A personal loan in UAE is a convenient way to cover various expenses and repay in monthly instalments. This is an unsecured loan, which you can get in with relatively easier eligibility requirements. However, it can be challenging to choose the best personal loan among a wide range of options. ...read more
Get personal loan at Lowest Interest Rate
A personal loan helps in managing expenses. Unlike other loan types, it does not require any collateral, which makes it convenient and accessible. You can use it for various needs, like covering higher education costs, funding a wedding, consolidating debt, or even financing an international trip.
Choosing the right loan helps you get favourable terms and affordable repayments. With numerous options for personal loans in Dubai, Abu Dhabi, and other emirates, you must compare and choose the right option wisely. Banks even offer flexible repayment tenures, so immediate repayment is not required.
The personal loan interest rate in UAE is simply the cost that you pay for the borrowed loan amount. These rates are available as a flat interest rate or a reducing interest. Given below is the explanation -
Under the flat interest rate method, the interest is charged on the entire loan amount initially borrowed. It remains constant throughout the repayment tenure.
For instance, if you secure a loan at a flat rate, even as you pay down the balance, the interest calculation does not change. So if the lowest interest rate for personal loan in UAE starts at, say, 2.63%, your interest payments remain consistent, whether it is the first month or the last. In this case, the rates can possibly reach up to 22.22%.
On the other hand, under reducing interest rate, the interest decreases over time as you continue to pay off the loan amount. The interest is calculated on the remaining principal amount, which decreases after each installment.
For example, if you start with a loan at a reducing rate, each payment you make reduces the principal. The subsequent interest is then calculated on this reduced amount.The rates for reducing interest can vary from 5.24% to 39.99% in the UAE.
Personal loans in UAE come in a variety of options — you can find ample options to meet your specific financial needs and eligibility criteria.
Here is a look at some of the common types:
Personal loans are quite popular in the UAE as their applications are usually processed instantly. In fact, the loan amount, too, is disbursed quickly. With such features, this type of financing serves multiple purposes and lets you access funds in an instant without much stringent conditions.
Here’s what these loans are usually used for in the UAE -
Here is the list of the Best Personal Loan in UAE in 2024 with interest rates and other requirements. We have also given a detailed comparison between the various bank loans in UAE that offer the best-unsecured loan rates in UAE
Bank Name | Minimum Salary | Flat Rate* | Reducing Rate* | Apply |
---|---|---|---|---|
Commercial Bank of Dubai (Quick Loan) | AED 8,000 | 7.6% | 14% | Apply Now |
Emirates NBD (Loan for Expatriates) |
AED 5,000 | NA | 5.99% | Apply Now |
Emirates NBD (Loan for UAE Nationals) |
AED 5,000 | NA | 5.99% | Apply Now |
Deem Finance (Personal Loan) | AED 5,000 | NA | 15.99% - 34.99% | Apply Now |
First Abu Dhabi Bank (Personal Loan for Expats) | AED 7,000 | 2.82% | 5.34% | Apply Now |
First Abu Dhabi Bank (Personal Loan for UAE Nationals) | AED 7,000 | 4.74% | 4.89% | Apply Now |
HSBC (Persona Loan) | AED 7,500 | NA | 6.99% | Apply Now |
First Abu Dhabi Bank (New to Country Loans) |
AED 7,000 | 3.24% | 6.07% | Apply Now |
Dubai Islamic Bank (Personal Loan) | AED 7,000 | 4.9% | 5.99% - 21.99% | Apply Now |
Abu Dhabi Islamic Bank (Personal Finance) | AED 8,000 | NA | NA | Apply Now |
You can use Policybazaar.ae's personal loan calculator UAE to know your installments for the loan. As an online automated tool, this calculator provides you with an estimated EMI amount based on the information that you enter. Using this loan calculator in UAE, you can make an informed decision and get the best personal finance as per your requirements.
It’s important to remember that the cheapest personal loan in UAE may not always be the best!
To get the best plan for yourself, you need to check the costs as well as loan amounts, eligibility requirements, provider reviews, and more. For that, it’s always good to compare the top options.
To simplify the comparison process, here are some steps -
Final Decision: Once you have reviewed all these factors and decided which plan suits your needs best, learn more about how to proceed with the application process to get a personal loan in Dubai.
Let's take a look at the best and cheapest personal loans in UAE:
Emirates NBD has a comprehensive range of options to meet various financial needs. The bank provides loans with attractive interest rates starting from as low as 5.99%. The wide range of loan amounts and the simple application process make Emirates NBD a strong contender for the best personal loan in UAE for those who qualify under its terms.
Parameters | Emirates NBD Personal Loan for UAE Nationals | Emirates NBD Personal Loan for Expatriates |
---|---|---|
Loan Amount | Up to AED 4 Million | Up to AED 2 Million |
Zero Balance Account | Free | Free |
Requirement of Collateral or Guarantor | No | No |
Repayment Tenure | Up to 48 Months (Up to 60 months for Ministry of Defence employees) | Up to 48 months |
Salary Transfer | Mandatory | Mandatory |
Insurance | Included | Included |
Commercial Bank of Dubai (CBD) offers a range of best personal loan options that you can access without mandatory salary transfer. The bank provides instant loan approvals for amounts up to AED 150,000 through its mobile app — all with just an Emirates ID. CBD's flexible repayment terms and easy application process make its offerings some of the most user-friendly ones in the market.
Parameters | Commercial Bank of Dubai Personal Loan |
---|---|
Salary Transfer | Not required |
Who can Apply | Both new and existing customers |
Documents Required | Emirates ID |
Maximum Loan amount | AED 150,000 |
Age Required | Minimum – 21 Years and Maximum – 60 Years |
Loan Repayment Tenure | Minimum – 1 Year and Maximum – 4 Years |
First Abu Dhabi Bank (FAB) has a diverse range of loans for various segments of the population — UAE nationals, expats, and those new to the country or employment. FAB is known for its competitive interest rates and flexible repayment terms, making it a favourable choice for many looking for the cheapest personal loan in the UAE.
Parameters | First Abu Dhabi Bank Personal Loan for UAE Nationals | First Abu Dhabi Bank Personal Loan for Expatriates |
---|---|---|
Salary Transfer | Mandatory | Mandatory |
Comprehensive Life Insurance Coverage | Included | Included |
Grace Period for First Repayment | 210 Days | 120 Days |
Processing Fee | One-time upfront processing fee of 1.05% on the loan amount (minimum AED 525 and maximum AED 2,625) | One-time upfront processing fee of 1.05% on the loan amount (minimum AED 525 and maximum AED 2,625) |
Fast and Easy Approvals | Included | Included |
Maximum Loan Amount | AED 5 Million | AED 2 Million |
HSBC UAE offers a diverse suite of cheapest personal loan UAE options. These loans can be used for a wide range of needs — from education and home improvements to personal liquidity and rent payments. They are also known for flexible repayment terms — ranging from 6 to 48 months — and competitive interest rates.
Parameters | HSBC Personal Loan |
---|---|
Repayment Period | 6 to 48 months |
Insurance | Included |
Salary Transfer | Mandatory |
Maximum Loan Amount | AED 500,000 |
Eligibility | Must have a current account with HSBC — your salary must be credited to that account |
Nationality | UAE resident |
Dubai Islamic Bank (DIB) personal loans can go up to AED 4 million for UAE nationals and AED 2 million for expats. Their profit rates, meanwhile, start from 5.99% per annum on a reducing basis. DIB personal finance products are Sharia-compliant and offer a financial solution without the imposition of traditional interest, which aligns with Islamic finance principles. The bank also provides a quick and easy application process with minimal documentation required.
Parameters | Dubai Islamic Bank |
---|---|
Maximum Loan Amount |
|
First Instalment Payment |
|
Repayment Tenure | Up to 48 months |
Insurance | Included |
Salary Transfer | Mandatory |
Eligibility criteria for personal loans in the UAE vary from one financial institution to another, but there are common requirements that most banks and lending institutions generally consider.
Here is a table summarising these criteria:
Aspect | Personal Loan in UAE Eligibility |
---|---|
Age |
|
Minimum Salary | Approximately AED 5,000 to AED 8,000, varying by financial institution |
Employment Status | Must be employed with at least 6 months of confirmed salary at the current job |
credit Score | A good credit score is required to demonstrate creditworthiness and the capability to repay |
Residency | Must be a UAE resident |
Salary Transfer | Some may require, others may not |
Applying for a personal loan UAE online is both convenient and quick. The best platform for this is Policybazaar.ae. As one of the pioneering digital brands in the UAE financial services sector, Policybazaar.ae offers a convenient solution for those seeking financial products. Boasting an impressive Google rating of 4.6 from over 22,953 reviews, the platform provides unbiased financial expert advice and offers a wide range of financial institutions to choose from.
To apply via Policybazaar.ae, you can follow these steps:
To get a personal loan in the UAE, you need to provide several key documents to the bank or financial institution to verify your identity, financial stability, and employment status.
The following documents are required -
Ans: There is no specific bank offering the best personal loan. It entirely depends on your financial requirements and other criteria. Find the most suitable option on Policybazaar UAE!
Ans: You must have a minimum monthly salary of AED 5,000 to apply for a personal loan in UAE.
Ans: Unfortunately, you do not qualify for a personal loan with a salary of AED 4000. The minimum salary requirement is AED 5000.
Ans: Several banks approve your loan application and disburse the fund quickly, that is within 2-3 days. Some of them include Emirates NBD Bank, ADCB, FAB, and more.
Ans: Unfortunately, banks in the UAE do not offer a personal loan with a 3000 AED salary. A minimum salary of AED 5,000 is required to be considered eligible.
Ans: Yes, you can transfer your loan to a different bank with a lower interest rate. In fact you can get a new loan of the total outstanding amount.
Ans: An early settlement fee is fundamentally the cost a borrower needs to pay if the loan is settled in full before the end of the actual agreed tenure.
Ans: You can extend your personal loan if you opt for a top-up loan from your bank. Lending institutions often increase your repayment tenure when you choose to increase your loan amount via the top-up facility.
Ans: No, you must submit other documents along with the Emirates ID. A list of general documents for a personal loan application processing includes:
Ans: At Policybazaar UAE, we offer you the convenience of finding the best personal loan matching your financial and other requirements. Simply visit our website, fill out the quotes page and get a wide range of products to choose from.
Ans: Yes, you can pay more than your EMI. However, banks may or may not charge an early settlement fee. Make sure to be aware of the early settlement fees (if applicable) before proceeding.
Ans: As per the Central Bank of the UAE, personal loan borrowers must repay their borrowed amount within a tenure of 48 months.