Emirates Islamic Bank Personal Loan Interest Rate

Emirates Islamic Bank personal loan is a popular finance product offered by Emirates Islamic Bank, one of the leading Islamic banks in the UAE. This personal loan offers a range of features and benefits that make it an attractive option for those looking for quick funds to meet their financial requirements.

This personal loan in UAE has been curated to provide customers with a quick and easy way to access funds for a variety of purposes, including home renovations, education expenses, medical bills, and more. Read the article below to know more about this personal loan from Emirates Islamic Bank.

Emirates Islamic Bank Personal Loan Interest Rates

Listed below are Emirates Islamic Bank personal loan profit rates -

• The flat profit rate for the bank’s personal loan starts from 2% and goes up to 10% per annum.
• The Annual Percentage Rate (APR) ranges between 2.38% and 10.38% per annum. 

Key Features of Emirates Islamic Bank Personal Loan

Here are the top features of the Emirates Islamic Personal Loan in the UAE -

• You can avail of high financing amounts of up to AED 4 million (for UAE nationals) and AED 2 million (for UAE expatriates).
• The bank offers personal finance at low profit rates.
• You can flexibly repay your loan within a tenure of 4 years.
• The loan application process is quick and hassle-free.
• A nominal fee is charged for the processing of loan applications.
• Emirates Islamic Bank follows the Murabaha structure, and this personal loan is a Shariah-based product.
• You don’t have to pay any over-limit fees or additional charges on availing of a lower profit rate.
• You can use this personal loan to consolidate all debts into an easy payment plan with the same monthly instalment. 

Factors Affecting Emirates Islamic Bank Personal Loan Interest Rates

Emirates Islamic Bank takes multiple aspects into account to decide the final profit rate on your personal loan. Discussed below are the major factors influencing the profit rate in your case -

1. Credit Score

Financial institutions use your credit Score to assess the risk of lending money to you. A higher credit score indicates that you have been responsible with your finances and have a lower chance of defaulting on the loan. As a result, lenders are more likely to offer lower interest rates to you if you have a high credit score. 

On the contrary, if you have a low credit score, you may be considered at higher risk and may be charged a higher interest rate to compensate for the increased risk. 

2. Loan Tenure

Generally, a longer loan tenure leads to a higher interest rate, as lenders consider it to be a greater risk to lend money over a longer period. However, as a shorter loan tenure reduces the perceived risk, it may result in a lower interest rate. 

Another thing to keep in mind - a longer loan tenure also means that you will end up paying more interest throughout the loan. However, a shorter tenure can result in higher instalments as well. For this reason, you should consider the loan tenure carefully so that you can strike a balance between the interest and the instalment amount 

3. Monthly Income

Monthly income is another factor that can influence the personal loan interest rate. Generally, lenders prefer borrowers with a higher monthly income as it indicates a higher capacity to repay the loan. A higher income reduces the risk associated with defaulting on the loan and makes you eligible for lower interest rates. 

On the other hand, if you have a lower monthly income, you may be considered at higher risk and may be charged a higher interest rate to compensate for the same. 

4. Debt Burden Ratio

The debt-to-income ratio is a crucial factor that can influence the interest rate on a personal loan. This ratio compares your total debt payments to your monthly income. Banks and other financial institutions consider borrowers with a lower DTI to be less risky with a lower chance of defaulting on the loan. 

A lower debt-to-income ratio may result in a lower interest rate, while a higher DTI may result in a higher interest rate to cover up for the increased risk. For this reason, it's essential to keep a low DTI when applying for a personal loans to increase the chances of securing a lower interest rate. 

5. Relationship with the Bank

If you have a history of a good relationship with the bank (say, you had a savings account or a credit card with the bank), it may be willing to offer a lower interest rate on the personal loan. The bank may also consider your loyalty and financial history when assessing the risk of lending money, which can result in a lower interest rate. Additionally, you may be eligible for exclusive offers and discounts on interest rates as a result of your relationship with the bank. 

Emirates Islamic Personal Loan: Fees and Charges

The table below enlists all the fees and charges regarding the Emirates Islamic Personal Loan -

Type of Fees	Charges
Certificates Murabaha	0.7875% of the Finance Amount (minimum AED 525, maximum AED 2,625)
Shares Murabaha	1.05% of the Finance Amount (at least AED 525, up to AED 2,625)
Takaful Provider	Rates for Up to 5 Years
Arabian Scandinavian Insurance Company (PLC) - Takaful - Ascana Insurance (ASCANA)	0.01474% x Finance Amount x Tenure (Months)
Dubai Islamic Insurance & Reinsurance Company (AMAN)	0.01439% x Finance Amount x Tenure (Months)
Noor Takaful	0.01194% x Finance Amount x Tenure (Months)
Balance Liability Certificate	AED 63
Clearance Letter (No Liability Certificate)	AED 63
Deal Cancellation Fee	AED 105
Early Settlement	1.05% of the outstanding balance or max AED 10,500 Principal outstanding x 1.05% (Inclusive of VAT) Payable at the time of settlement
Partial Payment	1.05% of the payment made or AED 10,500 (whichever is lower) Partial settlement amount x 1.05% (Inclusive of VAT) Payable at the time of partial settlement
DDS/Cheque Return Fee (Any DDS/cheque deposited with the Bank to pay the monthly instalment returned unpaid)	AED 0
Obligated Amount to Charity (Late payment fee)	AED 210
Deferment of Instalment	AED 105 per instalment

How to Calculate Emirates Islamic Personal Loan Monthly Instalments?

To determine the monthly instalment of Emirates Islamic Personal Loan using the bank’s online calculator, follow the set of instructions mentioned below:

1. Visit the official website of the bank.
2. Click on the ‘Finance’ drop-down menu.
3. Choose ‘Personal Finance’.
4. You will be redirected to the next page.
5. Scroll to the bottom of the page to find the calculator.
6. Move the bar to set accurate values and obtain your result instantly. 

An online personal loan calculator is a valuable tool that helps you estimate the cost of a personal loan before applying for it. It takes into account factors such as loan amount, interest rate, and loan tenure to provide an estimate of the monthly instalment and the total amount to be repaid.

A notable aspect of this calculator is that it allows you to experiment with different loan amounts and tenures to find a repayment plan that suits your financial requirements. With an online personal loan calculator, you can make informed decisions about whether a loan is affordable and avoid taking on debt that you may struggle to repay. This tool can also save time and effort, as you would get accurate results in a second without performing complex calculations by yourself.

Check out some of the most frequently asked questions related to the Emirates Islamic Bank personal loan and its profit rates below:

Frequently Asked Questions