Top Banks to Get Personal Loan in Dubai in Easy Steps
These days across the globe including the people residing in Dubai have been adapting to loans as a common mode of financing. A loan is a mode to borrow money from a financial institution, entity, or a lender that is backed by collateral.
A personal loan is not defined for any purpose and does not require any collateral against securing the loan. The borrower has the flexibility to use the funds for any purpose as per his or her requirement. The only drawback for such a loan is that the loan amounts are not large, and the interest charged on such loans are often higher than those charged on secured loans.
The first step towards borrowing money via a personal loan is to understand the need for the funds. Once you discover the reason behind taking up a loan, you can move forward with researching how to get a personal loan in Dubai with the best interest rate.
Once you are clear about the procedure involved in applying for a personal loan and have everything sorted, it is not a tough task to get a loan. Many top banks in Dubai offer personal loans at competitive interest rates.
The General Criteria for to Get Personal Loan in Dubai
When you go out in the market to get a personal loan in Dubai there are specific criteria that need to be fulfilled. Even though the eligibility criteria vary from lender to lender, generally it includes:
- The applicant should be at least 21 years old and should not be more than 65 years old. The age, however, may vary from one lender to another.
- The amount of the loan generally should not exceed 20 times your salary, however, it varies from bank to bank.
- The applicant should be employed or self-employed.
- The minimum income of the applicant should be AED 5000. However, very few banks may offer loans at a salary less than AED 5000.
- Many banks require salary transfer for personal loans.
Ways to Get Personal Loan in Dubai
There are few things to keep in mind in order to ensure the smooth flow of your personal loan application.
If you are someone who is applying for a personal loan, it is essential for you to have a good credit score. The banks and lenders evaluate a person’s creditworthiness with the credit score. It plays a huge role in the approval of a loan and in obtaining attractive interest rates. If you hold a good credit score, the bank sees it as a sign of trust and therefore, the chances of approval for your application increases.
Interest Rates Comparison
When it comes to taking up a personal loan, it is not a good idea to stick to one bank only. As an applicant, you should browse around for lenders offering better interest rates and monthly payments. You should compare across the various providers in the market. while comparing, it is not just interest rates that need to be kept in mind, you should also see any extra fee or charges that you may have to bear as an applicant. After doing this comparison, you will get a rough list of the banks to target.
It is important to make sure that you meet the set eligibility criteria of the loan you are considering. It is important to make sure you fall in the age and income bracket. The general criteria are mentioned above, however, it may vary depending on your personal loan provider.
Debt to Income Ratio
The debt to income ratio is calculated by dividing your monthly installments or payments by your gross income. This is an indicator for the lender to evaluate the applicant’s repayment capacity. It is essential to have a good debt to income ratio if you are going to apply for a personal loan in the market. This ratio is a key factor for evaluation during the loan process.
Documents and Terms & Conditions
Another key step in the procedure of the loan is that the applicant should have all the relevant and required documents. It is also very important to read all the terms and conditions thoroughly as an applicant.
Top Banks to Get Personal Loan in Dubai
Even though there are numerous options to get a personal loan in Dubai, here is a list of personal loans offered by some of the top banks in Dubai.
Dubai Islamic Bank Personal Finance
Dubai Islamic Bank popularly known as DIB offers personal finance options that are simple and stress-free for the applicant. The amount goes up to AED 4,000,000 for UAE Nationals and AED 2,000,000 for Expats. The minimum salary requirement is as low as AED 3,000 with a tenure of up to 48 months. The documentation is easy and the approval is quick when applying for DIB personal finance.
RAKBANK Personal Loan
RAKBANK offers personal loan amounts at attractive interest rates. They offer the applicant a flexible repayment tenure of up to 48 months for both Expatriates and UAE Nationals. Additionally, approval of the personal loan is quick.
Abu Dhabi Islamic Bank Personal Finance
Abu Dhabi Islamic Bank also commonly known as ADIB offers personal finance with limits of up to AED 3 million for UAE Nationals and AED 1 million for Expats. The minimum salary requirement for ADIB personal finance is AED 8,000.
Citibank Personal Loan
Citibank offers personal loans in two variants, namely personal installment loan and salary transfer loan, both are offered at a zero processing fee.
The personal installment loan does not require the applicant to make a salary transfer and rewards the applicant with cashback as per the loan amount. Personal installment loans are offered of amounts up to AED 175,000 with a minimum salary requirement of AED 8,000.
The salary transfer loans are offered of amounts up to AED 250,000 with a tenure of up to 48 months and minimum salary requirement of AED 8,000.
Abu Dhabi Commercial Bank Personal Loan
Abu Dhabi Commerical Bank or ADCB offers personal loans in two variants – personal loans for Expats and personal loans for UAE Nationals.
United Arab Bank Personal Loan
United Arab Bank offers personal loans in two variants – personal loans for Expats and personal loans for UAE Nationals with flexible tenures of up to 48 months. The loans are offered for an amount of up to AED 2 million at attractive interest rates.
Commercial Bank of Dubai Personal Loan
Commercial Bank of Dubai a.k.a CBD offers personal loans of high amounts for Expats and UAE nationals with a flexible repayment schedule going up to 48 months. The minimum salary requirement is AED 8,000.
Standard Chartered Bank Personal Loan
Standard Chartered offers personal loans of up to 20 times the applicant’s salary. They allow the applicant to top-up the existing loan amount in case of the need for additional financing during the loan tenure. The minimum salary requirement for this loan is AED 15,000 per month.
In order to get a positive approval for your personal loan application in Dubai or other regions in UAE, you should ensure a healthy credit profile as it is a factor that helps the lender in developing trust. You should also avoid applying for numerous loans in different banks as the lenders can access your other applications. Too many applications indicate that you are in desperate need of funds and may cause the lender to lose trust in you. It is also important to keep a good bank statement while applying for a personal loan.
Usually, the banks in Dubai and anywhere else in the world have a long procedure of approving a loan, which is why the applicant should be fully prepared with proper research so that the procedure smoothens out to a certain extent.