With the rise in the cost of living in the UAE, some expats are unable to save funds for rainy days. This can lead to a financial crisis during emergencies. During those times, expats have no choice but to turn to banks for financial help.
However, just because you need financial help doesn’t mean that the banks will provide you one.
To get a Personal loan in the UAE for expats, you have to be eligible for it. Banks have certain eligibility requirements, that the applicants should qualify for.
So, let’s have a look at the basic eligibility requirements for a Personal Loan in the UAE for expats.
The basic requirements to be eligible for a personal finance in UAE for expats are as follows:
Age Limit: Expats should have a minimum age of 21 to apply for a finance amount in the UAE. Meanwhile, the maximum age limit for an expat to apply for a loan is 60.
Status of Employment: The expat applicant must either be a self-employed or salaried employee.
Minimum Income: Some of the banks in the UAE require a minimum monthly income of AED 5000 from expat applicants.
Salary Transfer: Most, if not all, banks require salary transfer for the approval of a consumer finance.
Listed Company: The expat applicant must be employed at any company, listed in the particular bank’s approval list. Few banks also provides Personal loan without company listing for expats with some conditions
Documents: The applicants should provide every document required by the bank. Failing to submit even a single document can lead to rejection of the personal loan.
Required Documentation for a Personal finance for Expats in the UAE
The basic documents required to apply for a consumer loan in the UAE for expats are:
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
Personal finance Interest Rate
The interest rate for a consumer finance is based on two options- Reducing rate of interest and flat rate. The reducing rate of interest starts at a certain percentage but declines every year.
Whereas, the flat rate of interest is decided at the beginning by the bank and is consistent. The flat rate of interest cannot be reduced on a yearly basis.
Now that we have discussed the eligibility factor and the documents required, let’s have a look at some of the best consumer loan providers in the UAE for expats.
List of Banks
Maximum Finance Amount
Minimum Monthly Salary Required
Emirates Islamic Personal Finance
Up to 2 million AED
Ajman Bank Goods Murabaha
Up to 1 million AED
ADIB Personal Finance
Up to 1 million AED
CBD Personal Loan
Up to 750,000 AED
Emirates NBD Personal Loan Without Salary Transfer
Up to 500,000 AED
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
Experts' Tips for Getting Your Application for a Personal Loan Approved
Applicants don’t comprehend this but banks can reject your application for any reason if they deem it necessary. Therefore, here we will discuss a few tips that will help the expats with getting approval for a consumer finance.
Eligibility Criteria: The most important factor in getting approval for a consumer loan in the UAE for expats is to meet the eligibility criteria. If you fail to meet the eligibility requirements, your request will be denied, no matter how much you earn.
Credit Score: Make sure to have a good credit score. A Credit score is a way of letting the banks know of the risk involved with providing you with finance.
Repayment: Make sure to apply for an amount that you are capable of paying back. Factor in your monthly salary and expenditures. Banks will reject your application if they have any doubts regarding your ability to repay the loan.
Multiple Application: If you hope to get approval for a consumer loan by sending out multiple applications to banks, you have been misinformed. Sending out multiple applications will only ruin your chances of getting a PL.
Therefore, find a bank that suits your needs the most and stick with it until the result comes out.
Over to You
A consumer finance requires no guarantees or liabilities which makes it the best option for expats during emergencies. However, this is also the reason why personal loan interest rate is comparatively higher to home loans or car loans.
Applying for a consumer loan in the UAE for expats has become an easy process. Getting your application approved is, however, a completely different matter.
Applying for a PL doesn’t mean confirmed approval. Expats will have to qualify certain eligibility criteria to be approved and financed.
Please note that most banks in the UAE give the option of Up to 4 years for repayment.