CBD Personal Loan Interest Rate

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

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Personal loans have become a popular financial instrument in the UAE. With the rising cost of living and unexpected expenses, it is not surprising that many people turn to personal loans to help them get through tough times.

However, not all personal loans are created equal, and interest rates can vary greatly depending on the lender. This is where Commercial Bank of Dubai (CBD) personal loans come into the picture.

For those who are unfamiliar, CBD personal loans are a type of loan offered by the Commercial Bank of Dubai. They are designed to provide individuals with the financial support that they need to cover various expenses - from home renovations to debt consolidation. What sets CBD personal loans apart from other personal loans in the market is their competitive interest rates.

In this article, we will take a closer look at CBD personal loan interest rates and explore why they are a great option for individuals looking to secure affordable financing. We'll also discuss how to apply for a CBD personal loan and what factors you should consider before taking out a loan.

So if you are looking to learn more about CBD personal loan interest rates, keep reading!

Features of Commercial Bank of Dubai Personal Loan in the UAE

With a CBD personal loan, you can easily achieve your personal goals like renovating your home, pursuing higher education, or organising a wedding.

Here are some salient features of the Commercial Bank of Dubai personal loan -

  • Maximum Loan Amount - up to AED 2.5 million (for UAE nationals) and up to AED 750,000 (for expatriates)
  • Flexible Loan Repayment Tenure - up to 48 months
  • No minimum balance required in the current account
  • Competitive interest rates
  • Option of top-up on the current CBD personal loan available
  • Complimentary debit card for purchases and withdrawals
  • Facility of instalment deferment available

Commercial Bank of Dubai Personal Loan Interest Rates

The CBD personal loan interest rate begins from 5.5% per annum (reducing rate). Note that this personal loan interest rate is calculated based on your personal profile and aspects including monthly income, the loan amount you need, your company, your current debts, and other credit-related aspects.

Factors Affecting Your Commercial Bank of Dubai Personal Loan Interest Rate

Discussed below are the factors that affect CBD personal loan interest rates in the UAE -

  • Your Income - Income plays a crucial role in determining your Commercial Bank of Dubai personal loan interest rate. It is perceived in the following manner - the higher your income, the more your capacity to repay the loan. Banks like CBD check for your monthly income prior to approving your CBD personal loan and giving you a favourable interest rate (if you have a high income). 
  • Credit Score - Yet another important factor that influences your Commercial Bank of Dubai personal loan interest rate is your credit score. At the time of approving your application, the bank evaluates your financial health through existing debts, monthly income, borrowing behaviour, and more through credit score. A higher credit score implies better creditworthiness and the ability to repay the loan on time. This, in turn, helps in bagging a lower personal loan interest rate. 
  • Relationship with the Bank - If you have been maintaining healthy financial relations with the Commercial Bank of Dubai, chances are that you will get a lower personal loan interest rate. For instance, if you have a functional savings, fixed deposit, or current account, you may get the benefit of the trust. It is because the bank is more likely to give a favourable personal loan interest rate to existing customers.
  • Your Loan Repayment History - Commercial Bank of Dubai is sure to go through your loan repayment history in case you have some active loans. If the bank finds that you are financially disciplined and pay your instalments on time, it will approve the loan at the best personal loan interest rate. However, if you default on your instalments, you may not get the favourable personal loan interest rate or not get the personal loan approved at all. 
  • Employer’s Reputation - The chances of getting a personal loan at a favourable interest rate are generally higher if your employer is registered in the CBD’s approved list of companies. Furthermore, if the bank finds your employer financially stable, it will proceed with the loan application process. This is because it is believed that borrowers from reputed firms are more creditworthy and financially sound to make timely payments. 
  • Age of the Applicant - The minimum age to apply for a CBD personal loan is 21 years, while the maximum limit can vary from 60 to 65 years (depending on the nationality). If you are older and nearing your retirement age, chances are that you will get a personal loan at a higher interest rate.

Other Fees and Charges Applicable to Commercial Bank of Dubai Personal Loan

Mentioned below are the fees and charges related to the Commercial Bank of Dubai personal loan in the UAE -

Description Fee
Processing Charges  1% of the loan amount (minimum: AED 525 and maximum: AED 2,625)
Partial Payment Charges from Own Sources 1% (up to AED 10,500)
Early Settlement Charges from Own Sources 1% of the outstanding amount - up to AED 10,500
Life Insurance 0.82% of the loan amount
Charges for Rescheduling the Loan AED 262.50
Final Settlement Charges from Other Sources 1% (maximum AED 10,500)
Charges for Issuing Liability Letter to Other Banks AED 63
Partial Payment Fees from Other Bank 1% - up to AED 10,500
Early Settlement Free from Other Bank 1% of the outstanding balance or AED 10,500 (whichever is lower)
Request for Postponing the Request AED 105
Fee for Cancelling the Loan AED 105
Penalty Charges for Paying the Interest Late Up to AED 200

How to Calculate Commercial Bank of Dubai Personal Loan Interest?

You can effortlessly calculate your CBD personal loan interest using a personal loan calculator designed by the bank. This is an online tool using which you can determine the estimated instalment amount (including the monthly interest payment amount) in three easy steps.

To use the calculator you need to provide the following details -

  • Your nationality
  • Monthly income
  • Information about any current loan (mortgage, car, or overdraft facility)
  • Your credit card limit
  • The personal loan repayment tenure
  • The annual interest rate applicable

By providing these details, you would be able to determine your instalment amount and interest amount.

Eligibility Criteria to Apply for Commercial Bank of Dubai Personal Loan

Tabled below are the eligibility criteria that you need to comply with to get a Commercial Bank of Dubai personal loan in the UAE -

Product Variant Nationality Eligibility Criteria
Salary Transfer Loans For UAE Nationals
  • Age Range - 21 years to 65 years (at the time of loan maturity)
  • Minimum Monthly Income - AED 8,000
  • Should be a confirmed employee or should possess at least 6 months’ employment tenure at a CBD-approved company
  • Mandatory monthly salary transfer to a CBD account
For Expatriates
  • Age Range - 21 years to 60 years (at the time of loan maturity)
  • Minimum Monthly Income - AED 8,000
  • Should be a confirmed employee or should possess at least 6 months’ employment tenure at a CBD-approved company
  • Mandatory monthly salary transfer to a CBD account
Quick Loans (Digi) - Non-Salary Transfer For Expatriates
  • Age Range - 21 years to 60 years (at the time of loan maturity)
  • Should be a confirmed employee or should have an employment tenure of at least 6 months
  • Minimum Monthly Income Required - AED 10,000
Personal Loan Against Fixed Deposit For UAE Nationals and Expatriates
  • Minimum Age to Apply for this Loan - 21 years (the loan tenure is estimated in terms of deposit)
  • Minimum Deposit Balance Required - AED 225,000
Overdrafts (Salary Transfer and Against Fixed Deposits) For UAE Nationals and Expatriates
  • Minimum Age to Apply for this Loan - 21 years
  • Salary Transfer or Fixed Deposit

Listed below are the documents required to apply for a Commercial Bank of Dubai personal loan in the UAE:

  • A filled-in application form and loan agreement
  • Emirates ID 
  • Valid Passport with residence Visa page
  • Bank statements of the last 6 months
  • Salary certificate or salary transfer letter
  • Payslips
  • Security cheque

Note - You can apply for a CBD personal loan on Policybazaar.ae. We are a digital aggregator that offers personal loans at competitive interest rates from the top banks and lending institutions in the country. To know more about the available options, visit our personal loan quotes page.

FAQ's

Q1. How does the debt-to-income ratio affect your Commercial Bank of Dubai personal loan interest rate?

Ans: Your debt-to-income ratio has an impact on personal loan interest rates. Imagine, for a second, that even with a significant monthly salary, a sizable portion of your income is going towards paying off debt. In this case, your ability to get new debts and repay them would be significantly affected due to less leftover income (after instalments). This increases the risk for the provider, which may reflect in increased interest rates.

By dividing all of your loans by your total income, you can quickly establish your debt-to-income ratio. To get favourable interest rates, you should aim to keep this ratio low - ideally, 30% or below.

Q2. What is the personal loan interest rate charged by the Commercial Bank of Dubai?

Ans: Interest rates for CBD Personal Loans will start at 5.5% and decrease annually.

Q3. How is your Commercial Bank of Dubai personal loan interest rate calculated?

Ans: Personal loan interest rates are determined based on each person's unique profile, including monthly income, employment, loan amount, existing debt, and other credit criteria.

Q4. What is the minimum age limit to apply for CBD personal loan to get a favourable personal loan interest rate?

Ans: To apply for a personal loan from the Commercial Bank of Dubai, you must be at least 21 years old.

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