Top Personal Loan Options in the UAE

What is Personal Loan?

Personal loan is an unsecured loan. This means that an individual doesn’t need to pledge any collateral or guarantor in order to avail the funds. Personal loan can be procured by an individual to meet their various personal financial needs. The loan could be for reasons such as weddings, higher education, medical emergencies, home renovations, for an international trip, or even for debt consolidation. An individual can acquire a maximum of up to 20 times their monthly salary for a personal finance loan amount. This amount can be availed with a repayment period of up to 48 months. 

UAE National Personal Loans

Personal loan in the UAE is available for UAE nationals (Emiratis). The personal loan in UAE and the personal loan amount is decided based on factors such as source of income, credit history, age, employment status of the applicant, etc factors. Keeping the needs of Emirati applicants in mind, personal loans for UAE nationals can be availed with high loan amounts up to AED 5 million. This loan amount can be used for numerous purposes such as investments opportunities, starting a new business, and many more.

United Arab Emirates is home to various top, internationally recognised Islamic Banking organisations. These banking organisations are also offering interest-free, Shariah compliant personal loans. Personal loans for UAE nationals help emirates to fulfil a wide range of benefits. These benefits can range from the lowest interest rates, i.e., starting from 3.99% up to 20% or a smaller requirement of the minimum salary for personal loans in UAE i.e., AED 5000. 

Types of Personal Loan in UAE

This multi-purpose type of loan is offered to both expats and UAE Nationals.

Listed below are the different types of personal loans in UAE:

Personal Loan in UAE for Expats – People who are not residents of the UAE but live in the UAE due to their business or jobs are called expatriates. They can enjoy lowest interest rate personal loan available in the UAE.

Personal Loan for UAE without Company Listing – Personal loan can also be obtained by professionals who are working in a non-listed company or a start-up that has a lineup of products which are especially designed for non-listed companies that have recently entered the market.

Personal Loan in UAE without Salary Transfer – There are some providers who do not make the applicant transfer their salary with them to obtain a loan, making the personal loan requirements flexible. Note, while these type of loans do not need a salary transfer, the interest rates are generally higher than the ones with the salary transfer requirements. These type of loans are popular as second loans where in a customer is already availing an existing salary transfer loan

Personal Loan in UAE with Salary Transfer – Most of the loan providers in the UAE expect the applicants to have a salary account with the bank to get an instant personal loan. As mentioned above, these carry attractive interest rates and are very popular in the expat community.

Personal Loan for UAE Nationals – For UAE Nationals, the personal loan requirements are much more relaxed with better multiples, interest rates and so on. These loans are designed to provide the UAE nationals with quick short term liquidity for meeting requirements such as down payments, medical, education, purchase and so on.

Personal Loan in UAE for Self-employed Professionals – Self-employed professionals are those individuals who have their own business. They may apply for a personal loan with certain financial institutions in the UAE and can enjoy the best personal loan rates. The general conditions for these loans vary from bank to bank and requirements can be on the vintage of the company, annual turn over etc.,

Personal Loan Interest Rate in UAE.

Personal loan interest rate is an additional charge that is levied upon the principal loan amount. In UAE there are two types of interest rates that are applicable to personal loan offers in UAE are flat rate and reducing interest.

Personal loan interest rate is an additional charge that is levied upon the principal loan amount. In UAE there are two types of interest rates that are applicable to personal loan offers in UAE are flat rate and reducing interest.

• Flat Rate – Flat interest is the interest that is charged on the total amount of the principal loan amount. This amount remains constant throughout the loan tenor. The lowest interest rate for personal loan in UAE can be 2.63% and can go up to 22.22%. ( Again these are based on products)
• Reducing Interest – As opposed to the flat interest rate, reducing rate of interest as the name suggests, reduces every time the loan borrower pays the instalment. Personal loan reducing rate in the UAE is charged only on the outstanding principal amount of the loan. This amount can fall in the range between 5.24% and can go up to 39.99%

It is always a good idea to compare personal loans online to get the lowest rate for personal loan interest rate in UAE. Soulwallet helps you compare various banks for personal loans, across the benefits offered and helps you conduct a better analysis as per your preference with a set of unique tools. Make a sound financial decision with the help of Soulwallets unbiased and well researched data and opt for the process of elimination to come across the best plan for you. By heartily focusing on the benefits that matter the most to the lifestyle of the applicant, you can trim down the list and come across the best personal loan in UAE.

How to Calculate Personal Loan Interest?

It is always advised to calculate the personal loan interest beforehand. An individual can use an interest calculator to calculate and compare interest on various personal loans amount that they would be paying. 

To calculate interest rate enabling personal loan comparison:

The formula used for the same is – (interest rate/number of payments) * principal amount = interest

• Divide the interest rate with the number of payments required to be made in a year
• Multiply that with the loan balance which is the principal amount of the loan for the first instalment
• Calculate the new balance by subtracting the interest calculated from the amount repaid
• Subtract this amount from the principal amount to arrive at the new balance of the personal loan

You can take the help of comparison sites such as Soulwallet.com, which uses its unique set of tools to give you an accurate number and helps you compare across parameters set by you. 

Personal Loan in UAE Eligibility Criteria

Personal loan eligibility in the UAE is different for every bank that offers personal finance in the UAE.

The following are the most common requirements for the best personal loan in UAE:

• Age Limit – Personal loan eligibility in the UAE usually includes a minimum age of 21 years and maximum age of up to 60 to 65 years to avail personal loan offers in UAE.
• Minimum Salary for Personal Loan in UAE – Individual applicants also have to meet a certain requirement of the minimum salary for personal loan that varies from lender to lender in UAE. You can apply for Personal loan in UAE at a minimum range of AED 5,000.
• Employment History – OSome banks require the applicants to have employment under UAE employers or have a set of particular length of service at least completed their probation to get a personal loan in UAE.
• UAE Residency – Only UAE residents and nationals can apply for a personal loan in Dubai or any other emirate of the UAEThe personal loan in UAE interest rate for them are different among certain other requirements.
• Salary Transfer – Banks in UAE offer both type of personal loans in UAE, without a salary transfer or with a salary transfer. Some banks even allow applicants to make transfers to a bank of their choice instead. Thus, giving them an option of easy personal loan in the UAE.

Documents Required for a Personal Loan in UAE

UAE National applicants are required to submit the following documents to avail a personal loan in UAE:

• A Duly filled Application Form
• A valid Passport with the visa stamp and Emirates ID of the applicant to get personal loan insurance UAE
• A valid UAE visa to prove residency to get bank personal loan UAE for expats
• Bank Statement of 3 to 6 months ( Most of the bank have built an ability to seek your salary information from your bank once you provide your IBAN at the time of application)
• Salary Transfer Letter ( for a salary transfer loan)

Best Banks Offering Personal Loan for UAE Nationals

• EMIRATES ISLAMIC PERSONAL FINANCE – EMIRATES ISLAMIC BANK (EIB)
  • Salary transfer – Yes
  • Fixed rate – 2.17 %
  • Monthly salary – AED 5,000
  • Reducing rate – 3.94 %
  • Top reasons to choose
    • Very competitive profit rates
    • High finance amounts
  • Key features
    • Financing available to salaried and self employed customers
    • Very competitive profit rates
    • Financing up to 3 million for UAE Nationals and 1 million for Expatriates
    • Approvals in 24 hours
    • Preapproved credit card and 100% discount on first year's annual fees
• EMIRATES NBD SALARY TRANSFER LOANS FOR UAE NATIONALS – EMIRATES NBD
  • Salary transfer – Yes
  • Fixed rate – 2.63%
  • Monthly salary – AED 5,000
  • Reducing rate – 5.99%
  • Top reasons to choose
    • Attractive interest rates
    • Double insurance cover
  • Key features
    
    • Attractive reducing interest rates starting from 5.99% reducing or 2.63% flat p.a.
    • Loan amounts up to AED 3,000,000
    • No collateral or guarantor required
    • Free Bank Account with no minimum balance requirement
    • Easy process and simple documentation
    • 7-day Loan Return Option
• EMIRATES NBD UAE NATIONAL PERSONAL LOAN WITH ADDITIONAL INCOME – EMIRATES NBD
  • Salary transfer – Yes
  • Fixed rate – 3.18%
  • Monthly salary – AED 10,000
  • Reducing rate – 5.24%
  • Top reasons to choose
    • Attractive interest rates
    • Double insurance cover
  • Key features
    
    • Attractive reducing interest rates starting from 5.24% reducing or 3.18% flat p.a.
    • Loan amounts up to AED 3,000,000
    • No collateral or guarantor required
    • Free Bank Account with no minimum balance requirement
• FAB LANDLORD LOANS – FIRST ABU DHABI BANK (FAB)
• Salary transfer – Yes
• Fixed rate – 5.10%
• Monthly salary – AED 5,000
• Reducing rate – 9.25%
• Top reasons to choose
• Competitive interest rates
• Key features
• Variable interest rate starting from 9.25% p.a.
• Generous loan amounts of up to AED 2 million
• Flexible repayment terms of up to 48 months
• Repayment from rental income received on properties managed by select banks
• Things to be aware of
• Repayment from rental income managed by select banks
• FAB NON SALARY TRANSFER PERSONAL LOANS FOR UAE NATIONALS – FIRST ABU DHABI BANK (FAB)
• Salary transfer – No
• Fixed rate – 8.99%
• Monthly salary – AED 15,000
• Reducing rate – 16.63%
• Top reasons to choose
• Loans up to AED 1 million
• Lowest-in-class rates starting from 8.99%* fixed per year
• Employer need not be on the fab approved list of companies
• Pay from current salary transfer account
• Comprehensive life insurance coverage
• Key features
• Loans up to AED one million
• Flexible payment terms of up to 48 months (or up to 60 months for Ministry of Defence employees)
• Lowest-in-class rates starting from 8.99%* fixed per year
• A salary transfer to a FAB account is not required
• Pay your instalments from the bank account into which you receive your salary each month
• A personal loan is available even if your employer is not on FAB’s Approved List of Employers
• Comprehensive life insurance coverage
• FAB PERSONAL LOANS FOR UAE EXPATS – FIRST ABU DHABI BANK (FAB)
• Salary transfer – Yes
• Fixed rate – 4.99%
• Monthly salary – AED 7,000
• Reducing rate – 9.30%
• Top reasons to choose
• Attractive loan amounts up to AED 2 million
• Competitive interest rates
• Minimum documentation
• Flexible repayment terms
• Quick and seamless processing
• Key features
• Attractive loan amounts up to AED 2 Million Competitive interest rates Flexible repayment terms Fast track approvals Comprehensive Personal Life Insurance coverage
• Product Overview
• Personal Loans in UAE are offered to customers for a variety of reasons including education, travel, medical and many more. There are two types of personal loans, one which requires a salary transfer and one which doesn’t.
• Loans are offered for a minimum period of 6 to a maximum of 48 months expats and 60 months for UAE Nationals.
• Most of the banks assign Loan APR (Annual Percentage Rate) based on the profile of the customer and his/her employer. A few banks use bureau score to assign interest rates.
• UAE loan APR rates range between from 5% to 35% in general.
• Illustration
• If a customer borrows a loan of AED 20,000 and earns an income of AED 10,000. With a repayment period of 48 months, the EMI would be AED 452 at an effective interest rate of 4.99% per annum.
• Total repayment that would have been paid at the completion of the loan would be AED 22,104. The borrower would be paying AED 2104 as interest.
• Please use Soulwallet’s Loans EMI Calculator for further simulations.
• Processing Fee: 1.05% of the finance amount. A minimum of AED 525 to a max of AED 2625.
• MASHREQ EMIRATI PERSONAL LOAN FOR PENSIONERS – MASHREQ BANK
• Salary transfer – Yes
• Fixed rate – 0.00%
• Monthly salary – AED 10,000
• Reducing rate – 0.00%
• Top reasons to choose
• Specially designed loan for pensioners
• Key features
• Adjustable loan amounts to match your needs
• Option to pay in manageable monthly instalments
• Comfortable repayment periods
• Competitive interest rates
• Simple documentation and quick processing
• No guarantors required for application
• Top-up facility is available
• Access to credit card & revolving overdraft
• Free cheque book and debit card
• MASHREQ PERSONAL LOANS FOR EMIRATIS – MASHREQ BANK
• Salary transfer – Yes
• Fixed rate – 0.00%
• Monthly salary – AED 10,000
• Reducing rate – 0.00%
• Top reasons to choose
• High loan amounts of up to 20 salary multiples
• Key features
• High loan amounts of up to 20 salary multiples
• Max AED 3 million
• Competitive rates of interest Top-up facility available for existing loan customers
• Islamic finance option is available
• RAKBANK NON SALARY TRANSFER LOAN – RAKBANK
• Salary transfer – Yes
• Fixed rate – 5.99 %
• Monthly salary – AED 5,000
• Reducing rate – 10.86 %
• Top reasons to choose
• Quick approvals
• Competitive interest rates
• Easy does it! Hassle-free loan takeovers from other banks
• Simple and easy documentation
• Key features
• High Personal Loan amounts at low interest rates
• Quick approvals
• Competitive interest rates
• Flexible repayment periods of up to 48 months for expatriates and UAE nationals (60 months for Armed Forces Staff)
• Product Overview
• Personal Loans in UAE are offered to customers for a variety of reasons including education, travel, medical and many more. There are two types of personal loans, one which requires a salary transfer and one which doesn’t.
• Loans are offered for a minimum period of 6 to a maximum of 48 months expats and 60 months for UAE Nationals.
• Most of the banks assign Loan APR (Annual Percentage Rate) based on the profile of the customer and his/her employer. A few banks use bureau score to assign interest rates.
• UAE loan APR rates range between from 5% to 35% in general.
• Illustration
• If a customer borrows a loan of AED 20,000 and earns an income of AED 10,000. With a repayment period of 48 months, the EMI would be AED 470 at an effective interest rate of 13.99% per annum.
• Total repayment that would have been paid at the completion of the loan would be AED22,540, The borrower would be paying AED 2,540 as interest.
• Please use Soulwallet’s Loans EMI Calculator for further simulations.
• Arrangement Fee: 1% of the finance amount
• Things to be aware of
• Loan and Interest will be basis the salary & company listing
• RAKBANK UAE NATIONAL LOAN – RAKBANK
• Salary transfer – Yes
• Fixed rate – 1.99 %
• Monthly salary – AED 5,000
• Reducing rate – 4.99 %
• Top reasons to choose
• Low and attractive promotional interest rates
• High loan amounts
• UNION NATIONAL BANK UAE Nationals Loan – Union National Bank (UNB)
• Salary transfer – Yes
• Fixed rate – 2.48%
• Monthly salary – AED 10,000
• Reducing rate – 4.50%
• Top reasons to choose
• Competitive interest rates
• Free UNB credit card
• Key features
• Competitive interest rates starting at 4.50% per annum
• High loan amount
• Flexible repayment period based on loan type
• Consolidate all your debts in one payment
• UNION ARAB PERSIONAL LOANS FOR UAE NATIONALS – UNITED ARAB BANK (UAB)
• Salary transfer – Yes
• Fixed rate – 3.03%
• Monthly salary – AED 7,500
• Reducing rate – 5.49%
• Key features
• Loan amounts up to 20 times of your salary
• Repayment period up to 48 months
• Interest rates as low as 5.49%
• Loans available up to AED 2.5 million
• Digi Personal Loan – Commercial Bank of Dubai ( CBD)
• Salary transfer – No
• Fixed rate – 8.64%
• Monthly salary – AED 10,000
• Reducing rate – 15.99%
• Key features
• 100% digital loan on CBD mobile app
• Papperless loan processing using only Emirates ID
• No salary transfer
• Amount credited instantly
• Loan teunure upto 48 months
• Loamn Amount upto AED 150,000

How to Apply for a Personal Loan in the UAE

Applying for a personal loan in the UAE is extremely easy and straightforward. An individual can apply directly through the bank as well as through an online portal.

Steps to apply and get a personal loan in UAE:

• Determine your loan requirements 
• Compare personal loan interest rate and other charges
• Calculate interest rate and EMI with loan calculator 
• Check your credit score and other offers from different banks
• Fill a personal loan application form 
• Upload necessary documents and the banks will verify these details 
• The loan amount is approved and disbursed 

Through bank branches

• Visit the branch of the preferred bank 
• Fill the loan application form 
• Submit required documents 
• Take help from the customer care representative or a bank representative to know about personal loan interest rates in the UAE

Through online portal

• Visit websites like Soulwallet
• Make an accurate comparison between various personal loans offered by different banks
• Find the lowest interest rate for personal loan in UAE
• Use the UAE personal loan EMI calculator for an accurate comparison

Steps to Compare Personal Loan in UAE

It is always advisable to compare different options as there are a lot of options for personal loans in the UAE.

• Here are some steps to help applicants with personal loan compare UAE
• Visit the bank’s official website or Soulwallet.com to check the different features of personal loans offered by each bank
• Check the interest rates and profit rates of each loan to pick one that fits comfortably in your budget
• Check the minimum salary requirement of the bank to get bank loan in UAE
• Use the bank’s EMI calculator or a generic one to figure out if the instalments fit your pocket
• Figure out whether the applicants need to transfer their salary to avail the personal loan in UAE
• Check the ease of repayment and the grace period offered
• Check for features like deferred payment, credit shield, early settlement etc before making the choice
• After going through each of these and having decided on which personal loan is best for you, figure out how to get personal loan in UAE

Features & Benefits of Personal Loan in UAE

Over the last decade, UAE has witnessed an enormous surge in financial lending.

• Unsecured Loans – No collateral is required to obtain these loans
• Salary Transfer vs. Non-Salary Transfer – By making salary transfers, borrowers can obtain high amounts at low interests
• Rate of Interest – There are two types of UAE bank loan interest rates: reducing and flat
• Top-up Loans – With regular payments of the pre-existing loans, the borrowers can enjoy top-up loans
• Loan Cancellation – The best personal loan in Dubai and other UAE Emirates, allows cancellation of the availed loan in the given grace period
• Instalment Deferment – The borrower can postpone their monthly instalments of personal finance in Dubai or other Emirates for a fixed period
• Debit and Credit Cards – Some of the personal loans in the market offer complimentary debit and credit cards
• Insurance or Takaful – Insurance or Takaful benefit covers the outstanding loan dues in an unforeseen event leading to loss of income
• Cashback and Statement Credit – Some personal loan offers in the UAE reward the borrowers with incentives like cash back or a statement credit

Quick Tips to Avail the Right Personal Loan in the UAE

• Shop Around – The first step to avail a suitable loan with the lowest interest rate for personal loan in UAE is to look around at different lenders to loan and comparing them before deciding on the one that best meets your requirements
• Checking and Reviewing the Terms & Conditions – The terms and conditions of the loan are essential and may vary from one provider to another. Hence, it is important to read and understand them thoroughly
• Types of Rates of Interest – There are two types of rates of interests applied by various loan lenders. They are reducing rate and flat rate of interest. The maximum rate of interest caps up to which a loan can be availed is, for Reducing rate: 24% - 39.99% and for Flat Rate: 63% - 22.22% 
• Stay Aware of Added Products – Some of the lenders automatically register the borrower for added products on the loan, such as payment protection or credit insurance right after the loan disbursal. Hence it is important to check the insurance terms carefully to get the best personal loan in UAE

Personal Loan Dos and Don’ts

By considering the following dos and don'ts one can avoid rejection of personal loan application:

Things to Consider

• Maintain a stable employment history
• Make the payments on time without fail
• Maintain a good credit score as personal loan without credit check in UAE is impossible
• Check for a steady source of income
• Clear the existing outstanding loans before applying for a new one
• Try maintaining a lower debt-to-income ratio

Things to Avoid

• Don’t furnish an unstable employment history
• Don’t degrade credit score as it marks a negative impact
• Don’t fill the application form in a rush. A small mistake can lead to loan rejection
• Don’t miss an instalment
• Don’t apply for a new loan without clearing the outstanding loan amount
• Don’t ignore eligibility criteria such as age, minimum salary transfers etc.