A personal loan is an unsecured loan obtained by individuals from a bank or financial institution to cover a variety of financial demands, such as higher education, marriage, overseas travel, and debt consolidation. It's called an unsecured loan because, unlike a car or home loan, it's not secured by anything. As a result, there will be no need for the borrower to provide any collateral or a guarantor in order to obtain it.
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Personal loans are granted based on certain eligibility criteria, such as repayment capacity, income level, credit score, and work history.
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If a person fits the eligibility requirements of the lender, he or she can readily apply for it.
But today the primary worry is that there are so many banks and financial organizations in the UAE that offer personal loans that it's difficult to know which one is the finest.
The Dubai Islamic Bank (DIB) Personal Loan and the Emirates NBD Personal Loan are two of the best personal loans available in the country. Both are major banks that offer personal loans with low interest rates and large loan amounts that can be repaid over a period of up to 48 months. Customers may find it difficult to pick between them because of their unique attributes.
Before you become confused about the differences between these two banks, Dhanguard will examine their features, loan amounts, interest/profit rates, and other aspects so that you can choose the best option for you. So without any further ado, let’s begin!
Emirates NBD Personal Loan Vs Dubai Islamic Bank Personal Loan: Classification
Processing Fees
- Emirates NBD Personal Loan - 1% of the Total Loan Amount (from AED 500 - AED 2500)
- DIB Personal Loan - from AED 1050 to AED 2620
- Rate of Interest & Profit
- Emirates NBD Personal Loan - Diminishing Interest Rate from 5.24% to 18.99%
- DIB Personal Loan - Diminishing Profit Rate from 11% to 21.99% p.a.
Amount of Loan
- Emirates NBD Personal Loan - Upto AED 5 Million
- DIB Personal Loan - Upto AED 4 Million
- Tenure of Repayment
- Emirates NBD Personal Loan - Upto 48 Months
- DIB Personal Loan - Upto 48 Months
Read More: Investing or Saving in 2022. Which is more Fruitful for You? Read This!
A Simplification of Personal Loans from Dubai Islamic Bank vs Emirates NBD
Availability of Loans
Personal loans are provided from both Dubai Islamic Bank and ENBD for both self-employed professionals/businessmen and individuals. In the UAE, they also give personal loans without the option of salary transfer.
Amount of the Loan
You can apply for an Islamic Personal Loan in Dubai with a loan amount ranging from AED 2 million to AED 4 million. You can apply for a personal loan from ENBD ranging from AED 2 million to AED 5 million. However, the acceptance of the loan amount for both banks is contingent on your financial history and repayment history, as the lender must determine if you will be able to return the loan on time or not.
Duration of the loan
Both banks offer borrowers a flexible payback period of up to 48 months (i.e. 4 years) so that they can repay their loans on time without incurring any financial hardship.
Profit/Interest Rate
The interest rate on a personal loan differs from one customer to the next, depending on nationality, income, credit score, and other factors. Furthermore, for self-employed professionals/businessmen and salaried persons, the profit rate of the Dubai Islamic Bank Personal Loan ranges from 11% to 21.99% per annum. In addition, the interest rate on an Emirates NBD personal loan ranges from 5.24% to 18.99%.
Emirates NBD Personal Loan Vs Dubai Islamic Personal Loan: Eligibility Criteria
Although the eligibility conditions for personal loans in the UAE vary per bank, there are some universal requirements. It covers information such as the borrower's age, income, occupation, repayment capacity, and location. Furthermore, a borrower's eligibility is influenced by the organization with which he or she works, as well as their credit score.
The following are the eligibility requirements for both lenders for a personal loan:
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Minimum Monthly Income Required
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Emirates NBD Personal Loan - AED 5000
- DIB Personal Loan - AED 3000
- Criteria of Minimum Age
- Emirates NBD Personal Loan - 21 Years
- DIB Personal Loan - 21 Years
Documents Required: Emirates NBD Vs Dubai Islamic Bank
The following is a list of documents that must be submitted by the borrower in order to obtain an ENBD or DIB personal loan:
Emirates NBD Personal Loan
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Certificate of Salary Transfer
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Self-employed professionals/businessmen should have a trade license, a Memorandum of Association, and a Power of Attorney.
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Emirates Identification
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Copy of Passport (with UAE Residence Visa for ex-pats)
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Bank statement from the previous three months or six months if you are a self-employed professional or entrepreneur.
DIB Personal Loan
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Copy of Passport (with UAE Residence Visa for ex-pats)
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Emirates ID photocopy
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Transfer of salary and end-of-service benefits, or a letter from the company
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Account Statement for the last three months in the case of a salary transfer to another bank, or six months in the case of self-employed professionals/businessmen)
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Copy of a self-employed professional's or businessman's trade license
Conclusion
So, before you make a final selection, compare the interest/profit rates, loan amounts, and other relevant elements of the Dubai Islamic Bank Personal Loan and the Emirates NBD Personal Loan. Comparing the two loans will undoubtedly assist you in making an informed selection based on your financial needs. Thus, we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website as well or get in touch with our experts by visiting our Branch Office.
