Is it Possible to get a Personal Loan in the UAE with a salary of AED 3,000?

07Jul, 22

Is it Possible to get a Personal Loan in the UAE with a salary of AED 3,000?

Expatriates and residents can discover numerous prospects in Dubai, which stands for luxury and abundance. Nevertheless, the dynamic hub of Dubai comes with its own set of economic difficulties. Sometimes, an individual may necessitate a financial backup to tackle unforeseen expenses or fulfil their innermost wishes. This is precisely where personal loans enter the picture. Individuals in the Emirates who earn AED 3,000 per month or less are ineligible for a personal loan. Those who make AED 5,000 or more a month in the Emirates are eligible for a personal loan. To help such individuals, we will scrutinize the top personal loan alternatives accessible in Dubai.

Personal Loan Eligibility Criteria

In the United Arab Emirates, personal loans offer individuals an effective solution to cover various financial obligations, encompassing educational fees, healthcare expenses, matrimony costs, and even leisurely escapes. Both local inhabitants and foreigners residing in the country can access these advantageous loans if they meet the eligibility requirements outlined by financial organizations.

The following are the eligibility criteria for a personal loan:

  • Minimum salary monthly: AED 5,000

  • You must be earning in UAE currency.

  • Bank statements for the last three to six months.

  • Age criteria (usually 21 to 60 years).

  • You must be residing in the UAE.

  • According to the loan company, you must have a good credit score.

Can someone with a salary of AED 3,000 get a Personal Loan in the UAE?

No, people who make AED 3,000 a month or less are not qualified for a personal loan in the Emirates. Individuals in the Emirates who make AED 5,000 or more per month are qualified for a personal loan. Even though some bank websites say that people with a monthly pay of AED 3,000 can get a personal loan, applicants still have to make at least AED 5,000. 

Which Documents Are Needed in Order to Apply for a Personal Loan?

The paperwork needed when applying for a personal loan in the United Arab Emirates is mentioned below:  

  • Completed and signed personal loan application. 

  • Authentic Emirates ID

  • A valid passport 

  • A current resident visa 

  • Authentic and legitimate certificate of pay transfer

  • Previous three or six months' bank statement 

  • A legitimate wage document, such as a pay stub (for those who are employed)

  • Original and valid trade license (fits self-employed people as well)  

Best Personal Loan Options

Some of the best option for Personal Loan in the UAE are:

Emirates NBD Personal Loan

Residents in the UAE making at least AED 5,000 per month are eligible for personal loans from Emirates NBD. The maximum loan amount is around AED 50,000.

Mashreq Bank Personal Loan

Mashreq Bank extends personal loans to individuals earning a monthly salary of AED 5,000 or more. They offer competitive interest rates and flexible repayment terms.

ADCB Personal Loan

Abu Dhabi Commercial Bank (ADCB) provides personal loans to UAE residents with a minimum monthly salary of AED 5,000. They have a straightforward application process and offer loan amounts based on your salary and credit history.

RAKBank Personal Loan

RAKBank is well-known for being accessible to low-income borrowers. They offer personal loans to UAE citizens who earn at least 5,000 AED per month.

Islamic Banking Options

Islamic banks like Dubai Islamic Bank (DIB) and Abu Dhabi Islamic Bank (ADIB) offer personal finance options for those with salaries of AED 5,000.

Interest Rate Types

Banks use two different sorts of interest rates:

  • Reducing Rate: Calculated every month on the balance amount of the loan.

  • Flat Rate: Calculated in the total loan amount.

Considerations Before Applying

The following considerations need to be taken care of before applying to Personal Loan:

  • Interest Rates: To find the best interest rate, compare the interest rates of different banks. With lower interest rates, you would save a lot of money on your loan.

  • Loan Tenure: Choose a loan tenure that aligns with your financial capabilities. Longer terms might result in smaller monthly installments but can increase overall interest costs.

  • Fees: Be aware of any processing fees, early settlement charges, or insurance requirements associated with the loan.

  • Credit Score: Maintain a good credit score by paying bills on time and managing existing debts. A higher credit score can improve your chances of loan approval.

Conclusion

Dubai's financial landscape offers personal loan solutions for people with salaries starting from 5,000 AED. Even though some financial institutions mention it, you won't be qualified for a personal loan in the UAE if your monthly income is AED 3,000. These loans in the UAE, including Dubai, are valuable for addressing various needs and aspirations. As DHANGUARD, we will assist you in getting the most suitable loan for your business. We only offer loans to UAE citizens or residents whose income is in UAE currency. By understanding interest rates, comparing loan options, and choosing the right bank, you can secure a loan that suits your circumstances.