Personal Loan in UAE

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

Personal Loan in UAE
  • Minimum Salary 5000 AED
  • EMI Tenure up to 48 Months
  • Lowest Interest Rates

Get personal loan at Lowest Interest Rate

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

What is Personal Loan?

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 in Dubai, 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.

Features & Benefits of Personal Loan in 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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Personal Loan Interest Rates

 Banks in the UAE offer 2 types of personal loan interest rates: reducing and flat rates.

  • Flat Rates - A flat interest rate on a personal loan means that the interest and total amount you need to repay are determined at the beginning of the repayment plan and stay the same until you've fully paid off the loan.
  • Reducing Rates - Reducing interest rates on a loan account for the decreasing principal amount after each installment. The fixed interest percentage is applied to the reduced balance monthly, leading to varying installments each month.

Why Should You Apply for a Personal Loan in UAE via Policybazaar.ae?

Instantly apply for a personal loan in Dubai, UAE only on Policybazaar.ae! This is your one-stop platform to apply for loans at affordable interest rates.

To initiate the application process, fill in the lead form with accurate personal information and click on the View Quotes tab. Once you are in the Quotes page, browse through the options available and hit the Apply Now button on the personal loan option that fits your budget.

If you end up getting stuck during the process, our industry experts are there to help.

How to Calculate Your Personal Loan EMI in UAE

You can use Policybazaar.ae's personal loan calculator UAE to know your installments 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 in UAE, you can make an informed decision and get the best personal loan as per your requirements.

List of Best Personal Loans in Dubai, UAE - 2024

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
Commercial Bank of Dubai Quick Loan AED 8,000 per month Starting from 7.6% p.a. Apply Now
Deem Finance Personal Loan AED 5,000 per month 0 Apply Now
ADCB Personal Loan N/A 3.45% p.a. Apply Now
Emirates Islamic Bank Personal Finance for Expats AED 10,000 per month 2.89% p.a. Apply Now
Emirates Islamic Bank Personal Finance for UAE Nationals AED 10,000 per month 2.79% p.a. Apply Now
FAB Personal Loan for Expats AED 7,000 per month 2.82% p.a. Apply Now
FAB Personal Loan for UAE Nationals AED 7,000 per month 2.58% p.a. Apply Now
FAB Non-Salary Transfer Personal Loan for Expatriates AED 15,000 per month 8.7% p.a. Apply Now
FAB Non-Salary Transfer Personal Loan for UAE Nationals AED 15,000 per month 5.72% p.a. Apply Now
HSBC Personal Loan AED 7,500 per month 0 Apply Now
FAB New to Country/ New to Employment Loans AED 7,000 per month 3.24% p.a. Apply Now
Dubai Islamic Bank Personal Loan AED 7,000 per month 4.9% p.a. Apply Now
RAKBANK Personal Loan AED 10,000 per month 2.85% p.a. Apply Now
ADIB Personal Loan for Expatriates N/A - Apply Now
ADIB Personal Loan for UAE Nationals N/A - Apply Now
ADIB Personal Finance AED 8,000 per month 0 Apply Now
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Eligibility Criteria to Apply for Personal Finance in the UAE

The following are the eligibility criteria to apply for a personal loan in the UAE -

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

Documents Required to Apply for a Personal Loan/Finance in Dubai, UAE

Here's a list main documents required to apply for a personal loan in the UAE -

  • Duly filled-in application form
  • Emirates ID copy
  • Copy of passport with resident visa page
  • Salary transfer certificate
  • Recent bank statements (3 to 6 months)
  • Trade licence (for self-employed individuals)

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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 finance, 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 finance with them if you fulfil their requirements.

Personal Loan FAQ's

Q1: How much can you get as a personal loan in the UAE?

Ans: Your personal loan amount can be up to 8 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: What is the maximum Dubai loan repayment tenure?

Ans: While the loan repayment tenure depends on your credit profile and other factors, the maximum repayment tenure, in general, is up to 48 months.

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. 

Q7: 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. 

Q8: 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. 

Q9: 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. 

Q10: How to avoid personal loans in the UAE from getting rejected?

Ans: Numerous personal loan eligibility criteria must be met for an application to be approved. When submitting a loan application, first make sure that you meet all the requirements so that your application is seamlessly approved. Lender-to-lender variations may exist in the requirements for qualifying for personal loans.

Some common requirements do exist, though, and these include the applicant's age, income, credit score, work status, and other factors. Verify that you meet all eligibility requirements before applying for a loan.

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