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UAE Scraps Minimum Salary Requirement for Personal Loans
The UAE Central Bank has introduced a major update to its lending rules, removing the long-applied minimum salary requirement for personal loans. The change means residents will no longer need to meet a set income level previously around AED 5,000 to get personal finance.
With the amendment in effect, banks now have the flexibility to define their own income criteria based on internal assessments and risk policies. This shift is expected to expand access to formal credit, particularly for workers earning lower wages, newcomers to the job market, and residents who were previously unable to meet strict eligibility requirements.
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The updated personal loan lending rule is expected to make banking more accessible for a wider range of residents, including young adults, lower-income workers, and those in labour-intensive sectors.
With this change in loan eligibility criteria, individuals who previously struggled to open accounts can now do so more easily. These accounts will be connected to the Central Bank’s Wage Protection System (WPS), which will help lenders collect loan instalments directly when monthly salaries are deposited.
This move aligns with the UAE’s ongoing efforts to strengthen financial inclusion. It is expected to allow people across all income groups to benefit from secure, regulated financial services
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