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. 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
EMI Calculator
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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-unsecured loan rates in UAE:
*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 diffrent 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.
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.
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.
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.
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.
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
What are top-up loans?
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?
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. In answer to the question- how to calculate personal loan interest, the EMI calculator uses 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.
How can I bargain for a better rate of interest for a personal loan in UAE?
To bargain for the offered interest rate for this loan in the Emirates, you should make sure that you have a high credit score for personal loan. 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.
Which is better, personal loan or a credit card loan in UAE?
This would depend on the situation and the finance amount. A credit card is suitable when you need a small amount of loan instantly. 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.
How to deal with credit card debt using personal loan in Dubai?
You can pay credit card debt through a personal loan. 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 even if the applicant has a personal loan minimum salary AED 2,000.
What is payment deferment?
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.
Can a student apply for a personal loan in UAE?
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?
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?
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?
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?
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 followed by sending 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 for the unpaid personal loan in UAE. 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?
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 not, the applicant can instead enter their details into any generic loan calculator in the UAE for a reliable figure before they apply personal loan in UAE.
Is it good to pay off credit card debt with this loan?
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 with the affordable Dubai personal loan interest rate.
Can I prepay my personal loan without any extra charges?
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.
Is there a prepayment penalty on personal loan in UAE?
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, whichever is less for a loan in UAE.
Do Shariah-Compliant banking organizations offer personal loan in UAE as well?
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.
Is there any advantage of opting for the life insurance scheme that comes with the personal loan?
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.
Hassle-free documentation
EMI Tenure up to 48 Months
Lowest Interest Rates
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.
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:
