Considering the struggling economy, saturation in the job market and increasing expenses, a lot of the times people need to lend money. Banks in UAE offer these personal loans are classified into two main types based on the interest rates; the types being flat rates and reducing rates. These loans are referred to as ‘Short term credit’. These loans are mostly taken to be used in expenditures such as traveling, weddings, college fee, etc. Personal loans in UAE today are the preferred means of short term credit.
Before diving into the list of banks you can go to for a request for personal loans, let’s take a quick look at factors that might affect your loan application and lead it to rejection. Make sure these factors are not a point of concern in your case and only then are you applying for loans for maximum approval chances.
Top 10 personal loans in UAE
- RAK Bank Personal Loan
- Abu Dhabi Islamic Bank (ADIB)
- Abu Dhabi Commercial Bank (ADCB)
- Dubai Islamic Bank (DIB)
- CitiBank Salary Transfer Loan
- Emirates NBD Personal Loan
- Emirates Islamic Personal Loan
- United Arab Bank Personal Loan
- Commercial Bank of Dubai Personal Loan
- Standard Chartered Bank Personal Loan
Following are the top 10 personal loans you can consider in UAE:
1- RAK Bank Personal Loan
Large loans are provided on an interest rate of 3.18%. This is the lowest interest rate available in the market for 4-year loans. A salary transfer to RAK bank is compulsory to avail the loan. Min Salary: 5,000 AED
2- Abu Dhabi Islamic Bank (ADIB)
One of the leading banks in the UAE, and offers a personal loan of up to 3 million AED (for UAE nationals) and 1 million AED (for expats). The minimum salary requirement is 8000 AED and interest rate range is 6.25%-6.99% annually.
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3- Abu Dhabi Commercial Bank (ADCB)
ADCB gives made-to-measure loan packages for both UAE nationals and expats. The repayment period is very prolonged and the Interest rates range from 4.99%-14% (per year). Minimum salary requirement is AED 6000.
4- Dubai Islamic Bank (DIB)
DIB provides Sharia-compliant personal finance. The minimum salary req. is AED 3,000 and interest rates per annum range from 11 to 20%. The payback tenure is 48 months.
5- CitiBank Salary Transfer Loan
The payback time is up to 3 years and flat interest rate of 3.73% is applicable without a salary transfer into the bank. Minimum salary req. is 8000 AED.
6- Emirates NBD Personal Loan
It is ideal for expats as it has a low-income requirement of 5000 AED along with a loan return option. The interest rate of 2.69%.
7- Emirates Islamic Personal Loan
Charging a low-profit rate and with a minimum salary req. of only 5000 AED, it is an ideal personal loan for those interested. The documentation process is also super simple and gets approval in 1 day.
8- United Arab Bank Personal Loan
Minimum salary req. is only 8,000 AED and flat interest rate is 2.87%.
There is an option to postpone loan for two years.
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9- Commercial Bank of Dubai Personal Loan
Interest rate starts from 5.50% (reducing per annum), moreover, this loan is for huge financing as it allows for up to 20 times your salary and the min salary req. is 10,000 AED.
10- Standard Chartered Bank Personal Loan
Fast approval loan is provided with interest rates commencing from 3.55%.
The minimum salary requirement is 30,000 AED.
Causes of rejection of loan request:
In case of DBR exceeding 50%, the loan wouldn’t be provided based on rules by the Central Bank.
If there are irregular transaction patterns found in your bank account history.
- Credit history can be accessed by banks through Etihad Credit Bureau.
- If there are pending loans then chances are your request will be rejected.
- A good credit profile, a decent bank statement, and not applying to multiple loan schemes is the key to getting your loan application accepted.
- It will also check your credit card history
For self-employed people, banks require a minimum turnover or will check the average balance in your account for the last 6 to 12 months.