If we imagine an ideal world, every individual will have enough money to meet his/her requirements, needs, aspirations and goals but that is seldom true. The truth is, in reality, many of us need more resources than we already have to meet our goals. This is the reason we turn to banks for support. 

If you’re planning on procuring a loan or insurance policies for personal or business needs, You’ll need certain documentation to be done. We have gathered information about the various types of loans and the documents needed for every type of it.

Here is a list of the loans and documents needed to get your work done in UAE.

1. Personal Loan

A personal loan is needed for any personal use and/or unexpected circumstances, such as a vacation, wedding, education, consumer durables, renovation of homes, investing in special projects etc. They are provided for any financial needs without any collateral. The interest rate usually charged for these loans are quite high i.e. on an average 25% pa. The approval of the loan is based on mainly the age of the borrower, the type of industry involved in and the salary.

Documentation required for a Personal Loan:

 Salaried/Self-employed

  • UAE national ID card or a valid passport
  • In case the applicant is an expat then a valid residency visa for the UAE is also needed.
  • If the bank requires a salary transfer then a letter of salary transfer will also be needed.

Buyout loans (in addition to the other documents)

  • Letter of liability
  • Past six-month bank statements

Along with the documents mentioned above the bank may ask for post-dated cheques for EMI (Equal Monthly Instalment) for security reasons.

2. Car Loans

Car loan in UAE is availed by individuals as well as business units. It is provided to purchase used and new cars both. For individuals, minimum income should be AED 5000. As per the guidelines, the maximum loan amount cannot exceed more than 80% of the value of the vehicle. The maximum payback period is 60 months. The rate of interest ranges from 5-10%.


Required Documents for Car Loans

Salaried Individuals

  • Application form for the car loan
  • Valid visa
  • Driving license
  • Salary certificate
  • Bank statement(3-6 months depending on the bank)

Self-employed Individuals

  • Application form for the car loan
  • Valid visa
  • Driving license
  • Proof of income
  • Partnership certificate in case of partnership in business
  • Bank statement(3-6 months depending on the bank)

3. Credit Card

Credit cards don’t need any introduction. They are the easiest way to pay without having to worry about the cash in your hands. Also, they let you spend more than you earn in the case of urgent requirements and allow you repay the amount at your convenience.


Required Documents for Credit Card

  • Signed application form
  • Valid Emirates ID
  • Original passport
  • Valid residence visa (for non-GCC national customers only)
  • Proof of UAE residence
  • Signed security cheque
  • The last two months of original bank statements from the account where your income is credited or  Original payslips from the last two months or Original income certificate issued in the last one month.

4. Business Loans

Business Loans are aimed at providing finance to meet business requirements of customers such as working capital needs, expansion of current business operations, purchase new inventory, start a new company, import and export shipping, improve cash flow management, mergers and acquisitions among others. The banks in UAE provide loans to small and medium enterprises ranging from 150,000 to 7,50,000 AED with a repayment period of 12 to 48 months. The interest rate may vary from 12-24 % on reducing balance. The company should have a minimum turnover of 3 million or above and at least two years in business. For large enterprises, they can offer term loans but largely depend on your company credentials.

Required Documents for Business Loans

  • Filled in the application form.
  • Partnership agreement/Power of Attorney (POA)/ Article of -Association/Memorandum of Association (MOA).
  • Trade license (copy).
  • Bank statements.
  • Passport (copy).
  • Other valid documents (varies bank to bank).

5. Home Loan

Every bank offers home loans or home finance in the UAE. The maximum repayment period of the loan is 25 years. The borrower can avail the option of fixed or flexible rates. The rates can vary between 3.5 to 8%. The rated are dependent on the salary of the borrower, employment, and resident status. The minimum salary requirement specified in the guidelines is AED20,000. Documents Required in the UAE.

Required Documents for Home Loan

Salaried Individuals

  • Identity proof
  • Age proof
  • Proof of income
  • Copy of allotment letter
  • 3-6 months bank statements
  • Buyer Agreement 

Self-employed Individuals

  • Identity proof
  • Age proof
  • Photocopy of trade/ commercial license
  • Copy of allotment letter
  • 3-6 months bank statements
  • Buyer Agreement

Some banks reserve the right to demand additional documents from the customer if it is required.

6. Health Insurance

Having health insurance is very important, it protects you against unexpected medical emergencies and the financial expenses incurred due to it. Availing health insurance might seem easy but there is a long process to it.

 

Required Documents for Health Insurance

Salaried Individuals

  • Age proof
  • Application form
  • Address proof
  • Identity proof
  • Valid visa
  • Medical records
  • Medical test reports
  • Salary certificate
  • Photograph

Self-Employed Individuals:

  • Age proof
  • Application form
  • Address proof
  • Identity proof
  • Valid visa
  • Medical records
  • Medical test reports
  • Proof of income
  • Photograph

7. Car Insurance

A car is an important asset for their owners. It is very very important for owners to have their cars insured against all damages, whether natural or by accident. In UAE, getting a car insurance is very easy. All you need is a car and some documents.

 


Required Documents for Car Insurance

Salaried Individuals

  • Identity proof
  • Age proof
  • Driving license
  • Salary slip
  • Proof of vehicle registration
  • Proof of vehicle ownership

Self-employed Individuals

  • Identity proof
  • Age proof
  • Driving license
  • Proof of income
  • Proof of vehicle registration
  • Proof of vehicle ownership

The banks might demand additional documents if it is required. The insurance can be granted only after all the documents have been submitted and verified.

8. Life Insurance

Insurance on life is a very important aspect of securing your family’s future should anything happen to you. Life insurance will ensure that your family stays protected from life’s uncertainties. There are numerous companies and policies to choose from. You don’t have to get many insurances-just one to sustain your family after you is enough.

 Required Documents for Life Insurance

Salaried Individuals

  • Identity proof
  • Address proof
  • Age proof
  • Salary slip
  • Medical records
  • Photograph

Self-Employed Individuals

  • Identity proof
  • Address proof
  • Age proof
  • Proof of income/ certificate of business
  • Medical records
  • Photograph

9. Savings Bank Account

A savings bank account is opened for keeping your money safe in a bank. Almost every bank offer interest on your money in a savings bank account, as opposed to current accounts. Many banks also make some attractive offers on savings accounts and provide credit/debit card facilities on savings accounts.


Required Documents for Savings Bank Account

For residents salaried employee

  • (salary transfer/ no salary transfer)
  • Original passport + Copy of visa
  • Salary certificate
  • Emirates ID card /registration form

For Non-residents 

  • Original Passport copy (additional)

The above list covers most of the required documents. However, some banks might demand additional documents in addition to the documents mentioned here. Compared to other countries in the GCC, the UAE has more banks, both conventional and Islamic. Obtaining a loan in the UAE is not as tricky as one thinks, the process has become simpler and easy. The world bank indeed in its ‘Doing Business’ report for this year ranked UAE 23rd in respect to the ease of doing business. This was mainly due to ease of taking a loan from the banks.