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How to Avail a Personal Loan in a Quick and Hassle-free Way?

How to Avail a Personal Loan in a Quick and Hassle-free Way?

Getting a personal loan in the UAE is easy as long as you meet all the basic criteria of personal loan eligibility and have the required documents. However, not everyone can qualify for the personal loan, even after having all the requirements. The reason for the rejection can be anything. However, credit score and employment details are among the main reasons for getting your loan application rejected.

The details for the employment include the service length. Most banks or financial institutions prefer a minimum of 6 months of employment in the current company. And this is the reason why most of the applicants who are new to the country or newly employed face rejection. There are only a few financial institutions like banks in the UAE  provide personal loans to the expats arrived recently or newly employed applicants. By saying that, if you’re a national of UAE and require a personal loan, here’re some of the factors to consider to ensure a quick and hassle-free personal loan. These factors include-

  • Keeping a Good Credit Score– If you want to apply for a personal loan, it is really important to maintain a good credit score. Bad credit score will only show you as a person with high risk-appetite, to the financial institutions. Hence, may end up facing a rejection.
  • Check Your Eligibility Yourself– You can always check your personal loan eligibility using a personal loan eligibility calculator in any of the bank’s website. This way you’ll get to know the accurate eligibility to avail a loan.
  • Compare the Personal Loan Options– Before applying for any loan in Dubai or in the UAE, always make sure to compare the personal loans. You never know which bank is providing a better option for you.
  • Calculate the EMI You’re Going to Pay– EMI stands for easy monthly installmentsthat you pay to the bank against an availed loan. Calculating the EMI will help you figure out whether you can afford to pay back the loan or not.
  • Read the Terms and Scheduled Fees Carefully- After you find the loan that suits you the best, read the terms and conditions carefully. Also, make sure to check the scheduled fees and charges.
  • Submit the Documents- Once you have gathered all the information, its time you submit the documents to proceed with the application process to take benefits of personal Loan.

Those are the basic ways to prepare for the personal loan application. In this regard, the financial institutions also have to follow the rules set by the Central Bank of UAE.

Central Bank of UAE states that –

  • Any candidate with a stable income or gratuity received for serving the organisation for a specified time period can apply for a loan.
  • A personal loan should not exceed the limit set which is 20 times the income or salary
  • Repayment tenure should not be more than 48 months
  • If the EMI for the loan is deducted from the pension, no more than 30% should be taken
  • Post-dated cheques should not exceed 120% of the value of the debit balance or the personal loan
  • The financial institutions or banks must calculate the interest rates of personal loans and declare it. The interest rate must be determined on an annual basis. The interest rate must also be calculated on a reducing loan balance.

Although, there are some financial institutions in the UAE that provide a loan without much requirement. Some of these financial institutions are-

Dubai Islamic Bank:

The eligibility requirements for Dubai Islamic bank include-

  • Minimum monthly salary required of AED 3000
  • Salary transfer is required
  • Must be employed at one of the listed companies with the Dubai Islamic Bank

The features of this personal loan include-

  • Finance amount up to AED 4,000,000 for UAE nationals
  • Finance amount up to AED 2,000,000 for Expats
  • Repayment tenure up to 48 months
  • No minimum requirements for the length in service
  • The profit rates are between 11% to 21.99% per annum

Emirates Islamic Bank:

The eligibility requirements of Emirates Islamic bank are-

  • The minimum monthly salary of AED 5000 required
  • Salary transfer or minimum 1-month employment
  • Must be employed at one of the listed companies at Emirates Islamic Bank

The features of this personal loan include-

  • Finance up to AED 4,000,000 for UAE national and 2,000,000 for expats
  • Repayment tenure of 48 months
  • The flat interest rate of 6%

Emirates NBD:

The eligibility requirements of Emirates NBD are-

  • The minimum monthly salary of AED 10,000
  • Emirates NBD must be credited the first salary
  • Must be employed with one of the approved lists of employers of Emirates NBD

The features of this personal loan include-

  • Up to AED 600,000 of the finance amount
  • No requirements for the service length
  • Interest rate starts at 5.49% per annum

Mashreq Bank:

The eligibility requirements of Mashreq Bank are-

  • The minimum monthly salary of AED 7000 is required
  • AED 10,000 for non-listed companies
  • Salary transfer
  • Must be employed at one of the listed companies at Mashreq Bank (in case of UAE nationals only)

The features of this personal loan include-

  • Finance amount provided up to AED 150,000
  • Repayment tenure up to 48 months
  • DBR (Debt to burden ratio) should be less than 50% 
  • Interest rates are charged in a competitive manner

Over to You

The above-mentioned banks provide a personal loan in Dubai without much hassle. Although there are banks that come with attractive features and competitive rate of interest, you shouldn’t settle with the first option suggested. Before you jump to apply for a loan, check your eligibility. You can check your eligibility by using the personal loan eligibility calculator. All these steps helps you to to apply for personal loan to overcome your financial burdens easily. 

These pointers are the most basic ones that everybody knows but pays less attention to. Keep in mind that these affect your application process for the personal loan, the most!

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