Where Can You Borrow Money in the UAE?

The UAE has a significant lending industry that provides a variety of financing choices, such as credit cards, personal loans, overdraft facilities, and fast loans to manage finances and make dreams come true. All the lending options have their advantages, requirements, characteristics, and terms of repayment. Understanding where to borrow money in the UAE and how to borrow money online will help you find affordable loan alternatives to fit your financial demands.

Borrow Money: Purpose

Banks and lending platforms can lend for various purposes, so that you can handle any emergencies, meet personal goals, and invest in opportunities. Some of the reasons you can borrow money from a bank are as follows:

Purpose	Description
Education	Borrowed funds may be used to fund higher education, professional courses, or even education abroad.
Home Purchase	You can borrow money and purchase a new house, plot, flat, or even construct one.
Business Investment	It may assist upcoming entrepreneurs and owners of a start-up to commence a new venture, purchase machinery, boost the working capital or even grow the business.
Emergency Expenses	Medical expenditures, accidents, and urgent repairs may necessitate the use of emergency money.
Debt Consolidation	Combine numerous obligations (credit cards, loans) into a single payment at a reduced interest rate for easier administration.
Vehicle Purchase	Used to purchase new or used vehicles, such as automobiles, bikes, or other business vehicles.
Lifestyle and Travel	Covers travel bills, luxury products, and devices for a pleasant lifestyle.
House Renovation	You can borrow money for repairs, room renovations, interior improvements, and other projects to improve the appearance and comfort of your home.
Wedding Expenses	You can also fund your wedding expenses.

What are the Ways to Borrow Money in the UAE?

If you are looking to borrow money and are not sure where to borrow money in the UAE, then you will be glad to know that there are various channels to borrow money. The methods can vary based on the needs, eligibility, and repayment capacity. Here are some of the ways to borrow money:

Credit Cards

Credit cards allow you to borrow money for daily expenses or for larger purchases. These cards also offer the flexibility of repayment later or even converting the amount to EMIs. 

Most banks in the UAE offer credit cards with good offers, including cashback, loyalty points, travel benefits and discounts.  You should also know that credit cards have a higher rate of interest if you do not make payments on time. They are suitable for short-term lending or emergency expenses.

Overdraft Facilities

An overdraft facility is a credit line linked to a current account that lets you withdraw funds whenever needed.  This facility comes with a limit and is ideal for short-term funds and to meet cash flow issues. 

The rate of interest on such credit is charged on the amount drawn from the account. This option is usually offered to company employees and business owners who regularly need funds.

Personal Loans

The most commonly borrowed funds in the UAE are personal loans. This loan is very popular, given that it is versatile. Education, house renovation, property purchase, debt consolidation, and even more emergencies can all be done using it.

Emirates NBD personal loans have a maximum of 48 months for expats and 48–60 months for UAE nationals (Ministry of Defence employees). Banks offer both salary transfer and non-salary transfer loans. The eligibility for both of them can depend on your income, employment status, bank policy, and credit history.

How Much Can I Borrow for Personal Loans in the UAE?

The amount you can borrow depends on factors like your credit history, loan type, and employment status. 

Here are some banks that allow you to borrow money online, offering you the highest loan amounts, along with features and benefits:

Bank	Minimum Salary	Features/ Benefits
Commercial Bank of Dubai Quick Loan	Have a minimum monthly wage of AED 8,000. Expats must be at least 21 years old and no older than 60, while Emirati citizens must be at least 65 years old. Only confirmed workers or those who have worked for a CBD-approved company for at least six months can apply.	Maximum borrowing amount: AED 150,000 There is no need to transmit your pay cheque. A digital application with only a few clicks. All you need is your Emirates ID. Loan Repayment Period: 48 months for expats and 60 months for UAE nationals. Quick loan acceptance in minutes. You may obtain a quick loan of up to AED 150,000. The bank offers loans to both present and new consumers. Applying for a loan does not require any paperwork.
Emirates NBD Salary Transfer Loans for Expats	Requires a minimum monthly compensation of AED 5,000.	Get a loan for up to AED 3 million. Fixed rates: 4.99% to 19.99% yearly. Reducing Rate: 5.48% to 20.99% per year. The first payment can be deferred for up to 60 days, with a 7-day return period. Free account with no balance. Get up to two non-consecutive deferments each loan cycle. Loans can be for up to 48 months. Increase your loan eligibility by adding another source of income. Includes credit life insurance, which pays off debt in an emergency.
Emirates NBD Salary Transfer Loans for Emiratis	Required a minimum monthly compensation of AED 5,000.	Get a loan for up to AED 4 million. Fixed Rates: 4.99% to 19.99% yearly. Reducing Rate: 5.48% to 20.99% per year. Initial payment can be deferred for up to 60 days for expats and up to 120 days for Ministry of Defence employees. Free account with no balance. Get up to two non-consecutive deferments each loan cycle. The loan length is 12 to 48 months (60 months for Ministry of Defence employees). Increase your loan eligibility by adding another source of income. It includes credit life insurance that pays the outstanding sum in case of a calamity.

Am I Qualified to Borrow Money via UAE Banks?

Your qualification for a loan can depend on the eligibility criteria of the bank and its lending policy. Some of the aspects that banks usually consider when lending a loan are as follows: 

• Age: You must be at least 21 years old.
• Nationality:  All UAE nationals, expatriates, and residents can apply for a loan. 
• Salary: You must have a minimum monthly salary of AED 5,000 to qualify for a personal loan. The salary amount can vary based on the loan type and the loan amount.
• Employment Status: Either self-employed or a salaried employee. Salaried employees must have 6 months of work experience or hold a CBD contract.
• credit Score: Having a high credit score can increase the chances of getting a loan. Most banks require a credit score of 650 or higher. A few may consider applicants below only under special conditions.

If you want to improve your score, read here:

Documents Required to Borrow Personal Loans

When understanding how to borrow money online, having the required documents is essential. The documents required for salaried and self-employed individuals differ. The list of documents is as follows:

For Salaried Individuals:

If you are a salaried individual, you must have the required documents. The documents may vary depending on the type of loan. They are as follows: 

For New Loans	For Loan Transfer	For Top-Up Loans
Emirates ID Residence Visa (only for expatriates) Passport Signed Undated Cheque Salary Certificate/ Salary Transfer Letter Latest 3-6 Months’ Bank Statements	Emirates ID Passport Residence Visa (only for expats) Latest 3-6 Months’ Bank Statements Signed Undated Cheque Liability letter from the Existing Bank Loan Salary Certificate/ Salary Transfer Letter	Emirates ID Residence Visa (only for expats) Passport Latest 3-6 Months’ Bank Statements Signed Undated Cheque

For Self-Employed Individuals

The documents for self-employed individuals can vary. Here are the documents for self-employed individuals based on the loan type: 

For New Loans	For Loan Transfer	For Loan Top Up
Emirates ID Residence Visa (only for expatriates) Passport Trade Licence Latest 3-6 Months’ Bank Statements Signed Undated Cheque	Emirates ID Residence Visa (only for expats) Passport Latest 3-6 Months’ Bank Statements Signed Undated Cheque Liability letter from the Existing Bank Loan Salary Certificate/ Salary Transfer Letter	Emirates ID Residence Visa (only for expats) Passport Latest 3-6 Months’ Bank Statements Signed Undated Cheque

Note:

• All the documents must be valid.
• Keep the originals and a copy of each document.
• Your bank may require additional document(s).

Conclusion

Getting a loan in the UAE is easy, which helps reduce the pressure of managing finances during financial emergencies. The loans offer competitive interest rates, a flexible repayment period, and a high loan amount.

But before getting a loan, you must assess your financial condition and assess your repayment criteria. Also, compare the monthly EMIs and the financial terms to get the best loan terms and affordable rates. Responsible borrowing and right financial planning can go a long way and save you from any defaults.