This is basically a letter sent to the bank by the employee’s company. The company’s employer writes a letter on the company’s letterhead, the employee’s salary is given only to the bank, and the lender approves the loan. The letter states that if employees receive their salaries by the end of the year, salaries and benefits will be transferred to the bank. Companies in the UAE transfer salaries to banks that lend to their employees.
Why you need a Salary Transfer letter
A salary transfer is like a commitment/promise made by an employer to a bank. Before the loan is repaid in full, the employee’s salary is transferred to the bank’s lender. The letter contains the terms agreed between the bank and the employer. A letter of transfer is one of the main documents when an employee applies for a salary transfer or a loan in the UAE. When using a loan to transfer your salary, you can take all the money you earn and deposit it in the bank that received the loan, which must be in the form of a letter of salary transfer.
Each time you receive a payment, deposit the agreed amount in the bank. Your total salary must be indicated in the salary transfer letter.
Salary Transfer letter types
At the request of the bank, there are many letters on salary transfers. By transferring your salary, you can easily get credit cards and personal loans from the bank, which is a basic requirement of a bank or credit company.
1- Letter of salary transfer to the company
As the name suggests, a request for salary transfer to the company was sent to the relevant employees of the company. Through this letter, the applicant can request a salary for a new personal account by providing the relevant information.
2- Letter of salary transfer to the bank
A letter of transfer of salary to the bank is a letter to the bank, which contains a personal loan of employees and confirmation of the company. After transferring the loan using your salary, deposit the full amount in the bank that received the loan from any employer. Each time the payment is accepted, the bank retains the agreed amount.
Minimum Salary requirement
In general, a minimum wage of 5,000 dirhams is required to obtain a loan from a bank and a letter of transfer. You must be 21 years or above to use.
Emirates NBD was originally established on June 19, 1963, by Sheikh Rashid bin Saeed Al Maktoum, the ruler of Dubai at the time Bank (National Bank of Dubai), formed the first national bank established in Dubai. As of December 31, 2018, the total assets were 503 billion dirhams. Currently, Emirates NBD employs more than 9,000 employees from 70 countries, making it one of the largest employers in the UAE. It opened in Mumbai, India on November 8, 2017. The Mumbai branch is the fifth international branch of Emirates NBD outside the UAE network.
Format of Salary transfer letter
Name of the bank:
Address of the bank:
Reference: Transfer salary to (bank name)
Greetings (Dear Sir),
We confirm that Mr. /Mrs. ____ has been working in our company since then. He / she is currently employed as ______ with a salary of _____ AED and a fixed monthly allowance.
We confirm that we will transfer the salary of employees to your bank every month. Unless your bank issues a customs clearance certificate, we will not change the bank’s preferences. If the employment is terminated, the company will notify you timely.
Note: This letter was sent at the request of employees and does not constitute any form of financial guarantee.
Looking forward to your reply
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.
The above-mentioned banks are the few among many banks and require you to provide a salary transfer letter. Considering the minimum requirements for loans of each bank in the UAE, you will find that the letter on the transfer of salaries is one of the highest priority documents for using any loan. Transfer of salaries letter has become inevitable, and everyone who takes a loan should and they do take it seriously.
Each bank’s salary transfer letter may also have a different format, but the standard format has been mentioned above.