Emirates Islamic Bank Personal Loan Eligibility in UAE
Minimum Salary 5000 AED
EMI Tenure up to 48 Months
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Established in 2004, Emirates Islamic Bank is reputed for its impeccable Shariah-compliant banking services in the UAE. It uses Shariah-compliant tools like Murabaha, Takaful, and Ijarah to provide customer-centric solutions. This Islamic bank is known to offer a range of banking products including finance, bank accounts, priority banking, credit cards, business banking options, and more.
This article primarily focuses on Emirates Islamic Bank Personal Finance and its eligibility. Read the article below to know more about the Emirates Islamic Bank personal finance eligibility criteria.
Emirates Islamic Bank Personal Loan Eligibility
Here are the eligibility criteria for Emirates Islamic Bank personal finance -
- Nationality - Both UAE nationals and expatriates can apply for this personal loan in the UAE. Keep in mind that the loan gets approved only on the basis of the documents submitted (as per nationality).
- Minimum Monthly Income - If you are a UAE national or an expat residing and employed in the UAE, you need to have an income of at least AED 10,000 per month to apply for this personal finance in UAE.
- Age Limit - The minimum age limit to meet the Emirates Islamic Bank personal finance eligibility is 21 years, with the maximum age limit varying. If you are a UAE national, the maximum age is 65 years at the time of loan maturity. However, if you are an expat, the maximum age limit is 60 years upon maturity of the loan.
- Employment - To meet the eligibility requirements, you should have a stable income source. For this, at least one month’s salary or the first month’s salary should be credited to your Emirates Islamic account.
Documents Required for Emirates Islamic Bank Personal Loan Eligibility
Listed below are the documents required to apply for an Emirates Islamic Bank personal finance in the UAE -
- A filled-in application form
- A copy of your Emirates ID
- A copy of a valid UAE residence visa (for expats - the original will be required at the time of verification)
- Bank statements for the last 3 months
- Salary certificate or salary transfer letter (for salaried personnel)
- Liability letter (applicable in buyout cases only)
- Form for opening account for share trading
- Trade licence (for self-employed individuals)
Factors Affecting Your Emirates Islamic Bank Personal Loan Eligibility
While it is easy to secure a personal loan in the UAE, the process can become rather tedious in case you do not meet the personal loan eligibility. The following are some factors affecting your Emirates Islamic Bank personal finance eligibility -
- Income - Income is among the most crucial factors that impact your personal loan eligibility in UAE. Banks prefer to provide finance/loans to individuals who have a higher income as it signifies a greater capacity to repay finance/loans. Emirates Islamic Bank checks your monthly income before approving the application. Note that a higher income can result in lower interest/profit rates on personal loans/finance in the UAE.
- Age - This is another important factor that determines your personal loan eligibility. Usually, banks like Emirates Islamic Bank prefer to offer finance to people between the age of 21 and 60 years. This is because if you are a minor, you would not have a stable income source or employment; if you are applying for a personal loan after your retirement age, you would not be able to repay the loan without a stable income source.
- Credit History and credit Score - Among the other major factors that can impact your Emirates Islamic Bank personal loan eligibility are credit score and credit history. Since a personal loan is an unsecured loan, the bank checks your credit score and credit history to determine your creditworthiness. The lower your credit score, the lower the chances of getting a loan approved - even if the loan is approved, the interest rate applicable to the loan will be higher in such a case.
- Current Debts - If you have any existing loans and credit card debts that add up to a sizable portion of your income, it can hinder your personal loan eligibility. Emirates Islamic Bank will inquire about your current liabilities to estimate your creditworthiness. If you have multiple loans, it would evaluate your income to see if you can repay this additional finance.
- Employer’s Reputation - Banks like Emirates Islamic Bank often approve personal finance in the UAE if you work in an organisation mentioned in the bank’s Approved Employer’s List. The bank finds employees of such organisations credit-worthy and reliable. Moreover, most of these organisations have their salary accounts in Emirates Islamic Bank, which makes it easy for the bank to automatically debit the monthly instalment.
How to Improve Your Chances of Getting an Emirates Islamic Bank Personal Loan in the UAE?
Here are some tips to improve your chances of getting an Emirates Islamic Bank Personal Finance in the UAE -
- Reduce Your Debt-to-Income Ratio - According to the Central Bank of the UAE’s guidelines, your debt-to-income ratio should not exceed 50% of your monthly income. Simply put, the amount of money that you direct towards debt repayment should be less than 50% of your monthly salary.
- Do not Apply for Multiple Loans at Once - Applying for multiple loans and credit cards can lead to multiple hard inquiries, which stay on your credit report for 2 years. Several hard inquiries can hurt your credit score, which lowers your chances of getting a personal loan in the UAE approved. Thus, avoid applying for too many loans at once. Take a gap of at least 6 months between your loan applications.
- Include a Co-Applicant - If you have a low credit score but need a personal loan in the UAE, you can include a dependable co-applicant (a family member or a close friend). Adding a co-applicant will increase the chances of getting a personal loan approved in the UAE. It is because if you are unable to repay the loan, the bank will ask the co-applicant to settle the loan for you. However, the co-applicant should not have a low credit score and should have adequate income to repay the loan.
- Clear off Your Current Liabilities - To improve your Emirates Islamic Bank personal finance eligibility, you should repay your existing loans and credit card debts.
- Apply for an Amount that You Can Repay - Rather than applying for the maximum amount limit, stick to an affordable loan amount that you can repay within the set tenure. Take all your income sources and existing financial debts to decide an affordable loan amount for you.
- Maintain a good credit score - Your credit score determines your creditworthiness. To maintain a good credit score, you should maintain a low credit utilisation ratio and repay your EMIs, utility bills, and credit card bills on time.
- Declare All the Sources of Income - Income is an important factor that plays a key role in determining whether your personal loan will be approved. Thus, when filling in your loan application form, mention all the income sources you have. They could be your salary, rent, interest, dividend, and more. This not only improves your Emirates Islamic Personal Finance eligibility but also makes you eligible for a higher finance amount.
FAQ's
Ans: It is a form of Shariah-adhering sale contract where a seller (bank) sells the certificate to the customer at a rate equal to the finance amount and applies Murabaha profit to it.
Ans: In case you are a UAE national, the maximum age limit for personal finance in the UAE is 65 years at the time of loan maturity. However, if you are an expat, the maximum age limit is 60 years upon maturity of the loan. These limits can be taken into consideration when applying for the loan and selecting the loan tenure.
Ans: The minimum income required for an Emirates Islamic Bank Personal Loan is AED 10,000 per month.
Ans: As a salaried individual, you would need to provide documents like your salary transfer letter, last 3-months bank statement, or salary certificate, in addition to the general documents mentioned by the bank.
Ans: The following factors impact your personal loan eligibility -
- Age Limit
- Income
- Existing Liabilities
- Employer’s Reputation
- Credit History
- Credit Score
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