requirement
  • Once the request is sent, the personal loan expert from Policybazaar.ae will get in touch with them for further assistance.

This way Policybazzar.ae makes personal loan buying process an easy victory.

Name of the Bank

Loan Offered

Interest Rate/ Profit Rate

Eligibility

Processing Fee

ADIB Personal Loan

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 Personal Loan

Citibank Personal Installment Loan- up to 175,000 AED

With salary transfer: 8-15 percent per annum (reducing)

Without salary transfer: 14-30 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

8-15 percent per annum (reducing)

 

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

Emirates Islamic Bank Personal Loan

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 Personal Loan

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 Personal Loan

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) Personal Loan

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 Personal Loan

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 Personal Loan

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 Personal Loan

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)

Mashreq Bank Personal Loan

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 Personal Loan

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 Personal Loan

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 Khaliji France Personal Loan

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 Personal Loan

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)

Deem Finance Personal Loan

Deem 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 Personal Loan

 

 

 

 

 

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 Personal Loan

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 Personal Loan

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 Personal Loan

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 Personal Loan

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 Personal Loan

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 Personal Loan

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 Personal Loan

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 Personal Loan

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 Personal Loan

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

Is there any advantage of opting for the life insurance scheme that comes with the personal loan?

Ans:

Nearly all personal loans offer a life insurance scheme to applicants. This insurance policy indemnifies the borrower from making payments in stipulated conditions such as fatal illness, permanent disability or death. Some personal loan in Dubai even offer life insurance policies that pay back the full borrowed amount to the policyholder’s family members, on death.

Do Shariah-Compliant banking organizations offer personal loan in UAE as well?

Ans:

Yes, the residents can avail of the best personal loan in UAE for Emiratis as well as expats through Shariah-compliant banking organizations too.  These best Islamic personal loan in UAE are known as personal finance and charge profit rate instead of interest rate.

What is payment deferment?

Ans:

Some lenders allow the borrower to ‘defer’ or postpone a month’s payment once every few months, as per the issuer’s policy. The borrower must maintain regular payments to avail of these advantages. Note that deferred payments do not decrease the principal amount and hence, will not decrease the reducing personal loan interest rate in UAE either.

What are top-up loans?

Ans:

Top-up or add-on personal loans are types of renewable loans that can be availed on top of the existing loan, once the borrower has successfully made a fixed number of payments. Top-up personal loan in UAE are used as a way to reward loyal, non-delinquent borrowers by offering larger tenors or lower interest rates, as per the bank’s policy.

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.  Through personal loan comparison UAE, you can compare the loan EMIs as well.

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

Ans:

This would depend on the situation and the finance amount. A credit card is suitable when you need a small amount of loan instantly. With one swipe of the card, you have the amount. However, credit card loan includes high-interest rates. Personal loan is the best option when  you  need  a larger sum of money within a  few days. For example, to renovate your home or to pay the school or medical fees, this loan is what you should opt for.

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

Ans:

To bargain for the offered interest rate for this loan in the Emirates, you should make sure that you have a high credit score. As it is, banks offer a low interest rate to the applicants with a good credit score as they are considered as those 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 loan in Dubai?

Ans:

You can pay credit card debt through a personal loan. In the case of credit cards, if debts are left unpaid, over time the interest rates and the debt increase. The loan can help to pay the credit card bill by consolidating the debt. It has lower interest rates as 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 in some cases. The VAT on these loans would depend on the concerned banks and their charges.

Can a student apply for a personal loan in UAE?

Ans:

No, a student cannot apply for this loan unless specifically implied by the bank or he/she has a guarantor. The eligibility requirements of the loan include the minimum monthly salary and the age limit between 21-65 years. Some also require salary transfer and proof of employment with a company listed with the lender. However, there are some lenders who provide personal loan in uae without company listing as well. 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 your personal preference. You should be aware that you are required to pay  the EMI for the loan from the month followed by the disbursal. You can take a loan, when you are sure 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 loan to fund wedding ceremonies. These loans are given to anyone who needs it as long as they meet the eligibility criteria.

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

Ans:

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

  • You should have a very high credit score
  • Your debt to burden ratio should be more than 50%
  • You should also meet the eligibility requirements of the concerned banks
  • You must earn a minimum salary for personal loan in UAE

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

Ans:

If you are unable to pay the loan EMI, get in touch with your bank and try to find a solution. If you try to avoid the situation, it will become worse for you. The banks will start with 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 even drag you to the court. With a defaulter tag, you’ll not be able to take any loan in the future. Therefore, it would be better for you to contact the bank and explain your situation. Sometimes, they may reduce 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 Dubai or other emirates. 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, the applicant can instead enter their details into any generic loan calculator in the UAE for a reliable figure.

Is it good to pay off credit card debt with this loan?

Ans:

Yes, it is a good idea to pay off your credit card debt through this 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 usually 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?

Ans:

You can make pre-payment of your loan, but by paying a fee. Most of the banks in the UAE charge a fee for an early settlement of the loan. 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 loan. It can be any   one of the two- approximately AED 10,000 or 1-3% of the outstanding amount. The banks charge    the lesser amount between the two options.

Our partners
  • newindia
  • oriental
  • slama
  • Union Insurance
  • watania
  • Noor
  • Dar-al-Takful