Mashreq Personal Loan Eligibility in UAE

However, to obtain the loan, you must clear the eligibility requirement as set by the concerned financial institutions before approval. Understanding the personal loan eligibility criteria can help you find out whether you are a good candidate for the loan and your chances of being approved for the same.

Top Mashreq Bank Loans with Eligibility in UAE

One of the oldest financial institutions in the UAE – Mashreq Bank, founded in 1967, is a well-known bank that offers different types of personal loans catering to numerous market segments' needs.

Before applying for the Mashreq Bank personal loan, however, it is essential to know whether you qualify for its eligibility criteria. Given below are the popular Mashreq bank personal loans and their eligibility criteria.

Here are the major Mashreq Bank personal loans - 

• Personal loans for new customers
• Personal loans for existing customers
• Top-up loan for existing customers
• Debt consolidation loan

To apply for any of the above-listed loans, you must fulfil the following criteria -

• Minimum monthly salary – AED 5,000 for approved companies and AED 10,000 for unapproved companies
• It is not necessary to be employed at a Mashreq-approved organisation.
• You must have confirmed employment or work experience of at least 6 months with the current organisation.

Documents Required to Apply for Mashreq Bank Personal Loans

While the bank may require additional documents (besides the standard ones) if required, keep the following documents handy while applying for Mashreq Bank personal loans -  

• A valid Emirates ID
• A valid passport with a UAE residence visa page 
• As per the Mashreq format, an employer salary transfer letter is required for Mashreq personal debt consolidation loan. Government and semi-government employees are required to submit their salary transfer letters for approval of the loan.

Factors Affecting Mashreq Bank Personal Loan Eligibility

Some of the key factors affecting your Mashreq Bank personal loan eligibility are discussed below – 

• credit score: Credit score is a crucial factor in determining your loan eligibility. If your credit score is very high and exceeds, say, 750, you will be perceived as an individual with high creditworthiness by the bank. This can increase your chances of getting approved for a Mashreq personal loan.
• Income: Another factor affecting your personal loan eligibility is your income and employment history, with the bank wanting to confirm that you have a stable source of income to repay the loan. For this reason, it is recommended to add your secondary sources of income to the personal loan application form to enhance your profile as an applicant.
• Debt-to-income Ratio: It is the ratio of your total monthly debt repayments to your gross monthly income. If you have a low debt-to-income ratio, it means that you have disposable income to repay the loan. The probability of getting a loan, in this case, is quite high.
• Age:  Age is another factor affecting your Mashreq personal loan eligibility. In UAE, the minimum age to obtain a personal loan is 21 years, while the maximum is 60 to 65 years or your retirement age. Generally, the older you get, the higher the interest rate on your personal loan.
• Loan Amount: The finance amount also affects the eligibility criteria, as larger loans may require a higher credit score and income. If you are applying for a high loan amount and a longer repayment period, the interest rate may be on the higher side as well.
• Repayment Period: The loan repayment period affects your Mashreq personal loan eligibility criteria in a few different ways. Firstly, a longer repayment period requires a higher income and a stronger credit score. Secondly, the repayment tenure also affects the loan amount you are eligible for. In addition, it also affects the interest rate you receive on a loan - loans with long repayment periods have higher interest rates than those with shorter repayment periods.

How to Improve Your Chances of Getting a Mashreq Personal Loan in UAE?

There are several ways to improve your chances of getting a Mashreq personal loan approved in the UAE – 

• Maintain a good credit score:  A good credit score can help you improve your personal loan eligibility by reflecting your creditworthiness and reliability. Make sure to pay all your bills on time and avoid carrying high balances on your credit card to get a healthy credit score.
• Lessen Your Debt-to-Income Ratio: As mentioned earlier, lenders also look at your debt-to-income ratio to assess your profile. You can pay all your outstanding debts on time or increase your income sources to improve your debt-to-income ratio.
• Submit Required Documents: Providing all the necessary documentation while applying for the Mashreq personal loan is necessary. This can improve your chances of being approved and speed up the approval. If you cannot submit the required documents or provide incorrect ones, the lender may straightaway cancel your loan application.
• Settle your Current Debts: To improve your personal loan eligibility, it is advisable to settle and clear off all your existing debts on time. This will improve your credit score and overall enhance your credit profile.
• Don’t Apply for Multiple Cards: You should not apply for numerous credit cards or loans simultaneously, as it will adversely impact your credit profile. It can be considered as an indication that you depend on the loan proceeds to manage your finances. Another point to keep in mind is that applying for multiple credit cards or loans can also lower your credit score. As we discussed earlier, a low credit score can hurt your chances of approval.
• Consider a Co-Signer: If you have a poor credit score or a high debt-to-income ratio, you can consider getting a co-signer for your loan. A co-signer agrees to take responsibility for the loan if you cannot make the payments.

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