Personal loan for Self Employed individuals

Minimum Salary

Interest Rate

Loan Amount

Reducing Rate

Personal loan for Self Employed

Personal loans are not restricted to salaried individuals. Even Self employed individuals with a guaranteed source of income can get a personal loan in UAE. Banks provide loans for non-salaried individuals on no collateral requirement. It can be a hassle free process if the loan applicant has all the required documents.

Features

  • Maximum finance of AED 1500,000 is provided(varies with Nationality, Business Turnover)
  • A minimum income of AED 20,000 is required
  • Some banks request minimum annual sales turnover
  • The finance is provided on the Flat rate or Reducing rate basis
  • Flat rate starts from 8% p.a.
  • Reducing rate starts from 14% p.a.
  • Loan processing fees of 1%-2% are charged
  • Maximum loan duration is 4 years
  • Provides credit card, cheque books, insurance, etc., as complimentary

Eligibility

  • The loan applicant must have a minimum income of AED 20,000 (depends on the bank)
  • Both UAE Nationals and Expats are eligible
  • The loan applicant must be of minimum 21 years
  • Length of business must be of more than 2 years (varies with each bank)
  • Minimum Annual Sales Turnover varies with each bank (depends on the bank)
  • 6 Months average balance of AED 25,000 is required (depends on the bank)

Documents Required

  • Trade Licence/Professional Licence
  • Signed Memorandum
  • Articles of Association of the business
  • Power of Attorney
  • Latest 6 months bank statements
  • Emirates ID
  • Passport (for expats)
  • Resident Visa (for expats)
  • Address Proofs (Utility Bills)

FAQs

Q. What is the minimum tenure provided?

A. The minimum tenure provided is 6 months.

Q. Can we avail partial payments facility?

A. Yes, you can clear the loan on partial payments but banks levy some partial payments charges.

Q. Do I need to provide any collateral on the loan?

A. No collateral is required on the personal loan for non salaried individuals.

Q. Do I need to maintain an account at the bank I get a loan?

A. Opening/Maintaining an account varies with each bank.

Q. Do banks check credit score for non salaried individuals as well?

A. Yes, credit score is an important criterion bank check before approving any loan.

Q. Do I get any payment holidays?

A. Installment holiday benefits are provided at few banks.

Q. Do I get a loan for business less than a year of service?

A. Most of the banks in UAE provide personal loans for self employed only if the length of business is minimum 2 years.

Q. How do I provide income proofs?

A. Self employed individuals need to provide bank statements as one of the income proof documents. Other documents vary with banks.

Q. Can non-residents apply for personal loan for self employed?

A. No, only UAE residents are eligible to apply for Personal loan for self-employed persons.