A personal loan is a loan that is issued with minimum documentation and can be secured or unsecured. The proceeds from this loan can be used for any financial need. Like any other loan, you must repay it in manageable EMIs as arranged with the bank (equated monthly installments).
Personal loans are the most popular kind of short-term financing in the UAE nowadays. Personal loans are available from the bank at two different interest rates: flat rates and lowering rates. When a loan has a flat rate of interest, the interest and total amount due are computed at the start of the repayment plan and do not alter until the loan is paid off. When it comes to lowering the interest rate on a loan, the principal amount decreases with each installment. Every month, the interest % (which remains constant) is applied to the lowered amount. As a result, each month’s installment amount varies.
Personal loan with salary transfer: This is most likely the first loan that a customer can get from a bank if they have a salary account. These loans have lower interest rates than other personal loans that do not require a salary transfer. For such loans, banks offer competitive interest rates to their customers, with a minimum salary requirement of AED 5000. (which differs from bank to bank). If you want to get a loan from a bank where you don’t have an account, you must open one and deposit your pay into it every month.
Personal loan without salary transfer: This is a popular loan that allows borrowers to apply for a personal loan without transferring their paycheck to a specific bank account. These loans have higher interest rates and a lower lending amount than a Salary Transfer loan.
Expat loans are available to those who live in the UAE but are not UAE nationals. Banks now offer personal loans to ex-pats, with competitive interest rates and payback terms of up to 48 months, to assist them manage their financial needs more simply.
Buyout loans: A buyout loan is a personal loan that can be used to pay off all of your past loans or credit card debt. To pay off your buyout loan, you must make a fixed monthly payment to the bank for a pre-determined amount of time, which is usually two to five years. Expats and UAE natives alike can apply for such loans.
Consolidation loan: Debt consolidation services allow you to combine all of your outstanding liabilities, such as loans or credit card balances, into a single aggregated liability. These loans are useful since they allow you to manage all of your outstanding liabilities in one place.
| Bank Name | Loan Name | Fixed Interest Rate | Reducing Interest Rate | Minimum Salary | Maximum Loan Amount |
|---|---|---|---|---|---|
| Abu Dhabi Commercial Bank | Personal Finance | 3.25% | 5.90% | AED 10,000 | AED 0 |
| Abu Dhabi Commercial Bank | Personal Loan | 6.25% | 11.33% | AED 10,000 | AED 250,000 |
| Abu Dhabi Commercial Bank | Personal Loan For Expatriates | 6.25% | 11.33% | AED 10,000 | AED 25,000 |
| Abu Dhabi Islamic Bank | Debt Settlement | 3.58% | 6.50% | AED 8,000 | AED 1,000,000 |
| Abu Dhabi Islamic Bank | Education Finance | 3.85% | 6.99% | AED 8,000 | AED 250,000 |
| Abu Dhabi Islamic Bank | Personal Finance | 3.72% | 6.75% | AED 8,000 | AED 1,000,000 |
| Al Hilal Bank | Personal Finance | 3.25% | 5.90% | AED 10,000 | AED 0 |
| Arab Bank | Personal Loan | 3.30% | 5.99% | AED 5,000 | AED 550,000 |
| Citibank | Personal Installment Loan | 7.71% | 14.00% | AED 8,000 | AED 175,000 |
| Citibank | Salary Transfer Loan | 3.85% | 8.00% | AED 8,000 | AED 250,000 |
| Commercial Bank Of Dubai | Personal Loan | 3.03% | 5.50% | AED 8,000 | AED 750,000 |
| Deem Finance | Personal Loan | 11.01% | 19.99% | AED 5,000 | AED 0 |
| Dubai Islamic Bank | Liabilities Settlement Finance | 0% | 0% | AED 5,000 | AED 0 |
| Dubai Islamic Bank | Personal Finance | 6.06% | 11.00% | AED 5,000 | AED 2,000,000 |
| Emirates Islamic | Personal Finance | 2..17% | 3.94% | AED 5,000 | AED 1,000,000 |
| Emirates NBD | End-Of-Service Benefit Backed Personal Loan | 3.30% | 5.99% | AED 5,000 | AED 0 |
| Emirates NBD | Loans For Nris | 2.20% | 3.99% | AED 5,000 | AED 0 |
| Emirates NBD | Salary Transfer Loan | 2.63% | 5.99% | AED 5,000 | AED 1,000,000 |
| Emirates NBD | Salary Transfer Loan For UAE Nationals | 2.63% | 5.99% | AED 5,000 | AED 3,000,000 |
| Emirates NBD | Loans For New To Country, New To Employment | 2.63% | 5.99% | AED 10,000 | AED 400,000 |
The above interest rates are purely indicative. Interest rate is generally based on factors such as
