Best Personal Loan in Dubai

By Sakshi Srivastava - 15 Jan 2022 Last Updated: 04 Jul 2022
Best Personal Loan in Dubai

A personal loan is an unsecured loan, which means it does not require collateral or a guarantor. personal loan in the United Arab Emirates An individual obtains a personal loan in the Dubai to meet a variety of personal financial demands, including weddings, higher education, overseas travel, starting a new business, and even debt consolidation.

The highest personal finance loan amount is 20 times the monthly earnings, with a 48-month repayment period. The personal loan interest rate and amount in the Dubai are determined by factors such as the applicant's source of income, credit history, age, and job status.

Personal Loan Interest Rate in Dubai

The interest rate on a personal loan in the Dubai is a fee that is added to the principal loan amount. There are two sorts of interest rates that apply to personal loan offers in the United Arab Emirates:

Flat Interest

The overall loan amount is charged a flat interest rate that remains constant during the loan term. The lowest personal loan interest rate in Dubai, as well as the rest of the Dubai, is 2.63 percent, with rates ranging from 2.63 percent to 22.22 percent.

Reducing Interest

Unlike a flat interest rate, this rate of interest decreases with each instalment paid by the loan borrower. Personal loan reducing interest rate in Dubai is charged only on the outstanding principal amount of the loan, which can fall in the range of range between 5.24% - 39.99%. To acquire the best personal loan interest rate in the Dubai, you should constantly compare personal loans online.

For the year 2022, here are the Best Personal Loans in the Dubai.

We all look for the best personal loans in Dubai at some point in our life, whether it's for a remodelling, a vacation, or any other reason. With so many foreign and domestic banks operating in the UAE, it's critical to choose a lender that you can trust and that will provide you with a positive borrowing experience.

The banks listed below not only offer low-interest loans, but also offer a variety of other incentives. Continue reading to learn more.

Citibank Personal Loan without Salary Transfer

Citibank offers both Salary Transfer Loans and Personal Instalment Loans without Salary Transfer, allowing UAE residents and nationals to quickly access funds for a variety of personal financial needs. These loans are available without the need for collateral, come with cheap interest rates, and need minimal documentation.

Citi bank Personal Loan Highlights

Eligibility Age

21 years to 60 years

Loan Tenure

Up to 48 months

Minimum Salary – Eligible Income

AED 10,000 monthly

Processing Fees

1% of loan sanctioned

Interest rate

Starting from 14% p.a.

Loan Amount

Up to AED 175,000

Eligible Applicants Categories

Salaried UAE residents only

Salary Transfer Required

Not Required for Personal Installment Loan

 

Abu Dhabi Islamic Bank Personal Finance

For UAE nationals, ADIB Personal Finance offers a flat profit rate of 3.72 percent and 3.85 percent for expatriates. Moreover,

For both UAE nationals and expats, the needed minimum monthly wage is merely AED 8,000.

If that isn't enough to persuade you, ADIB also provides a number of additional benefits to its borrowers, including the following:

  • Free pre-approved ADIB VISA Cashback Card
  • First instalment holiday period of up to 90 days
  • Two free instalment postponements every year

Abu Dhabi Commercial Bank Personal Loan

Expats and UAE nationals alike can benefit from ADCB's competitive financing solutions. Expats in the UAE can take advantage of flexible, low-cost loans.

The interest rates begin at 4.99 percent and rise to 14 percent.

AED 6,000 is the minimum wage required.

Other advantages of an ADCB personal loan include:

  • Long-term repayment plan
  • Free life insurance for those with bad credit
  • ADCB credit card is available for free.

 

Dubai Islamic Bank Personal Finance

Apart from Sharia-compliant personal finance, the Dubai Islamic Bank also offers a variety of additional personal loan products in the UAE at the best possible rates.

Profit margins range between 11 and 20 percent.

DIB has one of the lowest wage requirements in the industry, at AED 3,000.

The following are some of the advantages of DIB personal finance:

  • AED 4,000,000 maximum loan amount for UAE nationals and AED 2,000,000 maximum loan amount for expatriates
  • A 48-month tenor is available.
  • Minimum wage requirement is low.

RAKBANK Personal Loan

For expats and UAE nationals, RAKBANK offers personal loans with low interest rates and a flexible repayment period of up to four years.

Interest rates start at 5.99 percent and go up from there

AED 5,000 is the minimum monthly wage required.

The following are some of the additional advantages of a RAKBANK personal loan:

  • After one year, a top-up loan is available.
  • RAKBANK Debit Card and customised chequebook are provided free of charge.
  • RAKBANK Credit Card is a free credit card with no annual fee and low interest rates.

HSBC Personal Loan

HSBC Bank offers loans with a low minimum balance. i.e., interest is calculated on the remaining principal amount on a monthly basis. The interest rates start at just 5.99 percent each year.

The needed minimum wage is AED 7,500.

Other advantages of an HSBC personal loan include:

  • There is no requirement for credit life insurance.
  • Online applications can be submitted and accepted in as little as 10 minutes.
  • Quick Processing

Emirates Islamic Bank Personal Loan

Personal loans are available from Emirates Islamic Bank for as little as 3.99 percent interest.

The bank requires a minimum monthly salary of AED 10,000 and offers the following benefits:

  • Repayment durations of up to four years are flexible and prolonged.
  • A straightforward and rapid approval procedure
  • For UAE nationals, a high finance amount of up to AED 4,000,000 is available, while for expats, a high finance amount of up to AED 2,000,000 is available.

Conclusion

This brings us to the end of our list of the top personal loans in Dubai for 2022. Keep in mind that you must evaluate a bank's interest rate with its processing charge as well as the bank's other features. Consider all of your options before deciding on a personal loan that meets your needs. For more information and assistance connect to us at Dhanguard.

Getting Personal loan is made simple and hassle-free with Dhanguard Personal finance service in Dubai, UAE. We provide you online Personal loan service with the minimum possible trouble including paperwork & payments.

By Sakshi Srivastava

15-Jan, 2022

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Personal Loan Related FAQ

Frequently Asked Questions

  • Will the demise of the personal loan applicant affect the family?

    Personal loans that are taken from banks are automatically insured at a nominal fee and in the event of any premature demise the partner insurance company covers the entire loan amount, protecting the family from any financial risk.

  • Do I need to provide security for my loan?

    Assets are not required as security against your personal loan.

  • Is there any advance costs involved when applying for a personal loan?

    Normally, the only advance costs pertaining to a personal loan are dispensation and insurance fees.

  • What is Payment Deferment?

    According to the issuer's policy, some lenders enable the borrower to 'defer' or postpone a month's payment once every few months. To take advantage of these benefits, the borrower must make timely payments. Deferred payments do not reduce the principal amount, and hence will not lower the lowering personal loan interest rate in UAE.

  • What are Top Up loans, exactly?

    Top-up or add-on personal loans are renewable loans that can be used to supplement an existing loan after the borrower has paid a certain number of payments. Top-up personal loans in the UAE are used to reward loyal, non-delinquent borrowers by providing longer tenors or reduced interest rates, depending on the bank's policy.

  • Is it Possible for a Student to Apply for a Personal Loan in the UAE?

    No, unless the bank expressly states otherwise or the student has a guarantor, a student cannot apply for this loan. The loan's eligibility restrictions include a minimum monthly salary and a maximum age range of 21 to 65 years. Some lenders may require a salary transfer and confirmation of employment with a lender-approved organization. However, some lenders offer personal loans in the UAE without requiring a company listing. As a guarantor, you can always apply for a student/education loan.

  • Should You take out a Personal Loan to fund my Startup in the UAE?

    It would be up to you to decide. You should be informed that you must pay the loan's EMI from the beginning of the month, followed by the disbursal. You can take out a loan if you're confident that you'll be able to pay the monthly EMIs at the very least.

  • What happens if You don't pay my Personal Loan EMI?

    If you're having trouble paying your loan EMI, contact your bank to see if there's anything you can do. If you try to avoid the problem, it will only get worse. Banks will issue warnings before dispatching debt collectors. If you do not respond, they may designate you as a defaulter and may even take you to court for the unpaid personal loan in UAE. As a result, it is preferable that you call the bank and explain your circumstances. They may be able to lower your EMIs in some cases.

  • Is there any Benefit to taking out the Personal Loan's Life Insurance Plan?

    Almost all personal loans include a life insurance plan for applicants. This insurance coverage protects the borrower from having to make payments in the event of a fatal disease, permanent incapacity, or death. Some personal loans in Dubai also include life insurance plans that pay back the entire loan amount to the policyholder's family members in the event of the policyholder's death.

  • How may a Personal Loan in Dubai be used to Pay Off Credit Card Debt?

    A personal loan can be used to pay off credit card debt. By consolidating the debt, the loan might assist in the payment of the credit card bill. When compared to credit cards, it has lower interest rates. Even if the applicant has a personal loan minimum wage of AED 2,000, you can return the loan in easy monthly installments over the following few years.

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