What Are the Minimum Eligibility Criteria for Taking Personal Loan in UAE for Expats

  | Published: 18 September 2019 | Last Updated On: 04 February 2021

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People move to another country for several reasons such as further education, job, etc. Unforeseen financial crises may arise even during times when you are living in another country. If you are living in any country on a temporary basis, it could be very difficult to avail loans in that country to meet your emergency financial requirements. In such a case, you can procure a personal loan to deal with the financial crises.

There are numerous leading banks and financial institutions that offer a personal loan in UAE for expats. The PL availed from these lenders can be utilized for multi-purpose ranging from a medical emergency to debt consolidation. Even, the process of availing consumer finances has been simplified for expats. All they need to meet the PL eligibility criteria set by the respective lender.

So, if you are also looking for a personal loan in UAE for expats then you must understand the minimum eligibility criteria that you need to meet for availing one.

Minimum Eligibility Criteria for Obtaining PL in the UAE for Expats

Age Criteria

In order to be eligible for a personal loan in UAE for expats, the minimum age of the applicant must be 21 years while the maximum age criteria is 60 years at the time of loan maturity.

Income Criteria

Another important factor that plays a vital role in deciding your PL eligibility is your monthly income. Based on your income, banks or financial institutions assess your loan repayment capacity whether you will be able to repay your loan EMI on time. Each and every lender has their own minimum income requirement to be eligible for a personal loan in UAE for expats. Thus, it is very important to check the minimum income requirement before applying for PL.

Credit Score

Prior to lending consumer finance, banks or financial institutions look at certain parameters in order to check your creditworthiness and credit score is one amongst them. It helps to know whether you can repay your loan repayment on time or not. It actually works as a validation of how responsibly and timely you have made the repayments of credit card or loans in the previous year. If you have made the timely repayments then you will have a good credit rating since each payment that is done on time adds a point to your credit score. However, if you have missed even the single repayment then your credit rating will hurt.

Keep in mind that a poor credit score could be the main reason behind the rejection of your loan application. And even if any bank is willing to offer you PL then there will offer you a high personal loan interest rate because of poor credit score. Be sure, you maintain a good credit rating to smooth the process of availing consumer finance in the UAE for expats.

Job Stability

It is also a very imperative factor to avail personal loan in UAE for expats. Your total past work experience, as well as current work experience, is evaluated to determine your job stability. As there are a few banks and financial institutions that require minimum total work experience and also look for minimum work experience with the current employer.

Employer Type

Since consumer finance is an unsecured loan, it is a very risky product from the perspective of a lender. They want to ensure that the borrower will be regular & prompt in serving PL. For this reason, the lender takes into consideration the organization where the applicant is currently working in order to assure themselves about lower chances of default on the borrower’s part. This is why, the majority of the lenders have a categorized list of employers for offering consumer finance for salaried individuals.

Applicants working with government companies have higher chances for availing PL as compared to those working with other employers. Likewise, applicants working with well-known organizations have a better opportunity of getting consumer finance.

Salary Transfer

Few of the banks or financial institutions consider salary transferred to the bank account as a stable & secure income with proper proofs of income. If you are earning a good amount of salary but getting it through cheque or cash then the lender might hesitated you to offer consumer finance because they need a valid salary proof to support your finance amount. Thus, the salary transfer is preferred by the majority of the lenders to offer a personal loan in UAE for expats.

To Conclude

All the aforementioned factors are the main parameters that decide your consumer finance eligibility. So, if you want to avail a personal loan in UAE for expats, make sure you meet the minimum requirement as decided by the respective lender to smooth out your PL application process. Apart from this, you also required to submit a few documents that include ID proof, address proof, income proof, etc. to be eligible for consumer finance.