Eligibility Criteria for Personal Loan in the UAE for Expats

What are the Eligibility Criteria for Personal Loan in the UAE for Expats?

Nestled in the southeast corner of the Arabian Peninsula, the UAE is an ever-growing country. Since the 1960s, the Emirates have experienced significant economic growth and have quickly become one of the richest nations in the world. The UAE is a melting pot of cultures, with around 85% of the entire population consisting of expatriates. Many come to the UAE seeking new opportunities and growth. Thus, the UAE has a large and vibrant community of expats and with many professional opportunities available to expatriates, it is one of the best destinations to live and grow in.

Understanding your money management options as an expat living in the UAE can be tricky and confusing. It is important to know which options are right for you to open and operate your bank account and ensuring your family’s home and belongings. With the rise in the cost of living in the UAE, it may sometimes become difficult to save funds for a rainy day, which can further lead to a financial crisis during emergencies. You can opt for a personal loan from banks for financial aid. However, to get a Personal loan in the UAE for expats, you have to be eligible as per the requirements of the banks. The eligibility criteria usually differ from bank to bank and are based on the applicant’s profile.

Banks in UAE offer two types of personal loans to expats:

  • Personal Loan Without Salary Transfer: Personal loan in UAE without salary transfer provides the loan applicant to apply for a personal loan without having to transfer their salary into a particular bank account. Citibank, FAB or some banks offering loans without salary transfer.
  • Personal Loan With Salary Transfer: Personal loan in UAE with salary transfer rewards the loan applicant to maintain an account with the bank by transferring their salary into it every month. ENBD, Mashreq, FAB and Citibank are some popular salary transfer loans in the market.

The loan with salary transfers offers an attractive interest rate as compared to the ones without a salary transfer. In general, a personal loan without a salary transfer is opted by those who either do not have their company listed by the banks for a salary transfer loan or for those who are looking for a second loan.

The eligibility requirements for a Personal Loan in the UAE for expats are:

  • Minimum Income: Banks in UAE have different requirements for the minimum monthly income of expats for personal loans. While the minimum requirement is AED 5000 fixed salary per month, most of the banks have their entry level criteria ranging from AED 7000 per month. The higher the income the better are the options.
  • Employment Status & Listed Company: This applies to salaried individuals. While some banks give approval with company listings, some banks in UAE require expats to be employed in their listed companies. Listed companies are those which have been categorized or scrutinized by the banks as companies eligible for such a Salary transfer loan for its staff. The listing is basically done on the company credibility such as years in business, number of employees, setup, and other factors.
  • Salary Transfer: Some banks in UAE require salary transfers for personal loan approval.
  • Age: The maximum age of applicants is 60 and the minimum age is 21 for applying for a personal loan in UAE for expats.
  • Proof of Residency: Almost every bank offers loans for expats, but it is difficult to find a bank that can offer personal loans for non-resident expat. Expats can apply for personal loans that can provide residency proof by providing a passport with a valid visa and documents supporting proof of residency.
  • Credit history: Customers applying for personal loans in UAE should have a good credit score with a good credit history. A good credit report shows that the applicant is eligible to repay the loan. Applicants with high credit score can get preferential interest rates from banks. Minimum Credit Score (Al Etihad Credit Bureau Score) starts from 651. The better the score the lower the interest rate in general.
  • Employment and Income Proof: This can be shown by presenting a salary slip and documents supporting your employment status. Certain banks also require the applicant to have a specified experience in their job to qualify, in such a case the joining letter would also have to be submitted to the bank
  • Bank statements: Depending on the banks, the applicant would have to submit their bank statements ranging between the last three to six months.
  • Loans for Self-employed Customers: Some of the banks such as RAKbank, ADCB and DIB provide loans to self-employed customers. The criteria usually are the years in business, nature of the business and the Average Annual Turnover.

Along with the eligibility criteria, applicants also need to present official documents to the banks for getting a personal loan.

For Identification of the Expats:

  • Copy and Original Emirates Identity Card
  • Resident Visa proof
  • Address proof (for example utility bill)
  • Security Cheque (Undated)

For salaried expats:

  • Salary transfer letter or salary certificate
  • Bank statement of the previous 3 months

For Self-employed Expats:

  • Power of attorney
  • Memorandum of Association
  • Trade license
  • Bank statement of the previous 6 months

The interest rate for personal finance varies for expats and differs across different banks. They are based on two options.

  • Reducing the rate of interest: The reducing rate of interest starts at a certain percentage but declines every year.
  • The flat rate: The flat rate of interest is decided at the beginning by the bank and is consistent and cannot be reduced on a yearly basis.

Some of the best consumer loan providers in the UAE for expats are:

List of BanksMaximum Finance AmountMinimum Monthly Salary Required
Emirates Islamic Personal FinanceUp to 2 million AEDAED 5000
Ajman Bank Goods MurabahaUp to 1 million AEDAED 6500
ADIB Personal FinanceUp to 1 million AEDAED 8000
CBD Personal LoanUp to 750,000 AEDAED 8000
Emirates NBD Personal Loan Without Salary TransferUp to 500,000 AEDAED 10,000
Mashreq Personal Loan for ExpatsUp to 1 million AEDAED 7000 (for applicants from the approved list)
AED 10,000 (for applicants of the unapproved companies)
RAKBANK Personal Loan for ExpatsNAAED 5000

Tips for Getting Your Application for a Personal Loan Approved:

In order to ensure that the application does not get rejected, applicants should keep certain tips in mind

  • Ensure that the applicant meets the eligibility criteria that has been stated by the bank. If the applicant fails to meet any of the eligibility criteria, the request will be denied.
  • Ensure that the applicant has a good credit score to let the banks know the risk associated with providing the applicant the loan.
  • Ensure that the applicant would be able to payback the loan factoring your monthly salary and expenditures.
  • Most banks in the UAE give upto 4 years for repayment.
  • Sending out multiple applicants would damage the chances of getting a personal loan.

The process to apply for a loan has become simple and easy to help and encourage expats in gaining a personal loan in the UAE. However, applying for a personal loan does not confirm the loan approval. Expats will have to qualify certain eligibility criteria to be approved and financed.

The well-researched, solidly structured, unbiased content along with unique tools at SoulWallet helps you make well informed financial decisions for your personal and business transactions. In the process, SoulWallet helps you identify the options that will let you save money and enjoy the best perks.

SoulWallet grants their users services that would help them make the most of a wide range of personal finance solutions, from credit card reward cards in the UAE, to personal loans, to Islamic credit cards, to air miles credit card application and a lot more.

Best Personal Loans of 2021: Offers & Benefits

Best Personal Loans of 2021: Top Offers & Benefits

A personal loan is a loan borrowed to pay for personal expenses such as medical bills, travel, and much more. Such loans may or may not be secured. Secured loans require some type of collateral as a condition of borrowing. Personal loans are convenient because you need to repay the loan amount in small installments and you get the loan approved with minimum paperwork. When it comes to a personal loan in UAE, many banks have interesting offers with easy application process. To help you choose the best personal loans as per your requirements, we have listed down a few popular personal loans offered by banks in the UAE along with top offers in 2021.

  1. Citi Bank Personal Loan

If you are searching for a personal loan without a salary transfer, a Citi bank personal loan can be the best option you can go ahead with. They also have a salary transfer loan option with attractive interest rates. Some of the features that please the borrowers are:

  • Minimum Documentation
  • Loans of up to AED 175,000 (No Salary transfer required)
  • Loans of up to AED 250,000 (Salary transfer to Citi required)
  • Fast provisional approvals – in 1 day
  • Tenors from 6 months up to 48 months
  • Instant loan funding upon final approval
  • Citibank offers personal loans to companies which are not listed as well.

Please note minimum salary required to apply for this loan is AED 8000 per month.

Tip:

Your salary must be transferred to a bank. Your bank statement must evidence a minimum of AED 8000 as monthly salary for the last three months.

You must have a good credit history. Click here to find out more on how to maintain good credit history.

  1. First Abu Dhabi bank Personal loan (FAB)

Whether you are a UAE national or an expat, FAB bank offers some attractive and best personal loans options for you. Some of the features that make FAB loans popular are:

  • High loan amounts of up to AED 5 million for UAE nationals and AED 2 Million for expats.
  • Flexible repayment terms of up to 48 months (60 months for Ministry of Defense employees)
  • 90 day grace period for the first payment
  • Quick and seamless processing
  • Minimum documentation
  • Comprehensive personal life insurance coverage
  • Rates from 3.99% variable per year

Please note minimum salary required to apply for this loan is AED 7000 per month. A Salary transfer letter is required.

Tip:

Your salary must be transferred to a bank. Your bank statement must evidence a minimum of AED 7000 as monthly salary for the last three months.

You must have a good credit history. Click here to find out more on how to maintain good credit history

  1. Emirates NBD Personal Loan

Emirates NBD has loan options for every category including self-employed. ENBD loans have some of the best rates and offers allowing everyone to easily obtain funds for their personal needs. Some of the best features offered under personal loan categories are mentioned below:

  • Low-interest rates
  • 7-day Loan Return Option
  • Maximum tenor up to 48 months
  • FYF Card with Eligible Miles / Points ü Overdraft (OD) with First Year Free Setup (Nil First Year Set Up Fee
  • Free Bank Account with no minimum balance required
  • No collateral or guarantor required
  • Easy process and simple documentation
  • First payment day deferral upto 75 days for expats -Applicable to all schemes under Personal Loan product

Please note minimum salary required to apply for this loan is AED 5000 per month. A Salary transfer letter is required.

Tip: Higher the credit score better the interest rate. This is a standard norm across the market. Banks wants to ensure that the customers to whom they are lending have a good credit history.

  1. Dubai Islamic Bank Personal Loan (DIB)

A loan is provided to both UAE nationals and ex-pats by DIB. DIB also have some personal loan offers and features that are attractive, they are:

  • Upto AED 4 million for UAE Nationals and AED 2 million for Expats
  • First installment payment grace period up to 120 days
  • 100% processing fee waiver
  • The simple and easy documentation process
  • Free ADIB VISA Cashback Card for the first year
  • Complete education expenses financing
  • Two free installments postponements every year

Please note minimum salary required to apply for this loan is AED 3000 per month. A Salary transfer letter is required.

Tip: Company must be listed with DIB. Better chances if your salary is currently being transferred to DIB.

All the features and offers will vary depending upon the type of personal loan. To summarize you will have a good chance of getting your personal loan approved with the following

  1. Maintain good credit history, make payments in time on your other credit facilities.
  2. Compare and find loans that are suitable for your requirements. Note, loan amounts and interest rates are key deciding factors.
  3. Watch out for special offers on loans, these are generally not publicly available as banks offer special rates and offers for specific segments based on their internal criteria. You can write it to us at support@soulwallet.com for best offers in town.

We hope the above article is helpful in your search for personal loans in UAE. Please do review our loans listing page for more details and EMI calculators, which will help you make a quick and proper decision. Click here to apply for personal loans online.

Top 4 tips to consider while looking for Personal Loans

Top 4 tips to consider while looking for Personal Loans

UAE Residents have several options to finance purchases or to meet certain expenses. Savings is probably the best option to start with, but for those who are on tight budgets there are other options such as Credit Cards and Personal loans in Dubai, UAE.  While there are several other options which are mushrooming across the globe for instance, peer to peer lending and alternate finance, the most prominent and favoured one is the Personal loan which has several advantages over the rest. UAE banks offer personal loans up to AED 1 Million based on several qualifying factors.

Personal loans are generally preferred due to the following reasons:

  • Easy to avail – Simple and easy documentation. Most banks don’t even need a bank statement these days as they would be able to verify your salary details from your bank thorugh your IBAN, of course based on your authorization.
  • Short term generally – Payback period can generally be as short as 1 year
  • With or Without Salary transfer
  • No collateral required
  • Clear visibility on interest that one would end up paying for the entire loan availed.
This article primarily focuses on certain key aspects of personal loans that one should be aware of prior to signing on the dotted line-
1. Compare Personal Loans

It is important that one is aware of the various loans available in the market. UAE banks offer personal loans both with and without salary transfer. The ones without salary transfer, loans are offered on higher interest rate than the ones with a salary transfer. To compare loans, best places to refer are the comparison sites which are a one stop place to do research prior to signing up.

Make sure you do the math, refer to the interest rates, fees and processing charges. You can compare personal loans offered by UAE banks here

2. With or Without Salary Transfer?

It is always wise to take a personal loan with a salary transfer as the interest rates are as low as 5%. However, you will have to also check with your HR if they are fine in transferring salary to the bank of your choice. Normally, HR has a tie up with certain banks for processing salaries and the best place to start would be to identify the banks from your HR.

A salary transfer loan would need a letter from your HR in the format as specified by the bank. A personal loan without a salary transfer is recommended as a second loan or when someone is not eligible for a top up loan on their current salary transfer loan. This type of loan does not require a salary transfer letter from your HR but might need just a salary certificate.

3. Credit History dictates your loan interest rate or cost to borrow

Most of the banks in UAE have moved to a credit score / credit history-based interest rate. A high credit score would mean a lower interest rate.

Please refer to the article to learn about credit history and how to maintain a health credit score

4. Other eligibility criteria

Apart from credit bureau, banks also look at:

Work information: Employer, Designation, Years in Work, Fixed and Variable income

Debt Burden: Percentage of liabilities (financial obligations one owes on a monthly basis like Loan EMIs, minimum dues on credit cards etc.,) against total fixed salary.  The general condition is including the new loan EMI debt burden should be less than 50%.

Takeaway

Personal Loans are a convenient and popular method for purchasing products or services. Soulwallet recommends customers to make sure if there is a real need for a loan as any sort of debt must be avoided if possible. Having said that personal loans are also a simple and easy to avail with many banks in UAE moving to digital channels.

As a personal finance aggregator Soulwallet has analysed various personal loan features. For more details visit us on personal loan in UAE page.