ADIB Personal Loan
ADCB Personal Loan
Rakbank Personal Loan
Dubai Islamic Bank Personal Loan
ADIB Credit Card
ADCB Credit Card
Rakbank Credit Card
Emirates NBD Credit Card
Citibank Credit Card
ADIB Home Loan
ADCB Home Loan
HSBC Home Loan
NBAD Home Loan
Dubai Islamic Bank Home Loan
ADIB Car Loan
HSBC Car Loan
Standard Chartered Car Loan
Emirates NBD Car Loan
Al Hilal Bank Car Loan
ADCB Business Loan
United Arab Bank Business Loan
Rakbank Business Loan
Union National Bank Business Loan
CBD Business Loan
Oman Insurance Company Life Insurance
Zurich Insurance Life Insurance
AIG Insurance Company Life Insurance
AXA Gulf Life Insurance
MetLife Life Insurance
Required Minimum Salary
ADIB Boat Finance for UAE Nationals
Max Loan Amount
ADIB Personal Finance for Expats
Dubai Islamic Bank Liability Settlement Finance for expats
RAKBANK Amal Personal Finance
Standard Chartered Salary Transfer Loan
Emirates NBD Self Employed Personal Loan for Individuals or Entities
FGB Personal Installment Loan
Ajman Bank Take Over Finance
Al Hilal Bank Personal Finance Settlement of liabilities for Expats
RAKBANK Personal Loan
UAE has been experiencing a steady rise in the banking sector in recent times. With over 40 banks (domestic + foreign), customers have a range of options to choose from. Islamic banking, where banks cannot charge fixed interest either on loans or deposits, has been operational for at least three decades now. Also, with the Dirham being pegged to the USD, foreign banks play an important role in setting the interest rates. With a huge amount of expatriate population, banks in UAE take additional precautionary measures before sanctioning loans to reduce the possibility of an NPA (Non-Performing-Asset).
Like credit cards, personal loans are unsecured loans – there is no security against it. These loans are advanced based on your credit history and ability to pay the loan. Usually, the repayment is via monthly instalments over a fixed tenure. UAE offers flat and reducing interest rates for personal loans.
UAE offers a host of benefits for people availing Personal Loans. Let’s look at a few of them:
It’s important that you understand the difference between these to make a comparison and choose what is best for you. Let’s look at both with an example:
Mr. X takes a personal loan of AED 100,000 for a tenure of 5 years. For example, let’s assume that the rate of interest is 10% p.a. for both flat and reducing options. The payback calculation would look as follows:
As shown above, Mr. X will end up paying AED 150,000 over the tenure of 5 years if he opts for the flat rate of interest.
As shown above, Mr. X will pay only AED 131,899 if he chooses the reducing interest rate option.
Please note that this example is purely for explaining the difference between the interest rates and not an indicator of the market. Choose the interest rate that best suits your needs by talking to a financial advisor.
EMI Calculator to Calculate your Personal Loan Installments.
Every bank has its own eligibility criteria which needs to be checked individually. However, some basic requirements are as follows:
Like eligibility, documentations can also vary from bank to bank. Some basic documents needed are:
There can be multiple reasons and it can help if you spend time understanding the eligibility requirement before applying for a loan. Some common reasons are:
Banks don’t usually disclose the reason behind rejection. Following the basic hygiene of submitting a completed and correct application, checking your credit score and eligibility and clearing existing debts can ensure that you maximize the chances of your application being approved.
A. Banks, usually provide an insurance cover on a personal loan. If not, then it is advisable to take an insurance to hedge against the risk of being unable to pay back due to illness, disability or death.
A. If you wish to pay off your loan before the end of the stipulated tenure, then banks usually charge an ‘early settlement fee’. The UAE Central Bank has capped the early repayment fee at 1% of the outstanding loan amount.
A. Yes. However, you must check this with the bank before you avail a loan. It is better to be clear about these policies than repent it later.
A. Yes, Some banks like Citibank, Emirates NBD, DIB, ADCB etc., provide loans even if the company is not listed with them. But in such cases loan amount provided is low or high interest rates are charged.
A. A Personal loan can be used for any personal purpose. Whether it is marriage or travel or home-improvement, you can use it however you want.
A. There is some fees charged on processing the loan application, known as “Processing fees”. The processing fees charged is 1% of the loan amount approved.
A. You can visit nearest branch of AECB along with the identity proofs and get a hard copy of your credit report.
A. Yes, you can apply for a personal loan at another bank if you meet the eligibility criteria.
A. The minimum credit score is 300 and the maximum is 900, if the applicant’s credit score is below 580 then he is not eligible for a personal loan in UAE.
A. If the loan applicant’s Debt to Burden ratio is more than 50% then there are higher chances of loan application getting rejected. Calculate your Debt to Burden Ratio using ourDBR Calculator
A. There are many banks like DIB, Emirates NBD, ADCB, FGB, etc., providing personal loan without salary transfer.
A. No, salary certificate is a mandatory document for salaried individuals in UAE to get a personal loan.
A. Use ourPersonal loan Calculator UAEto calculate EMI for loan in UAE.
A. No, credit score is an important criterion banks check before approving a personal loan application.