How to Find Personal Loan in the UAE with Zero Processing Fees

Banks and financial institutions in the UAE charge a processing fee. This usually covers the bank’s administrative and verification costs. However, some may offer personal loans without processing fees as a periodic offer. 

Zero-processing fee loans have lower costs and total repayment, which can reduce your out-of-pocket expenses. Let’s find out more about these loans.

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Eligibility Criteria for Zero Processing Fee Personal Loans UAE

In most cases, salary transfer loans are available in the UAE with zero processing fee. Such a personal loan in UAE, however, comes with certain eligibility criteria. In this section, we have covered the most relevant points below 

• You must be aged 21 years and above
• You must be a resident of the UAE, whether an Emirati or an expat
• You should be working for the government or companies present on the bank’s approved list
• Minimum Salary — AED 5,000 (may vary as per the bank)
• In case of a salary transfer loan, you need to transfer your salary to the bank

When you clear these requirements, you can easily find a personal loan with 0 processing fee in the UAE.

Which are the Top 0 Processing Fee Personal Loans in UAE?

Currently, two banks offer zero-processing-fee personal loans. Find out their unique features and benefits in the following section to choose what is best for you.

Emirates NBD Salary Transfer Loan for Emiratis

Emirates NBD offers salary transfer loans with an easy loan application process, high loan amounts, competitive interest rates, and more. Here’s what you can expect from this type of loan

• No insurance or processing fee
• High loan amount of up to AED 4 million
• Enjoy payment deferment for the first instalment of up to 120 days
• Get a 7-day cooling-off period
• Repayment period of up to 48 months (60 months for Ministry of Defence employees)

Mbank Personal Loan

Mbank has flexible zero processing fee loan options that cater to your financial requirements for all personal requirements. The salary transfer loan by Mbank offers unique features that you can check below - 

• Zero processing fee (for a limited time)
• Get a loan amount of AED 250,000 
• First payment deferment of up to 180 days
• Get a 5-day cooling-off period
• Maximum repayment tenure of up to 48 months

Important: You’ll find limited options for zero processing fee personal loans in UAE. Most banks impose a process charge of 1.05% of the loan amount. This fee, in most cases, has minimum and maximum limits of AED 525 and AED 2,625, respectively.

Exploring Zero Processing Fee Personal Loans UAE

The table below provides a side-by-side comparison of personal loan options in the UAE that presently offer zero processing charges.

Bank Name	Loan Amount	First Payment Deferment	Cooling-off Period	Loan Tenure
Emirates NBD	AED 4 Million	Up to 120 Days	7 days	Up to 48 months (60 months for employees of the Ministry of Defence)
Mbank	AED 250,000	Up to 180 Days	5 days	Up to 48 months

How to Choose the Best Zero Processing Fee Personal Loan in UAE?

Choosing the best personal loan without processing fee depends on your specific requirements. Here are some points to consider before choosing a loan

• Interest Rate: A higher interest rate = higher repayment. Thus, look for a loan that doesn’t have a high interest or profit rate. 
• Fees & Charges: Choose a loan that does not have high processing fees or other charges. If you plan to settle the loan early, go for a loan with a low early settlement fee. 
• Deferment Option: Check whether the bank has an instalment deferment option. This option can keep you financially safe during financial emergencies.
• Maximum Loan Amount: Choose a bank that offers you the maximum loan amount as per your requirements. It helps you minimise out-of-pocket expenses.

Over to you

It is extremely difficult to find personal loans with zero processing fee. Most of the banks charge at least a minimum of 1% of the finance amount as the processing fee. Only Citibank and Abu Dhabi Islamic Bank offer personal loans with zero processing fees. It would be better if the applicant paid more attention to the lower interest rate for personal loan in UAE rather than the processing fees. Interest rates are the ones that end up costing the customer more than the processing fee.