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What are the Requirements to Qualify for a Personal Loan in UAE?

What are the Requirements to Qualify for a Personal Loan in UAE?
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It has become relatively easier to get personal loans in the UAE. Most banks offer personal loans without any collaterals or guarantor, as long as the clients meet the personal loan eligibility criteria. Also, the documents required have to be complete.

To get a basic idea, below are the requirements for the personal loan eligibility UAE and the documentation required for a personal loan.

Personal Loan for Expats

Eligibility

  • Minimum salary requirements-  Every bank has requirements for a certain amount of salary per month to qualify the expat for the personal loan
  • The minimum age required for an expat to qualify for a loan is 21
  • Customers should have a good credit history to be eligible for a loan
  • Expats should have proof of a certain amount of employment history

Documentation Required for Personal Loan for Expats

  • Copy of Passport
  • proof  of UAE identity card
  • Salary Transfer/ salary certificate
  • Bank statement of 3-6 months
  • Good credit score

Note- As long as an expat have a valid residency visa, it is possible for expats to apply for a personal loan. But the loan amount cannot be more than 20 times the expat’s salary as per UAE law.

Personal Loan for Self-Employed

Eligibility

  • Minimum salary as per the bank’s requirements
  • Banks might request minimum turnover In annual sales
  • Length of the business must be as per the bank’s request (Most banks require 2 years minimum)
  • Good credit score

Documentation Required for Personal Loan for Self-employed

  • Completed loan application form
  • Proof of trading license
  • Memorandum of association
  • Power of attorney
  • Salary Transfer/ salary certificate
  • Bank statement of 3-6 months
  • Copy of passport
  • Proof of UAE identity card

Note- Only UAE nationals are eligible for a self-employed personal loan. Most banks do not require collaterals for self-employed personal loans. It is quick and hassle-free as long as the client has all the necessary documents.

Personal Loan for UAE Nationals

Eligibility

  • Minimum monthly income
  • Proof of employment
  • Minimum age limit is 21

Documentation Required for Personal Loan for UAE Nationals

  • Completed application form
  • Copy of passport
  • Copy of Emirates ID
  • Salary transfer letter/ salary certificate
  • Bank statements of 3-6 months

Personal Loan for Non- Listed companies

Eligibility

  • Minimum monthly income required which is comparatively higher than those employees of listed companies
  • Minimum age limit is 21
  • Proof of employment

Documentation Required for Personal Loan for Non-Listed Companies

  • Completed bank form
  • Salary transfer/salary certificate
  • Bank statements of 3 – 6 months
  • Salary transfer letter/ salary certificate
  • Copy of passport
  • Copy of Emirates ID
  • Post-dated cheques
  • One undated security cheque

Note- One of the reasons for failing personal loan eligibility criteria in UAE is the fact that the company is not listed with the bank. For a company to be listed under the bank, banks check on the history of the bank. Bank tends to look at the number of years the company has been around and its financial records. Stable companies represent less of a risk factor for the banks. Thus the employees working under the listed companies had better chances at the eligibility criteria for the personal loans.

Personal Loan for Salary Transfer

Eligibility

  • Minimum salary required (it differs for every bank)
  • Minimum age required is 21
  • Salary transfer is necessary
  • Length of employment in the current company as per the bank’s requirements

Documentation Required for Personal Loan for Salary Transfer

  • Copy of passport
  • Proof of Emirates ID
  • Bank statements (3-6 months)
  • Proof of salary
  • Salary transfer/ salary certificate

Note- Salary transfer letter is one of the important factors for personal loan eligibility UAE. Though not all banks ask for the salary transfer letter, many banks do. A salary transfer letter is prioritized by most banks and it is becoming inevitable.

Over to you

As seen above, the eligibility criteria are simple and hassle-free. All banks require a minimum salary which can range from AED 5000 to AED 20000, depending on the individual bank. However minimum age limit remains the same for every bank. As for the salary transfer letter, the client can easily obtain it from their individual company.

As for the documents required, all banks have similar requirements. In certain cases like a personal loan for self-employed, clients will need to present some other documents too. These documents include power of attorney, memorandum of association, etc. Though not all banks require power of attorney for the personal loan for self-employed individuals, some banks do require it.

In case of a minor, few banks do offer personal loan to minors. But the bank requires for the client to be accompanied by the business partner (who should be above 21 years of age). The collateral for the personal loan for self-employed is usually signed by the business partner.

In short, personal loan eligibility criteria in UAE is accommodating to clients looking for a loan for both personal and business needs.

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