7 Important Tips to Boost Your Personal Loan Eligibility in Dubai
When it comes to managing your finances during an untoward situation, personal finance is one of the best choices to go for. If you are eligible, not only will your application be approved in a day, you’ll also get the funding in a few hours. That’s why personal loan in UAE is one of the best options to mitigate a financial burden.
However, the eligibility requirement often seems like a hurdle, you face to obtain that personal loan. Like you, there may be many who fail to apply due to one or another reason. Here, we are discussing 7 ways to boost your eligibility factor for the personal loan.
Clear Existing Loans
To increase the eligibility factor, you can start by clearing the existing loans. Close those accounts as soon as possible by paying the outstanding amount. The existing loans can affect your credit score, the interest rate and the finance amount.
Limit Your Debt to Burden Ratio
According to the rules of the Central Bank of the UAE, the DBR cannot exceed the limit of 50%. It means that the monthly installments you are paying for your debt should not exceed 50% of your salary. For example, if you earn a monthly salary of AED 8000, your monthly repayment installment should not exceed AED 4000. This is to make sure that you don’t end up in mounts of debt.
The banks are usually unwilling to finance the applicants who have exceeded the DBR as they are considered a higher risk factor.
Credit Score Matters
This is one of the most important factors, which can affect the eligibility for a personal loan in UAE. Credit score can affect your interest rates and finance amount too. The banks get a good look at your credit report before deciding to finance you or not. The credit report has the entire history of your debts and repayments. It even includes the deferment of loans too.
If you don’t want your personal loan application to be affected by the credit score, maintain it. To keep a good credit score, make sure to always pay your bills on time. Avoid deferment or paying minimum amounts on credit cards.
Employment at the Company that is Listed in the Banks Helps
Where you work really matters for the banks. If you are working with the listed companies of the bank, you will have a greater chance to get the personal loan. However, if your bank is not listed with the bank, you may be charged a higher interest rate or in worse case- rejection. The listed companies are the companies that have had their financial stability assessed by the banks. This way the banks analyse the risk factor and decide whether to accept or reject your application.
If your minimum salary doesn’t suffice the bank’s eligibility requirement or you have a poor credit score, get a co-borrower. A co-borrower might just be the help you need. Although not many agree to be the co-borrower as they will have to repay the loan if you fail to do so. You can consider a family member or close friends as a Co-borrower. You and your Co-borrower’s income, credit history, assets, etc. are looked into, to calculate the eligibility factor and the interest rate.
Transfer Your Salary, if Required
Be ready to transfer your salary if required. This is a matter of assurance and guarantees to the banks. They need proof that you will repay your loan on time. That is why most banks prefer salaried candidates to offer a personal loan in UAE.
Transferring your loan can increase your chances for a personal loan. It would also help with the interest rates and the minimum salary requirements.
Compare the Personal Loans
Before you head out to any bank to apply for the personal loan, make sure you are 100% sure about it. It is advised to compare your eligibility using the personal loan eligibility calculator UAE.
In this regard, some of the best personal loans in UAE to consider are
- Emirates NBD personal loan
- Rakbank personal loan
- United Arab Bank personal loan
- Citibank salary transfer loan
- Emirates Islamic personal loan
- Commercial bank of Dubai personal loan
- Ajman bank personal loan
- Emirates NBD Personal Loan - Emirates NBD personal loan has an interest rate of 2.59%. An employee of any company, with or without transferring the salary can avail the loan. It has a processing fee of 1% of the finance amount
- Rakbank Personal Loan - Rakbank personal loan has an interest rate of 5.99%. %. The minimum salary required for this personal loan is AED 5000. It has a processing fee of 1% of the finance amount.
- United Arab Bank Personal Loan - United Arab Bank personal loan has an interest rate of 5.25%. The minimum salary required for this personal loan is AED 7500. It has a processing fee of 1% of the finance amount.
- Citibank Salary Transfer Loan - Citibank salary transfer personal loan offers loans up to AED 250,000. The rate of interest ranges between 6.99%-14.99%, depending on the loan amount. The minimum salary required for this personal loan is AED 8000. It has a processing fee of 1% of the finance amount.
- Emirates Islamic Personal Loan - Emirates Islamic personal loan has an interest rate of 3.99%. The minimum salary required for this personal loan is AED 5000. It has a processing fee of 1% of the finance amount.
- Commercial Bank of Dubai Personal Loan - Commercial Bank of Dubai personal loan has a reducing interest rate which starts at 5.50% p.a. The minimum salary required for this personal loan is AED 8,000. It has a processing fee of 1% of the finance amount.
- Ajman Bank Goods Murabaha - Ajman bank Goods Murabaha requires a minimum monthly salary of AED 6500 for expats and AED 8000 for UAE nationals. It has a processing fee of 1% of the finance amount.
In a Nutshell
The minimum income requirement and credit score are the most important factors, basis of which a loan is offered. When you can’t do much about the income part, you can work on to improve your credit history. Consider the aforementioned tips to boost your eligibility and get a personal loan in UAE at once.