FAB Personal Loan Interest Rates

First Abu Dhabi Bank (FAB) is among the largest and most prominent financial institutions in the UAE, delivering a wide array of customised solutions, products, and services to create a personalised banking experience. Among the bank’s several offerings is the personal loan.

FAB personal loans are a popular choice for UAE residents. With FAB personal loans, the bank aims to address the diverse banking needs of customers globally. Offering different types of personal loans, the proceeds of the loan can be used to fund an unexpected emergency, a new home, a new car, and so much more.

In this article, we will cover FAB personal loan interest rates in-depth and the different loan types available, which will help you make an informed decision when considering FAB for your borrowing needs.

Features of FAB Personal Loans

Given below are the standard features of FAB personal loans in the UAE -

• Catering to the diverse needs of customers, different types of FAB personal loans are available. Some of the popular FAB personal loans are – Non-Salary Transfer Personal Loans for UAE Nationals, Non-Salary Transfer Personal Loans for Expatriates, Personal Loan for UAE Nationals, New to Country/ New to Employment Loans, and more.
• FAB offers competitive interest rates for FAB personal loans, making them a cost-effective borrowing option for customers.
• FAB personal loans come with a flexible repayment period of up to 48 months. 
• The documents required to apply for FAB personal loans are minimal, making the entire loan application process smooth and convenient.
• Once the loan application is approved, FAB ensures quick disbursal of the loan amount to provide you with timely access to the funds you require.
• You can use the FAB personal loan calculator to estimate the interest rates and select the best possible deal. All you need to do is to enter the loan amount, loan tenure, and annual interest rate.
• FAB personal loans are available for different categories of applicants - from UAE nationals and expatriates to non-salary and salary-transferred individuals. You can choose one depending on your requirements.
• FAB offers dedicated customer support services to address any queries or concerns related to personal loans, ensuring a seamless customer experience.
• FAB allows customers to borrow substantial loan amounts depending on their eligibility and financial requirements.

FAB Personal Loan Interest Rates

Tabled below is the list of FAB personal loan interest rates –

Type of FAB Personal Loan	FAB Personal Loan Interest Rate
Non-Salary Transfer Personal Loan for UAE Nationals	Starting from 10.49% fixed per year
Non-Salary Transfer Personal Loan for Expatriates	Starting from 15.49% fixed per year
Personal Loan for UAE Nationals	Starting for a 5.95% variable interest rate, provided conditions are met
Personal Loan for Expatriates	Starting from a 6.95% variable interest rate subject to the fulfilment of specific conditions
New to Country/ Employment Loans	Starting from 12.75% per year (fixed interest rate)
Etihad Guest Personal Loan	Starting from a 7.95% variable interest rate
Landlord loans	Starting from base rate + 2% variable rate per year, if the property is mortgage free Starting from base rate + 3% if the property is under a mortgage of another bank

Factors Affecting FAB Personal Loan Interest Rates

The factors affecting FAB personal loan interest rates are given below –

1. Income

Your income plays a crucial role in determining the interest rate that you receive on your FAB personal loan. Banks typically assess your income to gauge your capacity to repay the loan. 

If you have a high income and a stable job, the bank may perceive you as a low-risk borrower and offer a lower interest rate. On the other hand, if your income is low or you have an unstable employment history, the bank may regard you as a high-risk borrower and charge a higher interest rate to account for that risk.

2. Credit Score

Your credit score is another factor influencing the FAB personal loan interest rates. This score is a numerical representation of your creditworthiness based on your credit history, including your track record in managing past debts and loans.

A high credit score, such as 710 or above, may lead the bank to consider you a low-risk borrower and offer you a lower interest rate on your personal loan. In contrast, a low credit score may cause the bank to view you as a high-risk borrower.

3. Debt-to-Income Ratio

The debt-to-income (DTI) ratio is a metric that compares your total debt to your income. A high DTI ratio may indicate to lenders that you could struggle to make your loan payments, as your existing debt is substantial relative to your income. This perception might cause lenders to view you as a higher-risk borrower, potentially leading to higher FAB personal loan interest rates.

According to the UAE Central Bank, your debt-to-income ratio should not surpass 50%. However, it is advisable to keep it below 30% to present yourself as a responsible borrower.

4. Loan Amount

Your selected loan amount can also impact FAB personal loan interest rates. Generally, larger loan amounts lead to higher interest rates than smaller ones. This is because bigger loan amounts pose a greater risk to lenders as more money is involved. To counterbalance this heightened risk, lenders may charge higher interest rates. Conversely, smaller loan amounts are typically perceived as less risky, which may result in lower interest rates being offered.

5. Status of Employer

While employer status does not typically affect personal loan interest rates directly, it can certainly influence them if it impacts the borrower's creditworthiness. Working for a well-established and stable employer with a history of adequately compensating its employees might be seen as a positive factor that could enhance your creditworthiness.

6. Your Age

Younger individuals are considered to be riskier than older individuals. Consequently, financial institutions offer lower FAB personal loan interest rates to the former.

7. Relationship with Lender

Maintaining a strong relationship with your lender could potentially influence the interest rate at which you get a personal loan. 

If you already have a relationship with a financial institution, such as a bank or credit union, they may be more inclined to offer you a lower interest rate due to your loyalty and history of responsible financial behaviour.

For instance, if you have been a long-time customer with a bank and consistently made timely payments on loans and credit cards, the bank may reward your loyalty and good credit history by offering a lower interest rate on a personal loan. Furthermore, you may be eligible for relationship discounts or rewards programs, which grant additional benefits and reduced interest rates to customers with multiple accounts or loans through the same institution.

Fees and Charges Associated with FAB Personal Loans

Given below are the applicable charges on FAB personal loan interest rates –

Aspects	Fees and Charges
Processing fee	1.05% of the loan amount Minimum – AED 525 Maximum – AED 2,625
Processing fee for top-up loans	1.05% of the top-up amount Minimum – AED 525 Maximum – AED 2,625
Life insurance fee to be paid to the insurance provider	If charged upfront: 1 – 1.5% of the approved loan amount If charged on a monthly basis: 0.0169% - 0.0171% per month on the outstanding balance amount or as given in the personal loan contract
Instalment late payment fee	2.1% of the delayed loan amount Minimum – AED 52.5 Maximum – AED 210
Instalment deferment fee	AED 105 per deferment
Loan cancellation fee	AED 105
Loan rescheduling fee	AED 262.5
Relationship fee	Free
Early settlement from the same bank loans	1.05% of the remaining balance Maximum – AED 10,500
Early settlement from other bank loans	1.05% of the remaining balance Maximum – AED 10,500
Early settlement from the other sources (own service or end-of-service benefits)	1.05% of the remaining balance Maximum – AED 10,500

How to Calculate FAB Personal Loan Interest Rates?

Depending on the loan amount, the loan term, and the interest rate, the FAB personal loan interest rate varies. To calculate the FAB personal loan interest rates, follow the given steps –

• Know the Loan Amount: It refers to the total amount you want to borrow from the financial institution.
• Determine the Interest Rate Percentage: The interest rate is defined in percentage and is charged by the lender for borrowing the money.
• Consider the Loan Term: It is the length of time in which you would be required to repay the loan. Generally, the loan term is expressed in months.
• Use Online Loan Calculator: FAB also provides a calculator that can assist you in determining the personal loan interest rate. This calculator enables you to input the loan amount, interest rate percentage, and loan term to compute the monthly payment and the total interest payable over the loan period.

For your convenience, this calculator also provides you with an indicative amortisation schedule displaying the month-wise repayment schedule.

Eligibility Criteria for FAB Personal Loan

Given below are the eligibility criteria for different types of FAB personal loans in UAE – 

Type of FAB Personal Loan	Eligibility Criteria
Non-Salary Transfer Personal Loan for UAE Nationals	Minimum monthly income – AED 15,000 good credit score Minimum 18 months of service with current employer
Non-Salary Transfer Personal Loan for Expatriates	Minimum monthly income – AED 15,000 Good credit score Minimum 18 months of service with current employer
Personal Loan for UAE Nationals	Minimum monthly income – AED 7,000 Employed with a governmental, semi-governmental, or reputable private organisation Minimum 6 months of service with current employer or confirmed employed with current employer
Personal Loan for Expatriates	Minimum monthly income – AED 7,000 Employed with a governmental, semi-governmental, or reputable private organisation Minimum 6 months of service with current employer or confirmed employed with current employer
New to Country Loans/ Employment Loans	Minimum monthly salary – AED 10,000
Etihad Guest Personal Loan	Minimum monthly salary – AED 7,000
Landlord Loans	Applicable only to UAE nationals Banking with FAB with mandated salary or pension credited to the FAB account

Take a look at the next section of the article and learn more about FAB personal loan interest rates.

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