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ADIB Boat Finance for UAE Nationals

Flat Rate

3.72%

Minimum Salary

AED 10000

Reducing Rate

6.75%

Max Loan Amount

AED 1000000

Early Settlement Fee

1%

Arrangement Fee

1%

3.72%

Flat Rate

AED 10000

Minimum Salary

6.75%

Reducing Rate

AED 1000000

Max Loan Amount

Advantages

  • Free ADIB Visa Cashback credit card
  • High finance amount
  • No collateral required for finance up to AED 200K
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ADIB Personal Finance for Expats

Flat Rate

3.85%

Minimum Salary

AED 8000

Reducing Rate

6.99%

Max Loan Amount

AED 1000000

Early Settlement Fee

1%

Arrangement Fee

1%

3.85%

Flat Rate

AED 8000

Minimum Salary

6.99%

Reducing Rate

AED 1000000

Max Loan Amount

Advantages

  • No processing fees
  • Free ADIB Visa Cashback Credit card
  • Can postpone 2 installments per year
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Dubai Islamic Bank Liability Settlement Finance for expats

Flat Rate

6%

Minimum Salary

AED 3000

Reducing Rate

11%

Max Loan Amount

AED 2000000

Early Settlement Fee

1%

6%

Flat Rate

AED 3000

Minimum Salary

11%

Reducing Rate

AED 2000000

Max Loan Amount

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RAKBANK Amal Personal Finance

Flat Rate

3.3%

Minimum Salary

AED 3000

Reducing Rate

5.99%

Max Loan Amount

AED 1250000

Early Settlement Fee

1%

Arrangement Fee

1%

3.3%

Flat Rate

AED 3000

Minimum Salary

5.99%

Reducing Rate

AED 1250000

Max Loan Amount

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Standard Chartered Salary Transfer Loan

Flat Rate

3.5%

Minimum Salary

AED 8000

Reducing Rate

6.5%

Max Loan Amount

AED 1000000

Early Settlement Fee

1%

Arrangement Fee

1%

3.5%

Flat Rate

AED 8000

Minimum Salary

6.5%

Reducing Rate

AED 1000000

Max Loan Amount

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Emirates NBD Self Employed Personal Loan for Individuals or Entities

Flat Rate

11.51%

Minimum Salary

AED 25000

Reducing Rate

19.99%

Max Loan Amount

AED 300000

Early Settlement Fee

1%

Arrangement Fee

1%

11.51%

Flat Rate

AED 25000

Minimum Salary

19.99%

Reducing Rate

AED 300000

Max Loan Amount

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FGB Personal Installment Loan

Flat Rate

11.02%

Minimum Salary

AED 5000

Reducing Rate

20%

Max Loan Amount

AED 200000

Early Settlement Fee

1%

Arrangement Fee

1%

11.02%

Flat Rate

AED 5000

Minimum Salary

20%

Reducing Rate

AED 200000

Max Loan Amount

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Ajman Bank Take Over Finance

Flat Rate

3.44%

Minimum Salary

AED 20000

Reducing Rate

6.25%

Max Loan Amount

AED 4500000

Early Settlement Fee

1%

Arrangement Fee

1%

3.44%

Flat Rate

AED 20000

Minimum Salary

6.25%

Reducing Rate

AED 4500000

Max Loan Amount

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Al Hilal Bank Personal Finance Settlement of liabilities for Expats

Flat Rate

3.25%

Minimum Salary

AED 7000

Reducing Rate

5.9%

Max Loan Amount

AED 1500000

Early Settlement Fee

AED 0

Arrangement Fee

1%

3.25%

Flat Rate

AED 7000

Minimum Salary

5.9%

Reducing Rate

AED 1500000

Max Loan Amount

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RAKBANK Personal Loan

Flat Rate

3.3%

Minimum Salary

AED 3000

Reducing Rate

5.99%

Max Loan Amount

AED 1250000

Early Settlement Fee

1%

Arrangement Fee

1%

3.3%

Flat Rate

AED 3000

Minimum Salary

5.99%

Reducing Rate

AED 1250000

Max Loan Amount

Advantages

  • Free credit card on 0 annual fees
  • Free debit card & cheque book
  • Low minimum salary requirement
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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).

What is a Personal Loan?

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.

Top 10 personal loans in UAE

ADIB Personal Loan

  • Free ADIB Credit Card is provided
  • Can skip 2 installments per year
  • No processing fees for new ADIB customers

ADCB Personal Loan

  • Provides instant personal loan facility
  • Can get a free ADCB Credit Card
  • Get free credit life insurance

Dubai Islamic Bank Personal Loan

  • Can avail personal loan without salary transfer
  • Salary transfer customers can skip 2 installments consecutively.
  • Quick processing and approval.

NBAD Personal Loan

  • Free credit card is provided
  • Elite Gold customers can get 25% off on processing fees
  • Low interest rates

RAK Bank Personal Loan

  • Get a credit card for no annual fees
  • Low minimum salary is required
  • Free debit card and cheque book is provided

Emirates NBD Personal Loan

  • Provides loans for customers New to UAE/New to Employment
  • Provides automatic top up of loan
  • Provides loans for customers of non-listed companies

Emirates Islamic Bank Personal Loan

  • Get a credit card with no annual fees for a year
  • Quick approval
  • Salary transfer is not required. But at least one month salary should be transferred

Citibank Personal Loan

  • Salary transfer is not required
  • Quick processing of loan
  • High finance is provided

HSBC Personal Loan

  • Credit life insurance is not mandatory
  • Quick processing of application and approval
  • Can apply online

Union National Bank Personal Loan

  • High finance is provided
  • Competitive interest rates
  • Low fees and charges

Benefits of Personal Loan

UAE offers a host of benefits for people availing Personal Loans. Let’s look at a few of them:

  • Different options available for salaried and self-employed individuals.
  • Many banks offer free debit cards and credit cards to the personal loan holders.
  • Few banks offer payment-free period for the first few months. The instalments start after the end of this grace period.
  • Personal loan holders can avail Repayments holiday facility i.e can skip installments payment for 1-2 months.
  • You can opt for an insurance cover for your loan to hedge against exigencies.
  • Personal loans compliant with the Islamic laws are available with most of the banks in the UAE.
  • Top-up options are available in proportion to the increase in salary.
  • Takaful coverage is available on Personal loans which offers financial security in case of disability or death of the individual.

Features of a Personal Loan

  • Both UAE Nationals and Expats can avail personal finance in UAE.
  • The maximum finance provided is AED 5 Million.
  • The interest rate depends on your income and the loan amount. It can start from 3.99% p.a. (reducing) or 2.19% p.a. (fixed) which varies with bank.
  • The minimum salary requirement to avail a Personal Loan in UAE is AED 3,000.
  • Majority banks provide loan amount based on the applicant’s your gross monthly salary.
  • The tenure of the loan can stretch up to 48 months (4 years).
  • 1% of the approved loan amount is charged as processing fees at most of the banks.
  • 1% of the outstanding loan amount is charged as early settlement fees.
  • Can settle loan partially on paying partial settlement fees.

Flat and reducing rates?

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:

Flat Rate of Interest
Year Outstanding Principal Principal Component Interest Component Amount to be paid per year Instalment
0 100,000
1 80,000 20,000 10,000 30,000 2,500
2 60,000 20,000 10,000 30,000 2,500
3 40,000 20,000 10,000 30,000 2,500
4 20,000 20,000 10,000 30,000 2,500
5 0 20,000 10,000 30,000 2,500
Total 100,000 50,000 150,000

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.

Reducing Rate of Interest
Year Outstanding Principal Principal Component Interest Component Amount to be paid per year Instalment
0 100,000
1 83,620 16,380 10,000 26,380 2,198.33
2 65,603 18,018 8,362 26,380 2,198.33
3 45,783 19,819 6,560 26,380 2,198.33
4 23,982 21.801 4,578 26,380 2,198.33
5 0 23,982 2,398 26,380 2,198.33
Total 100,000 50,000 150,000

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.

Use our EMI Calculator to Calculate your Personal Loan Installments.

Eligibility for Personal Loan in UAE

Every bank has its own eligibility criteria which needs to be checked individually. However, some basic requirements are as follows:

  • Only UAE residents are eligible.
  • Loan applicant must be at least 21 years of age.
  • Both Salaried and Self employed individuals are eligible.
  • Salaried individuals must be currently employed and working for around one-to-six months minimum (varies from bank to bank).
  • Minimum salary must be around AED 3,000 (again each bank has its own minimum requirement).
  • You must pay back the loan before you turn 65 years (for expatriates) and 60 years (for UAE Nationals).
  • At most of the banks, employment company must be listed with them.
  • Salary transfer criterion depends on the bank and loan type.

Documents required for Personal Loan in UAE

Like eligibility, documentations can also vary from bank to bank. Some basic documents needed are:

  • Loan application form(Provided at the banks).
  • Identity proofs like Emirates ID, Driving licence etc. for validation.
  • For Expatriates – Valid Passport with a valid UAE residence Visa.
  • Salary certificate and/or salary transfer letter.
  • Latest 3-6 months Statement(s) of your bank account(s) where salary is transferred.
  • For self-employed individuals – Trade License.

Personal Loan application rejection

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:

  • Salary requirement not met.
  • The company you work for is not listed with the bank.
  • Your Debt-to-Burden Ratio (DBR) is very high. In simple words, the percentage of your income being used to repay all your debts is more than 50%.
  • You have a low credit score.
  • Incorrect or incomplete personal information provided.

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.

FAQ’s

Q. Do I have to take an insurance on my Personal loan?

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.

Q. What is an early settlement fee?

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.

Q. What if another bank is offering lower rate of interest? Can I transfer my loan to that bank?

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.

Q. Do banks provide loan if the company is not listed?

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.

Q. What can I use a Personal Loan for?

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.

Q. What is processing fees?

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.

Q. How do I know my credit score?

A. You can visit nearest branch of AECB along with the identity proofs and get a hard copy of your credit report.

Q. Can I apply for a personal loan, if my first attempt gets rejected?

A. Yes, you can apply for a personal loan at another bank if you meet the eligibility criteria.

Q. What is the credit score range to be eligible for a personal loan in Dubai?

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.

Q. What is the maximum DBR to be eligible for a personal loan?

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

Q. Can i get a personal loan without salary transfer?

A. There are many banks like DIB, Emirates NBD, ADCB, FGB, etc., providing personal loan without salary transfer.

Q. Can I get a personal loan without salary certificate?

A. No, salary certificate is a mandatory document for salaried individuals in UAE to get a personal loan.

Q. How do I calculate my EMI for a personal loan?

A. Use ourPersonal loan Calculator UAEto calculate EMI for loan in UAE.

Q. Can I get a personal loan on bad credit score?

A. No, credit score is an important criterion banks check before approving a personal loan application.