With the increase in the living costs in UAE, some of the ex-pats residing there are not able to save funds for the rainy days. This can end up leading to financial problems in case of emergencies. During such unstable times, the ex-pats have no choice but to consider turning to the banks and financial institutions for a financial cushion.
However, just because one requires some sort of financial help does not mean that the banks will provide him or her with it. In order to get a personal loan in UAE, you need to be eligible for one and also present the documents that are required by the bank or financial institution.
Here are the documents required by an ex-pat along with the eligibility criteria that one needs to meet in order to apply for a personal loan in Dubai or other emirates.
Documents Required for a Personal Loan in UAE
The basic documents required in order to obtain a personal loan in Dubai for the expats are as follows:
For the identification of the ex-pat applicants:
- Original Emirates Identity Card along with a valid copy of the same.
- Proof of the applicant’s resident visa.
- Address proof of the applicant.
- A security cheque that is undated.
For the ex-pat applicants that are salaried individuals:
- Salary certificate and/or the salary transfer letter from the employer.
- Bank account statement of the past 3 to 6 months.
For the ex-pat applicants those are self-employed:
- Memorandum of Association.
- Power of attorney.
- Trade license of their company.
- Bank account statements of the previous 6 months.
However, the document requirements may vary from one personal loan provider to another and from one applicant to another as well.
Eligibility Criteria for Personal Loan in UAE
The basic requirements in order to be eligible in obtaining a personal loan in Dubai for the ex-pats are mentioned as follows:
- Age Limit: The ex-pat applicants must be at least of the age of 21 years in order to apply for a personal loan in UAE. In the meantime, the maximum age for an ex-pat to apply for such a loan is 60 years.
- Employment Status: The personal loan applicant must be either a salaried employee or a self-employed ex-pat.
- Minimum Salary or Income: Each bank has a different bar set for the minimum salary requirement for a personal loan in UAE, generally it begins at AED 3,000 – AED 5,000.
- Salary Transfer: Many of the banks require a salary transfer from the applicant’s end to approve the personal loan application. However, with time there are providers that are relaxing this criterion for the applicants.
- Listing of Company: The ex-pat must be employed with a company that is listed on the bank’s approval list. There are a few banks that also provide a personal loan in Dubai without the company being listed with certain conditions.
- Documents Required: The ex-pats should provide the bank or institution every document that is required by them. If he or she fails to submit even one document it can end up in the personal loan application being rejected.
Personal Loan Interest Rate in UAE
The personal loan interest rate in UAE is charged in two variants – flat interest rate or reducing interest rate. The reducing interest rate starts at a particular percentage and keeps declining with every repayment. Whereas the flat interest rate is fixed at the beginning by the provider and remains constant over the tenure of the bank – this interest rate cannot be lowered every year.
Tips for Getting Your Application for Personal Loan in UAE Approved
The ex-pats applicants do not quite understand this but the banks and financial institutions if they find it necessary. Hence, below we will discuss some tips that will help the applicants in getting approval for their personal loan in UAE.
- Eligibility Criteria: The key factor in getting approved for a personal loan in Dubai for the ex-pat applicants is to meet the set criteria for eligibility. If you are unable to meet these requirements set by the banks and financial institutions, your request for a personal loan will be denied regardless of what your earnings are.
- Credit Score: Make sure you are holding a good credit score. This is a measure for letting the banks know the degree of risk involved if they provide you with a loan.
- Repayment Capability: You should make it a point to only apply for a loan amount that you are certain that you can payback. Factor in for your expenditures and income earned. If the loan provider has any doubts about your ability to make repayments of the loan, they will reject your application.
- Multiple Applications: If you have the idea that you can get approved for a personal loan in UAE by sending out numerous applications to the lenders at once then you are mistaken. Sending out multiple personal loan applications will only harm your chances of being approved for one.
To Further Conclude
A personal loan does not require any collateral or guarantors against obtaining it which makes it an attractive option for the ex-pats in case of any financial emergencies. However, this same reason is why the personal loan interest rate in UAE is higher as compared to other loan types. Applying for such loans has become easier for the ex-pats in UAE. However, it is a different matter when it comes to the approval of these loans.
Applying for a personal loan in UAE does not mean you have a confirmed approval. Expats have to meet the eligibility set in order to be approved for the funds.