It is basically a letter which is sent by the employee’s company to the bank. The company’s employer writes a letter on the company’s letterhead, mentioning that the employee’s salary mentioned in the letter will only credit the bank, and the lender will approve the loan. The letter mentions that if employees receive any year-end benefits with their salary, the salary and benefits will be credited to the bank. The companies in UAE transfer salaries to banks which provide loans to their employees.
Why you need a Salary Transfer letter
The salary transfer letter is just like the employer’s promise or commitment to your bank. Before the loan is fully paid off, the employee’s salary will be credited to the bank’s lender. The letter will contain the conditions which have been agreed upon between the bank and employer.
When an employee applies for a salary transfer loan or personal loan in the UAE, the salary transfer letter is one of the essential documents. When using a loan to transfer salaries, you need to take all the money earned and put them in the bank where you received the loan, which should be in the form of a letter about the transfer of salaries.
Every time you receive a payment, you need to deposit the agreed amount into the bank. You will have to mention your total salary in the letter of salary transfer.
Salary Transfer letter types
According to the requirements of the bank, there are many salary transfer letters. From the salary transfer, you can easily obtain credit cards and personal loans from the bank, which is the basic requirement of the bank or loan company.
1- Letter of salary transfer to the company
As the name implies, the letter of request for salary transfer to the company was sent to the relevant personnel in the company. Through this letter, the applicant can request a salary in a new personal account by providing the relevant credentials.
2- Letter of salary transfer to the bank
The salary transfer letter issued to the bank is a letter written to the bank, which involves the application of personal loans for employees and the company’s confirmation. After using the salary to transfer the loan, you need to deposit the full amount from any employer into the bank from which you obtained the loan. Every time a payment is received, the bank will deposit an agreed amount.
Minimum Salary requirement
Generally, banks require a minimum wage of 5,000 dirhams in order to obtain loans and wage transfer letters. You also need to be 21 years old to use.
The following are the banks that listed “salary transfer letter” as one of their requirements when providing loans:
HSBC United Arab Emirates: HSBC United Arab Emirates also asks you to provide a salary transfer letter to take advantage of personal loans.
CBI: CBI also asks for a salary transfer letter and then you can get a personal loan from their bank.
Arab Bank: When using a personal loan provided by the Arab Bank, the bank will ask you to send a letter about the transfer of salaries.
Noor Bank: Noor Bank has also joined the list of banks, including “salary transfer letter” as one of the minimum requirements for obtaining personal loans.
Abu Dhabi First Bank: The FAB also requires that you provide a letter on the transfer of salaries for loans, such as personal loans and purchase loans.
RAK Bank: RAK Bank also follows the regulations that require the sending of wage transfer notices.
Central Business District: The Central Business District has requirements for salary transfers.
Emirates NBD: Emirates NBD also requires a salary transfer letter for all paid employees when granting loans.
Therefore, the salary transfer letter is an extremely important part of the documents necessary for any bank to apply for personal loans. Be sure to check the format so that it can be accessed immediately in an emergency. Similarly, different banks have different standards for issuing loans. Although each bank must have a notice of wage transfer, there are still many other documents that may vary from bank to bank.