Personal Loan Online: Get Instant Personal Loan

What is a Personal Loan?

A personal loan in UAE is a type of unsecured loan that can help you fulfil your financial obligations without any collateral. You can use it for various personal needs such as consolidating debt, funding a large purchase, or covering emergency expenses.

To find the best personal finance in the UAE, you need to understand the different types of interest or profit rates, eligibility and document requirements, and the best options available out there. We will take each one step-by-step in the sections below.

Personal Loan Interest Rate in UAE

Personal loan interest rates in the UAE vary as per the bank, your credit profile, income, and whether the salary is being transferred to the lending bank.

In the UAE, personal finance rates can be divided into two categories -

Flat Interest Rate

A flat rate is estimated on the principal amount throughout the repayment period, irrespective of how much of the loan has been cleared. This results in higher total interest paid compared to reducing the balance rates. Flat rates are often lower, but the actual cost can be higher when compared with reducing rates, especially if you don’t settle the loan early.

Illustration: If you borrow AED 100,000 at a 4% flat rate for 4 years, the total interest would be AED 16,000 (4% of AED 100,000 × 4 years), and your total repayment would be AED 116,000. In this case, the monthly instalments would be around AED 2,417.

Reducing Interest Rate

A reducing personal loan interest rate is applied to the outstanding balance, meaning the interest payable decreases as the principal is repaid. This results in lower overall interest payments compared to flat rates.

Illustration: If you borrow AED 100,000 at a 7% reducing rate over 4 years, the interest is calculated on the decreasing balance, not the full amount. The first month’s interest would be higher, but as the principal reduces, so does the monthly interest portion. 

Over the loan tenure, the total interest paid would be significantly less than a flat-rate loan with a similar percentage, particularly if you choose to repay it before completion.

Personal Finance Loan — Types 

Find below the primary uses of personal loans in UAE -

Best Personal Loan Plans in Dubai, UAE - 2025

Here is the list of the Best Personal Loan in UAE in 2025 with interest rates and other requirements. We have also given a detailed comparison between the various bank loans in UAE that offer the best-unsecured loan rates in UAE

Get the Best Personal Loan from the Top UAE's Banks

Eligibility Criteria to Apply for Personal Loan in UAE & Dubai

The general eligibility requirements for getting a personal loan in UAE are —

📝Note:  Additional eligibility criteria may include your credit Score and other factors.

Apply for an Instant Personal Loan Online in 5 Quick Steps

With Paisabazaar.ae, just a few simple steps and you can get your desired loan! To simplify the comparison process, here are some steps -

Step 1: Fill Out the Lead Form

Correctly fill out this form and submit it.

Step 2: Check Out the Quotes

After you submit the form, you will be taken to the quotes page.

Step 3: Compare Loans

Compare your options from various banks and go through their fine print

Step 4: Make a Choice

Select a finance option that suits your financial requirements

Step 5: Apply!

Hit the ‘Apply’ button and follow the on-screen prompts.

Document Required to Apply for Personal Loan in Dubai

Given is a list of the general documents required for personal loan application processing —

Note

📝All the documents must be valid

📝Keep the originals and copies of each document handy

📝Additional documents may be required

FAQs About Personal Loan in UAE