The National Bank of Ras Al Khaimah (RAKBANK), established in 1976, is a leading provider of financial services in the UAE. RAKBANK offers a wide range of banking services, with this list including personal banking, corporate banking, electronic banking, and more.
If you are looking for an easy and hassle-free way to cover your short-term expenses, a personal loan from RAKBANK could be just the right solution for you. With competitive interest rates and convenient repayment options, RAKBANK personal loans are a great way to manage your finances.
As RAKBANK personal loan eligibility requirements are quite flexible, you can easily find a loan tailored to your specific requirements and budget. This write-up offers insights into the personal loan eligibility criteria of the bank and how you can improve your chances of getting personal loan approval.
Top RAKBANK Personal Loans Plans with Eligibility in UAE
Check out the table below for the eligibility criteria for RAKBANK personal loans -
1. RAKBANK Personal Loan - Expatriate
Eligibility Criteria for RAKBANK Personal Loan for Expatriate
Minimum Monthly Income Required - AED 5,000
Nationality - Expats residing and employed in the UAE
General RAKBANK Personal Loan Eligibility Criteria in UAE
The following is a general list of RAKBANK personal loan eligibility criteria -
Nationality - If you are either a UAE national or an expatriate employed and residing in the UAE, you can apply for a RAKBANK personal loan.
Age Requirement - The minimum age for applying for a RAKBANK personal loan or RAKIslamic personal finance is 21 years (for expats) or 20 years and 6 months (for UAE nationals). At the time of loan maturity, you should be
65 years old or should have attained the retirement age - for UAE nationals
60 years old or have attained the retirement age - for expats
Minimum Monthly Income - To secure a RAKBANK personal loan, you should at least have a monthly salary of AED 5,000.
Salary Transfer Requirement - The requirement for salary transfer depends on the type of personal loan/finance opted. If you opt for a salary transfer personal loan/finance, you would need to ensure that you work with a company that is approved by the bank. You should transfer your salary every month to your RAKBANK account until their loan/finance is totally repaid.
Minimum Credit Score - Credit score defines your credibility. To achieve favourable interest/profit rates on your loan/finance, you should possess a good credit score. If you are a UAE national, you should have a minimum credit score of 630. However, if you are an expat, your credit score should be 541 or more.
Documents Required to Apply for RAKBANK Personal Loan in UAE
Listed below are the documents required to apply for a RAKBANK personal loan in the UAE -
A duly filled-in application form
A copy of Emirates ID
A copy of passport and UAE residence visa page
Salary certificate (if salaried personnel)
Salary transfer letter (if applicable - for salaried personnel)
A valid trade licence (for self-employed applicants)
Recent bank statements (of last 3 to 6 months)
Note: That the requirement for other documents is subject to the bank’s discretion.
Factors Affecting RAKBANK Personal Loan Eligibility in UAE
Check out which factors affect your RAKBANK personal loan eligibility below -
Monthly Income - Before your personal loan in UAE gets approved, RAKBANK would assess if you have adequate monthly income to repay the loan or finance within the determined duration. Your salary also plays a significant role in determining your financial profile. When evaluating your income, the bank will also look into your residence type and the company you work for. Moreover, they would review your secondary income sources like rent or income from leasing a property.
Credit History - Since personal loans are unsecured, banks like RAKBANK assess your credit score to determine your creditworthiness as a borrower. The credit score shows your past monthly instalment payment pattern. If your credit score is below the minimum score set by the bank, chances are that the loan application will be rejected. Keep in mind that even if you get the loan approval with a low score, you will not get a favourable interest rate on the loan.
Age - Another factor that affects your RAKBANK personal loan eligibility is age. The minimum age to secure a personal loan in UAE is 21 years while the maximum age can vary from 60 years to 65 years or your retirement age. The older you get, the interest rate applicable on the personal loan increases. However, if you are young, you will be charged a low-interest rate on the loan amount.
Lender Relations - Your personal loan eligibility in the UAE also depends on your relations with the bank, i.e., RAKBANK in this case. Your relationship with the bank will depend on how timely you repay your existing loans from the same bank. If you have been efficient with the loan repayment, RAKBANK will offer new loans at affordable interest rates.
Employment Status - Your employment status and the organisation’s reputation also affect your RAKBANK personal loan eligibility criteria. If you have been employed with a respected company for a long duration, the possibility of getting a personal loan approved is high. If you frequently switch jobs, on the other hand, it could negatively impact your personal loan eligibility.
Repayment Period - This is another important factor that impacts your RAKBANK personal loan eligibility. If you opt for a personal loan with lower repayment tenure, you can get the approval at a lower interest rate.
How to Improve Your Chances of Getting a RAKBANK Personal Loan in the UAE?
Now that we are aware of the factors that affect personal loan eligibility, let’s explore the things to consider to boost the chances of getting a RAKBANK personal loan approved in the UAE -
Clear off Existing Loans - To enhance your personal loan eligibility, it is advised that you settle all your current loans on time. For this, it is recommended to pay off all the outstanding balances within the set duration.
Lessen Your Debt-Burden Ratio - As per the guidelines from the Central Bank of the UAE, your debt-burden ratio should not exceed 50% of your monthly income. Thus, you should clear your piled-up debts regularly and make sure that your debt obligations don’t exceed 50% of your income.
Include a Co-borrower - If your minimum monthly income does not comply with the standards set by the bank or you have a low credit score, you can get a co-applicant for the loan. This increases the chances of getting a loan approved - if you fail to repay the loan, the co-borrower will be required to repay it for you. You should, therefore, consider someone dependable (like a close friend or a family member) as a co-borrower.
Work on Improving Your Credit Score - To improve your credit score, make sure that you repay your credit card bills and utility bills on time. If you have any existing loan, settle it on time and avoid any default payments.
Avoid Applying for Multiple Credit Facilities - You should avoid applying for a plethora of personal loans or credit cards at once as it will depict your dependence on loans to manage finances. Moreover, too many credit applications invite multiple hard inquiries from lending institutions in such a short span, which can affect your credit score and your personal loan eligibility in the UAE.
Consider Working for an Organisation that is Listed in RAKBANK’s List - Most banks easily approve a personal loan in the UAE for applicants who work in any of the companies mentioned in their approved list. Thus, it is important to consider working in one of the companies mentioned in the bank’s approved list if possible.
Transfer Your Salary if Needed - If the bank asks for a salary transfer, comply with the instructions. Salary transfer works as a surety that you can repay your loan within the set timeframe.
Improve Your Income - The higher your salary or income, the greater the chances of your personal loan application getting approved. Some income boosters that you can try could be performance bonuses, income from investments, or variable pay. All these income sources convince the bank that you can repay your personal loan in the set duration.
Q1. Are you eligible for a personal loan in the UAE if you recently joined a company?
Ans: You can apply for a personal loan even if you have started working recently. However, the approval is dependent on the bank’s guidelines.
Q2. How does age affect your RAKBANK personal loan eligibility?
Ans: Generally, the younger you are, the lower will be the interest/profit rate applicable to your loan/finance, as interest/profit rates tend to increase with age. Moreover, as there is better scope for improvement in income for young individuals compared to older applicants, young applicants have a high chance of approval for a personal loan in the UAE.
Q3. How does applying for several credit products affect your personal loan eligibility?
Ans: You should avoid applying for multiple personal loans or credit cards at once as it will present you as dependent on loans to manage finances. Moreover, multiple credit applications at a time invite multiple hard inquiries from lending institutions in such a short span. This can harm your credit score, which, in turn, ends up affecting your personal loan eligibility.
Q4. What is the minimum credit score required to meet the RAKBANK personal loan eligibility criteria?
Ans: If you are a UAE national, you should have a minimum credit score of 630. On the other hand, if you are an expat, your credit score should be at least 541.
Q5. What is the minimum age to apply for RAKBANK personal loan in the UAE?
Ans: The minimum age for applying for a RAKBANK personal loan or RAKIslamic personal finance is 21 years for expats and 20 years and 6 months for UAE nationals.