How new people can get Personal Loan in Dubai?

How new people can get personal loan in Dubai?
May 1, 2024

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United Arab Emirates has become a global hub for businesses and industries. Therefore, many foreign businessmen and professionals are moving to Dubai to explore better growth opportunities in 2024. One of there initial actions is to get personal loan in Dubai to settle in the marvel of the UAE.

Financial companies who give personal loans

Which finance institutions provide personal loans?

These are the lenders who issue personal loans in the UAE.

Now, we briefly discuss these options to borrow personal loans.

Banks

Globally, banks are the number one choice of people for taking personal loans. However, banking policies differ in giving loan to the people. Some banks care for their customers and allow loan at very low interest rates for long term relationship with them.

Whereas, some banks keep their risk level low by satisfying their policies like full documentation of the clients. Almost all banks in Dubai provide personal loans. The loan amount and interest depend on individual’s current financial status like salary, credit history, current financial liabilities, etc.

You can go through different banks like Emirates NBD, Bank of Sharjah, First Abu Dhabi Bank, etc. Islamic banks like Emirates Islamic Bank, DIB, SIB, ADIB, Ajman Bank, and Al Hilal Bank are other options. Somehow, they have better pre-payment terms and solution plans.

Money lending companies

Several non-traditional money lenders have come to the fore to ease the people coming new to Dubai. They give personal loans to people, rather their investing in some bank directly. They directly give small loans as a win-win scheme to both company and customers.

Eligibility criteria for personal loan

Who is eligible for personal loan?

Here is the eligibility criteria for personal loan in the UAE.

  • Individual should be salaried/self-employed
  • Must hold active UAE national ID card or a valid passport
  • Should possess a valid residency visa for the UAE
  • If the bank requires a salary transfer, then a letter of salary transfer will also be needed
  • Clear history, no former loans pending from with another country
  • Must have a lawful work permit
  • Should have done minimum six months of service at the time of loan application

Terms for personal loans and repayments

What are the terms for personal loans and repayments in Dubai?

Here are the terms that lenders and borrowers have to follow for personal loans in the UAE and their repayments.

  • You can ask for amount up to 20 times your monthly income
  • Lenders have to calculate and disclose interest rate beforehand
  • The interest rate must take into account the reducing balance of the loan on annual basis
  • Loan has to be payback in full within 48 months
  • Monthly installment deduction should not exceed half of the borrower’s salary
  • In case of retirement, lender will re-schedule the payback period
  • Retired employees are liable to 30% deduction of pension salary

Types of loans

Which are the types of loans?

We can classify loans for individual or business use into two categories.

Now, we take a look on the types of loans.

Secured loan

A secured loan is the one that you avail if you have some credit background, and handsome asset to show. As you must have a proof of paying back to that institute in limited time period. Business loan is an example of it.

Unsecured loan

An unsecured loan is the one in which you don’t possess any asset like house, property, credit profile, car, etc. So, financial services companies are at a risk of not getting their money back due to absence of guarantee. Personal loan is an example of it.

Defining the personal loan

What is a personal loan?

In essence, personal loan is a type of loan taken usually when you move to a new country for employment. It is an ideal option for any individual who wants to relocate in any new region having minimum resources. Accordingly, it helps expatriates in managing their individual expenses.

Personal loan is basically unsecured loan. It doesn’t require collateral such as your home, car, or other personal property. You can take personal loan in Dubai for many purposes.

  • House building
  • Company startup
  • Student fee
  • Car lease

Kinds of personal loans

Which are the kinds of personal loans?

Normally, there are three kinds of personal loan in Dubai.

Next, we look upon the kinds of personal loans.

Installment loan

When you take installment loan, you have to pay it back in the form of regular partial payments. You cannot exceed the specified timelines, otherwise your interest rate increases to some percent. Or you get extra charges on that loaned amount.

Signature loan

You take the signature loan, by signing on the policy form of the financial services company. In this case, bank value or trust their customers. Normally, you promise to give the borrowed amount back to the bank as a one-time payment.

Peer to peer loan

People who want to stay away from traditional lender such as a bank, can opt for peer to peer loan. Subsequently, they can borrow money from individuals. Peer to peer loans include these traits.

  • Several websites allow you to post a peer to peer loan request onlin
  • People may or may not step in and fund your loan.
  • Peer to peer loans like signature loans are mostly fixed-rate installment loans.
  • They have competitive interest rates.

Conclusion

Mostly people are not aware of the ways to get the loan on low interest rates. Also, they don’t know the loan procedures or the way to get quick access to the money. All you need is find some business professional to apply the loan on your behalf.

They connect you not only with the banks, but also to the Local sponsor in UAE. Furthermore, business advisors take care of their customers in all aspects. For more information about personal loans in Dubai, contact KWS Middle East now.

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