Living in the vibrant UAE as an expat offers adventure and opportunity, but financial hurdles can arise, especially for low-income earners.
When unexpected expenses hit, a personal loan might seem like the answer. But navigating the loan landscape in the UAE with a limited salary can be tricky.
To help you out, we’ve compiled a comprehensive guide to personal loans for expats with low income in the UAE, highlighting 13 viable options from reputable banks, outlining their features, eligibility criteria,interest rate,minimum salary required,tenure amount,amount sanctioned and required documents.
Important Note : While most banks set a minimum salary requirement of AED 5,000 for regular personal loans, some options cater to lower income brackets. However, borrowing responsibly is crucial. Carefully assess your situation and only consider a loan if absolutely necessary.
General Eligibility for personal loan in Uae :
Minimum age: 21 years
Minimum salary: AED 3,000 – 5,000 (varies by bank)
Employment contract: Valid for at least 6 months
Residency visa: Valid and sponsored by your employer
Credit score : Good standing (varies by bank)
Required Documents for personal loan in Uae:
- Passport copy
- Residence visa copy
- Employment contract copy
- Salary certificate
- Bank statements (latest 3-6 months)
Note : Documents might vary according to the need of different credit provider/banks ,etc.Please check before applying for loan.
If you’re an expat in the UAE facing such a situation, seeking a personal loan might seem like the only solution. But before you dive in, understanding the landscape is crucial.
Here’s a comprehensive guide to personal loans for expats with low income in the UAE, highlighting 11 options from various banks, their eligibility requirements, interest rates, and other key features:
13 Personal loans Banks for expats with low income in UAE 2024
1. Mashreq Personal Loan for Expats:
Minimum Salary : AED 3,500
Loan Amount : Up to AED 20,000
Interest Rate: 1.79% per month (reducing balance)
Tenure : 6 to 12 months
Features : No salary transfer required, quick approval process, flexible repayment options.
2. RAKBANK Salary Advance :
Minimum Salary : AED 3,000
Loan Amount : Up to 1 month’s salary
Interest Rate : 1.5% per month (reducing balance)
Tenure : Up to 1 month
Features : Fast and convenient, ideal for short-term needs, available through salary account.
3. Dubai Islamic Bank Personal Loan – Amanah:
Minimum Salary : AED 4,000
Loan Amount : Up to AED 50,000
Interest Rate : 2.15% per month (reducing balance)
Tenure : Up to 48 months
Features : Sharia-compliant, flexible repayment options, low processing fees.
4. ADIB Personal Loan – Salary Plus :
Minimum Salary : AED 5,000
Loan Amount : Up to 3 months’ salary
Interest Rate : Competitive rates based on salary and credit score
Tenure: Up to 3 months
Features : Fast approvals, convenient top-ups, salary transfer not mandatory.
5. Emirates NBD Personal Loan:
Minimum Salary: AED 5,000
Loan Amount : Up to AED 400,000
Interest Rate : Competitive rates based on salary and credit score
Tenure: Up to 48 months
Features : Flexible repayment options, loyalty program benefits, salary transfer required.
6. Sharjah Islamic Bank Personal Loan – Tamayuz :
Minimum Salary : AED 5,000
Loan Amount : Up to AED 200,000
Interest Rate : Competitive rates based on salary and credit score
Tenure : Up to 48 months
Features: Sharia-compliant, flexible repayment options, attractive benefits for new customers.
7. Standard Chartered Personal Loan:
Minimum Salary: AED 5,000
Loan Amount: Up to AED 400,000
Interest Rate: Competitive rates based on salary and credit score
Tenure: Up to 60 months
Features: Quick online application, travel insurance options, salary transfer required.
8. FAB Lifeline Revolving Overdraft:
Minimum Salary: AED 2,000
Loan Amount: Up to AED 20,000
Interest Rate: 1.45% per month (reducing balance)
Tenure: Continuous revolving credit facility
Features: No salary transfer required, good for ongoing expenses, lower limit compared to loans.
9. CBD Personal Loan – Fast Track:
Minimum Salary: AED 5,000
Loan Amount: Up to AED 150,000
Interest Rate: Competitive rates based on salary and credit score
Tenure : Up to 48 months
Features: Fast approvals, salary transfer not mandatory, good for urgent needs.
10. Al Hilal Bank Personal Loan:
Amount: Up to AED 20,000
Interest: 2.49% – 5.99% per month (reducing rate)
Features: Fast approval, no salary transfer required, flexible repayment term (12-48 months).
11. Ajman Bank Personal Loan:
Amount: Up to AED 20,000
Interest: 2.49% – 5.99% per month (reducing rate)
Features: Sharia-compliant, flexible repayment
12. Noor Bank Personal Loan for Expats:
Amount: Up to AED 20,000
Interest: 2.49% – 5.99% per month (reducing rate)
Features: Flexible repayment term (12-48 months), life insurance included, no salary transfer required.
13. HSBC Personal Loan :
Minimum Salary: AED 3,000
Loan Amount: Up to 4 months’ salary
Interest Rate: 1.99% per month
Features: Competitive rates, flexible repayment options.
Documents: Salary certificate, passport copy, Emirates ID copy.
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Before you apply for personal loan in Uae :
Assess your needs : Be clear about the specific purpose and amount you require. Don’t borrow more than you can comfortably manage.
Check your credit score: A good credit score can secure lower interest rates. Consider improving it before applying.
Compare and negotiate: Don’t settle for the first offer. Compare rates and terms across different banks and negotiate for better deals.
Read the fine print: Understand all fees, charges, and early repayment penalties before signing on the dotted line.
Seek financial advice: If unsure, consult a financial advisor who can guide you through the process and ensure you make an informed decision.
Remember, borrowing should be a last resort. Explore alternative solutions like budgeting, saving, or seeking financial support from friends or family. Borrowing responsibly will help you navigate any financial hurdles and ensure you thrive in the vibrant UAE.
With so many options available, finding the right personal loan for your situation as an expat with a low income in the UAE is within reach.
Remember, carefully compare features, interest rates, and eligibility requirements before making your choice. Prioritize reputable banks with transparent terms and conditions.
We hope this comprehensive guide empowers you to make informed decisions about personal loans in the UAE. Now go forth and explore your options with confidence !
Frequently Asked questions (Faq’s)
Can I get a personal loan in the UAE if I have a low income ?
Yes, there are a number of personal loan options available for expats with low income in the UAE. Some banks offer loans with minimum salaries as low as AED 2,000. However, it is important to remember that borrowing money should always be a last resort and you should only borrow what you can afford to repay .
What documents do I need to apply for a personal loan in the UAE ?
The documents you will need to apply for a personal loan in the UAE will vary depending on the bank. However, most banks will require you to provide the following :
-A copy of your passport
-A copy of your Emirates ID
-Your salary certificate
-Proof of your address
What is the interest rate on personal loans in the UAE ?
The interest rate on personal loans in the UAE will vary depending on the bank, the loan amount, and your credit score. However, you can expect to pay an interest rate of between 1% and 2% per month.
What is the repayment term for personal loans in the UAE ?
The repayment term for personal loans in the UAE will vary depending on the bank and the loan amount. However, you can expect to repay your loan over a period of between 12 and 60 months.
What are the risks of taking out a personal loan in the UAE ?
Before applying for a personal loan, it is important to be aware of the risks involved. These include:
-Risk of getting into debt that you cannot afford to repay
-Risk of damaging your credit score if you miss payments
-Risk of being charged high interest rates and fees