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Every bank and financial institution has its own set of requirements for age, credit score, income, employment status, and employment type, among other factors. On the basis of these factors, the lenders come to a decision whether or not to sanction the loan to an individual applicant.
Well, while there could be numerous reasons behind your personal loan in UAE getting rejected, one of the primary reasons for rejection in Dubai is your company not being listed with the respective financial institution or bank. With the number of small organizations and big organizations that are based in the UAE, it is possible that the company with which you are working may not be listed with any of the institutions or banks. Obtaining a personal loan in UAE when your company is not listed can be an intimidating task.
But, you need not worry as some of the banks and institutions have relaxed their rules regarding lending a bit and they in some scenarios tend to offer personal loans to the employees of the non-listed companies.
Here in this thread is mentioned the personal loan eligibility criteria in UAE for the non-listed companies.
Most of the banks and the non-banking institutions share a general criterion when it comes to the age of the applicant. In order to meet the eligibility criterion for applying for a personal loan in UAE, the applicant must be of a minimum age of 21 years while the maximum age to apply is generally 60 years. These age criterion range is applicable for a personal loan in UAE for expats. For the UAE nationals, they may be allowed to apply for a personal loan up to a maximum age of 65 years.
Generally, applicants that work for a company that is not listed with the bank or financial institution are considered to be of a high-risk profile i.e., that there is a risk that the borrower might not honor the repayments of a loan.
As a consequence of the same, their personal loan application in UAE might be rejected or accepted based on a few key factors and one of these major factors is their monthly earnings or income. The income requirement set by the banks and non-banking institutions for an individual to avail a personal loan in UAE might be higher for the applicants working with a non-listed company as compared to the applicants that are working with listed companies.
As most of us are aware, holding a good credit Score is one of the most important factors that come into consideration in approving any loan application. The personal loan interest rate charged, the tenure of your personal loan, and the loan amount that can be borrowed by you from the bank, all depend on your three-digit credit score issued by the AECB.
Holding a good credit score determines your creditworthiness and it shows the lender that you are capable of maintaining good payment records, along with a good capacity for repayment of the loan. Lenders consider this an important factor that they need to examine while assessing your application in order to determine if you are creditworthy or not.
Therefore, it is extremely very important to maintain a credit score to increase the chances of your personal loan in UAE getting approved, especially if you are working with a small-sized or medium-sized organization. Generally, a score of 700 or above is considered to be a good credit score.
In the UAE, the ‘credit reporting system’ was launched in the year 2017, in the month of April. Wherein after, certain banks and financial institutions have started giving out a personal loan in UAE to the employees of companies that are not even listed with them. However, you should be aware that the main reason for creating a list of companies is eventually a safe and secure manner to reduce the degree of risk involved in lending to a particular applicant.
By maintaining a good history of repayment, and a good credit score, you can increase the probability of your personal loan application status being approved and at the same time availing a personal loan at attractive interest rates regardless of the organization that you are working in.
Also, you should bear in mind that there are many private lenders in the market that will offer you a personal loan in UAE at the higher interest rate for the sole reason that they are aware of how daunting it can be for an employee seeking a personal loan without having his or her company listed.
Always compare the different personal loan providers via an online platform and only opt for a well-reputed lender that can also offer you good interest rates on your personal loan and a high loan amount for the same irrespective of the company for which you are working.
In a Nutshell
Just because you are working with an organization that is not listed with the banks and institutions does not mean that you cannot apply for any of the easily available options for a personal loan in UAE that you may come across. Regardless of this, always do a thorough comparison between the available loan options based on the rate of interest charged, the loan amount offered, any processing fee, and other important factors so that you opt for the best possible option as per your requirements and needs for availing one.