Personal loan for Non-Listed Companies in UAE

Minimum Salary

Interest Rate

Loan Amount

Reducing Rate

Personal loan and Company being listed

One of the biggest reason for the rejection of a personal loan in UAE is the company not being listed with the bank or the financial institution. With numerous small and big companies and a handful of financial institutions, it is possible that the company you are working for is not listed with any institution. Availing a personal loan in such a scenario can seem like an uphill task but there is help at hand.

What to do if your company is not listed?

Before you apply for a personal loan, try researching and finding out if your company is listed with any bank; your Human Resources department can help you with this information too. Even if your company is not listed with any financial institution, there is no reason to panic. Personal loan for non-listed companies is a concern most institutions have been trying to deal with too.

Most banks would want to see a proof of continuous income to consider your personal loan application if you are working with a non-listed company. Requesting your company to transfer your salary to the said bank can work to your advantage too. It is important to remember that there might be a limit on the amount of loan you can avail.

Which banks offer personal loans for non-listed companies?

Many banks are relaxing their lending rules and offering loans to employees of companies not listed with them. Let’s look at some of them:

Abu Dhabi Commercial Bank [ADCB] Smart loan

Features

  • Minimum salary requirement of AED 8000
  • Maximum loan amount of AED 150,000
  • Flat and reducing interest rates available
  • Salary transfer not mandatory
  • Maximum repayment tenure of up to 36 months
  • Quick approvals and simple documentation
  • Processing fee is 1 percent of the principal loan amount [Min AED 500 and Max AED2,500]
  • Credit life insurance fee is 0.75 percent of the principal loan amount

Documents needed are

  • Valid Passport and Visa
  • Latest Salary
  • certificate or Carbonized Pay slip
  • Bank Statements (Last 3 months)
  • Post-dated cheques
  • One undated security cheque

Click here for more details on Abu Dhabi Commercial Bank Smart Loan

Citibank personal instalment loan

Features

  • Minimum salary requirement of AED 8000
  • Maximum loan amount of AED 175,000
  • Flat and reducing interest rates available
  • Salary transfer not mandatory
  • Sanctioned amount can be up to 8 times the salary
  • Maximum repayment tenure of up to 48 months
  • Processing fee is 1 percent of the principal loan amount [Min AED 500 and Max AED2,500]
  • Credit life insurance fee is between 0.44 and 0.99 percent of the principal loan amount, depending on the tenor

Documents needed are

  • Current dated salary certificate (3 months on current job)/Pay slips
  • Last three months bank statements (with salary transfer)
  • Passport copy/Emirates ID Copy

Click here for more details on Citibank Personal Installment Loan

Citibank salary transfer loan

Features

  • Minimum salary requirement of AED 8000
  • Maximum loan amount of AED 250,000
  • Flat and reducing interest rates available
  • Salary transfer mandatory
  • Sanctioned amount can be up to 20 times the salary
  • Maximum repayment tenure of up to 48 months
  • Processing fee is 1 percent of the principal loan amount [Min AED 500 and Max AED2,500]
  • Credit life insurance fee is between 0.44 and 0.99 percent of the principal loan amount, depending on the tenor

Documents needed are

  • Salary transfer letter
  • Last 3 months bank statements (with salary transfer)
  • Passport Copy / Emirates ID Copy
  • 6 months on the job or confirmed employment

Click here for more details on Citibank salary transfer loan

Emirates NBD personal cash loan

Features

  • Minimum salary requirement of AED 10000 [for existing credit card or Auto Loan customers] and AED 12000 for bank account holders with no credit card or Auto Loan.
  • Minimum of 12 months banking relationship
  • Minimum 6 salary credits with 6 months length of service with current company
  • Maximum loan amount of AED 500,000
  • Flat and reducing interest rates available
  • Salary transfer not mandatory
  • Maximum repayment tenure of up to 48 months
  • Processing fee is 1 percent of the principal loan amount [Min AED 500 and Max AED2,500]

Documents needed are

  • Valid Passport Copy with valid Resident Visa page
  • UAE Nationals: Idbara page of UAE Nationals
  • Original Emirates ID and Emirates ID copy
  • Proof of Residency or Utility Bill
  • Undated Security Cheque
  • Credit Card Statements (Where applicable)
  • Latest 3 Months Bank statement
  • Latest Salary Certificate/Salary Transfer Letter

Click here for more details on Emirates NBD personal cash loan

There are many other banks and financial institutions which offer personal loans to employees of companies not listed with them.

With the launch of the credit scoring system in April 2017, more banks and financial institutions might start offering personal loans without considering the company you work for. You must keep in mind that the main reason behind creating a list of companies was to reduce the risk of lending. By keeping a healthy credit history and a good repayment record, if any, you can increase your chances of availing a personal loan regardless of the company you work for. Be wary of private lenders offering personal loans at exorbitant rates since they know that getting a loan for an employee of a non-listed company can be difficult. While most banks don’t stress on transferring the salary with them, it is better to do so as it establishes a relationship with the institution and helps securing higher amount of loans at relatively lower interest rates. Research well and talk to banks before you avail the loan.

What is the current situation in UAE regarding personal loan and company listing?

Earlier this year, The Al Etihad Credit Bureau launched a credit scoring system in UAE. It was launched to help banks and financial institutions minimize the risk exposure during their lending activities. Before the launch of this system, banks would receive basic credit information about consumers applying for loans making credit decisions difficult. As a practice, banks started looking the company the applicants were working in to understand the stability of income of the prospective borrower. This was based on their observation that people working with stable organizations had a good credit and repayment history. Soon they developed a list of companies which they thought were stable and preferred lending to employees of these companies.

While every bank and financial institution developed its own set of criteria to list a company, they all looked into the number of years in business and financial records. This became the primary eligibility criteria for personal loans across financial institutions in UAE.