Your Income

Personal Loan up to 8 times your Salary

Personal Loan in UAE
  • Minimum Salary 5000 AED
  • EMI Tenure up to 48 Months
  • Lowest Interest Rates

Get personal loan at Lowest Interest Rate

  • Dubai
  • Abu Dhabi
  • Sharjah
  • Ras Al Khaimah
  • Ajman
  • Other
A personal loan is amongst the easiest loan to avail in the UAE. Personal finance ensures that the funds are available to you whenever you need them. This option of financing has an unsecured nature, which means most of the lenders would not ask you for pledging any asset in the form of loan security.

This can also be the reason for a high personal loan interest rate as compared to the interest rates on secured loans.

That said, applying for a personal loan in the UAE is indeed easy; however, getting this loan sanctioned and approved could be a challenging task.

The amount of loan approved depends ultimately on a number of factors. Your credit score and monthly income are usually the most important amongst them.

The reason for giving importance to your monthly income over other determinants is that the loan provider would want to make sure that you are capable enough to pay back your EMIs well on time, hence, removing the risk of defaults.

Apart from this, there are a few other reasons for considering the minimum salary requirement for personal loan a vital standard. Following are some of these reasons.

  • Higher the income more would be the borrowing scope
  • Competitive rates of interest
  • There will be a flexibility of selecting the loan tenure as well

Another factor that the bank or lending institution usually consider before approving your personal loan is whether you have taken loans from any other banks or lenders too.

The bank or lender considers the amount of salary you earn monthly and how consistently you make salary transfers or if there is no salary transfer.

They also consider your DBR (Debt Burden Ratio) and your credit score.

Did you know?

What is DBR?

A DBR (Debt Burden Ratio) is amongst the main eligibility requirement that an individual should be aware of before applying for a bank loan. DBR is simply the ratio of the current debt burden of an individual in percentage to his present income. It represents his commitments upon all his earnings.

What Amount of Personal Loan Do I Get Approved for on my Monthly Salary?


There exists no standard income parameter for judging your loan suitability. There are chances that the lender will first of all check whether you have made any defaults in the past. They will also check whether you are servicing any kind of loan currently or not except the loan you have applied for.

Keep in mind:

  • You should approach the lender or the bank directly.
  • You should try to maintain your credit Score of more than 400.

The amount of personal loan you will be eligible to borrow is entirely on the discretion of the lending institution or the bank.

The lender carefully evaluates the monthly salary of the applicants of the loan as well as the growth potential in it before giving the loan approval. In maximum cases for a personal loan in the UAE, the individuals become eligible for a loan amount of around 20 times their monthly salary.

Moreover, so as to reduce the default risk, the lenders try to maintain the amount of EMI to around 45-60 percent of the monthly income.

For example, in case your monthly salary is within 20,000-25,000 dirhams, there are chances that the EMI amount would not be more than 12,500 dirhams, which is around 50 percent of your monthly salary.

While all these are general guiding principles for the lenders, make sure that you have maintained an attractive credit history and credit score.

Any case of previous default found may hamper your chances to get the desired amount of loan, or a suitable personal loan interest rate, or favorable loan tenure.

For instance,

You are an expat with a monthly salary of 7,000 dirhams and you need a FAB personal loan. What would be EMI and total repayable amount?

Let’s say you need a loan of 70,000 dirhams. Now, your repayment tenure is 24 months and an annual rate of interest is 4.99 percent.

Your EMI would be 3,071 dirhams and the total repayment amount would be 73,696 dirhams.

Required Salary Documents

Here is a checklist of salary-related documents required to apply for a personal loan in the UAE.

  • You must have a recent salary certificate, which shows your monthly income including all your allowances.
  • Majority of the banks require you to complete 6 months of employment service with the organization you are currently working with to be eligible for this loan.
  • Most of the banks have a minimum salary requirement for personal loan starting from 4,000 dirhams. This minimum income eligibility may vary from one bank to another.
  • You need to submit to the bank an income assignment letter which you will obtain from your employer. The letter has to be in the specific format as drafted by the bank. Usually, with this letter the company makes an undertaking of transferring the monthly income as well as the end of service incentives to the lender if the employee leaves the job.

In a Nutshell

For a salary earner, a personal loan is the easiest way to make a bank finance their different requirements ranging from financing your dream vacation to your long-term investment needs. And all this without waiting to have a certain amount of savings.

However, for availing this personal loan facility, you need to meet the eligibility criteria as defined by the concerned bank. Amongst the various eligibility requirements, the most important is your minimum monthly salary.

Depending upon your income, the lender approves your loan amount, loan tenure, and the personal loan interest rate. The more is your income, the more would the scope of funds borrowing.

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