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Personal Loan for UAE Nationals with Insurance

Personal Loan in UAE

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Personal loans offer immediate cash solutions to help you secure money for your personal plans, whether for short-term or long-term. Several lending institutions in the UAE provide exclusive benefits with personal loans, with one such benefit being insurance coverage. 

The insurance cover protects the borrower’s family and beneficiaries from financial loss in the event of permanent disability or death of the borrower. Depending on the financial institution, the insurance coverage differs from one bank to the other. 

The article below lists the top banking institutions in the UAE providing personal loans with insurance coverage. Let's look at the key aspects of the loan, including the eligibility criteria, documents required, maximum finance amount, loan repayment period, and so on.

Top Banks That Offer Personal Loans for UAE Nationals with Insurance

Without further ado, let’s take a look at the top banks providing personal loans with insurance – 

Lending Institution

Loan Product Name

Flat Interest/Profit Rate

Reducing Interest/Profit Rate

Deem Finance

Personal Loan

NA

15.99% – 34.99%

Emirates NBD

UAE National Loan

2.90%

5.49%  

Emirates Islamic Bank

Personal finance for UAE Nationals

2.89%

5.29%

First Abu Dhabi Bank

Personal loans for UAE nationals

2.88%

5.45%

HSBC Bank

Personal loan

NA

6.99%

United Arab Bank

Personal  loan

2.89%

5.25%

Mashreq Bank

Personal loan for UAE nationals

3.43%

5.99%

Emirates NBD

Personal cash loan

4.86%

8.99%

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1. Deem Finance

With several years of experience of helping individuals fulfil their financial requirements, Deem Finance is one of the most renowned banks in the UAE. It offers Deem personal loans with insurance coverage at reasonable interest rates. 

Features and Benefits for Deem Personal Loan

  • Quick personal loan application approval within 48 hours
  • Minimal paperwork required
  • Salary transfer not mandatory
  • Reducing rates starting from 15.99 %
  • Flexible repayment period of up to 48 months
  • Borrowers can select the payment date based on when they receive the monthly salary

How Does the Personal Loan with Insurance Coverage Work?

Deem Finance offers Deem Credit Life Plus to borrowers which can cover the outstanding amount of the loan in case the policyholder passes away or contracts a terminal illness. The insurance policy also provides the repatriation expenses of the borrower to their origin country. 

Documents Required for Deem Personal Loan

  • Income documents or recent pay slip
  • Copy of Emirates ID
  • Copy of passport with residence visa
  • Bank statements for the last 3 to 6 months
  • Proof of residence
  • Copy of credit card with credit card statement

Eligibility Criteria for Deem Finance

  • Minimum monthly income – AED 5,000

2. Emirates NBD (UAE National Loan)

Founded in 1963 and listed on the Dubai Financial Market in 2007, Emirates NBD is one of the eminent names in the UAE banking sector. The bank offers Emirates NBD personal loans to UAE nationals with complimentary insurance coverage and several other benefits that would be discussed below –

Features and Benefits

  • Maximum loan amount – AED 800,000
  • Repayment tenure– Up to 4 years
  • Salary transfer not required  
  • Both expats and nationals can apply for the loan
  • Simple and quick documentation process
  • Early settlement fee – 1% of the finance amount
  • Arrangement fee – 1% of the loan amount
  • Reasonable interest rates – Flat interest rate of 2.90% and reducing rate of interest of 5.49%
  • Other advantages – 
    • Complimentary bank account
    • Free debit card
    • Insurance included
    • Phone banking

How Does the Personal Loan with Insurance Coverage Work?

Besides offering quick access to the required funds, a personal loan from Emirates NBD offers a major benefit by having the borrower covered against uncertainties with its life insurance policy and disability insurance. 

In case the borrower passes away or becomes completely disabled during the loan tenure, the proceeds of the policy may only be used to settle the loan. The remaining loan amount, as well as the interest and any pending dues, would have to be paid by the borrower or their legal heirs. 

As a borrower, you can get flexibility in terms of premium payment. You can pay the insurance premium on a monthly basis on the due date of the loan instalment or in a lump-sum amount in advance. However, it is crucial to note that the bank is not under any obligation to provide the mentioned types of insurance coverage with the loan. So if the bank is unable to provide the insurance policy for the loan due to any reason, the borrower may not be able to hold the bank liable for the same.

Documents Required for Emirates NBD Personal Loan

  • Emirates ID
  • Completed personal loan application form

Eligibility Criteria for Emirates NBD Personal Loan

  • Minimum salary required –
    • Minimum monthly salary of AED 6,000 for applicants with an existing credit card, car loan, or bank account in the same institution
    • Minimum monthly salary of AED 12,000 for applicants without an existing credit card, car loan, or bank account in the same institution
  • The applicant must have been employed for at least 6 months at the current company

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3. Emirates Islamic Bank

Emirates Islamic Bank, founded in 2004, is one of the distinguished financial institutions of the UAE offering attractive Islamic finance options to its customers. For individuals wanting to avail of a personal loan with insurance coverage, Emirates Islamic is an ideal choice due to its exclusive and attractive benefits.

Features and Benefits

  • Islamic financing products following the Shariah structure
  • Maximum loan amount – AED 4 million
  • Profit rate – flat rate of 2.89% per annum and reducing rate starting from 5.29 % per annum
  • Loan repayment period – 48 months
  • Straightforward and quick loan application process
  • Salary transfer required
  • Insurance cover or certificate of Takaful offered
  • Nominal loan processing fees
  • No additional or over-limit fees charged
  • Provision to utilise the loan to pay off the credit cards debt
  • Customised profit rates depending on the salary of the borrower

How Does the Personal Loan with Insurance Coverage Work?

With personal finance from Emirates Islamic Bank, the borrower can get insurance coverage to protect themselves and their families from unforeseen expenses in case of any adversity. The borrower would be required to pay the insurance premium along with the loan instalment on a monthly basis to keep the insurance part active throughout the loan tenure.

Documents Required for Emirates Islamic Personal Loan

  • Completed and signed personal loan application form
  • Copy of valid passport along with UAE residence visa (for ex-pats)
  • Salary transfer letter or salary certificate
  • For self-employed individuals, a trade licence would be required
  • Three months' bank statements of borrowers

Eligibility Criteria

  • Minimum monthly salary required – AED 10,000

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4. First Abu Dhabi Bank

First Abu Dhabi Bank (FAB) is another renowned lending institution offering personal loans for UAE nationals with insurance coverage. FAB, having its headquarters located in the Khalifa Business Part in Abu Dhabi, offers a high loan amount with a flexible repayment tenure and a hassle-free documentation process, helping borrowers to get the funds without a long wait. 

Some of the notable features and benefits of FAB personal loan with insurance coverage are discussed below –

Features and Benefits

  • Maximum loan amount – AED 5 million
  • Easy and swift loan approval process
  • Hassle-free documentation process
  • Customised interest rates depending on the customer's risk profile, including income of the borrower, credit score, and more
  • Interest rate – flat interest rate of 2.88% and reducing rate of interest of 5.45%
  • Loan repayment period – Up to 48 months (60 months for individuals employed in the Ministry of Defense)
  • Grace period of 150 days granted before the first instalment of the loan
  • Comprehensive life insurance coverage offered
  • To get the loan at the interest rate of 5.45% (variable interest rate loan linked to the personal loan base rate), applicants would need to fulfil the following conditions – 
    • Working in FAB approved company with salary transferred to the FAB bank account
    • Minimum monthly salary – AED 7,000

How Does the Personal Loan with Insurance Coverage Work?

FAB can arrange the life and insurance cover for the borrower for the entire term of the personal loan, under which the bank shall be termed as beneficiary. Here, the customer would be responsible for paying the insurance premium, with the proceeds of the insurance being used by the lending institution to settle the loan if required. 

In case the borrower is not eligible for disability and life insurance cover directly from the FAB, they may need to separately obtain the life and disability insurance policy as per the personal loan terms, with the bank mentioned as beneficiary.

Documents Required

  • Signed and completed personal loan application form
  • Copy of valid passport/Emirates ID/resident visa – the original documents are to be presented to the bank
  • Bank statements for the previous 3 months displaying salary credit
  • Salary transfer letter or salary certificate addressed to the lender
  • In case of buyout loans, the liability letter or clearance letter would be required

Eligibility Criteria

  • Minimum monthly salary required – AED 7,000
  • Minimum age required – 21 years
  • Employment duration – Borrower must have completed at least 6 months of service 
  • Employed with a semi-government, government, or reputed private organisation

5. HSBC

If you want a personal loan with insurance coverage as well as quick approvals and flexible repayment period, HSBC Bank can be an excellent solution for the same. HSBC is a reputed name in the global banking industry, with the bank having a presence in over 63 regions and countries across the world. 

Let’s unveil what this loan product provides in more detail – 

Features and Benefits for HSBC Personal Loan

  • Maximum loan amount – AED 500,000
  • Rate of interest – Reducing rate starting from 6.99 %
  • Salary transfer required
  • The applicant must have an HSBC current account and salary credited to that account
  • Repayment tenure – Up to 48 months
  • Interest is calculated based on a 365-day calendar year and accrues on a daily basis
  • Get interest rate based on your profile
  • In-principle approval in 10 minutes, if applied online
  • Top-up option provided to applicants 
  • The applicant can have their documents verified by the bank (via a representative) conveniently at their home

How Does the Personal Loan with Insurance Coverage Work?

Borrowers can obtain the personal loan without paying extra for insurance coverage. The lender can arrange life insurance as per the loan's terms.

Documents Required for HSBC Personal loan with Insurance

  • Salary certificate
  • Liability letter
  • Emirates ID
  • Passport with visa page

Eligibility Criteria for HSBC Personal loan with Insurance

  • Both UAE nationals and expatriates can apply for this personal loan with insurance coverage
  • The applicant must be between 21 and 65 years of age 
  • Minimum salary – AED 10,000 per month
  • The applicant must have an HSBC current account to which their salary is credited 

6. United Arab Bank Personal Loan

Quick processing and approvals, high loan amounts, and adequate insurance coverage are just some of the advantages of United Arab Bank personal loans. Given below is the detailed list of features and benefits that the bank offers with its personal loan with insurance coverage.

Features and Benefits

  • Grace period of three months on the first loan instalment
  • Quick and easy loan approvals
  • High loan amounts of up to AED 300,000
  • Salary transfer required to the United Arab Bank account
  • Profit rates – flat rate of 2.89% and reducing rate of interest of 5.25%
  • Inclusive of insurance cover
  • Other benefits – 
    • Complimentary bank account
    • Free credit card
    • Free debit card
    • Phone banking

How Does the Personal Loan with Insurance Coverage Work?

The United Arab Bank provides life insurance with its personal loan via the Personal Loan Shield Insurance Plan, which can cover the outstanding balance as well as the accrued interest in case the policyholder passes away or becomes completely disabled. 

Documents Required for UAB Personal Loan

  • Valid National ID
  • Valid passport with resident visa for residents of the UAE
  • Utility bills in the name of the borrower such as those related to telephone, electricity, or rental contract
  • Employment verification document or latest salary slip
  • Salary transfer letter
  • Last six months' bank statement of the borrower

Eligibility Criteria for UAB Personal Loan

  • Minimum monthly salary required – AED 7,500

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7. Mashreq Personal Loan

Mashreq bank, one of the eminent banks of the UAE, offers quite a few unique benefits with its personal loan with insurance coverage for UAE nationals. One of the oldest banks in the UAE, Mashreq Bank was listed on the Dubai Financial Market in 2000. 

Some of the distinct features of the Mashreq Bank personal loans are the competitive rate of interest, simple documentation, Islamic finance option, and convenient repayment terms. Let's take a glance at some other notable features of the personal loan with insurance coverage.

Features and Benefits

  • Maximum loan amount – AED 150,000
  • Competitive interest rate – flat interest rate of 3.43% and reducing rate of interest of 5.99%
  • Repayment tenure – Up to 48 months
  • Simple documentation process
  • Quick loan processing
  • Complimentary bank account
  • Free debit card
  • Free cheque book
  • Insurance cover included
  • Salary transfer required
  • Monthly loan instalment cannot exceed 50% of the monthly salary

How Does the Personal Loan with Insurance Coverage Work?

Mashreq Bank personal loan borrowers can avail of the benefits of a life insurance policy that comes up with the loan product. The insurance is offered in association with Oman Insurance Company with the following salient features – 

  • Borrower is covered against the following circumstances under the insurance policy – 
  • If the borrower passes away after the policy's commencement date and during the policy tenure
  • Insurance cover would be provided for only accidental death for the first three months of the loan disbursement
  • In the event of involuntary employment of the borrower after the policy becomes active and during the policy period, the organisation would be liable to pay the monthly instalments of the loan or AED 4,000, whichever is less, for up to six months
  • While the insurance policy provides worldwide coverage for the borrower's death, the involuntary loss of employment cover would be valid only across the UAE
  • The sum insured is applicable as follows – 
    • For borrowers between 18 and 65 years of age, the sum insured shall be equal to the outstanding loan amount with accrued interest up to the date of the borrower’s death
    • For borrowers between 66 and 70 years of age, the sum insured shall equal 50% of the outstanding loan amount with accrued interest up to the date of the borrower's death
    • In case the borrower skipped six or more consecutive loan instalments before the date of death, accrued interest shall be payable for only six months from the last loan repayment date

Documents Required for Mashreq Personal Loan

  • Copy of passport with valid residence visa for expatriates
  • Valid Emirates ID
  • Salary transfer letter from the organisation as per the bank's format
  • Salary certificate is required from government or semi-government employees
  • Latest three months' bank statements  with salary credits

Eligibility Criteria for Mashreq Personal Loan with Insurance 

  • Minimum monthly salary required – AED 7,000 for approved companies and AED 10,000 for unapproved companies
  • Salary transfer is required to the Mashreq bank account

8. Emirates NBD (Personal Cash Loan)

As mentioned earlier, Emirates NBD is one of the top lending institutions in the UAE, offering an array of personal loans with insurance coverage. A personal cash loan is one among them. This type of personal loan offers exclusive benefits to UAE nationals and expatriates, including a long repayment period, a free debit card, the option to skip two consecutive instalments per year, and more. 

Some of the prominent features and benefits of Emirates NBD personal cash loan with insurance coverage are mentioned below – 

Features and Benefits for Emirates NBD

  • UAE nationals and expats are eligible for the loan
  • Provision to miss two consecutive loan instalments per year
  • Repayment period – up to 48 months
  • Interest rates – flat rate of 4.86% and reducing rate of interest of 8.99%
  • Arrangement fee – 1% of the finance amount
  • Early settlement fee – 1% of the loan amount
  • Salary transfer not compulsory 
  • Maximum loan amount – AED 500,000
  • Other benefits such as – 
    • Complimentary bank account
    • Free chequebook
    • Free debit card
    • Insurance coverage
    • Phone banking

How Does the Personal Loan with Insurance Coverage Work?

The borrower can get the life insurance policy and disability insurance per the terms and conditions decided by the lending institution and the insurance company. The proceeds from the insurance policy would be utilised to settle the outstanding personal loan amount, while the remaining amount and the interest have to be paid by the borrower and their legal heirs. 

There are two options available to the borrower to pay the life insurance premium amount – in a lump sum or with the monthly instalments of the loan. 

Documents Required for Emirates NBD Personal Loan

  • Salary transfer letter
  • Emirates ID
  •  Fill out the loan application form 

Eligibility Criteria

  • Minimum monthly salary required – AED 6,000

How to Buy a Personal Loan with Insurance Coverage?

Policybazaar UAE is the best place to get a personal loan with insurance coverage, as you can explore and compare the top plans in one place to get the best plan for yourself. 

Here is how you can get a personal loan with insurance coverage from policybazaar.ae – 

  • Visit the official Policybazaar UAE website
  • Head to the ‘Banking Products’ tab and select the ‘Personal Loan in UAE’ option
  • Fill out the lead form with details such as your name, contact number, monthly salary, residence city, and so on
  • This will take you to the personal loan quotes page, where the list of providers and the plans will be displayed with all the detailed information
  • You can use the filters and get the list of personal loans with insurance coverage available in the UAE as per your preference

After thoroughly comparing the plans, you can apply for the one aligning with your requirements and budget the most. 

To Recap

Personal loans in the UAE come with a host of benefits, including insurance coverage. Some lending institution provides comprehensive insurance coverage, while some provide life insurance cover, which comes up with the death benefit, repatriation cost cover, accidental cover, and so on. 

A personal loan with insurance coverage is explicitly designed to safeguard the legal heirs of the borrowers from facing the brunt of liabilities in case of any unforeseen circumstances like death, disability, involuntary unemployment of the borrower, and so on. 

It’s crucial to note that even though the insurance part can bring additional nominal costs, it can be immensely beneficial in adverse situations. Simply put, opting for a personal loan with insurance coverage is a smart move as it can shield the borrower’s family from the liability of repaying the outstanding loan and provides a financial cushion against any mishaps. 

Given below are some of the most frequently asked questions (FAQs) about personal loans with insurance coverage – 

Frequently Asked Questions

How can I get a personal loan with insurance coverage in the emirates?

You can easily get a personal loan with insurance coverage via policybazaar.ae. Alternatively, you can visit your preferred lending institution or apply via their official website.

What is the benefit of obtaining a personal loan with insurance coverage?

Obtaining a personal loan with insurance coverage can safeguard the borrower's legal heirs or family from the financial burden if the former passes away or suffers involuntary employment or disability during the loan tenure. Here, the sum assured amount provided by the insurance company can help in the settlement of the outstanding loan amount with accrued interest.

Is salary transfer mandatory to get a personal loan with insurance coverage?

No, salary transfer is not mandatory to obtain a personal loan with insurance coverage.

Which is the best bank to get personal loans with insurance coverage in the UAE?

Some of the top lending institutions to get your personal loan with insurance coverage are Emirates NBD, United Arab Bank, Mashreq Bank, First Abu Dhabi Commercial Bank, HSBC Bank, Emirates Islamic Bank, and so on.

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