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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. The needs may include wedding, higher education, international trip, starting a new business, and even for debt consolidation.

Generally, the maximum personal loan amount can be equal to 20 times of the monthly salary of the applicant. However, the personal loan interest rate in UAE and the loan amount depends on the various factors such as monthly source of income, credit history, age, and employment status of the applicant. The borrower can also enjoy the flexible repayment tenure of up to 48 months. With minimal documentation and quick approval on personal loan in UAE, and the borrower can turn their dreams into reality.

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 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 loan amount every month, and as a result, is much costlier than reducing interest rates.

Reducing Interest

A reducing personal loan interest rate in 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 PL. 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.

Best Personal Loans in UAE

Here is a list of the 10 best personal loan in UAE. Please note that the list is not in the chronological order and thus recommend thorough research before opting for one:

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 Up to AED 4 million (for Emiratis). Up to AED 2 million (for Expats) Starting at 5.50%  12 months - 48 months Not Mandatory
HSBC Personal Loan Up to AED 750,000 (for Emiratis). Up to AED 600,000 (for Expats) Starting at 7.49%  6 months - 12 months (renewable after 12 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 Starting at 13.99% (reducing), or at 6.99% with salary transfer 6 months - 48 months Mandatory
ADIB Personal Loan Up to AED 3 million (for Emiratis). Up to AED 1 million (for Expats) Profit rate starting at 6.75%  Up to 48 months (unconfirmed) Mandatory
Commercial Bank of Dubai (CBD) Personal Loan Up to AED 3 million (for Emiratis). Up to AED 750,000 million (for Expats) 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% Up to 48 months Mandatory
Dubai Islamic Bank (DIB) Personal Loan Up to AED 4 million (for Emiratis). Up to AED 2 million (for Expats) Profit rate 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 can be classified as a short to medium term finance, offered to an individual. As opposed 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.

For Instance,

If a borrower with a monthly salary of 10,000 dirhams, takes a loan of 12,000 dirhams with a repayment tenor of 48 months, the EMI would be 328 dirhams on an effective rate of 13.99 percent per annum.

The total amount payable after the duration of 48 months would be somewhere around 15,750 dirhams. Hence, the estimate amount the borrower is paying as interest against this loan is 3,750 dirhams. However, this amount does not include other charges applicable that are quantified as:

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 by various banks and financial institutions in the UAE 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 have come to the UAE, called expatriates, have the option to request for a personal loan in order to meet their financial obligations.

However, the terms & conditions required to apply for the loan are different for expats and Emiratis. Nevertheless, the loan providers in the UAE have a lot of attractive finance deals for them.

2)   Personal Loan for UAE Nationals (Emiratis)

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.

They can obtain finance at attractive rates of interest and comfortable repayment tenures. Moreover, this loan comes with easy documentation and flexible eligibility requirements.

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.

Since this loan is usually unsecured, the banks and financial institutions have to make sure the applicant is capable of paying the monthly installments. They ensure this by considering the monthly salary of the applicant along with various other factors.

4)   Personal Loan in UAE without a 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.

The fee and charges on such loans may be higher than those levied on salary transfer loans. Such loan is offered to both UAE Nationals as well as expats. 

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.

There are various financial institutions that are open to the idea of providing loans to self-employed applicants 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. This eligibility criterion is more relaxed for UAE nationals than those seen across personal loans in the UAE for expats. UAE Nationals are offered the lowest interest rate for personal loan in UAE and can also receive 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. Some banks make it necessary for the applicant to have employment under 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 UAE without 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 for 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 for expats either.

Salary Transfer

While it is rare to find a bank that offers personal loans in UAE without a salary transfer, some banks allow applicants to make transfers to a bank of their choice instead. It should be noted that making a salary transfer with the bank can unlock huge benefits. Some of the apt personal loan interest rates in the UAE are offered to customers that make regular salary transfers to the loan-issuing bank. Online comparisons can help easily identify banks that offer a personal loan in the UAE with no salary transfer or loan for a low salary in UAE.

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 UAE 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 1 year.
  • 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 with no salary transfer and bank account statement.

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:

Through Bank Branches

Simply visit any of the bank’s branches in the UAE to begin the application process. The applicant is 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 rate in UAE and more.

Through the Online Portal

Most modern banks today employ the highest level of online security to ensure safe and convenient banking. Personal loans in UAE may also be applied online, provided the bank has such provision. How to apply personal loan online is amongst the most common question asked by people. Online platforms are host to generous personal loan rates in UAE and can be used to quickly make personal loan comparison UAE.

But before applying for  the  loan,  the applicant  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 personal loan in UAE can only be found by making thorough personal loan comparisons.

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:

Secured & Unsecured Loans

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

Salary Transfer vs Non-Salary Transfer

Banks offering private finance in UAE reward loan holders with lower interest rates, higher loan amounts and various other benefits for maintaining the minimum account balance in their respective bank accounts.  These 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 UAE without a salary transfer.

Reducing 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. A flat interest rate charges the same interest on month till the tenor expires. A reducing personal loan interest rate, 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 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 personal loan in UAE. The applicant 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 loan calculator.

Phone & Online Banking

The best personal loan in 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, applicant may avail of the best personal loan from the comforts of their own home.

Renewed / Top-Up Loans

Recipients of a personal loan can enjoy benefits such as lower interest rates, higher tenors and larger loan amounts by requesting for top-up loan, wherever is applicable. Top-up loans 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.

Loan Cancellation

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

Instalment Deferment

Unforeseeable circumstances can derail payments for even the most regular of customers, and luckily many lenders understand this. The instalment deferment option is one that allows borrower to postpone their monthly payment for a personal loan in Dubai or any other emirate, up to a specific period of time. These deferred payments still need to be paid but can be done so at a more convenient time for the borrower.

On the Spot 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. Moreover, the introduction of secured internet banking portals has made it possible for the consumer loans in the UAE for expats and Emiratis alike to be disbursed quickly within the hour.

Debit & Credit Cards

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

Insurance

Even low-interest rate personal loan 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 many lenders offer life insurance in conjunction with a loan. This insurance policy covers the loan holder’s due payments in the event of an accident that leaves them unable to pay. Certain policies even compensate the borrower’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 cost with personal loans in Dubai or for a minimal monthly fee as per the lender’s discretion.

Cashback & Statement Credit

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

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

First of all, the applicant needs to check whether they are eligible to apply for the loan or not. Generally, the eligibility factors include age, employment status, credit score, minimum salary for personal loan in UAE and more. If the applicant meets the eligibility requirements, then they can move further towards the next step.

2)   Loan Calculator

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. This will help them to know the amount of money they can conveniently pay every month for a period of time.

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 applicant gets successfully verified, then the loan provider will approve their 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.

Personal Loan Repayment Tenure and its Options

Lenders usually let the borrower select the repayment tenure that suits their repayment capability. The importance of selecting the correct tenure has to be considered because the selected tenure determines the average borrowing cost. In the UAE, usually the repayment tenure is up to 48 months. The loan has to be repaid in the form of monthly installments known as EMI.

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.

Rules about Personal Loan in the UAE as determined by the UAE Central Bank

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. These loans will come with the same set of terms & conditions.

5)   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.

6)   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.

7)   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.

8)   Processing Charges

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

Why is Personal Loans Rejected?

A borrower must stay watchful of the following factors for reducing the probability of their application getting rejected.

1)   Occupation

The banks consider business continuity and occupation as a necessary factor in order to judge the repayment capacity of the applicant. Having an unstable work history may reduce the chances of loan approval.

2)   Age Factor

These loans are offered to the people belonging to a certain age group, which is usually 21-60 years. If the applicant is too old or too young, the chances of their application getting rejected are higher.

3)   Poor Credit Rating

All the loan providers review the credit score of the applicant for evaluating their creditworthiness. Such loans being unsecured are majorly dependent upon the credit score of the applicant. Having a poor credit rating may lead to the rejection of the loan request.

4)   Errors in the Form

Even small mistakes in the application form may become a reason for the rejection of loan request. Make sure that the application form is filled up carefully.

5)   Insufficient Eligibility

The lenders have pre-determined eligibility requirements, which the applicant has to meet in order to obtain the loan. If they fail to do so, there are hardly any chances of receiving the loan approval.

6)   Multiple Inquiries

There is a section in every credit report that reflects all the loan inquiries of the potential borrower. Various inquiries in a short span may further increase the probability of the application being rejected.

7)   High Outstanding Balance

There are high chances of the rejection of loan application if the applicant has not been making payments of their loan balance. Excessive usage of available credit may also be a reason for rejection.

How to Avoid Personal Loan Rejections?

While there are various reasons for the rejection of personal loan application, there are also several ways to avoid it, some of which are discussed below.

1)   Maintaining Employment History

The loan providers prefer applicants who are reliable and steady and working with one employer for over two years represents both. Hence, longer employment with one organization, higher is the chances of loan approval.

2)   Making Regular Payments

The lenders prefer borrowers who have been making their payments on time. It shows that the borrower clears their debt responsibly, ensuring the lenders about their repayment capacity.

3)   Pulling the Credit Score

Even before applying for a personal loan, the applicant must review their credit score. The credit rating or score is amongst the most important eligibility factor that the lender considers before approving the loan. The lenders would never offer personal loan without credit check in UAE. Therefore, maintaining the credit score helps in increasing the chances of loan approval.

4)   Steady Source of Income

The lenders, while evaluating the borrower, check for a steady source of income. This is in correspondence with the employment history. Basically, the lenders want to make sure that the applicant earns a sufficient amount of income every month so as to manage the loan EMI.

5)   Repayment of Outstanding Loan

Collecting a huge amount of debt will definitely harm the chances of obtaining a loan. In case the applicant has some outstanding debts, they must ensure that they clear such debts before they apply for a new loan.

6)   Debt-to-Income Ratio

The lenders compare the applicant’s income to the debts they carry every month, which is the debt-to-income ratio. The lower this ratio, the higher would be the chances of loan approval.

Tips to Obtain Personal Loan in the UAE Quickly

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 and the most important step to avail a suitable loan with the appropriate and 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. Read the fine print carefully and check for hidden charges or penalties.

3)   Type of Rate of Interest

There are 2 kinds of rates of interest applied to the loans, reducing rate and flat rate. The flat rate of interest refers to the fixed interest that does not decrease over time. This unconventional interest calculation method used by lenders makes the rate of interest seem lesser than it is actually. For instance, if the lender is charging a 4.25 percent interest rate on flat basis, it is equivalent to 7.92 percent reducing rate of interest. Hence, make a careful comparison before applying for the loan.

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

Policybazaar UAE is an online marketplace for financial products in the UAE, personal loans being one of its products. The organization currently partners with the top banking and financial institution in the Emirates.

The applicant must apply for such loans through Policybazaar as it offers a user-friendly platform through which they can obtain the desired loan with only a few clicks.

How to Apply for a Personal Loan at Policybazaar?

The applicant can easily apply for this loan at Policybazaar UAE by visiting its official website. Once on the website, go to the personal loan section, and fill in the required details including the name of the applicant, their contact details, nationality, and the monthly salary they earn.

After submitting this, they will be redirected to the loan offers page where they can find the different loans available to them along with the details including the interest rate, loan features, and more. The applicant can select the one they find the most suitable. Then, the personal loan expert at Policybazaar will get in touch with them for further assistance.

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: 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 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 Bank 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.

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