Banks and non-bank financial institutions provide personal loans to individuals who meet their eligibility criteria. Understanding personal financial eligibility criteria are critical because it simplifies and speeds up your loan application process. Each bank has its eligibility requirements for age, income, credit score, employment type, and work status. Based on these factors, the lender decides whether to approve the loan to the individual.
Well, there may be many reasons for rejecting your loan application. One of the main reasons for refusing loans is that the company is not listed in its bank or financial institution. For many large and small organizations, the companies you work with are probably not listed in any bank or institution. Buying a personal loan without a company listing in the UAE can be a daunting task. But don’t worry! Several banks in the UAE have relaxed lending regulations and provided personal loans to employees of non-listed companies.
With the formation of the Al Etihad Credit Score bureau, many banks have started giving out loans based on the individuals’ credit scoring regardless of their company being listed with the bank or not.
Eligibility criteria for employees of a non-listed company
1- Credit Score
A good credit score is one of the most critical factors in approving a loan application. The personal loan rate that you can borrow from the bank, the period of use and the amount of the loan also depends on your credit score. A good credit score determines your credibility and shows that you can maintain a good payment history. Lenders will consider this factor before approving UAE loans because they will check if you are in good standing. Therefore, if you work with small and medium-sized organizations, it is recommended to maintain a good credit score.
The lender treats these applicants as high-risk applicants whose company is not listed on any bank. As a result, their loan applications may be accepted or rejected based on several factors, and one of the main factors is their monthly income. The income requirements for providing personal financial services to such applicants in the UAE may be higher than those of listed companies that cooperate with them
Most banks and non-financial institutions have common age standards. To be eligible to apply for a personal loan without a company listing in the UAE, the applicant must have a minimum age of 21 and a maximum age of 60. These age standards are primarily applicable to personal loans from expatriates in the UAE. However, UAE nationals may be allowed to apply for a loan in Dubai until the age of 65.
4- Work Experience
If the applicant’s company is not listed in any bank, but their work experience is long, they can increase their chances of approving their loan application. As a lender, the applicant is considered to be financially stable. You will have long-term work experience because the bank sees you as someone with good repayment ability, so the chances of obtaining a loan application approval will be higher.
Renowned banks like Abu Dhabi commercial bank, Emirates National Bank of Dubai, offer loans for non-listed company employees with benefits and minimum requirements.
The credit scoring system launched by the Al Etihad Credit Bureau helps banks and financial institutions minimize risk exposure in lending activities. Before the scheme was launched, the bank would obtain necessary credit information about the consumer’s application for a loan, making credit decisions difficult. As a rule, banks are looking for companies where applicants are located to understand the income stability of potential borrowers. This is based on their observation that people who work with stable organizations have a good history of credit and repayment. Soon, they developed a list of companies that they thought were stable and prioritized to provide loans to employees of these companies.
Although each bank and financial institution has developed its own set of company standards, they have investigated the years of commercial and financial records. This has become the main eligibility criteria for personal loans for financial institutions in the UAE.
There is no such rule that a person whose company is not listed with a bank in the UAE would not get a personal loan. Banks assess the applicant based on his/her credit score, and there are other factors as well. There are high chances that some lenders may give you a high-interest rate because you work for a non-listed company. So don’t just jump into and start applying for every loan you come across always do a thorough comparative study and find out reputed lenders who give you a good interest rate with a right amount of credit. Always look into the details of the loan, such as the time, amount, processing fee, interest rate, other charges, etc. before signing for a loan.