Get personal loan at Lowest Interest Rate
First Abu Dhabi Bank (FAB) is among the largest and most prominent financial institutions in the UAE, delivering a wide array of customised solutions, products, and services to create a personalised banking experience. Among the bank’s several offerings is the personal loan.
FAB personal loans are a popular choice for UAE residents. With FAB personal loans, the bank aims to address the diverse banking needs of customers globally. Offering different types of personal loans, the proceeds of the loan can be used to fund an unexpected emergency, a new home, a new car, and so much more.
In this article, we will cover FAB personal loan interest rates in-depth and the different loan types available, which will help you make an informed decision when considering FAB for your borrowing needs.
Given below are the standard features of FAB personal loans in the UAE -
Tabled below is the list of FAB personal loan interest rates –
|Type of FAB Personal Loan||FAB Personal Loan Interest Rate|
|Non-Salary Transfer Personal Loan for UAE Nationals||Starting from 10.49% fixed per year|
|Non-Salary Transfer Personal Loan for Expatriates||Starting from 15.49% fixed per year|
|Personal Loan for UAE Nationals||Starting for a 5.95% variable interest rate, provided conditions are met|
|Personal Loan for Expatriates||Starting from a 6.95% variable interest rate subject to the fulfilment of specific conditions|
|New to Country/ Employment Loans||Starting from 12.75% per year (fixed interest rate)|
|Etihad Guest Personal Loan||Starting from a 7.95% variable interest rate|
The factors affecting FAB personal loan interest rates are given below –
Your income plays a crucial role in determining the interest rate that you receive on your FAB personal loan. Banks typically assess your income to gauge your capacity to repay the loan.
If you have a high income and a stable job, the bank may perceive you as a low-risk borrower and offer a lower interest rate. On the other hand, if your income is low or you have an unstable employment history, the bank may regard you as a high-risk borrower and charge a higher interest rate to account for that risk.
Your credit score is another factor influencing the FAB personal loan interest rates. This score is a numerical representation of your creditworthiness based on your credit history, including your track record in managing past debts and loans.
A high credit score, such as 710 or above, may lead the bank to consider you a low-risk borrower and offer you a lower interest rate on your personal loan. In contrast, a low credit score may cause the bank to view you as a high-risk borrower.
The debt-to-income (DTI) ratio is a metric that compares your total debt to your income. A high DTI ratio may indicate to lenders that you could struggle to make your loan payments, as your existing debt is substantial relative to your income. This perception might cause lenders to view you as a higher-risk borrower, potentially leading to higher FAB personal loan interest rates.
According to the UAE Central Bank, your debt-to-income ratio should not surpass 50%. However, it is advisable to keep it below 30% to present yourself as a responsible borrower.
Your selected loan amount can also impact FAB personal loan interest rates. Generally, larger loan amounts lead to higher interest rates than smaller ones. This is because bigger loan amounts pose a greater risk to lenders as more money is involved. To counterbalance this heightened risk, lenders may charge higher interest rates. Conversely, smaller loan amounts are typically perceived as less risky, which may result in lower interest rates being offered.
While employer status does not typically affect personal loan interest rates directly, it can certainly influence them if it impacts the borrower's creditworthiness. Working for a well-established and stable employer with a history of adequately compensating its employees might be seen as a positive factor that could enhance your creditworthiness.
Younger individuals are considered to be riskier than older individuals. Consequently, financial institutions offer lower FAB personal loan interest rates to the former.
Maintaining a strong relationship with your lender could potentially influence the interest rate at which you get a personal loan.
If you already have a relationship with a financial institution, such as a bank or credit union, they may be more inclined to offer you a lower interest rate due to your loyalty and history of responsible financial behaviour.
For instance, if you have been a long-time customer with a bank and consistently made timely payments on loans and credit cards, the bank may reward your loyalty and good credit history by offering a lower interest rate on a personal loan. Furthermore, you may be eligible for relationship discounts or rewards programs, which grant additional benefits and reduced interest rates to customers with multiple accounts or loans through the same institution.
Given below are the applicable charges on FAB personal loan interest rates –
|Aspects||Fees and Charges|
|Processing fee||1.05% of the loan amount
|Processing fee for top-up loans||1.05% of the top-up amount
|Life insurance fee to be paid to the insurance provider||
|Instalment late payment fee||2.1% of the delayed loan amount
|Instalment deferment fee||AED 105 per deferment|
|Loan cancellation fee||AED 105|
|Loan rescheduling fee||AED 262.5|
|Early settlement from the same bank loans||
|Early settlement from other bank loans||
|Early settlement from the other sources (own service or end-of-service benefits)||
Depending on the loan amount, the loan term, and the interest rate, the FAB personal loan interest rate varies. To calculate the FAB personal loan interest rates, follow the given steps –
For your convenience, this calculator also provides you with an indicative amortisation schedule displaying the month-wise repayment schedule.
Given below are the eligibility criteria for different types of FAB personal loans in UAE –
|Type of FAB Personal Loan||Eligibility Criteria|
|Non-Salary Transfer Personal Loan for UAE Nationals||
|Non-Salary Transfer Personal Loan for Expatriates||
|Personal Loan for UAE Nationals||
|Personal Loan for Expatriates||
|New to Country Loans/ Employment Loans||
|Etihad Guest Personal Loan||
Take a look at the next section of the article and learn more about FAB personal loan interest rates.
Ans: You can easily apply for a FAB personal loan on the Policybazaar UAE platform. All you need to do is to visit policybazaar.ae, head to the 'Personal Loan' section, fill out the lead form, filter the results, and select from the available FAB personal loans.
Ans: To obtain the estimated monthly repayments on FAB personal loans, use the indicative loan calculator on its official website.
Ans: Factors that influence FAB personal loan interest rates include your income, credit score, debt-to-income ratio, loan amount, employer status, and existing relationship with the bank. Each of these factors can affect your creditworthiness and perceived risk by the bank, which, in turn, influences the interest rate offered to you.
Ans: FAB offers both fixed and variable interest rate options for personal loans. The choice between fixed or variable rates depends on your preference, financial situation, and the type of FAB personal loan you have opted for. Fixed rates remain constant throughout the loan term, while variable rates may fluctuate according to market conditions.
Ans: Besides the FAB personal loan interest rate, the bank may also have additional fees such as processing fees, late payment fees, and early repayment fees. It's essential to carefully review the loan agreement and be aware of any extra charges before committing to a personal loan.
Ans: To get the best FAB personal loan interest rates, maintain a high credit score, keep a low debt-to-income ratio, have a stable income, and maintain a good relationship with the bank. Additionally, comparing loan offers from different lenders and negotiating with the bank can help you secure the most favourable FAB personal loan interest rate.