Personal Loan in UAE

What is Personal Loan?

Personal loan is an unsecured loan, which means there is no collateral or guarantor required to avail it. Personal loan in UAE is procured by an individual to meet their various personal financial needs such as weddings, higher education, international trip, starting a new business, and even for debt consolidation.

The maximum personal finance loan amount can be equal to 20 times the monthly salary, which can be availed with a repayment period of 48 months. The personal loan interest rate in UAE and the personal loan amount is decided based on factors such as the 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. They are of two types of interest rates applicable to personal loan offers in UAE:

Flat Interest

Flat interest is charged on the total loan amount, which remains constant throughout the loan tenor. The personal loan lowest interest rate for a personal loan in Dubai as well as the rest of UAE can be 2.63 % and can go up to 22.22 % may range from 2.63% - 22.22%.

Reducing Interest

As opposed to the flat interest rate, this rate of interest reduces every time the loan borrower pays the instalment. Personal loan reducing interest rate in UAE is charged only on the outstanding principal amount of the loan, which can fall in the range of range between 5.24% - 39.99%. You always need to compare personal loans online to get the lowest interest rate for personal loan interest rate in UAE.

Personal Loan Calculator UAE

 

How to Calculate Personal Loan Interest?

Borrowers can use an interest calculator to compute the interest amount they will be paying. Lets look at the steps to calculate interest rate enabling personal loan comparison:

Use the formula- (interest rate/ number of payments) * principal amount = interest

Step 1: Divide the interest rate with the number of payments required to be made in a year

Step 2: Multiply it with the loan balance which for the first installment will be the principal amount of the loan

Step 3: Now calculate the new  balance. To do this subtract the interest calculated from the amount repaid. Subtract this amount from the principal to arrive at the new balance of the personal loan

Best Personal Loans in UAE

Here is the list of the top 10 Best Personal Loan in UAE in 2021 with Interest rate comparison and other requirements.

Personal Loan Rates UAE Comparison: Given below is a detailed personal loan comparison between the various bank loan in UAE that offers their customers the best personal loan rates in UAE:

Personal Loan Provider	Flat Interest Rate	Reducing Interest rate	Minimum Salary Requirements in AED	Salary Transfer
ADCB Personal Loan	4.75 %	8.86 %	5,000	Mandatory
RAKBANK Personal Loan	3.99 %	5.99 %	3,000	Mandatory
Dubai Islamic Bank Personal Loan	6.00 %	11.00 %	3,000	Not Mandatory
Emirates NBD Personal Loan Without Salary Transfer	8.39 %	14.99 %	10,000	Not Required
FAB Personal Loan	4.99 %	9.29 %	7,000	Mandatory
ADIB Personal Loan	Expats: 4.82 % UAE Nationals: 4.27 %	Expats: 8.74 % UAE Nationals: 7.75 %	8,000	Mandatory
Mashreq Bank Personal Loan for Expatriates	3.43 %	6.49 %	7,000	Mandatory
Noor Bank Personal Loan	3.33 %	6.29 %	8,000	Mandatory
Deem Finance Personal Loan	7.72 %	14.00 %	5,000	Not Mandatory
Finance House Personal Loan	5.45 %	9.99 %	8,000	Not Mandatory

*Disclaimer: Interest Rates are subject to change at any time. 

Check and compare personal loan providers in UAE including their requirements and benefits offered to make the right decision based on your personal loan requirements and apply for the best personal loans online at lowest interest rate in just a few steps.

Top Banks for Personal Loan in UAE with Low-interest rate and other personal loan Offers

ADCB Personal Loan

There are two variants of personal loan in UAE 5000 salary offered by ADCB: Personal Loan for UAE Nationals and Personal Loan for Expats. 

Minimum Salary for a personal loan: AED 5,000	Loan Tenure: Up to 4 years
Reducing Rate: 8. 86 %	Flat Rate: 4. 75 %
Early Settlement Fee: 1.05% (maximum AED 10,500)	Processing Fee: 1.05% (minimum AED 525)
Free ADCB Credit Card	3x salary overdraft
Up to 300 TouchPoints rewards	Credit life insurance

 

RAKBANK Personal Loan

RAKBANK offers the borrowers a personal loan with high amounts, and flexible repayment tenures of up to 48 months, all at attractive interest rates. 

Minimum Salary: AED 5,000	Loan Tenure: Up to 4 years
Reducing Rate: 5.99%	Flat Rate: 3.99%
Early Settlement Fee: 1% or AED 10,000 (whichever is lower)	Arrangement Fee: 1% (minimum AED 500, maximum AED 2,500
Free RAKBANK debit card	Free no annual fee credit card
Free personalized checkbook	Top up loan
Personal loan 20x of salary

 

Dubai Islamic Bank Personal Loan

Dubai Islamic Bank offers personal finance solutions to the borrowers at attractive interest rates with high financing amounts of up to AED 4,000,000 for UAE Nationals and AED 2,000,000 for Expatriates. 

Minimum Salary: AED 3,000	Loan Tenure: Up to 4 years
Reducing Rate: 11. 00%	Flat Rate: 6. 00%
Early Settlement Fee: 1% (maximum AED 10,000)	Processing Fee: AED 1,050 – AED 2,620
Long repayment period	Sharia-compliant financing
Low salary personal loan	Fixed arrangement fees charges

 

Emirates NBD Personal Loan without Salary Transfer

This online personal loan variant offered by Emirates NBD does not require a salary transfer and offers the borrowers high loan amounts of up to AED 500,000 with flexible tenures of up to 48 months.

Minimum Salary: AED 10,000	Loan Tenure: Up to 4 years
Reducing Rate: 14.99%	Flat Rate: 8. 39%
Early Settlement Fee: 1% (maximum AED 10,000)	Processing Fee: 1% (minimum AED 500 and maximum AED 2,500)
7 days exclusive loan return option	Double insurance coverage on getting a persona loan
Mode of repayment via Direct Debit System for a loan in Dubai	Early settlement option available

 

FAB Personal Loan

The personal loan by the First Abu Dhabi Bank is offered to the borrowers in high loan amounts of up to  AED 5 million for UAE nationals and up to AED 2 million for NRI personal loans with a repayment tenure of up to 48 months. 

Minimum Salary: AED 7,000	Loan Tenure: Up to 4 years
Reducing Rate: 9.29 %	Flat Rate: 4.99 %
Early Settlement Fee: 1.05% (maximum AED 10,500)	Processing Fee: 1.05% (minimum AED 525, maximum AED 2,625)
Comprehensive cover for personal life insurance	Fast track approvals
Variable interest loan rates in UAE as low as 3. 99 %

 

ADIB Personal Loan

With limits of personal loan Dubai and other parts of the UAE going up to AED 1 million for expats and AED 3 million for UAE nationals, ADIB provides personal finance solutions at attractive interest rates for flexible tenures of up to 4 years. 

Minimum Salary: AED 8,000	Loan Tenure: Up to 4 years
Reducing Rate: 8.74% (expats) 7.75% (UAE nationals)	Flat Rate: 4.82% (expats) 4.27% (UAE nationals)
Early Settlement Fee: Minimum of 1% or AED 10,000	Processing Fee: No Processing Fee
Grace period for first installment for up to 90 days	2 free installment postponements annually
Takaful protection at nominal rates of 1.25 % of personal finance amount	No processing fee for a personal loan in Abu Dhabi and other UAE Emirates

 

Mashreq Bank Personal Loan for Expatriates

The personal loan offered by Mashreq gives the borrowers a loan within 24 hours and with a host of perks that make its low interest personal loan more rewarding.. 

Minimum Salary: AED 7,000	Loan Tenure: Up to 4 years
Reducing Rate: 6.49 %	Flat Rate: 3.43 %
Late Payment Fee: 2 % of delayed amount	Processing Fee: 1.05 %
Loan amount up to 20x of the salary to a maximum of AED 1 million	First EMI deferment for bank loan in UAE up to 90 days
Zero balance current account for loans equal to or more than ED 25,000 with a debit card and checkbook	Fast approval within 24 hours for low interest personal loan UAE
Flexible repayment period of 48 months for personal finance in UAE

 

Noor Bank Personal Loan

With the option to consolidate existing finances, Noor Bank Personal Loan offers the borrowers high loan amounts of up to 20 salary multiples with flexible tenures ranging up to 48 months, making it the best personal loan from private finance in UAE. 

Minimum Salary: AED 8,000	Loan Tenure: Up to 4 years
Reducing Rate: 6.29 %	Flat Rate: 3.33 %
Late Payment Fee: 2% (minimum AED 50, maximum AED 200)	Processing Fee: 1% (minimum AED 500, maximum AED 2,500)
Takaful coverage	Low salary requirement for personal loan eligibility UAE
20 salary multiples’ finance amounts	Free for a life credit card, with perks of up to AED 50,000

 

Deem Finance Personal Loan

Deem Personal Finance comes with no salary transfer, affordable installments, and flexible tenures of up to 4 years. It is one of the low salary personal loans in UAE enabling everyone to fulfill their dreams. 

Minimum Salary: AED 5,000	Loan Tenure: Up to 4 years
Reducing Rate: 14.00 %	Flat Rate: 7.72 %
Early Settlement Fee: 1.00 % (maximum AED 10,000)	Processing Fee: 1% (minimum AED 500, maximum AED 2,500)
Deem credit life plus	No salary transfer required to apply for personal loan in UAE
Optional insurance coverage	Affordable monthly installments for a cheapest personal loan in UAE

 

Finance House Personal Loan

The Personal Finance option offered by Finance House is offered to the seekers in high amounts ranging between AED 10,000 and AED 250,000 with no mandatory salary transfer. The easy personal loan application process makes it even more popular.

Minimum Salary: AED 8,000	Loan Tenure: Up to 4 years
Reducing Rate: 9.99 %	Flat Rate: 5.45 %
Early Settlement Fee: 1%	Processing Fee: 1% (minimum AED 500, maximum AED 2,500)
Free for life credit card	Attractive interest rates for a private personal loan in UAE
No salary transfer required to apply loan in UAE	Flexible payment process

 

Personal Loan in Abu Dhabi

Abu Dhabi is one of UAE’s largest financial hubs providing both individuals as well as businesses with the most relevant financial solutions. The ADCB (Abu Dhabi Commercial Bank) and the FAB Bank (First Abu Dhabi Bank) are champions in the arena of personal finance, offering personal loan in Abu Dhabi starting at 3. 99 % for a loan amount extending up to 5 million for the UAE Nationals and a maximum of 2 million for Expats in the country, offering low interest personal loan UAE.

What is the Personal Loan Tenor?

Personal loan generally comes with a shorter tenor for repayment; minimum repayment period 6 months and a maximum of 48 months in most cases. Based on the profile of the individual loan applicant as well as the lender(personal loan provider)of the best personal loan in Dubai and other parts of the UAE,  the Annual Percentage  Rate or APR of personal finance can vary from 8% to 34% in the UAE.

Personal Loan Processing Fee: 0.95% of the loan amount.

Documentation Charges for personal loan approval: Nil

Types of Personal Loan in UAE

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

1)   Personal Loan in UAE for Expats

The people who are not residents of the UAE but live in the country due to jobs or business are called expatriates who can enjoy lowest interest rate personal loan available in the country.

2)    Personal Loan for UAE without Company Listing

Personal loan can now be obtained for professionals working in non-listed companies or start-ups with a lineup of products specially designed for non-listed companies that have recently entered the market. 

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

3)   Personal Loan in UAE without Salary Transfer

There are some providers who do not make the applicant transfer their salary with them to obtain a loan, making the personal loan requirements flexible.

4)   Personal Loan in UAE with Salary Transfer

Most of the loan providers in the UAE expect the applicants to have a salary account with the bank to get an instant personal loan.

5)   Personal Loan for UAE Nationals

For the UAE Nationals, personal loan requirements are more favorable in comparison to those offered on the personal loan in UAE for expats.

6)   Personal Loan in UAE for Self-employed Professionals

Self-employed professionals are those who have their own business and they may also apply for a personal loan with certain financial institutions in the UAE and enjoy the best personal loan rates.

Personal Loan in UAE Eligibility Criteria

Personal loan eligibility in UAE is not the same for every bank that offers personal finance in Dubai. But  most of the best personal loan in UAE commonly asks for the following requirements:

1. Age Limit

Personal loan eligibility in UAE usually includes a minimum age of 21 years and maximum age of up to 60-65 years to avail personal loan offers in UAE..

2. Minimum Salary for Personal Loan in UAE

Applicants will also have to meet a certain requirement of the minimum salary for personal loan that varies from lender to lender in UAE to avail this loan. You can apply for Personal loan in UAE at 3000 Salary. The minimum salary requirement ranges between AED 2,500 to 4,000 and above.

3. Employment History

One cannot avail of a personal loan without being employed. Some banks require the applicants to have employment under UAE employers, or set a particular length of service at least up to a couple of months to get a personal loan in UAE .

4. UAE Residency

Only UAE residents may apply for a  personal loan in Dubai or any other emirate of the UAE. However, some banks like ADIB offer personal loans for expats as well. The personal loan in UAE interest rate for them are different among certain other requirements.

5. Salary Transfer

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, giving them the option of easy personal loan in UAE.  

Documents Required for a Personal Loan in UAE

Applicants will be required to submit the following documents to avail of a personal loan in Dubai or other Emirates. Given below are the personal loan requirements in UAE:

• Duly filled Application Form
• A valid Passport, Visa and Emirates ID of the applicant to get personal loan insurance UAE
• A valid UAE visa to prove residency to get bank personal loan UAE for expats
• Bank Statement of 3 to 6 months
• Salary Transfer Letter (Optional)

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. Below is a step by step guide on how to get 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
• Take help from the customer care representative or a bank representative to know about personal loan interest rate in UAE and more

Through the Online Portal

Applying personal loan online is convenient and quick. Online platforms are host to generous personal loan rates in UAE and can be used to quickly make personal loan comparison  UAE which helps in finding the lowest interest rate for personal loan in UAE. While comparing,   the use of personal loan EMI calculator is recommended to calculate the EMI amount,  making online personal loan apply procedure even easier.

Processing of Personal Loan in the UAE

A personal loan is among the best solutions when in need of quick cash for any financial emergency. Here’s how this loan gets processed in the UAE to offer the best personal loan interest rates in UAE.

1) Eligibility

To process the loan application for personal loan in UAE, one has to check the personal loan eligibility criteria of the bank.

2)  Loan Calculator 

The next step is to know the loan EMI. Using the loan calculator, the applicant can calculate their EMI and understand how to calculate personal loan interest.

3)  Online Application 

After calculating an estimate of the monthly installments, the applicant can online personal loan apply to make things easier.

4)  Submitting the Documents 

The applicant has to submit the required documents along with the form to get a personal loan in UAE.

5)  Verification 

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

6)  Approval 

To answer how to get personal loan in Dubai? The application has to be successfully verified after which the loan request is approved and the loan sanctioned.

7)  Disbursal

Once the applicant receives the approval, the amount is transferred to their bank account.

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:

Features and Benefits	Details
Unsecured Loans	No collateral is required to obtain these loans.
Salary Transfer vs. Non-Salary Transfer	By making salary transfers, borrowers can obtain high amounts at  low interests.
Rate of Interest	There are two types of UAE bank loan interest rates: reducing and flat
Top-up Loans	With regular payments of the pre-existing loans, the borrowers can enjoy top-up loans.
Loan Cancellation	The best personal loan in Dubai and other UAE Emirates, allows cancellation of the availed loan in the given grace period.
Installment Deferment	The borrower can postpone their monthly installments of personal finance in Dubai or other Emirates for a fixed period.
Debit and Credit Cards	Some of the personal loans in the market offer complimentary debit and credit cards.
Insurance or Takaful	Insurance or Takaful benefit covers the outstanding loan dues in an unforeseen event leading to loss of income.
Cashback and Statement Credit	Some personal loan offers in the UAE reward the borrowers with incentives like cash back or a statement credit.

Quick Tips to Avail the Right Personal Loan in the UAE

Getting a personal loan in Abu Dhabi or any other Emirate 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 UAE is shopping around at different lenders to loan compare UAE before deciding on the one that best meets your requirements.

2)  Checking and Reviewing the Terms & Conditions 

The terms & conditions of the loan are as essential as the personal loan rates Dubai and other Emirates 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 rate 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. Check the insurance terms carefully to get the best personal loan in UAE.

Why is Salary an important factor while applying for a personal loan in UAE?

Personal loan fulfills multiple needs and are easy to get, making them suitable for most people, thus explaining the growing demand for personal loans. A borrower’s income is crucial in determining the rate of interest applicable on their loan as generally, individuals with a  higher salary are more likely to repay their loan fully than someone with a lower salary. Another reason salary plays an important role is because most bank have a minimum salary requirement condition. For instance, most banks in UAE offer personal loan in UAE 5,000 salary to qualify to avail of a personal loan. This way banks ensure that the borrower has a fixed minimum income that allows them to repay the loan on time. 

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 a 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.

Steps to Compare Personal Loan in UAE:

Thinking of getting a personal loan? There are so many options available in the market that sometimes it might seem too confusing. Here are some steps to help applicants with personal loan compare UAE:

Step 1: Visit the bank’s official website or Policybazaar.ae to check the different features of personal loans offered by each bank

Step 2: Check the interest rates and profit rates of each loan to pick one that fits comfortably in your budget

Step 3: Check the minimum salary requirement of the bank to get bank loan in UAE

Step 4: Use the bank’s EMI calculator or a generic one to figure out if the installments fit your pocket

Step 5: Figure out whether the applicants need to transfer their salary to avail the personal loan in UAE

Step 6: Check the ease of repayment and the grace period offered

Step 7: Check for features like deferred payment, credit shield, early settlement etc before making the choice

Step 8: After going through each of these steps and having decided on which personal loan is best for you, figure out how to get personal loan in UAE

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 Policybazaar.ae makes personal loan buying process an easy victory, getting customers the best personal loan rates UAE.

Faq- About Personal Loans