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ADIB Personal Finance for Expats

flat rate Flat Rate

3.85%

minimum salary Minimum Salary

AED 8000

reducing rate Reducing Rate

6.99%

max amount Max Loan Amount

AED 1000000

early settlement fee Early Settlement Fee

1%

arrangement feeArrangement Fee

0%

Advantages

  • No processing fees
  • Free ADIB Booking.com Signature Card
  • Can postpone 2 installments per year
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Dubai Islamic Bank Liability Settlement Finance for expats

flat rate Flat Rate

6%

minimum salary Minimum Salary

AED 10000

reducing rate Reducing Rate

11%

max amount Max Loan Amount

AED 3000000

early settlement fee Early Settlement Fee

1%

Advantages

  • Finance is provided for sharia-compliant goods
  • Quick processing
  • High loan amount
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RAKBANK Personal Loan

flat rate Flat Rate

3.3%

minimum salary Minimum Salary

AED 3000

reducing rate Reducing Rate

5.99%

max amount Max Loan Amount

AED 1500000

early settlement fee Early Settlement Fee

1%

arrangement feeArrangement Fee

1%

Advantages

  • Free credit card on 0 annual fees
  • Free debit card & cheque book
  • Low minimum salary requirement
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CBI Personal Loan

flat rate Flat Rate

3%

minimum salary Minimum Salary

AED 8000

reducing rate Reducing Rate

5.44%

max amount Max Loan Amount

AED 1000000

early settlement fee Early Settlement Fee

1%

arrangement feeArrangement Fee

1%

Advantages

  • Free rewards credit card
  • Overdraft facility on current account
  • Phone banking facility
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ADIB Personal Finance for UAE Nationals

flat rate Flat Rate

3.72%

minimum salary Minimum Salary

AED 8000

reducing rate Reducing Rate

6.75%

max amount Max Loan Amount

AED 3000000

early settlement fee Early Settlement Fee

1%

arrangement feeArrangement Fee

0%

Advantages

  • No processing fees
  • Free ADIB Booking.com Signature Card
  • Can postpone 2 installments per year
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HSBC Personal Loan

flat rate Flat Rate

4.12%

minimum salary Minimum Salary

AED 7500

reducing rate Reducing Rate

7.49%

max amount Max Loan Amount

AED 750000

early settlement fee Early Settlement Fee

1%

arrangement feeArrangement Fee

1%

Advantages

  • Credit life insurance is not mandatory
  • Quick processing & approval
  • Flexible tenure
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Emirates NBD Loans for Expatriates

flat rate Flat Rate

2.77%

minimum salary Minimum Salary

AED 10000

reducing rate Reducing Rate

5.24%

max amount Max Loan Amount

AED 1000000

early settlement fee Early Settlement Fee

1%

arrangement feeArrangement Fee

1%

Advantages

  • Free 0 balance account
  • Low interest rates
  • High finance amount
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Emirates Islamic Personal Finance for Expats

flat rate Flat Rate

3.59%

minimum salary Minimum Salary

AED 5000

reducing rate Reducing Rate

6.47%

max amount Max Loan Amount

AED 2000000

early settlement fee Early Settlement Fee

1%

arrangement feeArrangement Fee

2.5%

Advantages

  • Free Credit Card
  • Low processing fees
  • Only 1 month salary transfer is required
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Union National Bank Expatriate Loan

flat rate Flat Rate

3.13%

minimum salary Minimum Salary

AED 5000

reducing rate Reducing Rate

5.68%

max amount Max Loan Amount

AED 500000

early settlement fee Early Settlement Fee

1.05%

arrangement feeArrangement Fee

1.05%

Advantages

  • Skip upto 2 installments per year
  • Free UNB Credit Card
  • Competitive interest rates
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Emirates Islamic Personal Finance for UAE Nationals

flat rate Flat Rate

3.19%

minimum salary Minimum Salary

AED 5000

reducing rate Reducing Rate

5.74%

max amount Max Loan Amount

AED 4000000

early settlement fee Early Settlement Fee

1%

arrangement feeArrangement Fee

2.5%

Advantages

  • Free Credit Card
  • Low processing fees
  • Only 1 month salary transfer is required
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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).

Best Personal Loans from banks in UAE (August 2019 - Updated)

Top 10 Personal Loans in UAE - Overview
Minimum Salary Interest Rate(onwards) Benefits
ADIB Personal Loan AED 8000 3.85%
- Free ADIB Credit Card
- Can postpone installments
ADCB Personal Loan AED 5000 2.61%
- Free ADCB Credit Card
- Free Credit Life Insurance
Dubai Islamic Bank Personal Loan AED 3000 6%
- Can skip installments
- Quick processing
FAB Personal Loan AED 7000 1.62%
- People new to UAE are also eligible
- Life insurance is provided
RAK Bank Personal Loan AED 3000 3.30%
- Free credit card
- Free debit card, cheque book are provided
Emirates NBD Personal Loan AED 5000 2.61%
- People new to UAE are also eligible
- Can avail even if the company is non-listed
Emirates Islamic Bank Personal Loan AED 5000 3.19%
- Free credit card
- 1 month salary transfer is enough
CBI (Commercial Bank International) Personal Loan AED 8000 1.65%
- Free rewards credit card
- Can avail overdraft facility
HSBC Personal Loan AED 7500 4.12%
- Credit life insurance is optional
- Quick approval

Benefits of Personal Loan

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

  • Different options available for salaried and self-employed individuals.
  • Many banks in UAE 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 in UAE which offers financial security in case of disability or death of the individual.

Features of a Personal Loan in UAE

  • Both UAE Nationals and Expats can avail personal finance in UAE.
  • The maximum finance provided is AED 5 Million.
  • The personal loan interest rate in UAE 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 Finance 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.

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.

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 in UAE 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.

Tips to get your personal loan in UAE approved

A personal loan is recommended only to fulfill emergency financial needs. So when you apply for one, it is important to make sure it gets approved without any complications. Check these tips to get your personal loan approved

  • Check your credit score before applying.
  • Make sure you have a good credit score with proper credit history.
  • Make sure you meet the eligibility criteria.
  • Fill in the personal loan application form properly with appropriate details.
  • There should be no errors in the loan application form.
  • Have a stable job.
  • Avoid applying at various banks at the same time.
  • Have all the required documents.
  • Don’t apply for loan amount beyond your capability.

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 in UAE like Citibank, Emirates NBD, DIB, ADCB etc., provide loans even if the company is not listed with them. But in such cases low or high interest rates are charged on the loan amount provided.

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 in Dubai, 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 in Dubai without salary transfer?

A. There are many banks in UAE like DIB, Emirates NBD, ADCB, FAB, 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 in Dubai, UAE on bad credit score?

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

Latest Update on Personal Loan in
UAE

uae loans
UAE may witness a good growth in loans in 2018 as the country’s macroeconomic outlook improves and also infrastructure investment opens doors for new opportunities as per the new report of BMI research. There may also be the rise in deposits as the increase in interest rates promote savings and increase oil prices and interest rates enable banks to have a great credit demand As per BMI prediction, deposits and loans will increase by 7.2% and 5% in 2018
UAE to witness a escalation in loans and deposits
UAE may witness a good growth in loans in 2018 as the country’s macroeconomic outlook improves and also infrastructure investment opens doors for new opportunities as per the new report of BMI research. There may also be the rise in deposits as the increase in interest rates promote savings and increase oil prices and interest rates enable banks to have a great credit demand As per BMI prediction, deposits and loans will increase by 7.2% and 5% in 2018

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