Al Masraf Personal Loan Loan in UAE - Check Interest Rate, Eligibility, Benefits

One such product that significantly enhances its financial portfolio is the personal loan. Specifically designed for individual customers, the Al Masraf personal loan can be repaid using various streams of regular income such as salary, End of Service Benefits (EOSB), or any other well-defined source. This flexibility helps individuals take control of their finances and make life-enhancing decisions without the worry of immediate affordability.

This article will serve as your comprehensive guide to Al Masraf personal loan. We will be elaborating on this personal loan’s distinct features and benefits, outlining the eligibility criteria and the documentation required, and providing a thorough understanding of the terms and conditions.

Features and Benefits of Al Masraf Personal Loan

Curated below is the list of top features and benefits of Al Masraf Bank personal loan -

High Loan Amount: Al Masraf Personal Loan is designed with the customer's financial convenience and flexibility in mind. You can obtain a loan amount up to 20 times your income. This is, of course, subject to the bank's policy and after a thorough analysis of your income, expenses, and liabilities.
Repayment Period: You are given an ample timeline of up to 48 months to repay your Al Masraf personal loan, which makes the repayment process manageable and less burdensome.
Life Insurance: You must select a life insurance plan from one of the three insurance providers approved by the bank. The insurance plan covers the loan balance in the event of death, terminal illness, or permanent total disability, and provides risk mitigation. The insurance premium is calculated based on the outstanding loan amount and may vary over the loan tenure based on the insurance provider's rate. It is paid monthly alongside the loan EMI, with coverage required before loan disbursement.
Salary Transfer: You can transfer your monthly salary to Al Masraf and provide the necessary documentation to confirm the same. In case of a change in employment or retirement, the new salary or pension must continue to be transferred to Al Masraf until the loan is entirely settled.
Non Salary Transfer to Al Masraf: However, if you apply for Al Masraf personal loan without salary transfer, the terms and conditions may vary. A minimum salary of AED 15,000 would be required, while the limit of AED 200,000 for the maximum loan amount would apply in these cases. You must also assign Direct Debit Authority (DDA) to Al Masraf, enabling the loan instalment to be debited from your bank account. Even in cases of employer change or retirement, the new salary or pension must be transferred to Al Masraf until the loan is fully settled.

Top-Up Loan Facility: The top-up feature is also provided under specific conditions. It allows you to increase your loan amount after at least 12 instalments have been paid. However, it must be noted that a top-up fee will apply as per the bank’s guidelines.
Timely Instalment Payments: The bank stipulates that monthly instalments must be paid on their due date - failing to do so can result in account arrears and a potential negative impact on your credit rating, which may limit future access to finance. Furthermore, non-payment of three consecutive instalments will lead to the termination of the agreement. The remaining instalments will then be due within 15 days of receiving written notice from the bank. The bank will also take necessary legal steps to protect its interests in such situations.
Partial Loan Settlement: Al Masraf personal loan also offers a partial settlement facility during the loan term, subject to the payment of applicable fees. This provision gives you the flexibility to either maintain your instalment amount and reduce the tenure or decrease your monthly instalment while maintaining the same tenure.
Deferment or Postponement of EMI: Another unique feature of Al Masraf personal loan is the option for deferment or postponement of EMI for up to two months per calendar year. After you submit a request at a branch and pay the applicable fee, the bank will evaluate your request in line with its eligibility criteria and policy. If approved, the loan maturity period will be extended by the number of deferred instalments.
Closure of Personal Loan: To close your Al Masraf personal loan, you are required to sign and submit the early settlement form at any Al Masraf Branch. The bank will then charge an early settlement fee based on the loan's outstanding amount.
Early Settlement Amount: The early settlement amount is calculated considering various factors such as the outstanding principal amount, the accrued and unpaid variable amount, any costs related to insurance and taxes incurred by the bank during the tenor, and an early settlement fee.
Cooling-Off Period: In terms of due diligence, Al Masraf provides a cooling-off period as part of its commitment to maintaining a fair banking relationship. This period allows you to thoroughly read and understand the terms and conditions, the loan agreement, and the applicable schedule of fees. You can choose to waive this period by signing the cooling-off waiver form while signing the loan agreement. If you choose not to waive it, the bank will hold off on loan issuance or disbursement for five working days - you can revoke the facility and request loan cancellation in this period.
Personal Loan Calculator: You can use the Al Masraf personal loan calculator available on the official website of the bank and know about the estimated monthly payments.

Eligibility Criteria For of Al Masraf Personal Loan

Before applying for the Al Masraf personal loan, you should qualify for the eligibility criteria as discussed below:

Criteria	Details
Nationality	Eligible applicants include both UAE nationals and residents.
Age Requirements	The applicant must be a minimum of 21 years old at the time of loan application.
Minimum Income	The minimum monthly salary requirement varies based on the applicant's nationality. For UAE Nationals, a minimum salary of AED 7,000 is required. On the other hand, for expatriates working in companies approved by the bank, a monthly salary of at least AED 10,000 would be required.
Employment Status	The applicant must have been with their current employer for a minimum of six months and must be a confirmed employee. Self-employed individuals do not qualify for the loan.
Maximum Loan Amount	Al Masraf offers personal loans of up to 20x the applicant's monthly salary.
Loan Tenure	The repayment period for the loan can be up to 48 months.

Documents Required For of Al Masraf Personal Loan

Keep the following documents ready while applying for an Al Masraf personal loan –

Salary certificate
Emirates ID
Passport
Completed personal loan application form

Note: The bank may ask for additional documents as per your profile.

How Does Al Masraf Personal Loan Work?

The functioning of Al Masraf personal loans is pretty easy to grasp. After approval, the borrower is obligated to pay regular monthly instalments, which include a fixed profit rate (interest) and the principal loan amount.

To help illustrate this, let's consider an example:

Description	Value
Loan Amount (Principal)	AED 50,000
Loan Tenure	4 years (48 months)
Interest Rate	2.48% per annum
Basis for Calculating Interest	360 days

With this information, the calculation for daily interest can be achieved using the following formula:

Interest Formula for each day= Principal * Rate * No of days / Days Basis

In the case of the given example, the daily interest would be:

AED 50,000* 2.48% * 1 day / 360 days = AED 3.44 per day

This results in total monthly interest for the first month of:

AED 3.44 * 30 days = AED 103.33

Following this, the Equated Monthly Instalment (EMI) for the first month would be calculated as:

Month	Principal	Monthly Interest	EMI
1	AED 50,000	AED 103.33	AED 1,144.93

Note that the above figures are just estimates. The actual EMI may vary slightly due to rounding off.

Also, it's important to understand that any overdue amount from any loan will be shifted to the overdue bucket. Subsequently, it will be recalculated based on the bank's Delayed Payment Penalty (DPP) overdue logic. This is an important point as any delay in repayment could lead to additional charges.

Important: The figures mentioned above are simply illustrations - real figures may vary based on your personal circumstances and the bank's policies. Always consult with the bank for accurate and personalised loan information.

Al Masraf Personal Loan Calculator

Al Masraf provides a user-friendly tool - the Personal Loan Calculator - to assist potential borrowers in computing their prospective monthly loan instalments.

Here's a brief guide on how to use the Al Masraf Personal Loan Calculator:

Website Visit: Start by visiting the official website of Al Masraf.
Locate the Calculator: Proceed to the personal loan section and find the Personal Loan Calculator on the page.
Enter Loan Details: You'll be required to input relevant details such as the loan amount you wish to borrow, your monthly income, the interest rate you expect to be charged, and the intended loan duration.
Calculate Instalments: After entering all necessary details, the Al Masraf Personal Loan Calculator will compute and display the monthly instalments.

Advantages of the Al Masraf Personal Loan Calculator

Some of the prominent advantages of using the Al Masraf personal loan calculator are given below -

The calculator helps you plan your finances better by providing an estimate of the monthly instalments that you would need to pay.
By comparing the estimated monthly instalments with your monthly income, you can determine whether you can comfortably afford the loan.
The calculator helps you understand the impact of interest rates on your loan repayment amount.
It assists you in assessing the impact of various loan tenures on your monthly instalment.
The Al Masraf Personal Loan Calculator is quite easy to use. In just a few clicks, you can get quick results immediately.

Terms and Conditions of Al Masraf Personal Loan

Given below are some general terms and conditions that may be associated with an Al Masraf personal loan.

Borrowers must meet the Al Masraf eligibility criteria, which include a minimum age, minimum salary requirement, and a minimum length of service with their current employer.
The maximum loan amount that a borrower can apply for is generally up to 20 times their monthly salary.
The bank will apply a fixed interest rate to the loan, which will be included in the monthly instalments. The exact rate may vary depending on the borrower's profile and the bank's policy.
If the payment is not made by the due date, the bank may levy additional charges. The overdue amount may be subject to the Delayed Payment Penalty (DPP) as per the bank's policy.
If a borrower wishes to repay the loan before the end of the loan tenure, an early repayment fee may be charged by the bank.
The final approval of the loan is at the bank's discretion and would depend on the applicant's credit history, employer status, and the bank's internal credit policies.

Note: As the terms and conditions are subject to change at the bank’s discretion, always refer to the actual terms and conditions provided by the bank for the most accurate and up-to-date information.

Fees and Charges Associated with Al Masraf Personal Loan

Tabled below are the applicable fees and charges* associated with Al Masraf personal loans –

Aspects	Applicable Fees
Processing fees	1% of the loan amount Minimum – AED 500 Maximum – AED 2,500
Credit life insurance (only applicable for personal loans)	0.0131% per month of the outstanding loan amount
Takaful Insurance (only applicable for Al Masraf personal finance)	0.025% per month of the outstanding finance amount
Top-up loan (only before 6 EMIs)	1% of the loan top-up amount Minimum- AED 500 Maximum – AED 2,500
Delayed payment penal interest charges	2% of the delayed amount Minimum – AED 50 Maximum – AED 200
Early settlement from same bank loans	1% of the outstanding loan balance Maximum – AED 10,000
Early settlement from other bank loans	1% of the outstanding loan balance Maximum – AED 10,000
Deferment of instalment	AED 100 per deferment
Final settlement from other sources or end-of-service benefits	1% of the outstanding loan balance Maximum – AED 10,000
Revolving overdraft fee	AED 200
Loan cancellation fee	AED 100
Loan rescheduling fee	AED 250
Partial payment from all sources including EOSB	1% of the outstanding loan balance Maximum – AED 10,000

*Updated till June 2023

How to Apply for Al Masraf Personal Loan?

Applying for Al Masraf personal loans is a hassle-free process, which can be done conveniently through the Policybazaar UAE official online platform. Here's how -

On policybazaar.ae, start by navigating to the personal loan section.
Here, you'll find a form to fill out with necessary details such as your name, age, and monthly salary, among other things.
After you submit this form, you'll be taken to a page with personal loan quotes from the top loan providers in the UAE.
Use the filter option to specifically view Al Masraf personal loan options.
If you decide that Al Masraf personal loan is the right choice for you, click on the 'apply' button to submit your application.
Following this, a representative will get in touch with you to provide further details and guide you through the next steps of the process.
If at any point you're uncertain or need help, you can reach out to Policybazaar.ae’s expert finance team or customer service team for assistance.

Advantages of Applying for an Al Masraf Personal Loan via Policybazaar UAE

With policybazaar.ae, you can enjoy the following benefits while applying for an Al Masraf personal loan-

Variety of Choices: Policybazaar.ae provides a wide array of personal loan options from various providers, which allows you to compare and choose the best option as per your specific requirements.
Efficient Comparison: You can quickly compare interest rates, loan amounts, and terms across multiple loan providers including Al Masraf.
Convenience: The entire application process can be completed online, making it convenient and time-saving.
Easy Access to Information: Detailed information about the loan terms, conditions, and repayment structure is readily available on our platform, which can assist you in making an informed decision.
Expert Assistance: Policybazaar.ae has a team of finance experts and customer service representatives ready to help you navigate the application process and answer any questions that you may have.
Transparent Process: With Policybazaar UAE, the application process is transparent without any hidden charges or terms.
Swift Process: The online application process is quick and can be done in just a few clicks.
Secure Platform: Policybazaar.ae is a reliable and secure platform and implements the latest security measures to ensure that your personal information is safely handled.

Refer to the next section of the article to know more about the Al Masraf personal loans through some frequently asked questions.

FAQ's

Ans: The maximum loan amount that you can obtain through an Al Masraf Personal Loan is up to 20 times your income. However, this is subject to the bank's policy, your income, expenses, liabilities, and other factors.

Ans: Al Masraf provides a repayment period of up to 48 months for personal loans, which makes the repayment process manageable and less burdensome.

Ans: Yes, when you apply for an Al Masraf Personal Loan, you would be required to select a life insurance plan from one of the three insurance providers approved by the bank. This insurance part covers the loan balance in the event of death, terminal illness, or permanent total disability.

Ans: Yes, you can apply for an Al Masraf Personal Loan without transferring your salary. However, in such cases, terms and conditions may vary. Limits such as AED 15,000 for minimum salary and AED 200,000 for maximum loan amount would apply. You would also need to assign Direct Debit Authority (DDA) to Al Masraf, which allows the loan instalment to be debited from your bank account.

Ans: Yes, Al Masraf provides a top-up feature, which allows you to increase your loan amount after a minimum of 12 instalments have been paid. However, a top-up fee will be applicable as per the bank’s policies.

Ans: To close your Al Masraf personal loan, you need to sign and submit the early settlement form at any Al Masraf Branch. The bank will then charge an early settlement fee based on the loan's outstanding amount.