CONNECTOR.AE 46 CONNECTOR.AE 47 Lifestyle Lifestyle Your Guide To Applying For A Personal Loan In UAE Loans are often necessary for various reasons like purchasing a car, paying school fees, consolidate debts or managing unforeseen costs. To pay off such expenses, one takes a personal loan. A personal loan is an amount of money you borrow for different purposes and is available from banks. Over time, you repay the borrowed money with interest, which varies from bank to bank. With that said, if you are planning to take a personal loan, and want to understand the process, and documents needed, Connector is here with its guide to help you understand this better. What Are The Conditions To Apply For A Personal Loan In UAE When applying for loans, including personal loans, there are specific criteria you must meet to qualify. In the UAE also, you need to fulfil certain conditions to apply for a personal loan. Let’s explore these criteria, keeping in mind that they may vary slightly from one bank to another. • You need to be a UAE national or resident, requiring a valid passport with a UAE residence visa and Emirates ID. • Age eligibility is between 21 to 65 years. • Holding a current account with an authorised UAE bank is mandatory. • Your minimum monthly salary should range from Dhs 3,000 to Dhs 10,000. • You must be a confirmed employee or have worked at your current company for more than six months. • As per the Central Bank of the UAE, individuals are eligible to seek a personal loan backed by their salary, end-of-service benefits, or any consistent income from a clearly defined origin. • Banks ask for a credit score to review any current loans and check the applicant’s borrowing history. A higher credit score indicates the borrower’s ability to repay the loan. While these are the basic conditions, some banks may also prioritise offering loans to individuals employed by companies affiliated with them. If your employer isn’t on a bank’s approved list, obtaining a loan in the UAE might be more difficult. If you’re unsure whether your company is listed, you can enquire with your HR department or contact the bank directly for confirmation. Rules That Both Loan Seekers and Banks Should Keep In Mind • Personal loans in the UAE are limited to 20 times the borrower’s salary. • Borrowers usually have 48 months to repay the loan, with monthly deductions capped at half their salary. • Some banks may offer loans up to Dh5 million, subject to their policies and customer eligibility. • If a loan or a banking facility’s repayment period extends to the retirement age of the person, banks and finance companies must adjust the repayment schedule so
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