Personal Loan in UAE
A personal loan in the UAE is an unsecured loan that you can use for weddings, travel, education, medical treatment, debt consolidation, and other personal requirements.
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Dubai
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Sharjah
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Personal Loan in UAE - At a Glance
There are 3 main types of personal loans: salary transfer, non-salary transfer, and Shariah-compliant personal finance.
The loan amount is often up to 20x your salary. In most cases, you get a flexible repayment tenure of up to 48 months and competitive interest rates.
You can use an online calculator to find out your monthly instalment.
There’s no minimum monthly salary requirement for a personal loan. You would, however, need to meet other eligibility requirements, such as being 21 years old, a UAE resident, and having a good credit score.
Paisabazaar.ae lets you compare a range of personal loan options that fit your eligibility before you take the final call.
Find Best Personal Loan Offers
Plan NamePersonal Loan
Minimum Salary (AED)5000
Fixed Rate15.99% - 39.99%
Plan NamePersonal Loan for Expats
Minimum Salary (AED)7000
Fixed Rate5.44% to 13.99%
Plan NamePersonal Loan - Salary Transfer
Minimum Salary (AED)7500
Fixed Rate7%
Key Features and Benefits of a Personal Loan in UAE
Here are some of the top advantages of applying for a personal loan in UAE -
With personal loans in the UAE, salaried individuals and expatriates can enjoy fast access to funds. The major benefits include:
No Collateral Required: Since personal loans are unsecured loans, you don’t need to pledge assets as collateral.
Quick Funding for Emergencies: These loans help you access immediate cash for urgent expenses like medical emergencies or consolidating debts.
Flexible Repayment Tenure: Most personal finance options offer repayment tenure flexibility of up to 48 months.
Flexibility to Use: Personal loans are suitable for personal use, like wedding expenses, higher education, and other diverse needs.
High Financing Limits: Most banks offer a loan amount of up to 20 times the salary, depending on the bank and salary transfer.
Types of Personal Loans in UAE
Personal loans in UAE are designed for both expatriates and UAE nationals. Since no one shoe fits all, there are different types of loans to explore. The main types include:
Salary Transfer Personal Loan UAE
It is the most common type of personal loan. To get this loan, you need to transfer your monthly salary to the lending bank. Note that this loan usually has lower interest rates.
Non-Salary Transfer Personal Loan UAE
These loans are available for those of you who don’t wish to transfer their salary to the lending bank. However, keep in mind that this loan type often has a higher interest rate.
Shariah-Compliant Personal Finance
It is an Islamic financing option that complies with the Shariah law. This is an alternative to conventional interest-based loans.
Personal Loan Interest Rate in UAE
Personal loan interest rates in the UAE generally range from 2.63% p.a. to 22.22% p.a. (flat rate) or 4.99% p.a. to 14% p.a. (reducing rate). The actual rate, however, varies by bank and salary transfer. Understand that interest is the fee a bank charges you for lending you money, calculated as a percentage per annum.
In the UAE, there are 2 main types of personal loan interest rates:
- Reducing Rate: Here, the bank calculates the interest only on the remaining loan amount. As you repay the loan, the interest amount decreases. If you wish to repay the loan before the set period, this is an excellent option.
- Fixed (Flat) Rate: The interest is computed on the original loan amount throughout the loan tenure, making the monthly instalment constant.
Who Should Apply for Personal Loans in UAE?
Anyone can apply for a personal loan in UAE, given they have a stable income and a clear and manageable debt-to-income ratio. That being said, here’s who can apply for a personal loan in the UAE:
- Debt Consolidator: Anyone who is looking to combine multiple high-interest debts into one low-interest loan to streamline repayments
- Family-oriented Person: An individual looking for quick fund access for unexpected medical, education, or travel expenses
- High-value Planner: This consumer category includes those planning for major life events like weddings, home renovations, and more
UAE Personal Loan Eligibility Criteria
As per the Central Bank of the UAE, you can apply for a personal loan if you meet the following eligibility criteria:
| Criteria | Explanation |
|---|---|
| Age | You should be at least 21 years old to apply. The maximum age to apply is between 60 years and 65 years. |
| Employment Status | You must show proof of employment and should have been working for at least 6 months with a confirmed salary. |
| Credit Score | Banks require a good credit score to check if there are any active loans, while also checking your credit history. |
Note: The Central Bank of the UAE has removed the minimum monthly salary requirement of AED 5,000 for personal loans in the UAE. Banks, however, can have their own salary requirements.
Which Documents are Required for a Personal Loan in UAE?
The key documents required to apply for a personal loan in UAE include:
- Copy of a valid passport with a UAE residence visa
- Emirates ID
- Latest 3 to 6 months’ bank statements
- Salary transfer certificate (if applicable)
- Duly signed and completed application form
- Liability letter (if transferring loans from another bank)
How to Calculate Personal Loan Monthly Instalment in the UAE?
Note: There are higher chances of errors in manual calculation. On the other hand, an online calculator can quickly give you precise results without much effort.
You can calculate your personal loan monthly instalments with this formula:
EMI = P*R*(1+R)^N/[(1+R)^N-1]
Where,
P - Principal
R - Rate of interest
N - Repayment period
Steps to Calculate Personal Loan EMI Online
R - Rate of interest
N - Repayment period
Enter the loan amount you want to borrow
Select the repayment period in months or years
Add the applicable interest rate
Click on ‘Calculate’ to view your EMI, total interest, and payable amount
Personal Loan EMI Calculator
AED
10,00010,000,000
%
150
Reducing Rate (1% - 50%)
1240
(Minimum & Maximum Months)
Monthly InstalmentAED 0
Principal AmountAED 0
Interest AmountAED 0
Total AmountAED 0
What are the Fees Associated with a Personal Loan in UAE?
Personal loan charges often include processing fees, early settlement fees, and late payment charges. All of them, along with VAT, are regulated by the Central Bank of the UAE and vary by the bank. For a better understanding, these charges are explained in detail below.
Processing fees:
This fee covers the bank’s administrative costs. The charge is usually around 1% to 1.05% of the total loan amount.
Early settlement or foreclosure charges:
If you repay your personal loan early, banks often charge 1% of the remaining amount.
Late payment penalties:
This fee is charged if you delay paying a monthly instalment.
Partial settlement fees:
If you repay some part of the loan as a partial settlement, you are often charged about 1% of the loan settlement amount as a fee.
Liability/No Liability Letter:
Banks offer a liability or no liability letter to you at a minimum fees of AED 50.
Life Insurance Fee:
Some banks may charge a nominal insurance fee that covers the loan.
5 Expert Tips to Improve Personal Loan Approval Chances in the UAE
You can easily improve your personal loan chances in UAE, as long as you are consistent in managing your loans and credit line. Ensure you maintain a high credit score, keep your debt-to-income ratio below 50% and more - That being said, here are some practical ways to boost your approval chances.
Strengthen Your Credit Profile: Keep up with all the important payments, including bills, credit card balances, and existing monthly instalments. Punctual repayments improve your credit profile and credit score, which can lead to easy approvals and better loan terms.
Maintain Low Debt-to-Income Ratio: Make sure that your total monthly debt obligations are lower than 50% of your income.
Avoid Multiple Applications: Applying with multiple banks at the same time shows you as incapable of making repayments or credit hungry. It can also lower your score. Apply with one or maximum two lenders at once that fit your credit profile.
Double Check Your Loan Application: Often, one small mistake in the application can lead to rejection. Therefore, recheck your application before submitting it. Be careful when adding your address and contact information.
Ensure You Meet the Eligibility Criteria: Every bank has different eligibility criteria. Make sure you review it and analyse if you meet the criteria. Additionally, check the terms and conditions of the loans before applying to avoid rejection.
Important Things to Check When Taking a Personal Loan in UAE
One of the first steps to getting a personal loan in the UAE is knowing your eligibility and checking the interest rate, hidden fees, and more. That being said, here are some important things to check when you apply for a personal loan in UAE.
Understand the Interest Rate: Compare the interest rate carefully for flat and reducing rates. Flat rate keeps the interest amount constant throughout the loan tenure. Reducing rate, on the other hand, means the interest/profit decreases as you pay off the principal loan amount.
Use Online Comparison Platforms: Comparing multiple loans brings you the best deals. Paisabazaar.ae is one such space for online comparisons. Before applying, compare the best personal loans in UAE on this website in a matter of minutes. You can also filter the options as per your choice.
Select the Right Repayment Tenure: The loan term plays a crucial role in getting an affordable loan. Even though longer terms mean smaller monthly instalments, they also lead to higher total interest over time. Thus, find the right balance
Check for a Loan with Your Existing Bank: If you have a banking relationship, like salary transfer or savings account, check out if your bank offers favourable terms. Usually, in such situations, banks can give lower interest rates or quick approvals to existing customers.
2000 
Instant Personal Loan vs Regular Personal Loan: What’s the Difference? You might have heard a lot about instant personal loan in UAE. While it’s not that different from regular loans, some features still vary. So if you’re curious to know how it’s different from the standard loan option, look at the table below -
| Features | Instant Personal Loan | Regular Personal Loan |
|---|---|---|
| Loan Approval Time | Disbursed within a few minutes or hours | Usually takes 2–5 working days |
| Loan Amount | Generally offers a lower, pre-approved loan amount | Allows access to higher loan amounts |
| Documentation | Little to no documentation required | Requires basic but standard documentation |
| Eligibility Criteria | Simple eligibility with relaxed requirements | Must meet specific bank eligibility criteria |
| Interest Rate | Generally higher due to quick processing | Usually lower compared to instant loans |
Know About Gold Rate in UAE
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How to Apply for a Personal Loan Online in the UAE?
Step 1: Fill in the application form on Paisabazaar.ae’s personal loan page
Step 2: Once you submit it, you will be taken to the quotes page
Step 3: Compare your options for loan amount, interest rate, and other benefits
Step 4: Once you decide, choose the ‘Apply’ option.
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Much better than bank sitesCompared to individual bank websites, this one is much more user-friendly. I liked how I could browse and explore all the UAE personal loans and their rates and even approx instalments — everything out there on my screen!
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Good for my choiceI thought my salary won’t bring me any loans. But with Paisabazaar.ae I easily got a personal loan for 5000 salary. A few clicks is all it took.
No pressure, just optionsWhat I absolutely liked about the platform was how I could compare personal loans without being pushed to make an immediate decision. It does feel good knowing that I am the control of the decision, of course with big help from the team.
Support that actually helpsAs a newbie in finance, I had many doubts. The support team was truly helpful and responded in detail with patience. It was a big difference for me as for the first time I could apply for personal loans with zero doubts.
Saved me a lot of timeWith Paisabazaar.ae, I found everything in one place without getting confused between so many sites.
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