Dubai Personal Loans in UAE

Personal Loan Basics

Personal Loans - Basics

A personal loan in Dubai is a loan given to you by the bank. You can get a personal loan, and pay it back in installments based off your salary, end-of service benefits, or another source of income that can be verified.

You are able to apply for a personal loan from any bank, not just the bank where your income is being transferred, though this rarely happens. UAE Central Bank the maximum amount for your personal loan should not be higher than 20 times your income, and the loan should be paid back within 48 months at the most, or no more than half of your annual salary. A personal loan gives you a convenient way to meet long-term and short-term financial needs.

Eligibilty Criteria & Documentation

Personal loans Eligibility Criteria

The best way to get the best rates for personal loan in Dubai is to have a clean credit history. The worse your credit history is, the greater your rates will be, or you won’t be eligible to get a private loan at all. In UAE there is no Credit Bureau that tracks your credit history, but banks share credit information amongst each other. Banks use this as the parameter for determining your interest rate. Don’t leave one bank, and hope that the other will give you a loan, after you have had a bad history with the first one. A good repayment track record amongst any banks that you have used will ensure you approval for a private loan, and one at a low interest rate. If you want to be considered for your application you should be sure to have your employer on your approved list of companies.

Also remember that usually you can only get a personal loan that should not be higher than 20 times your income as that is the maximum amount that you can get. Also there is a maximum of 48 months for you to pay your loan entirely. For personal loans the interest rate is around14% - 25% on reducing balance per annum

Required Documentations

If you want a personal loan UAE, you will need a certain number of documents. Banks use a process of providing Dubai loans to companies that are on their approved list. This form is the most basic requirement. Usually banks require proof of identity, UAE residence visa, income documents, and also 3 to 6 months of your bank statements. Remember personal Dubai loans require the least number of documents.

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Featured Products

Loans Offered to	Profit/Interest	Min. Salary AED	Max. Amount AED	Upfront Fee	Key Features	Rating
Expatriate UAE National	9.00% Profit	5000	150000	1.00%	ADCB Cash Loan offers Loan repayment up to 60 months; 1% early settlement fee; 1% arrangement fee	1 2 3 4 5
Expatriate UAE National	8.00% Profit	10000	250000	1.00%	ADCB Educational Loan offers Salary transfer required for amounts above AED150000; This loan is applicable for education through selected institutions only; 50% discount for Privilege Club and Excellency clients	1 2 3 4 5
Expatriate UAE National	14.00% Profit	6000	150000	1.00%	ADCB Rental Loan offers Income requirement for properties managed by ADCB: AED6000; Income requirement for properties not managed by ADCB: AED10000	1 2 3 4 5
Expatriate UAE National	9.99% Profit	8000	250000	400 AED	Barclays Education Loan offers Free Current Account with a Debit Card and/or a cheque book upon salary transfer to Barclays; optional insurance plan to protect against unforeseen circumstances or involuntary loss of employment at a fee.	1 2 3 4 5
Expatriate UAE National	23.00% Interest	5000	120000	1%	Citibank Personal Installment Loan offers Loans of up to 8 times your salary without having to transfer your salary; Insurance fees vary depending on the repayment period	1 2 3 4 5
Expatriate UAE National	4.55% Profit	4000	250000	400 AED	DIB Al Islami Goods Finance offers This finance is given against Rent Medical Travel Education Wedding or Goods payments and the time to repay the finance varies based on the service.	1 2 3 4 5
Expatriate	6.00% Profit	4000	250000	400 AED	DIB Al Islami Salam Finance for Expats offers Upfront cash payment to the customer; No early settlement fee; Arrangement fee is a fixed amount of AED 400	1 2 3 4 5
UAE National	6.00% Profit	3000	250000	400 AED	DIB Al Islami Salam Finance for UAE National Upfront cash payment to the customer; No early settlement fee; Arrangement fee is a fixed amount of AED 400	1 2 3 4 5
Expatriate UAE National	23.00% Interest	5000	40000	2.5%	Dunia Finance Durable Goods Loan offers Free of charge insurance; 2.5% arrangement fee; 3% settlement fee; up to AED 40000 loan amount	1 2 3 4 5
Expatriate UAE National	36.00% Interest	5000	40000	2.5%	Dunia Money Durable Goods Loan offers Repayment plans up to 5 years; No hidden charges; Competitive interest rate; Relationship officer with multilingual capability	1 2 3 4 5
Expatriate UAE National	23.00% Interest	7000	40000	2.5%	Dunia Finance Personal Loan offers Free of charge insurance; 2.5% arrangement fee; 3% settlement fee; up to AED 40000 loan amount	1 2 3 4 5
Expatriate UAE National	36.00% Interest	5000	40000	2.5%	Dunia Money Personal Loan offers Credit cards with 2% cash back on unlimited spend rewards discounts Free of charge insurance; 2.5% arrangement fee; 3% early settlement fee; Dedicated Relationship Manager	1 2 3 4 5
Expatriate	7.00% Profit	10000	200000	0%	Emirates Islamic Bank Emtalik for Expats offers Pre approved credit card; Free of the annual fee for the first year; Choice of immediate or deferred sale of shares	1 2 3 4 5
UAE National	6.50% Profit	7500	220000	0%	Emirates Islamic Bank Emtalik for UAE National offers Pre approved credit card; Free of the annual fee for the first year; Choice of immediate or deferred sale of shares	1 2 3 4 5
Expatriate	7.00% Profit	5000	150000	500 AED	Emirates Islamic Bank Finance for Expats offers Repayment period up to 72 months; 3% early settlement fee; fixed arrangement fee of AED 500; maximum finance amount of 150000	1 2 3 4 5
UAE National	6.50% Profit	7500	150000	0%	Emirates Islamic Bank Finance for UAE National offers Repayment period up to 72 months; 3% early settlement fee; fixed arrangement fee of AED 500; maximum finance amount of 150000	1 2 3 4 5
Expatriate	6.99%	5000	500000	1%	Emirates NBD Loans for Expats offers Maximum loan amount of up to AED 500,000 for Expatriates; Over 132 branches and over 705 ATMs across the UAE; Increased loan eligibility with co-applicant program; Loans for Expats who are new in employment or new to UAE; Free bank account and debit card; Dual benefit of a loan coverage; not only is the loan repaid to the bank by the insurance company, but also the equivalent amount is given to the next of kin in the event of unforeseen circumstances. Low interest rate on monthly reducing basis Offer a 7-day loan return option, should you be dissatisfied with any of our terms.	1 2 3 4 5
UAE National	6.99%	5000	3 Million	1%	Emirates NBD Loans for UAE Nationals offers Maximum loan amount of up to AED 3 Million for UAE nationals; Over 132 branches and over 705 ATMs across the UAE; Increased loan eligibility with co-applicant program; Only bank to offer the dual benefit of a loan coverage; not only is the loan repaid to the bank by the insurance company, but also the equivalent amount is given to the next of kin in the event of unforeseen circumstances. Low interest rate on monthly reducing basis Also offer a 7-day loan return option, should you be dissatisfied with any of our terms.	1 2 3 4 5
Non-Salary Transfer	16.00% Profit	12000	200000	1%	Over 132 branches and over 705 ATMs across the UAE; Only bank to offer the dual benefit of a loan coverage; not only is the loan repaid to the bank by the insurance company, but also the equivalent amount is given to the next of kin in the event of unforeseen circumstances. Low interest rate on monthly reducing basis Also offer a 7-day loan return option, should you be dissatisfied with any of our terms.	1 2 3 4 5
Bankers	16.00%	12000	200000	1%	Over 132 branches and over 705 ATMs across the UAE; Only bank to offer the dual benefit of a loan coverage; not only is the loan repaid to the bank by the insurance company, but also the equivalent amount is given to the next of kin in the event of unforeseen circumstances. Low interest rate on monthly reducing basis Also offer a 7-day loan return option, should you be dissatisfied with any of our terms.	1 2 3 4 5
Expatriate	23.00% Interest	10000	150000	2%	First Gulf Bank Easy Loan offers Loan repayment period of up to 48 months; maximum loan amount of AED 150000; 2% early settlement fee; 2% arrangement fee	1 2 3 4 5
Expatriate UAE National	5.75% Interest	5000	250000	1%	Noor Islamic Bank Personal Finance offers First installment due after a minimum of 30 days from booking; 1% early settlement fee; 1% arrangement fee; maximum finance amount of AED 250000	1 2 3 4 5
Expatriate UAE National	29.99% Interest	5000	250000	1%	Standard Chartered Personal Installment Loan offers Installment Deferment Option - defer your monthly installment up to 2 times a year; No minimum balance on your transaction account during your loan period	1 2 3 4 5

UAE Central Bank Guidelines

Guidelines UAE Central Bank Personal Loans

If you do plan on getting a loan UAE you can choose between reducing balance interest rate and fixed rate interest. With reducing balance interest rate your balance gets lower as you continue to make online payments, while with fixed rates you continue to pay the same balance at a current rate of interest that doesn’t change. Remember the guidelines for UAE Central Bank personal loan in Dubai. You can only take a loan that is 20 times as large as your monthly salary. The repayment period can only last the maximum of 48 months, and finally installments for making payments cannot exceed 50 percent of the your gross salary, and your regular income.

Tips & Tricks

How to fetch the best deal?

The best deal depends on your ability to pay your Dubai loans. Don’t opt for the highest personal loan, when you can’t handle the interest rates. Try to go for a personal loan, where they lower the rate of interest when you are paying it off on time. That way you will end up paying off your debt faster, and with less money than you anticipated. Remember that interest is not the only charge as well. There are other charges and costs when you take out a loan.

These fees can include:

Pre-payment

Processing

Late payment penalties

Cheque-bounce charges and documentation charges

This can greatly increase the cost of your loan, and you should factor this in when trying to pick the best one for your needs. Be sure that whatever loan you pick it has costs that you can pay. The shorter the loan duration the higher equated monthly installments will cost, so remember that this is a factor when you can’t pay high monthly fees initially, but a shorter tenure will allow you to close the loan earlier at a lesser interest rate. Do it all depending on what your budget may be.

One Major Question: When should you take Personal Loans?

You should only take out a loan when you factor in the following facts:

1.If you have a good, and continuous cash flow, and you are sure that you can pay back all installments in time.

2.If you aren’t certain of that you will find yourself in a debt trap, and find it difficult to get out, continuously paying them.

3.If you have an emergency, and you need funds to cover it immediately then taking out a loan is worth it namely because the processing time is short.

Only get a personal loan to meet essential needs that cannot wait until a later time. It should be one of your last resorts. Taking out Dubai loans to make investments, or buy extravagant things will usually cost you more in the long run.

Risks involved in taking Personal Loans:

You shouldn’t take out a personal loan in Dubai if you have a short term job, or you want to use it on something that is unnecessary. If you want a car, because you don’t like riding the bus, a personal loan in Dubai is not the right way to get it. If you only work short term, or you work from paycheck to paycheck, taking out a loan UAE is not recommended as you will be constantly paying off your debt, and when you are unable to meet one cost you will find yourself caught in a debt trap.

Late Repayment affects your credit history:

This means that you will only be paying the minimum amount to get by, and never fully pay off the loan when interest, late fees and other rates are included. If you feel that you still have to take out a personal loan UAE, after considering every other option then you should realize that you are liable for your loan. That means that you have to make each payment that is placed on you every month. Your loan also affects your net worth if your loan out costs your assets, then your net worth will decline, and you will have difficulty getting Dubai loans again.

Legal Issues in case of non-repayment of a personal loan:

When you do take out a loan UAE remember to keep up your payments. If you refuse to keep these payments your credit will be ruined, and if you run away from your payments you will be internationally credit card and loan banned, and after two years you will be arrested.