Get a Personal loan in UAE
There are many different forms of personal loans available to the working adults in the United Arab Emirates and they are available in each and every Emirate. Each and every individual has unique needs which leads them to applying for different types of loans in UAE with the aim of procuring the best form of personal loan in UAE . Available forms of personal loans in UAE for expats and locals are:
- SALARY TRANSFER LOANS
- NON SALARY TRANSFER LOANS (PDC LOANS)
- BUYOUT LOANS
- LOANS WITHOUT CREDIT CHECK
- PERSONAL LOAN IN UAE FOR NON LISTED COMPANY
- PERSONAL LOAN MINIMUM SALARY
- AUTO LOANS
- HOME LOANS
Where can I get a Personal loan in UAE ?
Banks in and finance companies are responsible for issuing out a personal loan in UAE to expats (working for both listed and non-listed companies), Business owners that is partners, in their personal capacity and as businesses, thus business loans, and local both employed /salaried or running their own companies. These loans operate similar to other global channels of Gulf finance whereby an amount is disbursed (principal personal loan amount) at an agreed interest rate which is translated into an equated monthly installment (both fixed interest rate and reducing balance) over a specified period of time usually 48 months (4 years) or 60 months (5 years).Banks in UAE are primarily responsible for this process though finance companies also chip in to issue out a personal loan in UAE
What type of Personal loan in UAE can I get ?
A personal loan in UAE comes in different forms and with different features which makes it of paramount importance for expats and locals to understand the loans available to them to best solve their different financial needs. There is a salary transfer personal loan in UAE , followed by a non salary transfer personal loan in UAE , afterwards, a Post Dated Cheque (P.D.C) easy personal loans in Dubai , then also a set of personal loans in UAE to cover credit cards, a Buyout personal loan in Dubai, personal loan with no credit check, home loans, auto loans just to mention a few.
Personal loan in UAE- Executive Finance
An executive finance loan is a personal loan in UAE given to executives and employees holding high offices by banks in Dubai .This set of Executive personal loan is categorized under personal loan without salary transfer and for that reason, they are usually dispatched to executives already hold a liability with another bank in UAE provided the applicant’s Debt (DBR/DSR) is in control and enables the facilitation of a personal loan in UAE
Who qualifies for this EF-personal loan in Dubai???
These EF-personal loan in Dubai is marketed to employees working for listed companies and earning 8000AED and above or 6400 plus company provided accommodation written legibly on the salary certificate thus making it a salaried personal loan implying that SME and partners are not eligible. SME and personal loan for non salaried is covered by other banks. If these conditions are met for these personal loans in Dubai for expatriates and locals, the application process may commence .At times, some employees earn the above stipulated salaries, but do not qualify as a result of their designation. It should however be noted that designation restrictions differ from bank to bank and each and every bank has its set of standard protocol policy and procedure which it follows and thus, a nurse may for example be declined a Finance House executive finance personal loan yet the same nurse will be approved for a Dubai Islamic Bank loan, thus the waivers are at full desecration of the bank or financial institution in question, which is handling the -personal loan in Dubai/UAE.
Loan in UAE-The personal loan application
Just like any other personal loan application, the executive finance loan in UAE will usually take 3 to 4 working days for approval, and 2 to 3 working days for disbursement depending on the bank or financial institution handling the personal loan application. After approval, the Direct Debit Authority (DDA) is sent to the central bank of UAE for approval and this is the reason for 2 to 3 days lag time for final loan application disbursement thus making it a quick loan in Dubai. The application procedure is very simple; but personal loan documentation should be clear, scanned legible copies. Thereafter, the personal loan formshould be fully filled, stamped by the bank’s relationship officer and submitted during the normal hours of business. The documents required for an executive personal loan in UAE application include, but are not limited to:
- Passport Copy
- Visa Copy
- Emirates ID copy
- 3 months Bank statement
- 3 Salary slips
- Salary certificate
Personal loans in UAE- documentation
The passport copy when applying for personal loans in UAE should be valid for at least more than one month to be accepted, same goes with the Emirates ID Copy, it should be clear and valid, the 3 months bank statement should be either original or if downloaded from the internet banking services, it should contain the bank’s link at the top or bottom, the bank statement should show the bank’s logo, the account holder’s name, his account number, his branch, at least 3 salaries credited just to mention a few , in order to suite in as Personal loan documentation . At times the online bank statement does not show the name and account number, one need to go an automated teller machine and request a balance slip which will show the missing details, then attach to the bank statement before logging in the personal loan application form. On the bank statement again, the expat or local applying for a personal loan in Dubai/UAE should make sure that all the bank statement pages are enough, and in sequence, that is the balance carried forward for January, should be the balance brought forward for February otherwise it will be regarded as an incomplete bank statement thereby leading to the credit department requesting for a fresh bank statement, thus wasting time on applying for personal loans in UAE
Extra Documentation-Loans in UAE
3 salary slips for the period should be attached, for the purpose of Loans in UAE, some banks however require the original bank statement yet some are comfortable with copies. The salary certificate is a mandatory document just as the passport copy, visa copy, emirates ID and statement for the Rak bank loan, Emirates Islamic bank loan, Noor bank personal loan, Sharjah Islamic Bank personal loan ,just to mention a few. The salary certificate shows clearly the company you work for, the office p.o. box, office address, the salary certificate production date, the employee’s name, his designation, his monthly or annual salary, his benefits, for example accommodation etc., his department, the HR Manager, the HR Manager’s signature, the company’s logo, just to mention a few. Some extra personal loan documentation may be required to prove certain clauses for example approved leave forms, copy of the employment contract, schedules for mortgage loans in Dubai, credit card copies, credit card statement, just to mention a few. These are the full set of documents required for this set of Loans in UAE
How much amount for loans in UAE???
The Executive Finance as a class of loans in Dubai will be disbursed after internal approval (credit, operations, retail, audit) and external approval (the client, Central bank, Etihad Bureau, Salaried bank) to the client either through a direct transfer to their existing salary account, or another bank account of his choice, or as a manager’s cheque, whichever method he chooses is at their own desecration. The minimum personal loan amount is AED30000 (Thirty thousand Dirham), with the maximum amount reaching AED250000 (Two hundred and fifty thousand Dirham). The executive finance is a personal loan in UAE without a salary transfer thus it falls as a loan without salary transfer and for that reason, the disbursal amount is lower compared to a salary transfer personal loan in Dubai. Post Dated cheques (PDC) are used as a means of security against this personal loan. The DDA on the EF Personal loan in UAE will automatically deduct the personal loan instalment from the salaried account 2 days or maximum 3 days after the salary is credited, making it one of the most convenient repayment method on loans in UAE
Personal loan interest rates in UAE-UAE Bank Rate
The fees and UAE Bank rate or rather Personal loan interest rates in UAE on this Executive Finance loans differ from bank to bank and financial institution to financial institution but the EF personal loan application fee is pegged at a blanket fee 1% with early closure on the loan charging 1% to 2% depending on the EF personal loan provider. The Bank rate UAE attached to the EF Personal loan in UAE range from 16% reducing balance rate of interest to a maximum of 21% reducing rate of interest. NB All UAE banks personal loan interest rates are annualized. As a result of lack of security compared to a salary transfer loans, Personal loan interest rates in UAE for Executive Finance is always a notch higher.
Personal loan-EF Benefits
This class of UAE personal loan comes without salary transfer, thus it has a quicker turnaround time compared to salary transfer personal loans and buy-out loans. The EF personal Loans in Dubai without salary transfer has a unique advantage were-by it does not do credit checks in Etihad Bureau and thus it may be used to stop the barbaric credit card cycle at half the interest rate thus saving the client of the much needed Finance and boosting their potential to start making a savings plan. This loan also comes with credit card in Dubai without salary transfer to those who opt for it however the advantage of the EF personal loan is also witnessed on buying out credit cards at half the interest rates, this will definitely improve the credit score of the client in question at the same time reducing their financial burden through this personal loan i.e to solve Debt in Dubai/UAE.
UAE loan -EF Drawbacks
Regardless of the fact that this UAE Loan solves the credit card problems, the EF UAE loans have slight higher interest rate and lower disbursal personal loan amount as compared to salary transfer personal loans. These are the major drawbacks of an EF UAE loan
Tips EF Personal loans in Dubai/UAE
For you to qualify for personal loans in Dubai,especially the Executive Finance, make sure your Bank statement is clean, that is, no overdrawn account, no returned cheque(s), no returned DSR(s), no insufficient funds reflect on the bank statement for 3 months. If your balance is in Debit (Dr) and you have an overdraft facility, make available the copies of these documents indicating the proof that you have an O/D facility. Make sure you have a clean em credit record that is no police case, no blacklisting in central bank etc. Always make sure you do not bite more than you may chew, if there is no need for extra funds, then don’t apply but if you need a little bit extra, then get in touch and apply for personal loans in Dubaitoday.
Loan in UAE- No credit checks
Some Banks offer bank loans or rather, a personal loan in Dubai /UAE with no credit checks as debt consolidation loans; this is of great relief to employees who wish to procure a personal loan in UAE to close off their existing liabilities or rather debt in Dubai/UAE. These loans are of great relief and are offered without checking the credit bureau i.e loans with no Etihad checks. Regardless of the great benefits of not checking Etihad/credit bureau, this form of Dubai loan reliever as many term it, is calculated based on what appears on the bank statement. Banks then check in central bank of UAE for blacklisting and any other irregularities, which may only appear if the client in question has an outstanding loan of AED200000 and above.
The monthly installments' repayment computed by the emi calculator for non-credit check loans, is generally higher compared to that of salary transfer loans but its annual percentage rate is almost equal to Post-dated cheque personal loans (PDC LOANS).These gulf funds take 3-4 days for approval and two days for disbursement, provided the DDA returned positive from the central bank. This set of personal loan in Dubai is disbursed via bank transfer or bank cheque once it is approved. Both locals and expats in UAE in any emirate, be Dubai, Abu Dhabi etc. are eligible to apply, provided they meet the age limit requirement. Address your financial problems and issues by applying for a personal loan in Dubai/UAE without credit check, contact us and we will assist you on how best to procure this financial relief for yourself.
Many personal loans applicants get rejected by banks in Dubai for various reasons which may include:
Bad Credit History
Poor credit is simply a sign that a borrower, or their business, does not prioritize repaying their debts. Not paying timeously definitely disrupts cash flows and even if individuals or businesses unintentionally miss a payment on a credit card (mastercard & visa card), house, or auto loan etc., such a mistake speaks volumes to bank in Dubai , banks in Sharjah and the rest of the banks in UAE . When you find yourself bouncing a cheque , being penalized for skipping credit card payments, or being dragged to Dubai courts for failing to meet your financial obligation, there is a high possibility that your loan application will be rejected and thrown out of the window before it even touches the desk.
In most cases, business loans in Dubai/UAE require collateral. Unfortunately not all businesses have a healthy cash flow or profits position sufficient enough to stand as collateral to support the size of the business loan they wish to borrow. Because of such a reason, many fast and easy loans in Dubai are automatically declined as a result. In Dubai, most banks and providers of Financial resources require assets but in different forms. You will find that for an employee working for a listed company such as Damac Properties, the bank disbursing the loan will require that the employee (in Dubai) transfer their salary to that particular bank , for instance Rak bank, First Gulf Bank, Union National Bank,Commercial Bank of Dubai,Noor Islamic Bank, Dunia Finance or Abu Dhabi Islamic Bank (ADIB) before disbursing the loan in UAE. This alone is the first form of security since they hardly disburse loans in Dubai without salary transfer.Once salary is transferred, this implies that all terminal benefits which accrue to the employee in question will also be held at the bank upon resignation. This alone is the second form of securityIn the case of an car/auto loan in Dubai , or the UAE, the car itself is a good form of collateral in the event of default in the near future. Banks in most Emirates, if not all, pen down a precondition which states a particular % which should be down-paid as a deposit by the borrower in question.
in Dubai simply means the number of years one has served in the Country as a worker or business partner. This is a key factor considered by credit departments of banks before disbursing personal loan(s) in Dubai/UAE , so you will find that Indians in Dubai who have served for 9 years or more, are highly likely to get a fast and easy loan in Dubai as compared to a Sri Lankan who has only been in the United Arab Emirates for 1 year or eleven months.The personal loan interest rates in UAE are also determined by the Vintage.
is also considered across the banks in Dubai, notably the risk and credit departments as collateral before disbursing a personal loan in Dubai/UAE .You will find that an Indian employee who has a spouse living in Dubai, Abu Dhabi or any other Emirate across the UAE, will for example procure a Dubai Islamic Bank personal loan faster and easier at favorable rates than a fellow Zimbabwean who is single and staying alone in the UAE.Blue collar
Vs. White Collar
jobs also determine the personal loan
amount you receive in Dubai/UAE ; the rate at which you get and for how long (tenure).Any credit analyst in his right soba mind will definitely consider white collar jobs in Dubai/UAE
to be of less risk as compared to blue collar jobs in Dubai
, Sharjah or the rest of the UAE.There is a norm of high labor turnover in Blue collar
jobs as compared to white collar jobs in Dubai
, and this also supports what I will call “the white collar collateral effect”In times of economic hardships
, it is well known that Blue collar
job workers face the axe and dance to the music faster than White Collar
workers in Dubai, Sharjah and UAE for instance, in 2008 after the economic recession / meltdown, construction workers were heavily affected as compared to other industries across the United Arab Emirates.
Finance In Cases of Asset Based Financing (ABF), the salvage value or residual value is usually considered key in events of default but different Banks in Dubai have different definitions and requirements of collateral which they come up through their loan calculator and other computation methods.
High Debt Burden Ratio (DBR)
Is an automatic loan rejection feature. The central bank of UAE has specific conditions it sets for DBR and in Dubai, Sharjah and UAE at large; the DBR is pegged at 50%.What this simply implies is that one may not be borrowed to an extent that they pay 50% of their earnings as debt.
I hereby exemplify
If Sam earns AED5000 and has a credit card with a limit of 10000 Dirham, 50% of his AED5000 salary is 2500 Dirham, so the maximum loan repayments Sam is permitted to render by law is a maximum of AED2500 a month, what this simply means is that Sam pays 500 Dirham on his NBAD credit cardas an instalment, thus he can only be awarded a loan in Dubai that accrues to an EMI of 2000 Dirham every month according to the emi calculator.Dirham and AED are used interchangeably as they represent the official currency of the UAE
Under-capitalizationBorrowers often make the mistake of under-capitalizing their accrued benefits or applications of business loans in Dubai. You find that a mis-classification or omission of fringe benefits and other incentives will cause applications to be rejected. This means that they offered up the wrong collateral, or simply lacked the time to note flaws on business loans in Dubai application process. Entrepreneurs opting for business setup in Dubai also face capitalization challenges
Police Cases and Cash Flow ProblemsRak bank online application for a personal loan in dubai and any other bank may be denied if the client(s) in question has a police case against him/her, or a legal issue they are still battling,or he/she is all over dubai news channels for the wrong reasons.On the cash flow front, if there is one thing all businesses and individuals have in common, it is that they exist to make money even small business ideas,the main aim is to make money. As a result, lenders see no reason to offer money to a business or individuals that has serious cash flow problems. After all, if a business isn’t even making money to begin with, then there is no need to hand it over a loan in Dubai in the hope that is generates growth.
Difficult ConditionsEven if an individual or business has excellent collateral in Dubai, or credit, and is well run, there is still the possibility that they will face industry-specific difficulties. For example, a lender may be hesitant to lend a company a business loan if the applicant operates in the transport sector on the wake of rising fuel costs. The lender may expect that the soaring costs of fuel are just going to overtax the transportation company and make it difficult to grow or generate a profit.
Tags: loans in dubai, loans in uae, personal loans in dubai, personal loans in uae, personal loans in dubai without salary transfer, personal loans without salary transfer in dubai, Personal Loan in UAE Without Salary Transfer, personal loan without salary transfer in uae, personal loans in uae without salary transfer, uae bank loan without salary transfer, uae loans without salary transfer