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

Posted on November 9, 2021November 9, 2021 by admin

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 Banks	Maximum Finance Amount	Minimum Monthly Salary Required
Emirates Islamic Personal Finance	Up to 2 million AED	AED 5000
Ajman Bank Goods Murabaha	Up to 1 million AED	AED 6500
ADIB Personal Finance	Up to 1 million AED	AED 8000
CBD Personal Loan	Up to 750,000 AED	AED 8000
Emirates NBD Personal Loan Without Salary Transfer	Up to 500,000 AED	AED 10,000
Mashreq Personal Loan for Expats	Up to 1 million AED	AED 7000 (for applicants from the approved list) AED 10,000 (for applicants of the unapproved companies)
RAKBANK Personal Loan for Expats	NA	AED 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.

The Biggest Advantages of Using an EMI Calculator before Applying For Your Personal Loans in UAE

Posted on November 9, 2021November 9, 2021 by admin

Personal loan is a type of unsecured loan that helps you meet your current financial needs. While availing for a personal loan you don’t require collateral or a need to pledge any security, and personal loans are also generally quickly disbursed. Personal loans can serve as a solution for managing a number of your needs, such as, expenses for higher education, medical emergency, holidays, wedding celebrations, to expand one’s business, and other needs.

Over the years due to instant financial availability and easy accessibility, personal loans have become tremendously popular amongst professionals as well as for personal finance. However, just like any other loan, you must repay it accordance to the agreed terms with the bank from where the loan was borrowed from. Some of the most important factors that you need to consider before availing a personal loan are the interest rates, repayment capacity, and the tenure of the loan.

Calculating personal loan EMI manually or making do with speculations could be inefficient or more often that result in an incorrect value. Hence it is preferable to opt for the personal loan EMI calculator to consider your suitability to take out a personal loan before applying for one.

What is a Personal Loan EMI Calculator?

Whenever you take up a personal loan, you have to pay back to the bank the principal amount along with the interest amount that is calculated every month. EMI stands for Equated Monthly Instalment. A personal loan EMI Calculator is a tool that helps you to evaluate and calculate the amount that has to be paid every month for your personal loan.

It is advisable to check the amount with an EMI calculator before applying for a personal loan as you would be aware of the monthly amount that you need to repay during your tenure. This in turn would help you determining how a personal loan might affect your monthly expenses and lifestyle and help you understand and manage your monthly financial goals.

Calculating the EMI for your personal loan is an incredibly simple process. See how much you can save by choosing right Personal Loan with the help of SoulWallet’s Personal Loan EMI Calculator.

How Does the Personal Loan EMI Calculator Work?

EMI calculator is a simple and very easy to use tool that does the calculations for you to calculate your loan. The personal loan EMI is based on some parameters such as the amount borrowed and the interest rate that is applicable based on your loan tenure. The first thing you enter is the principal amount that you wish to take out through your personal loan. Next, you put in the duration of your loan, which is the period of time you’d be allowed to repay your personal loan. And finally, the calculator needs to take into account the interest rate being charged, which is a percentage of the principal amount you have to repay.

After you put in all the required information, the personal loan EMI calculator would calculate and provide you with the EMI amount. The tool is available anytime and without any costs for you to choose a loan best suitable for you.

Factors affecting Your EMI Amount

Some of the factors that can affect your EMI amount are:

Loan amount – The higher amount of loan you borrow the high would be the monthly instalment. In this, the interest rate and tenure remain constant.
Interest rate – If your interest rate is high then you need to pay a high amount of monthly instalment.
Tenure – If the tenure is for long period the monthly instalment would be low, but this would lead to a high amount of interest rate as compared to a shorter tenure of the loan.

Benefits of a Personal Loan EMI Calculator

It is advisable that you use a personal loan EMI calculator before you apply for a personal loan.

Some of the key benefits that one would experience with this calculator are:

Fit in the EMI with necessary changes in the monthly budget: When you calculate the personal loan EMI, you know the fixed amount that you would have to pay every month till the end of the loan tenure. This would help you decide and budget your monthly expenditure throughout the loan tenure with ease.

Make decisions by changing the factors affecting the EMI: The loan amount, along with the monthly interest rate, and tenure play a very significant role in determining your EMI. The EMI is directly proportional to the loan amount and interest rate and is inversely proportional to the tenure of the loan. Hence, if you choose a longer tenure, then the monthly instalments would be small. The EMI calculator would help you differentiate different loan amounts with their tenures and interest rates. Thus, making it easy and convenient for you to decide the amount of loan that would suite your lifestyle and finances.

Ensure a healthy credit rating: When you have calculated the EMI before taking up the personal loan, you are completely prepared to manage your finances for repaying the loan in the given time. Which would result in you not missing out on the EMIs, and thus avoid a poor credit rating for you.

Saves time and provide accurate results: It takes a lot of time, efforts, and complicated calculations to calculate EMI’s manually. All these calculations are performed within seconds with the personal loan EMI calculator, thus saving you lot of time. Also, the chances of errors when the calculations are done manually are eradicated and you would be getting accurate results.

Easy to use and access: The Personal loan EMI calculator is available online on SoulWallet and it is pretty easy to use. All you need to do is enter the principal amount of the loan, interest rate, and the tenure of the loan to get the value of monthly instalments that you would have to pay. This makes it very easy for the users to calculate the monthly instalment from any place and at any time.

There are plenty of advantages of using an EMI Calculator before applying for your Personal Loans in UAE. The use of an EMI calculator helps your eligibility to avail a personal loan and repayment capabilities and ensures your financial wellbeing. SoulWallet helps you See how much you can save by choosing right Personal Loan with the help of Personal Loan EMI Calculator for you to have an easy and hassle-free experience.

The well-researched, solidly structured, unbiased content along with unique tools at SoulWallet help 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.

A Comprehensive Guide to Personal Loan Interest Rates in 2021

Posted on August 24, 2021August 24, 2021 by admin

A personal loan is a loan that may be secured or unsecured and is offered with minimal documentation. You can use the funds from this loan for any financial need. Like any other loan, you must repay it as per the agreed terms with the bank in easy EMI (equated monthly installments).

Personal loans in UAE today are the preferred means of short-term credit. The bank offers personal loans based on two types of interest rates – flat rates and reducing rates. A flat rate of interest on a loan refers to when the interest and sum payable is calculated at the start of the repayment schedule and do not change until the loan has been paid off. Whereas in terms of reducing rate of interest on a loan the principal amount reduces after each installment. The interest percentage (which remains constant) is charged on the reduced amount, every month. Thus resulting in different installment amounts each month.

Types Of Personal Loans

Personal loan with salary transfer: This is most probably the first loan one can avail from the bank where the customer holds a salary account. These loans are low in interest rates compared to the other personal loans without a salary transfer. Banks offer competitive interest rates for their customers for such loans and generally require a minimum salary requirement of AED 5000 (which differs from bank to bank). If you wish to take the loan from another bank where you don’t have any account then you have to maintain an account with the bank and transfer the salary into it every month.

Personal loan without salary transfer: This is one of the popular loans that allow the loan seeker to apply for a personal loan without having to transfer their salary into a particular bank account. Interest rates are higher for such loans and the lending amount might be lower than a Salary Transfer loan.

Expat loans: Expatriates are those people who live in the UAE but aren’t residents of the UAE. To help them manage their financial needs easily, banks offer personal loans to ex-pats as well with attractive interest rates and repayment tenure up to 48 months.

Buyout loans: When you take a personal loan that can be used to pay all of your previously existing loans or a credit card debt it is known as a buyout loan. In this type of loan, the borrower has to pay a fixed monthly payment to the bank for a pre-defined period that is usually two years to five years to pay off your buyout loan. Both UAE nationals and ex-pats can apply for such loans.

Consolidation loan: Debt consolidation services allow for the consolidation of all your outstanding liabilities arising from various loans or outstanding dues on credit cards into one single consolidated liability. Such loans are advantageous because you are being able to manage all outstanding liabilities together in one consolidated form.

Consider the comparison table below on interest rates offered by banks in the UAE

Bank Name	Loan Name	Fixed Interest Rate	Reducing Interest Rate	Minimum Salary	Maximum Loan Amount
Abu Dhabi Commercial Bank	Personal Finance	3.25%	5.90%	AED 10,000	AED 0
Abu Dhabi Commercial Bank	Personal Loan	6.25%	11.33%	AED 10,000	AED 250,000
Abu Dhabi Commercial Bank	Personal Loan For Expatriates	6.25%	11.33%	AED 10,000	AED 25,000
Abu Dhabi Islamic Bank	Debt Settlement	3.58%	6.50%	AED 8,000	AED 1,000,000
Abu Dhabi Islamic Bank	Education Finance	3.85%	6.99%	AED 8,000	AED 250,000
Abu Dhabi Islamic Bank	Personal Finance	3.72%	6.75%	AED 8,000	AED 1,000,000
Al Hilal Bank	Personal Finance	3.25%	5.90%	AED 10,000	AED 0
Arab Bank	Personal Loan	3.30%	5.99%	AED 5,000	AED 550,000
Citibank	Personal Installment Loan	7.71%	14.00%	AED 8,000	AED 175,000
Citibank	Salary Transfer Loan	3.85%	8.00%	AED 8,000	AED 250,000
Commercial Bank Of Dubai	Personal Loan	3.03%	5.50%	AED 8,000	AED 750,000
Deem Finance	Personal Loan	11.01%	19.99%	AED 5,000	AED 0
Dubai Islamic Bank	Liabilities Settlement Finance	0%	0%	AED 5,000	AED 0
Dubai Islamic Bank	Personal Finance	6.06%	11.00%	AED 5,000	AED 2,000,000
Emirates Islamic	Personal Finance	2..17%	3.94%	AED 5,000	AED 1,000,000
Emirates NBD	End-Of-Service Benefit Backed Personal Loan	3.30%	5.99%	AED 5,000	AED 0
Emirates NBD	Loans For Nris	2.20%	3.99%	AED 5,000	AED 0
Emirates NBD	Salary Transfer Loan	2.63%	5.99%	AED 5,000	AED 1,000,000
Emirates NBD	Salary Transfer Loan For UAE Nationals	2.63%	5.99%	AED 5,000	AED 3,000,000
Emirates NBD	Loans For New To Country, New To Employment	2.63%	5.99%	AED 10,000	AED 400,000
Emirates NBD	Personal Cash Loan	4.96%	8.99%	AED 10,000	AED 500,000
Emirates NBD	UAE National Personal Loan With Additional Income	3.18%	5.24%	AED 10,000	AED 3,000,000
Emirates NBD	Personal Loans For Self-Employed Professionals	10.40%	18.90%	AED 20,000	AED 300,000
Emirates NBD	Personal Loans For Self-Employed Individuals	10.40%	18.90%	AED 25,000	AED 0
First Abu Dhabi Bank	Buyout Loans	4.08%	7.40%	AED 5,000	AED 5,000,000
First Abu Dhabi Bank	Landlord Loans	5.10%	9.25%	AED 5,000	AED 2,000,000
First Abu Dhabi Bank	Islamic Personal Finance	2.64%	4.99%	AED 7,000	AED 5,000,000
First Abu Dhabi Bank	Personal Loans For UAE Expats	4.99%	3.99%	AED 7,000	AED 5,000,000
HSBC	Personal Loans	4.13%	7.49%	AED 7,500	AED 750,000
Mashreq	Debt Consolidation Loans	0.00%	0.00%	AED 5,000	AED 0
Mashreq	Personal Loan For Expatriates	6.25%	11.50%	AED 5,000	AED 1,000,000
Mashreq	New To UAE, New To Employer Loan	4.07%	7.38%	AED 7,000	AED 150,000
Mashreq	Non Salary Transfer Personal Loan For Expatriates	14.10%	25.60%	AED 7,000	AED 150,000
Mashreq	Emirati Personal Loans For Pensioners	0.00%	0.00%	AED 10,000	AED 0
Mashreq	Personal Loans For Emiratis	0.00%	0.00%	AED 10,000	AED 3,000,000
Nbf	Personal Loans	3.25%	6.25%	AED 5,000	AED 0
Rakbank	Non Salary Transfer Loan	5.99%	10.86%	AED 5,000	AED 1,250,000
Rakbank	Business Finance	12.00%	21.00%	AED 50,000	AED 3,000,000
Sharjah Islamic Bank	Personal Finance	0.00%	0.00%	AED 5,000	AED 0
Standard Chartered	Saadiq Personal Finance	4.16%	7.55%	AED 15,000	AED 1,000,000
Standard Chartered	Debt Consolidation Plan Loan	3.89%	7.05%	AED 30,000	AED 1,000,000
Standard Chartered	Personal Loan	3.89%	7.05%	AED 30,000	AED 1,000,000
Union National Bank	Expatriates Loan	3.13%	5.68%	AED 5,000	AED 500,000
Union National Bank	Education Loan	4.96%	9.00%	AED 10,000	AED 0
Union National Bank	Non Salary Transfer Loan	7.72%	14.00%	AED 10,000	AED 0
Union National Bank	Rent Loan	4.96%	9.00%	AED 10,000	AED 0
Union National Bank	UAE Nationals Loan	2.48%	4.50%	AED 10,000	AED 500,000
United Arab Bank	Personal Loan For Expatriates	3.03%	5.49%	AED 7,500	AED 2,000,000
United Arab Bank	Personal Loans For UAE Nationals	3.03%	5.49%	AED 7,500	AED 2,500,000

The above interest rates are purely indicative. Interest rate is generally based on factors such as

Bureau Score
Income
Loan Amount
Employer

The Biggest Advantages of Using an EMI Calculator Before Applying For Your Personal Loans in UAE

Before finalizing any personal loan, you should always use the EMI calculator because it will assist you to evaluate, simulate and arrive at the maximum loan amount, interest rate and affordable easy monthly instalments will help you select the best suited personal loan as per your budget. Soulwallet personal loan EMI calculator is easy to use, simple to understand, and is quick to perform. All you need is to use the slider to adjust the loan amount, interest rate (reducing), and tenure. You will get the EMI, total repayment, total interest, and interest rate (flat) as per your input.

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

Posted on August 24, 2021August 26, 2021 by admin

Banks in UAE offer two types of personal loans to expats – personal loans without salary transfer and personal loans with salary transfer.

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.

One must always opt for loan with a salary transfer as these loans carry an attractive interest rate 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.

Eligibility Criteria for Personal Loan in UAE for Expats

Eligibility criteria differ from bank to bank based on the applicant’s profile. Here are some of the basic eligibility requirements for a personal loan in UAE for expats:

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.

Documents: The applicants are required to provide the following documents to apply for 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

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.

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.

Loans for Self-employed Customers: Some of the banks such as RAKbank, ADCB and DIB provide loans to self employed customers. The criteria usually is the years in business, Nature of business and Average Annual Turnover.

Best Personal Loans of 2021: Offers & Benefits

Best Personal Loans of 2021: Top Offers & Benefits

Posted on July 27, 2021July 27, 2021 by admin

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.

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.

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

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.

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

Maintain good credit history, make payments in time on your other credit facilities.
Compare and find loans that are suitable for your requirements. Note, loan amounts and interest rates are key deciding factors.
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.

All You Need to Know About Islamic Finance

Posted on April 15, 2020September 13, 2020 by admin

Whether you are searching for a personal loan or financing for a home or vehicle, you can take advantage of many financing opportunities in the UAE. Having said that, we want to use this post to discuss one type of financing category. That category is Islamic loans.

While Islamic finance only constitutes 1% of global financial assets, it is a rapidly growing area of finance—particularly in the UAE. Specifically, Islamic loans in the UAE are a fantastic way to accomplish some of your financial goals. Also called Sharia loans, these loans, as you can guess, comply with Sharia law. While they work slightly differently than “traditional” loans, Islamic loans can be a great option to finance major purchases in your life.

Sharia Loans: Some Basics

Islamic loans are unlike other types of loans for several reasons. However, the main differentiating factor is that they must comply with practices and prohibitions under Sharia law. One of the most notable restrictions for Sharia loans centers on paying or charging interest. Sharia law says that interest is usurious, meaning that it is strictly prohibited. To put it another way, with Sharia loans, there are no fixed or floating interest rates or fees.

There are many other restrictions on traditional financial instruments under Sharia law. For example, an investor or borrower under Sharia law cannot invest in businesses involved in prohibited activities, speculate or gamble, or purchase derivative contracts or engage in short selling. In the personal finance context, however, this prohibition on interest is the most striking difference with Western finance.

That said, lenders underwriting Islamic loans in the UAE still need to make money. So how do they do it? Ultimately, it comes down to Islamic banks buying a desired product or commodity on the borrower’s behalf. After doing this, Islamic banks can lease the underlying product to the borrower. They can also re-sell that product on installment at a fixed price. This price, however, is often higher than the traditional market value.

Islamic loans in the UAE offer these types of arrangements. Even though Islamic banks aren’t necessarily charging interest, they are being compensated for the initial risk of purchasing the underlying product or commodity.

The Best Islamic Loans in the UAE

With this basic understanding in hand, you may be curious about how you can obtain Islamic loans in the UAE. The good news is that there are plenty of opportunities to capitalize on the best Islamic loans in our country.

For instance, there are some great FAB Islamic loans. First Abu Dhabi Bank is one of the most renowned financial institutions in our country. It not only provides capital and services to large corporations, but to individual borrowers like you. These FAB Islamic loans are specifically tailored Sharia-compliant solutions that can help you purchase everything from a home to a car. If you intend to purchase a new home, you can obtain up to AED 20 million in financing and can leverage flexible payment periods (up to 25 years). If you’re in the market for a new car, you can get financing of up to AED 1.5 million and up to 80% of the car’s value. There are eligibility requirements for all of these FAB Islamic loans, so you’ll want to read the fine print before proceeding.

FAB Islamic loans are just one example of some of the best Islamic loans available in the UAE. That said, you will probably want to start looking for opportunities with your current bank. See if they offer Sharia loans for your intended purchase and feel free to reach out to your bank as necessary. In all likelihood, you will find an Islamic loan in the UAE that best suits your financial circumstances and your intended purchase.

Finding the Best Sharia Loans in the UAE

Sharia loans can be a great way to finance a large purchase in your life. Even if you can pay for your purchase in hand, Islamic loans can relieve financial pressures in your life. Therefore, we encourage you to complete your due diligence. If you have any questions, don’t hesitate to contact your banker. Doing this, we’re confident that you will be satisfied with your next Sharia loan.

Soulwallet is a personal finance comparison portal in the UAE. With a team of “out of the box” thinkers and a deep understanding of the UAE consumer banking industry, we help customers make the best choices while shopping for financial products such as credit cards and loans.

Smart Money Moves for a Financially Healthy 2020

Posted on February 3, 2020December 7, 2020 by admin

Planning to set your financial goals right at the beginning of the year is a great way to start in 2020.

Review your financial position, check where your money goes, review your debt, cut down on extra expenses and plan efficiently. This will help you stay on savings course and prevents you from getting into any money hurdles.

Here are a few ways to help you do that:

1: Revisit your mortgage loans.

Home loans are one of the biggest financial responsibilities that require regular revisits. Look for better options to save your money or get other benefits when there is a change in your financial situations, bank’s loan terms or interest rates.

Check if refinancing can help you save money. Compare your loan interest rates with the current rates because even half of a percentage point drop will give you substantial savings.

Lower interest rates help in reducing your mortgage term because here you can raise your monthly payments and prepare to clear the loan early. For example, paying off the loan in 10 years instead of 20 years offers great savings incentive to the homebuyer.

2. Get a personal loan

A personal loan is a viable money-saving solution in many situations when you borrow it for the right reasons. With personal loans, you can settle higher interest loans, create a good credit score, pay off credit cards or consolidate debts with more manageable fixed EMIs.

For instance, when you want to consolidate debts on your different credit cards, taking a personal loan can help pay off all the charges in one monthly payment. You benefit from lower loan interest rate compared to the annual percentage rates (APRs) on your credit cards.

However, before taking a loan, calculate your repayment capacity using an online app, select repayment tenure that is within your reach and carefully review all the fine print.

3. Select the right credit card

A properly selected card can help you make savings on purchases, but the choice of the card should be based on your use and habits.

For instance, a frequent traveler will make savings when his card offers discounts and rewards on air tickets, hotels or lounge access.

The choice of the card also depends on whether you carry a balance each month or pay off dues before time. When you take forward a balance on credit, select a card that has a low annual percentage rate (APR).

Knowing your credit scores always helps you to apply for a card that is more likely to get approved. Lastly, compare the annual savings you make on the card against the card’s annual fee to see if it is right for you.

4. Find a balance transfer scheme

A balance transfer can help you make substantial money savings. Transferring high-interest debt from credit cards or loan to a card with a lower interest rate gives saving on interest and helps in clearing off the debt faster.

However, check if any balance transfer fee is levied to carry the balance to your new card. Another critical factor is the new card APR rate; check the introductory APR offer and price after the promotional period ends.

Always evaluate the terms carefully and put a debt repayment plan in place. Remember your debt doesn’t disappear when you do a balance transfer, but effective planning can help make good money savings.

5. Work out your monthly budget

Make a note of your cash flows to curb all unnecessary spending. Different apps come as a handy tool to do all the calculations for you.

Feed-in your monthly income and your expenses and the app will give you a clear picture of how to plan yourself well.

These tools help you consolidate all your bills, track the spending pattern and get an alert message when the due date of any statement is nearby to avoid late fees. Money management is a vital step to rein spending and get finances under control.

6. Review your subscriptions

If you are a Netflix and Amazon Prime addict, ask yourself if you need all these subscriptions and if you have the time to watch them?

Most people pay more on subscribing too many services but hardly use that entertainment and reading channels they have.

It’s the time to evaluate the spare time you have at hand to use these services and the cost you are spending monthly on subscribing to these. This helps you track the service you can do without and make money savings.

Besides entertainment, your current telephone and mobile plan also needs to be reviewed. Check your bills to study your usage patterns. If you are not using the full service, try considering another package. And if you are paying extra after the service amount, see if you can sign up to a new scheme that serves best to your needs.

Good Credit Score Means Good Financial Health – Understanding How Credit Score Works can Help You Save Thousands of Dirhams

Posted on November 12, 2019December 8, 2020 by admin

Credit reports and scores are essential to financial health of any economy. Its primary use is to help financial institutions use the information provided in the report to assess the credit standing of an individual prior to issuing individuals any credit products (credit cards, personal loans and so on).

Al Etihad Credit Bureau is the entity which provides credit reports to consumers and financial institutions in the UAE.

As an individual it is beneficial to have a good credit score as this will not only ensure that your chances of getting a credit card or loan (personal loan, auto loan, home loan) etc. are increased but, almost more importantly can help you save money as banks frequently give better terms (lower interest rates, higher loan amounts etc.) to individuals with better credit scores.

In this article we will help you better understand credit reports.

Components of a Credit Report

Financial Liabilities – Financial institutions are required to provide details of credit facilities such as credit cards, personal loans, mortgage loans etc., to the UAE Credit Bureau. Details such as assigned credit limits, utilized limits on credit cards, payments made, delayed payments, returned/bounced checks, loan amounts issued, outstanding balances, age of the loan/credit card, active status, police case history and so on are some of the key data points shared. In addition, the below details are also shared with the credit bureau:

Employment Details: Employer Name, Income, Date of Employment are a few details pertaining to employment

Addresses: Residence address, emirate, contact details including mobile numbers and email ids.

Personal Identification – Emirates Id number, Passport Number, Date of Birth etc.,

The Al Etihad Credit Bureau (AECB) manages the process of collating the information received from all financial institutions (as well as some other non-financial entities such as telecom and utilities providers) and summarizing this at an individual customer level.

These details are structured in a systematic and easily readable format which the financial institutions can access in assessing the credit worthiness of potential customers.

What is a credit score and why is it important?

Credit score is a three- digit number which is assigned by the credit bureau based on various variables such as number of loans, repayments, delayed payments, credit utilization and so on. Credit scores range from 300 to 900, higher the better from a financial health perspective.

The credit score is an indicator of a customer’s financial profile and it is important to note that quite a few banks have moved to offer credit score-based features (interest rate, loan amounts etc.) to their customers. This means you will get more beneficial terms the higher your credit score .

So, what is the mantra to maintain a healthy credit score?

Below are some simple disciplined practices one needs to follow:

Do not hold too many credit cards. Find out the best credit cards for “You” and stick with it. Close the ones which are not suitable for you or you carry but don’t use too often. Use Soulwallet’s “Best Fit Credit Cards Tool” to find out how good your credit card isyou’re your individual spend patterns and other requirements.
Ensure payments are made on time. And whenever possible, in full. This is the most important aspect and has a significant weightage in one’s score. Missing payments is a huge no-no and will definitely adversely impact your credit score. Remember the golden rule – “only borrow what you can afford to repay”!
Avoid going over the credit limiton your credit card.
Try and stay below 40% of your credit utilization. If you have a credit limit of AED 10,000 and your current credit card balance outstanding is AED 4,000, your utilization rate is 40%. The lower the better.
Keep copies of your bank clearance letters for records, there are possibilities that one might have to provide them to have the details amended (if they still show up on the credit report).

Please note – credit scores are not carved in stone, it is a dynamic and ever-changing variable, updated periodically when inputs are received from banks and financial institutions.

Credit scores take a significant time and effort to improve and, in this case, we would clearly recommend that prevention is better than cure.

How and where can I get my credit report?

For individuals the best recommended option is to download the AECB (Al Etihad credit bureau) app on the mobile phone via Google play or the IOS App store and download the report or score. Note, the charges are much lower to download the report online rather than by visiting an AECB branch. Click here to find more details.

Takeaway

Soulwallet strongly recommends you to compare products through a neutral and unbiased comparison site before you make a financial decision which can be as simple as signing up for a credit card in UAE.

Most UAE residents at some point or the other will need to explore options to avail credit facilities from a financial institution. The reasons could be as simple as managing to pay an annual school fee or to cover an unexpected medical expense. Having a good credit score can not only make the process of getting a loan much simpler but can also potentially help one save thousands of dirhams (a simple example is the money saved through a lower interest rate offered on your personal loan in UAE based on a good credit score).

How to choose between Personal Loan & Salary Transfer Loan

Posted on October 27, 2018October 23, 2020 by admin

Cash loans are a popular lending product in the UAE. These loans come in handy to service an immediate need which can be a purchase, holiday plan, school fee payment, medical expense not covered by insurance and so on. Cash loans offered by UAE banks can be classified into two categories.

a. Salary Transfer Loan: This is most probably the first loan one can avail from the bank where the customer holds a salary account. These loans are low in interest rates compared to the other personal loans without a salary transfer. Banks offer competitive interest rates for their customers for such loans. These loans generally require the following eligibility criteria.

i. A Salary Transfer letter from the employer of the customer stating that Salary would be transferred to the bank along with certain other clauses as required by the respective bank. Your HR department can help you with issuing such letter.

ii. A minimum salary requirement which might differ from bank to bank. This generally starts from AED 5000.

iii. Security checks as required by the bank.

iv. Debt ratio including the new loan EMI should not exceed 50% of monthly income which is a simple calculation of your total financial monthly liabilities over monthly income.

v. All other eligibility criteria as applicable by the bank including a meeting with the borrower.

b. Personal Loan without a Salary Transfer: These loans are offered by banks without a need of having Salary transferred. Such loans are popular and can serve the purpose when one already has a Salary Transfer loan running with a bank. Interest rates are higher for such loans and the lending amount might be lower than a Salary Transfer loan.

It is important to understand the difference between the personal loan and the salary transfer loan before applying for a loan. Reaching out to your bank which holds your salary account and enquiring for a salary transfer loan should be your first option. However, there are banks in UAE which provide attractive interest rates and higher loan amounts for the personal loan without salary transfer. SoulWallet can help you compare and choose the best personal loan and salary transfer personal loan from banks across UAE. Also you can apply for loans online.

Here are the key points to consider while deciding upon a loan?

a. Am I getting the best interest rate?
Most banks offer interest rate based on a multiple criteria like your income range, employer, bureau score etc. These rates are generally available with the Sales Executive who reviews your application profile. Make sure you review the interest rates before signing up. High interest rate means higher EMI and longer repayment period.

b. Am I getting the loan amount to suit my need?
Different banks offer different loan amounts, generally a multiple of your monthly income. This obviously can be customized based on certain criteria as mentioned in the previous point.

c. Will borrowing a loan be a hassle free process?
Loan application processing might take anything from an hour to 5 working days. Ask whether the process is simple and hassle free as this is a key differentiator between the financial institutions.

d. Are there any Hidden Charges?
Review if there are any charges pertaining to loan processing, early repayment penalty, late
payment etc. Read the fine print. Or at least ask the Sales Executive. You can always go and check comparison sites like SoulWallet.

e. What are the Payment Options?
Understand the various payment options available to you. While a direct debit from your salary
account is a standard process, there might be situations one would need to make a payment
through alternate methods. These options must be easy and inexpensive.

f. Will Top-up loan be available?
Enquire on when one can avail a top up loan while servicing first loan. Some banks have a resting
period of 6 to 12 months from the time the first loan has been issued.

g. Will there be Statement and Email alerts?
How does one get reminders on payments and loan balance? Verify this as these are important to know while servicing a loan. In today’s forgetful and fast paced life, we tend to forget the payment date. Bank might charge a penalty for late payment.

h. Any Special Features?
Does the bank offer a flexible interest loan which can adjust over a period of time based on EIBOR (which is Emirates Inter Bank Offered Rate).

So Salary Transfer Loan or Personal Loan Offers. Choice should be yours.