Personal loan for Self Employed individuals
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Details of Personal loan for Self Employed Individuals
Advantages
- No processing fees
- Free ADIB Booking.com Signature Card
- Can postpone 2 installments per year
Overview
- No processing fees are charged
- Can postpone loan installments without any charges getting levied
- Should submit latest bank statements
Overview
- No processing fees are charged
- Can postpone loan installments without any charges getting levied
- Should submit latest bank statements
- Can get grace period before paying the first installment
- High loan amount can be availed
- Salary transfer is mandatory
- Provides a free credit card with no annual fees in the first year
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Hide ExploreAdvantages
- Free rewards credit card
- Overdraft facility on current account
- Phone banking facility
Features
- Repayment period is up to 4 years
- The reduction rate and the flat rate is 6.75% and 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 6.75%
Features
- Repayment period is up to 4 years
- The loan is provided for a interest rate of 6.75%
- Minimum salary of AED 8000 is required
- The reduction rate and the flat rate is 6.75% and 3%. 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 1,000,000
- Early settlement fee is 1% of finance amount
- Arrangement fee is 1% of loan amount
Benefits
- High Finance amount is provided by the bank
- Along with this loan free credit card is offered
- Provides insurance coverage for permanent disability and death
Advantages
- Free Credit Card
- Low processing fees
- Only 1 month salary transfer is required
Features
- Repayment period is up to 4 years
- The flat rate and the reduction rate is 3.99% and 7.34%.
- The loan is provided for a interest rate of 7.34%
Features
- Repayment period is up to 4 years
- The loan is provided for a interest rate of 7.34%
- Minimum salary of AED 10,000 is required
- The flat rate and the reduction rate is 3.99% and 7.34%.
- It is mandatory to transfer your salary to apply for this scheme
- Finance up to AED 2,000,000
- Early settlement fee is 1.05% of finance amount
- Arrangement fee is 1% of loan amount
Benefits
- Free Credit Card is provided along with this scheme
- For the first year free of annual fee
- Repayment period is long
- Low minimum salary requirement is there for this scheme
Advantages
- No processing fees
- Free ADIB Booking.com Signature Card
- Can postpone 2 installments per year
Overview
- No processing fees are charged </li>
- Can postpone 2 loan installments without any charges getting levied
- Should submit latest bank statements
Overview
- No processing fees are charged
- Can postpone 2 loan installments without any charges getting levied
- Should submit latest bank statements
- Can get 120 days grace period before paying the first installment
- High loan amount can be availed
- Salary transfer is mandatory
- Provides a free credit card with no annual fees in the first year
Advantages
- Free Credit Card
- Only 1 month salary transfer is required
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 2.99%.
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 10,000 is required
- The reduction rate and the flat rate is 5.5% and 2.99%.
- It is mandatory to transfer your salary to apply for this scheme
- Finance up to AED 4,000,000
- Early settlement fee is 1.05% of finance amount
- Arrangement fee is 1.05% of loan amount
Benefits
- Free Credit Card is provided along with this scheme
- For the first year free of annual fee
- Repayment period is long
- Low minimum salary requirement is there for this scheme
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
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 5,000 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
Advantages
- Free ADIB Visa Cashback card
- High finance amount
- No collateral required for finance up to AED 200K
Overview
- Free ADIB VISA Cashback Card will be provided
- Can postpone up to 2 installments per year
- Can avail high finance
Overview
- Free ADIB VISA Cashback Card will be provided
- Can postpone up to 2 installments per year
- Can avail high finance
- Low minimum salary requirement
- Competitive interest rates
- Salary transfer is required
- Only UAE nationals are eligible
Advantages
- Free ADIB Visa Cashback card
- High finance amount is provided
- No collateral required for finance up to AED 200K
Overview
- Free ADIB VISA Cashback Card will be provided
- Can postpone up to 2 installments per year
- Can avail high finance
Overview
- Free ADIB VISA Cashback Card will be provided
- Can postpone up to 2 installments per year
- Can avail high finance
- Low minimum salary requirement
- Competitive interest rates
- Salary transfer is required
Personal loan for Self Employed in UAE
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.
Self-employed personal loan applicants in the UAE will encounter two types of interest rates: flat and reducing.
Flat interest rates remain the same throughout the loan term, while reducing interest rates decrease with each payment made. Typically, reducing interest rates offer the lowest personal loan interest rates in the UAE.
Features and Benefits of Personal Loan for Self Employed Individuals
- 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
- Self-employed individuals are eligible for personal loans with the same maximum tenor of 48 months as salaried professionals. This applies to both UAE nationals and expats.
- Top personal loan options for self-employed individuals in the UAE offer an installment deferment feature. This means you have the flexibility to postpone payments if needed.
- Provides for self-employed borrowers with perks like free credit cards, complimentary life insurance, and other valuable advantages.
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 to 60 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)
- Self-employed personal loan applicants in the UAE may need to meet a minimum annual sales turnover. You need to submit these documents Emirates ID, bank statement, proof of business ownership, and for expats, passport, visa, and address proof.
- Trade license copy
- 110% Cash Collaterals if requested
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)
Important aspects to consider for repayment of self employed borrowers
As a self-employed individual, it's important to be mindful of the unique challenges that fluctuating income can pose for loan repayment.
To help you manage your loan repayments effectively, It is recommended budgeting for fluctuations by maintaining a detailed record of your income and expenses. This will ensure you can consistently meet your loan payment, even during months with lower earnings. Additionally, consider incorporating a buffer into your budget to accommodate potential income dips.
Automatic payments are a reliable way to avoid missed payments, even during busy periods. This ensures your loan payment is made on time each month, regardless of your income flow.
Remember, missing a loan payment can result in a penalty fee and a higher interest rate, significantly increasing the total cost of your loan. Late payments can also negatively affect your credit score, making it more difficult and expensive to borrow money in the future.
Will Freelancers get personal loans in UAE?
Yes, freelancers in the UAE are generally eligible for personal loans. However, the specific requirements and application process can vary depending on the lender and your individual circumstances.
Compared to salaried employees, freelancers may face stricter eligibility criteria due to potential income fluctuations. Lenders typically evaluate a freelancer's income stability, credit history, and ability to repay the loan. You may be asked to provide additional documentation such as bank statements, proof of income, and possibly a letter from your clients or contracts to verify your income sources.
FAQs
⭐ What is the minimum tenure provided?
A. The minimum tenure provided is 6 months.
⭐ Can we avail partial payments facility?
A. Yes, you can clear the loan on partial payments but banks levy some partial payments charges.
⭐ Do I need to provide any collateral on the loan?
A. No collateral is required on the personal loan for non salaried individuals.
⭐ Do I need to maintain an account at the bank I get a loan?
A. Opening/Maintaining an account varies with each bank.
⭐ 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.
⭐ Do I get any payment holidays?
A. Installment holiday benefits are provided at few banks.
⭐ 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.
⭐ 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.
⭐ Can non-residents apply for personal loan for self employed?
A. No, only UAE residents are eligible to apply for Personal loan in UAEfor self-employed persons.