Are you looking for the best personal loan in UAE & Dubai? With so many banks offering personal loans, it can be difficult to find the most suitable one for your needs. To make the process easier, we have compiled a list of the top 10 best personal loans in UAE & Dubai. From low interest rates to flexible repayment options, this list includes a variety of options for you to compare and choose from. Read on to find out more about the best personal loans in UAE & Dubai.
Personal Loan in UAE
Personal loan is an unsecured loan, which means there is no collateral or guarantor required to avail it. Personal loans are procured by an individual to meet their various personal financial needs such as weddings, higher education, international trip, starting a new business, and even for debt consolidation.
The maximum personal finance loan amount can be equal to 20 times the monthly salary, which can be availed with a repayment period of 48 months. The personal loan interest rate in UAE and the personal loan amount is decided based on factors such as the source of income, credit history, age, employment status of the applicant, etc.
Read: How to Apply for Student Loans in the UAE
Features & Benefits of Personal Loans in Dubai, UAE
Over the last decade, UAE has been witnessing an enormous surge in financial lending. The emergence of various banks and lenders has led to the introduction of competitive personal loan interest rate in UAE. The features and benefits of these loans are mentioned below:
| Features and Benefits | Details |
| Unsecured Loans | No collateral is required to obtain these loans. |
| Salary Transfer vs. Non-Salary Transfer | By making salary transfers, borrowers can obtain high amounts at low interests. |
| Rate of Interest | There are two types of UAE bank loan interest rates: reducing and flat |
| Top-up Loans | With regular payments of the pre-existing loans, the borrowers can enjoy top-up loans. |
| Loan Cancellation | The best personal loan in Dubai and other UAE Emirates, allows cancellation of the availed loan in the given grace period. |
| Installment Deferment | The borrower can postpone their monthly installments of personal finance in Dubai or other Emirates for a fixed period. |
| Debit and Credit Cards | Some of the personal loans in the market offer complimentary debit and credit cards. |
| Insurance or Takaful | Insurance or Takaful benefit covers the outstanding loan dues in an unforeseen event leading to loss of income. |
| Cashback and Statement Credit | Some personal loan offers in the UAE reward the borrowers with incentives like cash back or a statement credit. |
Best Personal Loans in UAE
Here is the list of the top Personal Loans in the UAE
*Disclaimer: Interest Rates are subject to change at any time.
Check and compare personal loan providers in UAE including their requirements and benefits offered to make the right decision based on your personal loan requirements and apply for the best personal loans online at the lowest interest rate in just a few steps.
Read: How to Start Business in Abu Dhabi
Lowest Interest Rate for Personal Loan in UAE
Personal loans interest rate in UAE is an additional charge that is levied upon the principal loan amount. They are of two types of interest rates applicable to personal loan offers in UAE:
Flat Interest
Flat interest is charged on the total loan amount, which remains constant throughout the loan tenor. Lowest interest rate for a personal loan in Dubai as well as the rest of UAE can be 2.63 % and can go up to 22.22 % may range from 2.63% – 22.22%.
Reducing Interest
As opposed to the flat interest rate, this rate of interest reduces every time the loan borrower pays the instalment. Personal loan reducing interest rate in UAE is charged only on the outstanding principal amount of the loan, which can fall in the range of range between 5.24% – 39.99%. You always need to compare personal loans online to get the lowest interest rate for personal loan interest rate in UAE.
How to Calculate Personal Loan EMI with Interest through Calculator?
Borrowers can use an interest calculator to compute the interest amount they will be paying. Lets look at the steps to calculate interest rate enabling personal loan comparison:
Use the formula- (interest rate/ number of payments) * principal amount = interest
- Step 1: Divide the interest rate with the number of payments required to be made in a year
- Step 2: Multiply it with the loan balance which for the first installment will be the principal amount of the loan
- Step 3: Now calculate the new balance. To do this subtract the interest calculated from the amount repaid. Subtract this amount from the principal to arrive at the new balance of the personal loan
Personal Loan Low Interest Rates in UAE
1. Deem Finance Personal Loan
The personal loan offered by Deem Finance has attractive interest rates and can be availed for a flexible tenure of up to 48 months. You can avail of this loan if your monthly salary is at least AED 5,000 and you fulfil the other eligibility criteria.
The following are some features and benefits of Deem Finance Personal Finance –
| Minimum Salary – AED 5,000 | Flat Rate – NA
Reducing Rate – 15.99% to 34.99% per annum |
| Loan Repayment Tenure – 48 months | Deem Credit Life Plus – An included program that provides the customer benefits in event of death or personal total disability |
| No Salary Transfer Required | Simple and hassle-free process and documentation |
| Reasonable equated monthly instalments | Minimum paperwork |
2. HSBC Personal Loan
The HSBC personal loan has a flexible repayment tenure and requires the applicant to have a minimum salary of AED 10,000 per month. Keep in mind that if you wish to apply for this loan, you must have a current account with the bank where you can credit your salary.
key features and benefits of HSBC personal loan –
| Maximum Loan Amount – Up to AED 500,000 | Flexible loan repayment term – from 6 to 48 months |
| Reducing Rate – starting from 6.99% per annum | Minimum Salary Required – AED 10,000 |
| Salary Transfer – Required | Quick loan approval upon online application (within 10 minutes) |
| Top-up personal loan option for changing financial requirements | Insurance – Included |
| Get an interest rate as per your profile | Minimum documentation required |
3. ADCB Personal Loan
There are two variants of personal loan in UAE 5000 salary offered by ADCB: Personal Loan for UAE Nationals and Personal Loan for Expats.
| Minimum Salary for a personal loan: AED 5,000 | Loan Tenure: Up to 4 years |
| Reducing Rate: 8. 86 % | Flat Rate: 4. 75 % |
| Early Settlement Fee: 1.05% (maximum AED 10,500) | Processing Fee: 1.05% (minimum AED 525) |
| Free ADCB Credit Card | 3x salary overdraft |
| Up to 300 TouchPoints rewards | Credit life insurance |
4. Emirates NBD Personal Loan
Emirates NBD offers loans for both UAE nationals and expatriates, with the conditions and the loan amounts differing as per your nationality and other factors. Listed below are the major features and benefits of these personal loans –
Emirates NBD Personal Loan for Expatriates
| Loan Amount – up to AED 2 Million | Minimum Salary Required – AED 5,000 |
| Flat Rate – 3.03% per annum
Reducing Rate – 5.69% per annum |
Option for loan deferment |
| Credit Life Insurance | 7-day loan return option |
| No collateral or guarantor required | Complimentary zero-balance account |
| Phone banking option available | No salary transfer required |
| Flexible repayment tenure |
Emirates NBD Personal Loan for UAE Nationals
| Loan Amount – up to AED 4 Million | Minimum Salary Required – AED 5,000 |
| Flat Rate – 2.55% per annum
Reducing Rate – 4.79% per annum |
Option for loan deferment |
| Credit Life Insurance | 7-day loan return option |
| No collateral or guarantor needed | Complimentary zero-balance account |
| Phone banking option available | No salary transfer required |
| Flexible repayment tenure | Facility to transfer other bank loans – amount from AED 25,000 to AED 2 million |
5. FAB Personal Loan
The personal loan by the First Abu Dhabi Bank is offered to the borrowers in high loan amounts of up to AED 5 million for UAE nationals and up to AED 2 million for NRI personal loans with a repayment tenure of up to 48 months.
| Minimum Salary: AED 7,000 | Loan Tenure: Up to 4 years |
| Reducing Rate: 3.99 % | Flat Rate: 2.64 % |
| Early Settlement Fee: 1.05% (maximum AED 10,500) | Processing Fee: 1.05% (minimum AED 525, maximum AED 2,625) |
| Comprehensive cover for personal life insurance | Fast track approvals |
| Variable interest loan rates in UAE as low as 3. 99 % |
6. RAKBANK Personal Loan
RAKBANK offers the borrowers a personal loan with high amounts, and flexible repayment tenures of up to 48 months, all at attractive interest rates.
| Minimum Salary: AED 5,000 | Loan Tenure: Up to 4 years |
| Reducing Rate: 5.99% | Flat Rate: 3.99% |
| Early Settlement Fee: 1% or AED 10,000 (whichever is lower) | Arrangement Fee: 1% (minimum AED 500, maximum AED 2,500 |
| Free RAKBANK debit card | No annual fee credit card |
| Free personalized checkbook | Top up loan |
| Personal loan 20x of salary |
7. Emirates Islamic Personal Loan
Emirates Islamic Bank offers a personal loan that follows the Shariah principle of Murabaha. The bank offers loans to both UAE nationals and expatriates. With respect to the income, the minimum salary required to apply for this personal loan is AED 10,000.
Emirates Islamic Personal Loan for UAE Nationals
| Finance amount of up to AED 4 million | Flat Profit Rate – 2.89%
Reducing Profit Rate – 5.28% |
| Minimum Salary Required – AED 10,000 | Holiday Period – up to 120 days |
| Flexible Repayment Tenure – up to 4 years for standard debt settlement or 5 years for special debt settlement | Quick loan approval |
| No over limit fee or additional charge | Nominal processing fee |
| Affordable than credit cards | Profit rate can vary as per the applicant’s salary |
| Suitable for debt consolidation | Free Takaful Coverage |
Emirates Islamic Personal Loan for Expatriates
| Maximum Finance Amount – up to AED 2 million | Flat Profit Rate – 2.95%
Reducing Profit Rate – 5.39% |
| Minimum Salary Required – AED 10,000 | Salary Transfer Required |
| Flexible Repayment Tenure – up to 4 years | Holiday period – up to 90 days |
| Free Takaful coverage | Quick loan approval |
| More affordable than credit cards | Suitable for debt consolidation |
| No over limit fee or additional charge | Profit rate can differ based on the applicant’s salary |
| Option to repay credit card debt using this loan available | Nominal processing fee |
8. Mashreq Bank Personal Loan
Mashreq Bank offers an array of personal loan options that can fulfil the financial requirements of different kinds. What’s notable about this loan is that you can opt to secure a Mashreq Bank personal loan that is about 20 times your salary. The bank offers loans to UAE nationals as well as expatriates.
Mashreq Personal Loan for Expatriates
| Maximum Loan Amount – up to AED 1 million | Flat Rate – 3.43%
Reducing Rate – 6.49% |
| Early Settlement Fee – 1% of the finance amount | Arrangement Free – 1% of the finance amount |
| Loan Repayment Tenure – 4 years | Permit to miss up to 2 non-consecutive instalments per year |
| Free bank account and debit card | New employees can also apply for this loan |
| Minimum salary required – AED 10,000 |
Mashreq Personal Loan for UAE Nationals
| Maximum Finance Amount – up to AED 3 million or 20 times the salary | Flat Rate – 3.43%
Reducing Rate – 5.99% |
| Minimum Salary Required -AED 7,000 | Flexible Repayment Tenure – up to 4 years (for employees of the Ministry of Defence, the maximum loan repayment tenure is 5 years) |
| Exclusive offers along with extra benefits | Compliment bank account
Free chequebook Free debit card |
| Islamic finance option also available | Salary transfer required |
| Insurance – included | Phone banking option also available |
| Top-up facility for existing loan customers | Quick loan application process |
Mashreq Personal Loan for New to UAE
| Maximum Finance Amount – up to AED 150,000 | Flat Rate – 3.43%
Reducing Rate – 5.99% |
| Minimum Salary Required -AED 10,000 | Flexible Repayment Tenure – up to 4 years |
| Exclusive offers along with extra benefits | Compliment bank account
Free chequebook Free debit card |
| Islamic finance option also available | Salary transfer required |
| Insurance – included | Phone banking option also available |
9. ADIB Personal Loan
With limits of personal loan Dubai and other parts of the UAE going up to AED 1 million for expats and AED 3 million for UAE nationals, ADIB provides personal finance solutions at attractive interest rates for flexible tenures of up to 4 years.
| Minimum Salary: AED 8,000 | Loan Tenure: Up to 4 years |
| Reducing Rate: 8.74% (expats) 7.75% (UAE nationals) | Flat Rate: 4.82% (expats) 4.27% (UAE nationals) |
| Early Settlement Fee: Minimum of 1% or AED 10,000 | Processing Fee: No Processing Fee |
| Grace period for first installment for up to 90 days | 2 free installment postponements annually |
| Takaful protection at nominal rates of 1.25 % of personal finance amount | No processing fee for a personal loan in Abu Dhabi and other UAE Emirates |
10. CBD Digi Personal Loan
Commercial Bank of Dubai (CBD) offers a completely digital loan that is easy to apply for. As an applicant, you can easily apply for this loan using the CBD mobile banking application, with the process for the same being quick and straightforward.
| Maximum Loan Amount – up to AED 150,000 | Minimum Salary Required – AED 10,000 |
| Flat Rate – NA
Reducing Rate – 15.99% to 18.99% |
Loan amount gets credited easily |
| Paperless loan application processing – only the Emirates ID is required for the same | No salary transfer required |
| 100% digital application process | Maximum loan tenure of up to 4 years |
11. Dubai Islamic Bank Personal Loan
Dubai Islamic Bank offers personal finance solutions to the borrowers at attractive interest rates with high financing amounts of up to AED 4,000,000 for UAE Nationals and AED 2,000,000 for Expatriates.
| Minimum Salary: AED 3,000 | Loan Tenure: Up to 4 years |
| Reducing Rate: 11. 00% | Flat Rate: 6. 00% |
| Early Settlement Fee: 1% (maximum AED 10,000) | Processing Fee: AED 1,050 – AED 2,620 |
| Long repayment period | Sharia-compliant financing |
| Low salary personal loan | Fixed arrangement fees charges |
Personal Loan in Abu Dhabi
Abu Dhabi is one of UAE’s largest financial hubs providing both individuals as well as businesses with the most relevant financial solutions. The ADCB (Abu Dhabi Commercial Bank) and the FAB Bank (First Abu Dhabi Bank) are champions in the arena of personal finance, offering personal loan in Abu Dhabi starting at 3. 99 % for a loan amount extending up to 5 million for the UAE Nationals and a maximum of 2 million for Expats in the country, offering low interest personal loan UAE.
What is the Personal Loan Tenor in Dubai & UAE?
Personal loan generally comes with a shorter tenor for repayment; minimum repayment period 6 months and a maximum of 48 months in most cases. Based on the profile of the individual loan applicant as well as the lender(personal loan provider)of the best personal loan in Dubai and other parts of the UAE, the Annual Percentage Rate or APR of personal finance can vary from 8% to 34% in the UAE.
Personal Loan Processing Fee: 0.95% of the loan amount.
Documentation Charges for personal loan approval: Nil
Steps to Compare Personal Loans in Dubai, UAE:
Thinking of getting a personal loan? There are so many options available in the market that sometimes it might seem too confusing. Here are some steps to help applicants with personal loan compare UAE:
- Step 1: Visit the bank’s official website to check the different features of personal loans offered by each bank
- Step 2: Check the interest rates and profit rates of each loan to pick one that fits comfortably in your budget
- Step 3: Check the minimum salary requirement of the bank to get bank loan in UAE
- Step 4: Use the bank’s EMI calculator or a generic one to figure out if the installments fit your pocket
- Step 5: Figure out whether the applicants need to transfer their salary to avail the personal loans in UAE
- Step 6: Check the ease of repayment and the grace period offered
- Step 7: Check for features like deferred payment, credit shield, early settlement etc before making the choice
- Step 8: After going through each of these steps and having decided on which personal loan is best for you, figure out how to get personal loan in UAE
Personal Loan in UAE for Expats
The people who are not residents of the UAE but live in the country due to jobs or business are called expatriates who can enjoy the lowest interest rate personal loan available in the country.
Top 5 Plans for Personal Loans for Expats in UAE
| Expats | Loan Amount | Flat Interest Rate | Reducing Interest Rate |
|---|---|---|---|
| FAB Personal Loan for Expats | Up to AED 2 million | 2.64% | 3.99% |
| ADIB Personal Loan for Expats | AED 1 million | 2.89% | 5.40% |
| ADCB Personal Loan for Expatriates | Up to 2 times of applicant’s salary | 3.45% | 6.25% |
| HSBC Personal Loan for Expats | AED 750,000 | 3.58% | 6.49% |
| Mashreq Bank Personal Loan for Expatriates | AED 1 million | 3.43% | 6.49% |
Personal Loan for UAE without Company Listing
This can now be obtained for professionals working in non-listed companies or start-ups with a lineup of products specially designed for non-listed companies that have recently entered the market.
Further, the personal loan can be classified on the basis of salary transfer.
Top 5 Plans for Personal Loans in UAE without Company Listing
| Personal Loan in UAE for non-listed Companies | Loan Amount (AED) | Rate of Interest | Tenure |
|---|---|---|---|
| ADCB Personal Loan for UAE Nationals | 20 times the salary | Starting from 5% | 48 months |
| Emirates NBD Personal Cash Loan | AED 500,000 | 8.99% (reducing) | 48 months |
| Emirates NBD Self-Employed Personal Loan for Professionals | AED 300,000 | 18.99% | 48 months |
| FAB Islamic Personal Finance | AED 5,000,000 | 4.99% (reducing) | – |
| Mashreq Bank Employer/New to UAE Loan | AED 150,000 | 5.99% (reducing) | 48 months |
| Mashreq Bank Personal Loan for Expats | AED 1,000,000 | 6.49% (reducing) | 48 months |
Personal Loan in UAE without Salary Transfer
There are some providers who do not make the applicant transfer their salary with them to obtain a loan, making the personal loan requirements flexible.
Top 5 Banks that are offering Personal Loans in UAE without Salary Transfer
| Provider | Reducing Interest Rate | Flat Interest Rate | Minimum Salary Required |
|---|---|---|---|
| Citibank | 14-27% | 7.70-15.2% | AED 8,000 |
| Dubai Islamic Bank | 8.99% | 4.90% | AED 3,000 |
| Deem Finance | 15.99-34.99% | NA | AED 5,000 |
| Finance House | 20% | N/A | AED 5,000 |
| Samba | 9.00% | 4.83% | AED 10,000 |
| Emirates NBD | 14.99% | 7.90% | AED 10,000 |
Personal Loan in UAE with Salary Transfer
Most of the loan providers in the UAE expect the applicants to have a salary account with the bank to get an instant personal loan.
Top 5 Banks that are offering Personal Loans in UAE with Salary Transfer
| Personal Loan Providers | Flat Interest Rate | Reducing Interest Rate | Minimum Salary Required |
|---|---|---|---|
| Citibank Personal Loan | 3.73% | 6.99% | AED 8000 |
| Emirates NBD Personal Loan | 2.90% | 5.49% | AED 5000 |
| RAKBANK Personal Loan | 2.75% | 4.99% | AED 5000 |
| ADCB Simply Life Personal Loan | NA | 6.99% | AED 5000 |
| ADCB Personal Loan | 3.45% | 6.25% | AED 5000 |
| ADIB Personal Loan for Expats | 2.99% | NA | AED 8000 |
Personal Loan for UAE Nationals
For UAE Nationals, personal loan requirements are more favorable in comparison to those offered on the personal loan in UAE for expats.
Top 5 Personal Loans Plans for UAE Nationals
| Personal Loan for UAE Nationals | Loan Amount | Flat Interest Rate | Reducing Interest Rate |
|---|---|---|---|
| FAB Personal Loan for UAE Nationals | AED 5 million | 0.0264 | 3.99% |
| Citibank Personal Loan for UAE Nationals | AED 175,000 | 0.08 | 14.00% |
| HSBC Personal Loan for UAE Nationals | AED 1million | 0.0749 | – |
| ADIB Personal Loan for UAE Nationals | AED 2 million | – | 6.75-20% |
| Emirates Islamic Personal Loan for UAE Nationals | AED 4 million | 0.0225 | 4.20% |
Personal Loan in UAE for Self-employed Professionals
Self-employed professionals are those who have their own business and they may also apply for a personal loan with certain financial institutions in the UAE and enjoy the best personal loan rates.
Best Personal Loan in UAE – Eligibility Criteria
While each bank in the UAE listed above has its distinct eligibility criteria for a personal loan, the following are the standard criteria that you must fulfil to apply for a personal loan in the UAE –
- UAE residents and nationals
- Age Group – 21 years to 65 years
- Minimum monthly salary should range between AED 3,000 to AED 10,000 (differs from bank to bank)
- You must have a current account with the said UAE bank in most cases
- Employment Status – Salaried or Self-employed
- Minimum Credit Score of at least 580 (exact requirement differs from bank to bank)
| Eligibility Criteria | UAE Nationals | Expatriates |
|---|---|---|
| Minimum Salary | AED 5,000 | AED 5,000 |
| Age Group | 21 years to 65 years | 21 years to 60 years |
| Employment Status | Salaried or Self-Employed | |
| Salary Transfer | Depends on the bank’s policy | |
Documents Required for Personal Loans in UAE
Just like the eligibility criteria, the documents required to apply for a personal loan in UAE would depend on the bank’s requirements. Some of the generally required documents for personal loans in UAE for UAE Nationals & Expats –
| UAE Nationals | Expatriates |
|---|---|
| Emirates ID | An Emirates ID |
| Salary certificate (for salaried individuals) | A Copy of Valid Passport and Residence Visa |
| Salary Transfer Letter (for salaried individuals) | Salary Certificate (for salaried individuals) |
| Bank Statements of last 3 to 6 months | Salary Transfer Letter (for salaried individuals) |
| Trade licence (for self-employed individuals) | Bank Statements of last 3 to 6 months |
| Power of Attorney (for self-employed individuals) | Trade Licence (for self-employed individuals) |
| Power of Attorney (for self-employed individuals) |
How to Apply for a Personal Loan in UAE
Applying for the best personal loan in UAE has never been simpler than it is today. Below is a step by step guide on how to get personal loan in UAE:
Through Bank Branches
Those who want to apply directly through the bank:
- Simply visit the branch of the preferred bank
- Fill the loan application form
- Take help from the customer care representative or a bank representative to know about personal loan interest rate in UAE and more
Through the Online Portal
Applying personal loan online is convenient and quick. Online platforms are host to generous personal loan rates in UAE and can be used to quickly make personal loan comparisons UAE which helps in finding the lowest interest rate for personal loan in UAE. While comparing, the use of personal loan EMI calculator is recommended to calculate the EMI amount, making online personal loan application procedure even easier.
Processing of Personal Loan in the UAE
A personal loan is among the best solutions when in need of quick cash for any financial emergency. Here’s how this loan gets processed in the UAE to offer the best personal loan interest rates in UAE.
1) Eligibility
To process the loan application for personal loan in UAE, one has to check the personal loan eligibility criteria of the bank.
2) Loan Calculator
The next step is to know the loan EMI. Using the loan calculator, the applicant can calculate their EMI and understand how to calculate personal loan interest.
3)Online Application
After calculating an estimate of the monthly installments, the applicant can online personal loan apply to make things easier.
4)Submitting the Documents
The applicant has to submit the required documents along with the form to get a personal loan in UAE.
5)Verification
The loan provider will then verify the loan application as well as the documents submitted.
6)Approval
To answer how to get personal loan in Dubai? The application has to be successfully verified after which the loan request is approved and the loan sanctioned.
7) Disbursal
Once the applicant receives the approval, the amount is transferred to their bank account.
Quick Tips to Avail the Right Personal Loan in the UAE
Getting a personal loan in Abu Dhabi or any other Emirate could be a tedious task. Here are some tips to obtain this loan in the Emirates:
1) Shop Around
The first step to avail a suitable loan with the lowest interest rate for personal loan in UAE is shopping around at different lenders to loan compare UAE before deciding on the one that best meets your requirements.
2) Checking and Reviewing the Terms & Conditions
The terms & conditions of the loan are as essential as the personal loan rates Dubai and other Emirates in UAE may vary from one provider to another.
3) Types of Rate of Interest
There are two types of rate of interests applied by various loan lenders, reducing rate and flat rate of interest. Considering this, the maximum ROI cap up to which a loan can be availed is:
Reducing rate: 24% – 39.99%
Flat Rate: 63% – 22.22%
4) Stay Aware of Added Products
Some of the lenders automatically register the borrower for added products such as payment protection or credit insurance right after the loan disbursal. Check the insurance terms carefully to get the best personal loan in UAE.
Why is Salary an important factor while applying for a personal loan in UAE?
Personal loan fulfills multiple needs and are easy to get, making them suitable for most people, thus explaining the growing demand for personal loans. A borrower’s income is crucial in determining the rate of interest applicable on their loan as generally, individuals with a higher salary are more likely to repay their loan fully than someone with a lower salary.
Another reason salary plays an important role is because most bank have a minimum salary requirement condition. For instance, most banks in UAE offer personal loan in UAE 5,000 salary to qualify to avail of a personal loan. This way banks ensure that the borrower has a fixed minimum income that allows them to repay the loan on time.
Personal Loan Dos and Don’ts
By considering the following dos and don’ts one can avoid rejection of personal loan application:
| Things to Consider | Things to Avoid |
| Maintain a stable employment history | Don’t furnish an unstable employment history |
| Make the payments on time without fail | Don’t degrade credit score as it marks a negative impact |
| Maintain a good credit score as personal loan without credit check in UAE is impossible | Don’t fill the application form in a rush. A small mistake can lead to loan rejection |
| Check for a steady source of income | Don’t miss an installment |
| Clear the existing outstanding loans before applying for a new one | Don’t apply for a new loan without clearing the outstanding loan amount |
| Try maintaining a lower debt-to-income ratio | Don’t ignore eligibility criteria such as age, minimum salary transfer etc. |
Frequently Asked Questions About Personal Loans in UAE
Must I meet the Eligibility Criteria before I can apply for Personal loan in UAE?
To apply for a personal loan in the UAE, you should meet the eligibility criteria laid down by the bank. When applying for a personal loan, make sure you affix all the required documents. You can apply for the loan either by visiting the bank website or comparing and selecting a personal loan as per your requirements.
The EMI for the personal loan is calculated using the Personal Loan EMI calculator. You will need the principal amount, the rate of interest and the repayment tenure to calculate your EMI. In answer to the question- how to calculate personal loan interest, the EMI calculator uses a simple formula-
P * R * [(1+R) ^ N] / [(1+R) ^ N-1]
Here, ‘P’ is the principal amount. ‘R’ is the rate of interest and ‘N’ is the repayment tenure. Through personal loan comparison UAE, you can compare the loan EMIs as well.
To bargain for the offered interest rate for this loan in the Emirates, you should make sure that you have a high credit score for personal loan. As it is, banks offer a low interest rate to the applicants with a good credit score as they are considered as those with low-risk appetite. However, if you are not satisfied with it, you will need to have excellent negotiation skills and a high credit score.
Can a student apply for personal loan?
No, a student cannot apply for this loan unless specifically implied by the bank or he/she has a guarantor. The eligibility requirements of the loan include the minimum monthly salary and the age limit between 21-65 years. Some also require salary transfer and proof of employment with a company listed with the lender. However, there are some lenders who provide personal loan in UAE without company listing as well. You can always apply for student/ education loan as a guarantor.
Can I apply for personal loan from different banks at the same time in UAE?
Yes, you can take loan from two different banks at the same time. However, there are some requirements to be met.
- You should have a very high credit score
- Your debt to burden ratio should be more than 50%
- You should also meet the eligibility requirements of the concerned banks
- You must earn a minimum salary for personal loan in UAE
Can I apply for personal loan in UAE if my first application is rejected?
You can apply for a personal loan even if your first attempt resulted in a rejection. For this, you must ensure the following –
- Apply for a lower amount
- Submit the right documents
- Improve your credit score
- Fill in accurate details in the application form
Conclusion
The UAE and Dubai offer a wide range of personal loans, each with different features and advantages. By exploring the different options, you can make an informed decision about which personal loan is best for you. Ultimately, the best personal loan for you is the one that meets your financial needs and fits your budget. Whether you are looking for a loan to start a business, consolidate debt, or cover an unexpected expense, there is a loan that is right for you. With the options on this list, you can find the best personal loan in the UAE and Dubai to suit your needs.
