Debt Consolidations loans in UAE

Minimum Salary

AED 5000

Reducing Rate

3.99%

Max Loan Amount

AED 1500000

Early Settlement Fee

1%

minimum-salary

AED 5000

Minimum Salary

3.99%

Reducing Rate

loan-amount

AED 1500000

Max Loan Amount

arrangement-fee

1%

Arrangement Fee

Advantages

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

Overview

  • Provides finance on a low salary
  • Can top-up existing loan to original loan amount after one year of loan
  • Can defer one year installment for free on paying installments regularly for 6 months
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Overview

  • Provides finance on a low salary
  • Can top-up existing loan to original loan amount after one year of loan
  • Can defer one year installment for free on paying installments regularly for 6 months
  • Free cheque book and debit card is provided
  • Can get free RAK bank credit card of 0 annual fees
  • Provide life insurance on nominal charges
  • Can avail debt consolidation facility
  • Salary transfer to RAK bank account is compulsory
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Minimum Salary

AED 5000

Reducing Rate

5.25%

Max Loan Amount

AED 1500000

Early Settlement Fee

1.05%

minimum-salary

AED 5000

Minimum Salary

5.25%

Reducing Rate

loan-amount

AED 1500000

Max Loan Amount

arrangement-fee

1.05%

Arrangement Fee

Advantages

  • Free ADCB Credit Card
  • Free Credit life insurance
  • Salary overdraft up to 3 times

Features

  • Repayment period is up to 4 years
  • The loan is provided for an interest rate of 5.25%
  • Minimum salary of AED 5,000 is required
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Features

  • Repayment period is up to 4 years
  • The loan is provided for an interest rate of 5.25%
  • Minimum salary of AED 5,000 is required
  • It is mandatory to transfer your salary to apply for this scheme
  • Finance up to AED 1,500,000
  • Early settlement fee is 1.05% of the finance amount
  • Arrangement fee is 1.05% of the loan amount

Benefits

  • For every AED 1000 of your insurance amount can earn ADCB TouchPoints
  • Documentation is simple
  • High finance amount is offered
  • Takaful insurance is provided free with the scheme
  • Free ADCB Credit Card is provided along with this scheme
  • Credit Life Insurance is provided along with this scheme
  • Get 50% OFF on processing fee on applying for the account through ADCB Hayyak App. Also, avail 50,000 Touchpoints on the approval.
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Minimum Salary

AED 5000

Reducing Rate

4.49%

Max Loan Amount

AED 1500000

Early Settlement Fee

1.05%

minimum-salary

AED 5000

Minimum Salary

4.49%

Reducing Rate

loan-amount

AED 1500000

Max Loan Amount

arrangement-fee

1.05%

Arrangement Fee

Advantages

  • Free ADCB Credit Card
  • Free Credit life insurance
  • Salary overdraft up to 3 times

Features

  • Repayment period is up to 4 years
  • Only UAE Nationals can apply for this scheme
  • The loan is provided for an interest rate of 4.49%
Apply Now

Features

  • Repayment period is up to 4 years
  • Only UAE Nationals can apply for this scheme
  • The loan is provided for an interest rate of 4.49%
  • Minimum salary of AED 5000 is required
  • It is mandatory to transfer your salary to apply for this scheme
  • Finance up to AED 1500000
  • Early settlement fee is 1.05% of the finance amount
  • Takaful fee is 1.05% of the finance amount
  • Arrangement fee is 1.05% of loan amount

Benefits

  • For every AED 1000 of your insurance amount can earn ADCB TouchPoints
  • Documentation is simple
  • High finance amount is offered
  • Availability of consolidation of loans
  • Free ADCB Credit Card will be provided along with this scheme
  • Free Credit Life Insurance will be provided along with this scheme
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Flat Rate

3%

Minimum Salary

AED 8000

Reducing Rate

5.5%

Max Loan Amount

AED 3000000

Early Settlement Fee

1%

flat-rate

3%

Flat Rate

minimum-salary

AED 8000

Minimum Salary

5.5%

Reducing Rate

loan-amount

AED 3000000

Max Loan Amount

arrangement-fee

1%

Arrangement Fee

Advantages

  • Free debit card
  • Current account with no minimum balance
  • Can avail top-up facility

Features

  • Repayment period is up to 4 years
  • Only UAE Nationals can apply for this scheme
  • The reduction rate and the flat rate is 5.5% and 3%. This denotes that the computation done was a division of the reduction rate by 1.836
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Features

  • Repayment period is up to 4 years
  • Only UAE Nationals can apply for this scheme
  • The loan is provided for a interest rate of 5.5%
  • Minimum salary of AED 8,000 is required
  • The reduction rate and the flat rate is 5.5% and 3%. This denotes that the computation done was a division of the reduction rate by 1.836
  • It is mandatory to transfer your salary to apply for this scheme
  • Finance up to AED 3,000,000
  • Early settlement fee is 1% of finance amount
  • Takaful is provided free of cost
  • Arrangement fee is 1% of loan amount

Benefits

  • For every loan amount of AED 100,000 you can earn up to 500 Attijari points
  • High Finance amount is provided by the bank
  • Availability of buy-out facility
  • Determent facility available - maximum 2 times a year without additional profit
  • Free Debit Card is provided along with this scheme
  • Free Current Account is provided along with this scheme with no minimum balance requirement
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Minimum Salary

AED 8000

Reducing Rate

5.99%

Max Loan Amount

AED 1000000

Early Settlement Fee

1%

minimum-salary

AED 8000

Minimum Salary

5.99%

Reducing Rate

loan-amount

AED 1000000

Max Loan Amount

arrangement-fee

0%

Arrangement Fee

Advantages

  • No processing fees
  • Free ADIB Visa Cashback Card
  • Can postpone 2 installments per year

Overview

  • No processing fees are charged
  • Applicants must submit liability certificate
  • Free ADIB card can be availed
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Overview

  • No processing fees are charged
  • Applicants must submit liability certificate
  • Free ADIB card can be availed
  • Can postponement installments
  • The maximum tenure of 4 years is provided
  • Grace period is provided to pay the first installment
  • Can get pre-approval for the loan
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Flat Rate

3.03%

Minimum Salary

AED 8000

Reducing Rate

5.5%

Max Loan Amount

AED 750000

Early Settlement Fee

1%

flat-rate

3.03%

Flat Rate

minimum-salary

AED 8000

Minimum Salary

5.5%

Reducing Rate

loan-amount

AED 750000

Max Loan Amount

arrangement-fee

1%

Arrangement Fee

Advantages

  • Free debit card
  • Current account with no minimum balance
  • Can avail top-up facility

Features

  • Repayment period is up to 4 years
  • The reduction rate and the flat rate is 5.5% and 3.03%. This denotes that the computation done was a division of the reduction rate by 1.814
  • The loan is provided for a interest rate of 5.5%
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Features

  • Repayment period is up to 4 years
  • The loan is provided for a interest rate of 5.5%
  • Minimum salary of AED 8,000 is required
  • The reduction rate and the flat rate is 5.5% and 3.03%. This denotes that the computation done was a division of the reduction rate by 1.814
  • It is mandatory to transfer your salary to apply for this scheme
  • Finance up to AED 750,000
  • Early settlement fee is 1% of finance amount
  • Takaful fee is 1% of the finance amount
  • Arrangement fee is 1% of loan amount

Benefits

  • High Finance amount is provided by the bank
  • Availability of buy-out facility
  • Determent facility available - maximum 2 times a year without additional profit
  • Free Debit Card is provided along with this scheme
  • Free Current Account is provided along with this scheme with no minimum balance requirement
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Minimum Salary

AED 8000

Reducing Rate

5.99%

Max Loan Amount

AED 3000000

Early Settlement Fee

1%

minimum-salary

AED 8000

Minimum Salary

5.99%

Reducing Rate

loan-amount

AED 3000000

Max Loan Amount

arrangement-fee

0%

Arrangement Fee

Advantages

  • No processing fees
  • Free ADIB Visa Cashback Card
  • Can postpone 2 installments per year

Features

  • Latest bank account statements are needed
  • Required to submit Liability Certificate
  • Loan applicant must be 21 years old to apply for this scheme
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Features

  • Latest bank account statements are needed
  • Required to submit Liability Certificate
  • Loan applicant must be 21 years old to apply for this scheme
  • Should have worked for at least 6 months at the current organization before applying for this scheme
  • Profit rate of 5.99% is charged
  • Minimum salary of AED 8,000 is required
  • It is a requirement to transfer your salary to apply
  • Finance up to AED 3,000,000
  • The early settlement fee is 1% of the outstanding amount to date
  • Takaful cover is 1.25% of the finance amount.
  • No Arrangement fee is charged

Benefits

  • ADIB VISA Cashback Card will be provided free for the first year
  • You are allowed to postpone two payments per year (without any additional charges)
  • Finance repayment period is upto 48 months
  • Processing fees is zero
  • Free ADIB card can be availed
  • Can postponement installments
  • The maximum tenure of 4 years is provided
  • Grace period is provided to pay the first installment
  • Can get pre-approval for the loan
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Minimum Salary

AED 6000

Reducing Rate

5.63%

Max Loan Amount

AED 2000000

Early Settlement Fee

1%

minimum-salary

AED 6000

Minimum Salary

5.63%

Reducing Rate

loan-amount

AED 2000000

Max Loan Amount

arrangement-fee

1%

Arrangement Fee

Features

  • Repayment period is up to 4 years
  • Only UAE Nationals can apply for this scheme
  • The interest rate starts at 5.63%
Apply Now

Features

  • Repayment period is up to 4 years
  • Only UAE Nationals can apply for this scheme
  • Minimum salary of AED 6,000 is required
  • The interest rate starts at 5.63%
  • It is mandatory to transfer your salary to apply for this scheme
  • Finance up to AED 2,000,000
  • Early settlement fee is 1% of loan amount
  • Arrangement fee is 1% of loan amount

Benefits

  • Can get up to AED 2,000,000 loan amount
  • Repayment period is long
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Flat Rate

3.3%

Minimum Salary

AED 7500

Reducing Rate

5.99%

Max Loan Amount

AED 730000

Early Settlement Fee

1%

flat-rate

3.3%

Flat Rate

minimum-salary

AED 7500

Minimum Salary

5.99%

Reducing Rate

loan-amount

AED 730000

Max Loan Amount

arrangement-fee

1%

Arrangement Fee

Features

  • Repayment period is up to 4 years
  • The reduction rate and the flat rate is 5.99% and 3.3%. This denotes that the computation done was a division of the reduction rate by 1.814
  • The loan is provided for a interest rate of 5.99%
Apply Now

Features

  • Repayment period is up to 4 years
  • The loan is provided for a interest rate of 5.99%
  • Minimum salary of AED 7,500 is required
  • The reduction rate and the flat rate is 5.99% and 3.3%. This denotes that the computation done was a division of the reduction rate by 1.814
  • It is not mandatory to transfer your salary to apply for this scheme
  • Finance up to AED 730000
  • Early settlement fee is 1% of finance amount
  • Takaful fee is 0.5% of the finance amount
  • Arrangement fee is 1% of loan amount

Benefits

  • Arab bank provides loan boy-out facility
  • About 45 days grace period is provided by the bank
  • Loan application processing is fast
  • A dedicated manager will assist you all throughout the process
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Flat Rate

3.18%

Minimum Salary

AED 20000

Reducing Rate

5.99%

Max Loan Amount

AED 4500000

Early Settlement Fee

1%

flat-rate

3.18%

Flat Rate

minimum-salary

AED 20000

Minimum Salary

5.99%

Reducing Rate

loan-amount

AED 4500000

Max Loan Amount

arrangement-fee

1%

Arrangement Fee

Features

  • Required to submit bank statement for last 6 months
  • Finance repayment period is up to 25 years
  • The rates applicable depend on salary ​​
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Features

  • Required to submit bank statement for last 6 months
  • Finance repayment period is up to 25 years
  • The rates applicable depend on salary ​​
  • Only UAE Nationals can apply for this finance
  • Required to submit quotation of the required goods addressed to Ajman Bank
  • Minimum age of 21 years is required
  • The loan is provided for a interest rate of 5.99%
  • Minimum salary of AED 20,000 is required
  • The reduction rate and the flat rate is 5.99% and 3.18%. This denotes that the computation done was a division of the reduction rate by 1.814
  • It is a requirement to transfer your salary to apply
  • Finance upto AED 4,500,000
  • The early settlement fee is 1% of the outstanding amount to date
  • Free takaful offered.
  • Arrangement fee is 1% of loan amount

Benefits

  • Repayment tenor of up to 25 years
  • Simple documentation
  • Quick processing
  • Pre-Approved Credit Card with lifestyle benefits
  • Takaful is offered free of cost
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Debt Consolidation in UAE

In recent times, many debtors are juggling between many loans like home loan, car loan, personal loans and credit cards. The high cost of living, especially in the UAE region and the upscale lifestyle causes people to spend beyond their means. When the debt goes beyond control, they approach banks or financial institutions for a debt consolidation loan.

What is Debt Consolidation Loan?

Imagine managing 3-4 loans and paying different installments for each one of them. These loans can be different rates of interest and also with different banks. Debt consolidation loan is a product offered by most banks and financial institutions which help consolidate all your loans into one single loan. The tenure, rate of interest and benefits can vary but the consumers believe it helps them begin their journey of a debt-free life.

Benefits

  • Better tracking of finances – Since you have only one loan to repay, the number of installments come down to one too. This saves you a lot of time, effort, and money, involved in making multiple payments. This way you can track your loan components like interest rate being charged, etc easily. 
  • Manage debts easily -  Having multiple loans can be a little confusing. A single loan can be managed easily and the payments can be done on time without any delays. 
  • Lesser interest to be paid– Usually, banks and financial institutions offering debt consolidation loans offer a lower rate of interest. So, by consolidating various loans, you can be assured of saving money which was being paid as interest. 
  • Less percentage of Debt repayment amount on monthly expenses - Low interest rate will indeed reduce the monthly payment made on the debts which can save the loan holder a significant amount of money.  
  • Credit rating– When you are juggling between multiple payments for different loans, chances are that you might miss or delay certain installments. This can adversely affect your credit rating and cause problems for availing further loans if required. Debt consolidation loans helps you by reducing the chances of missing or delaying payments thereby improving your credit score.
  • Stress-free- We live in a world full of stress. A loan is probably the biggest contributor to stress in our lives. By consolidating your debts you will feel a drop in your stress levels since all your installments would be merged into a single payment every month.
  • Additional benefits- Along with these banks might offer benefits like free postponement of installments, grace period for installment payments, discounts on processing fees, etc.   

Eligibility

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

  • Debt to Burden ratio [DBR] should not exceed 50 percent
  • Most banks have a requirement of salary transfer
  • Minimum salary starts at AED 7000
  • Must be a UAE resident 
  • Should have loans in UAE to consolidate 

Fees and charges are usually similar to normal personal loans but they must be checked before applying.

Which banks offer debt consolidation loans in UAE?

Abu Dhabi Islamic Bank [ADIB] Debt Consolidation Loan

Features

  • Interest rate starts from 3.44%
  • Can get a grace period of 90 days for the 1st installment
  • Can postpone up to 2 installments every year
  • NO processing fee
  • High finance amount of up to 3000K AED
  • Quick approvals
  • Job loss protection
  • ADIB Visa cashback credit card as complimentary


Minimum SalaryAED 8000
Loan AmountAED 3000 K
BenefitsFree Credit Card; No Processing Fees


Mashreq Bank Debt Consolidation Loan

Features

  • Lower monthly payments
  • Higher Loan amount – AED 1 Million for Expats and AED 3 Million for UAE Nationals
  • Maximum repayment tenure of up to 48 months
  • Salary transfer is mandatory 


Minimum SalaryAED 5000
Loan AmountAED 3000K


First Abu Dhabi Bank[FAB] Debt Consolidation Loan

Features

  • Long repayment period is provided
  • Interest rates start from 5.12% 
  • Only UAE nationals are eligible
  • Salary transfer to FAB account is mandatory


Minimum SalaryAED 10,000
Loan AmountAED 5000K


You will also have to prove that your outstanding credit was granted before May 2011 and your DBR is higher than 50 percent of your monthly salary.

Debt consolidation is a tool to help you get your loans under control. It can help you minimize the number of installments and in certain cases reduce the interest rates too. However, it does not make your debt disappear. You have to repay what you have borrowed and with 100 percent dedication, you can use this tool to reach a debt free existence.

Documents Required

  • Liability Letter
  • Salary Transfer Letter as per the bank's format 
  • Last 3 - 6 months bank Statements 
  • Completed and signed branch application form
  • Passport Copy 
  • Valid Emirates ID
  • Residence Visa(only for expats)

How to know that Debt consolidation loan will work for you?

Debt consolidation is a long drawn process. Consumers with multiple credit cards and no savings to repay them should primarily consider debt consolidation as this can significantly reduce the interest rates. Debt consolidation requires an unwavering commitment to new repayment structure and persistence to follow it throughout the tenure of the loan. If this is you, then debt consolidation loan can help you become debt-free.

Remember: if you start taking more loans/credit cards, then debt consolidation will not work for you.

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