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Know about Personal Loans with Lowest Interest Rates in Dubai

By Dhruva Bhatt - 29 Jul 2022 Last Updated: 11 Aug 2022
Know about Personal Loans with Lowest Interest Rates in Dubai

Personal loans are unsecured loans, hence no security or guarantee is needed to obtain one. Weddings, further education, international travel, starting a new business, and debt consolidation are just a few of the personal financial needs that can be met by a person obtaining a personal loan in the UAE.

20 times the borrower's monthly income as the maximum loan amount with a 48 month repayment period can be obtained through personal loans. A personal loan applicant's source of income, credit history, age, and employment status are among the variables that affect the loan amount and interest rate in the UAE.

Personal Loans can be an excellent tool to tackle any financial hindrance you might face. Thus in today’s blog, Dhanguard will extensively discuss the personal loans with lowest interest rates in Dubai. So without any further ado, let’s learn!

Personal Loans with Lowest Interest Rates in Dubai

Below mentioned are the best personal loans with lowest interest rates in dubai-

RAKBANK Personal Loan

  • Primary Feature- You get a Free RAKBANK Credit Card for life

  • Reducing Rate- 5.99% p.a.

  • Minimum Salary required- AED 5,000

  • Flat Rate- 3.18% p.a. (depending on 4 years calculation)

  • Maximum Loan Amount granted-  AED 1,250,000 (up to 20 times of salary)

  • Processing Fees- 1% of the Loan Amount (minimum AED 500, maximum AED 2,500)

  • Tenure of Loan- 48 Months, 60 months if the Applicant is an Armed Forces Employee

  • Islamic Finance- Yes

  • Early Settlement Fees- 1% of the remaining amount

  • Salary Transfer- Compulsory

  • Insurance- Yes, provided at very nominal rates

  • Salaried/ Self Employed- only available to salaried employees

  • Holiday Period- After 6 Months of payments, the applicant can apply for 1 month deferment

CBD Bank Absher Personal Finance for UAE Nationals

  • Primary Feature- You will earn 500 Attijari Points for every loan amount of AED 100,000

  • Reducing Rate- 5.50% to 11% (which depends upon the profile of the customer)

  • Minimum Salary required- AED 8,000

  • Flat Rate- 3% p.a. (depending on 4 years calculation)

  • Maximum Loan Amount granted- AED 2,500,000 (upto 20 times of salary)

  • Processing Fees- 1% of the Loan Amount (minimum AED 500, maximum AED 2,500)

  • Tenure of Loan- 48 months 

  • Islamic Finance- Yes

  • Early Settlement Fees- 1% of the remaining amount

  • Holiday Period- Deferment options are available to the Applicant

  • Salaried/ Self Employed- only available to salaried employees

Emirates NBD Bank Personal Loan for Bankers

  • Primary Features- Option for 7 day loan repayment, Direct Debit is the method of repayment (DDS), Double Insurance Cover

  • Reducing Rate- from 14.99% p.a.

  • Minimum Salary required- AED 15,000

  • Flat Rate- 8.40% p.a.

  • Maximum Loan Amount granted- AED 200,000

  • Processing Fees- 1% of the Loan Amount (minimum AED 500, maximum AED 2,500)

  • Tenure of Loan- 48 months

  • Islamic Finance- No

  • Early Settlement Fees- 1%

  • Salary Transfer- not required

  • Insurance- 1.24% (it is given with double credit life coverage)

  • Salaried/ Self Employed- only for salaried bankers

  • Holiday Period- Yes, there is a deferment option available, and you can skip two non consecutive payments each year

Emirates NBD Personal Loan for Self Employed Individual

  • Primary Features- No security or guarantor is necessary, Double Insurance Cover, 100% cash, no end use disclosure, Option for 7 day loan repayment

  • Reducing Rate- from 19.99% p.a. (which depends upon the profile of the customer)

  • Minimum Balance required-  to maintain an average balance of AED 25,000 for at least six months, minimum tenure in business of two years is necessary.

  • Flat Rate- 11.51% p.a. 

  • Maximum Loan Amount granted- AED 300,000

  • Processing Fees- 1% of the loan amount (minimum AED 500, maximum AED 2,500)

  • Tenure of Loan- 48 months

  • Islamic Finance- No

  • Early Settlement Fees- 1% of the remaining amount

  • Salary Transfer- not required

  • Holiday Period- Deferment options are available to the Applicant

  • Insurance- 1.50% of the Loan amount (it is given with double credit life coverage)

  • Salaried/ Self Employed- only available to self employed

 

Read More: Investing in Index Funds in Dubai is an Opportunity You don't Want to Miss! Read Why

Deem Personal Loan

  • Minimum Salary required- AED 5,000

  • Flat Rate- 9.01% p.a. (depending on 4 years calculation)

  • Reducing Rate- 15.99% to 34.99% (which depends upon the profile of the customer)

  • Islamic Finance- No

  • Processing Fees- 1% of the loan amount (minimum AED 500, maximum AED 2,500)

  • Salary Transfer- No

  • Tenure of Loan- 48 months, 60 months for UAE nationals

  • Insurance- Deem Credit Life Plus is an embedded programme that offers rewards to the consumer in the event of death and total and permanent disability. Enjoy exclusive advantages, prompt attention to requests, round-the-clock support, and free account statements.

  • Salaried/ Self Employed- only available to salaried employees

Standard Chartered Bank Personal Loan

  • Minimum Salary required- AED 30,000

  • Flat Rate- 4.16 p.a. (depending on 4 years calculation)

  • Reducing Rate- 7.55% (which depends upon the profile of the customer)

  • Maximum Loan Amount granted- AED 500,000

  • Processing Fees- 1% of the Loan amount (minimum AED 500, maximum AED 2,500)

  • Tenure of Loan- 48 months

  • Islamic Finance- No

  • Early Settlement Fees- 1% of the remaining amount

  • Salary Transfer- Compulsory

  • Holiday Period- Yes, you may skip two installment payments within a 12 month period, depending on eligibility

  • Insurance- Not Compulsory

  • Other Facilities- Top Up Facility

  • Salaried/ Self Employed- only available to salaried employees

UAE Personal Loan Eligibility Requirement

Your residency status is one of the key elements in figuring out whether you qualify for a personal loan. Because these loans are more complicated and expensive to process, expats may have to wait longer to receive them than residents of their home country. Investigate your options carefully if you're seeking a bank with roots in the UAE that will provide this kind of personal loan.

The population of the UAE is diverse, and many foreigners hold long term residency visas or temporary work visas that allow them to enter and remain in the country. Since there is frequently additional information required before approval is granted, such as passport photocopies and residency documents, getting a personal loan when you are an expat may be more challenging than getting one when you are a local.

The following requirements, however, are the most typical ones that must be met in order for the loan to be approved:

Age restriction

The UAE has a range of age restrictions for personal loans based on your profession, where you live, and other considerations. Age 65 is the maximum allowed for a local resident. You must be 21 years old or older to apply if you are an expat or a student with an employment visa.

Salary

To be eligible for the loan, you must have a consistent source of income and be employed, self employed, or retired. One of the most crucial considerations when applying for personal loans is income! The required pay is 5000 AED at the very least.

Employment History

A stable employment history is a crucial qualification needed. You should be qualified for these loans if you have worked in the UAE for at least six months under a contract.

Conclusion

Personal Loans in Dubai are easy to obtain which can help you in tackling your Financial Hindrance. Moreover there are several banks offering personal loans at low interest rates which means there are loans available for every kind of applicant which they can avail without any hassle. Thus we hope this blog provided you with insightful information. For more information on other related aspects, feel free to visit our Branch Office or our website as well.

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 Dhruva Bhatt

29-Jul, 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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