How to Get a Personal Loan without Security?

Personal loans are versatile instruments for various expenses — from urgent medical bills to long-awaited vacations. In the UAE, these loans are popular and make up for a significant portion of the lending market.

 

Factbox: As per recent data from the Central Bank of the UAE, personal loans have consistently represented a substantial portion of total bank lending — 20% to 25% in recent years. 

 

Among the options available, unsecured personal loans stand out. These loans offer you the flexibility of accessing funds without collateral. These loans have gained popularity due to their swift approval process and broad eligibility criteria. If you're curious about personal loans with no security, read on to uncover the ins and outs of this financial tool in the UAE.

 

 

Key Points to Remember

 

• You can obtain a personal loan in the UAE without providing any collateral. It is a convenient option for many borrowers.
• The approval process for unsecured personal loans is faster as it does not require collateral assessment.
• Lenders in the UAE assess eligibility based on factors like AECB score, income stability, age, and debt-to-income ratio.
• When comparing unsecured personal loans, consider interest rates, loan amounts, repayment terms, additional fees, and customer reviews.
• Policybazaar.ae is your one-stop platform to apply for personal loans. The advantages include unbiased expert advice, numerous positive customer reviews, award-winning service, no hidden fees, and fast approval with minimal documentation.

 

 

What is a Personal Loan with No Security?

Also known as unsecured loans, personal loans with no security don't require you to provide collateral. Instead of relying on collateral, lenders check your creditworthiness against factors like your credit history, income, and outstanding debts. 

You can use the funds from unsecured personal loans for a variety of purposes — consolidating debt, covering medical expenses, or making home improvements. However, while these loans can be convenient to get, they generally come with higher interest rates and stricter borrowing requirements compared to secured loans​.

 

Can I Get a Personal Loan with No Security?

Yes, you can avail of a personal loan with no security in the UAE. Many banks and financial institutions offer unsecured personal loans, each with its own terms and conditions. These loans don’t require you to provide any collateral such as a house or car. Instead, lenders assess your creditworthiness by looking at defined factors.

To apply for an unsecured personal loan, you need to meet certain eligibility criteria, such as having a minimum monthly salary (often around AED 5,000), a good credit Score, and stable employment. Also, the loan amounts can vary significantly, typically ranging from AED 5,000 to AED 2 million. 

​The application process is usually easy — most banks offer online application facilities.

 

How Does an Unsecured Personal Loan Work in UAE?

 

Suppose you are planning to obtain a personal loan with no security in the UAE.

 

Here's what the process will look like -

• Eligibility and Preparation: First, make sure that you meet the basic eligibility criteria. Most banks require you to be between 21 and 60 years old, have a minimum monthly salary (usually AED 5,000), and maintain stable employment in the UAE​​. 

It's also important to have a good credit score and manage your existing debt-to-burden ratio, which should be less than 50%​.

• Application Process: Once you confirm your eligibility, you can apply for the loan. 

You will need to fill out an application form, which is often available online. Prepare the necessary documents, such as your Emirates ID, passport with a valid visa, salary certificate, recent bank statements (usually 3 to 6 months), and (sometimes) a salary transfer certificate if required by the bank​.

• Credit Check and Verification: After submitting your application, the bank will review your documents and perform a credit check. This will help the bank assess your creditworthiness.
• Approval and Disbursal: If your application is approved, the bank will offer you the loan terms, including the loan amount, interest rate, repayment tenure, and any associated fees. 

Once you accept the terms, you will get the loan amount directly into your bank account​.

• Repayment: You will repay the loan in fixed monthly installments over the agreed period. This can range from a few months to up to 48 months.

 

 

Pros and Cons of No Security Personal Loan

 

Check out the pros and cons of unsecured personal loans -

Pros	Cons
You don’t need to provide collateral, which reduces your risk	You might face higher interest rates compared to secured loans
The approval process is faster as there is no need for collateral assessment	The eligibility criteria can be stricter, requiring a higher credit score
You can use the funds for various personal needs without restrictions	The repayment terms are often shorter, which leads to higher monthly payments
More borrowers can qualify, including those without valuable assets	The loan amounts available are usually lower compared to secured loans
Access to funds is quicker, which is useful in emergencies	Approval might be difficult if you don’t meet all the criteria

How to Qualify for a No Security Personal Loan?

Now familiar with the benefits and working of unsecured loans in the UAE, it’s important to know about the eligibility criteria.

 

Given below are the common factors that are generally assessed by the lenders:

 

1. AECB Score: Your credit score from al etihad credit bureau (AECB) plays a crucial role in determining your eligibility. Generally, a score of 550 or above is preferred.
2. Income and Employment Stability: Lenders look for a stable income and employment history and often require a minimum monthly salary of AED 5,000.
3. Age: You must typically be between 21 and 60 years old.
4. Debt-to-Income Ratio: Lenders check your existing debt obligations relative to your income to ensure you can manage the new loan.

 

 

Tips to Compare Unsecured Personal Loan 

To get the best loan for yourself, you need to compare multiple options. Here are some tips to help you compare unsecured personal loan options -

• Compare the interest rates offered by different lenders to find the lowest rate.
• Check the maximum and minimum loan amounts available so that you can meet your needs.
• Look at the length of the repayment period and choose one that fits your financial situation.
• Be aware of any additional fees, such as processing fees or early repayment penalties.
• Make sure you meet the eligibility criteria like minimum salary and credit score.
• Read reviews and ratings from other borrowers to understand the lender’s reputation and customer service.

 

How to Get Personal Loan with No Security in UAE?

Policybazaar UAE is the best platform to apply for a personal loan in UAE. Policybazaar.ae is the first overseas venture of the Policybazaar group. An online marketplace for financial products, it has become a one-stop shop for consumers' financial needs in the UAE market. 

 

Offering more than 50 products, Policybazaar.ae has grown significantly and is now one of the key players in the UAE market. On this platform, you can enjoy comprehensive and user-friendly services.

 

You can easily apply for a personal loan via policybazaar.ae. Simply head to the personal loan section, fill out the lead form, and compare the options on the quotes page. Next, simply click on the apply button to go for the personal loan that you find the best. The process is simple and designed to help you find the best loan option quickly and easily.

 

Given below are the key advantages of applying for a personal loan via policybazaar.ae:

 

1. Unbiased Expert Advice: Get objective advice from financial experts to help you make informed decisions.
2. Customer Reviews: Over 18,000 reviews on Google with a 4.6 rating, reflecting high customer satisfaction.
3. Awards and Recognition: Recognised with several awards, including Best Financial Website (2013-2014) by IAMAI India Awards, Best Mobile App Consumer Finance by GSF Mobile Appies (2015), and Best First-Time Effective Use of Radio by SMO Asia Awards.
4. No Hidden Fees: Transparent process with no hidden charges — the goal is that you should know exactly what you are paying for.
5. Fast Approval and Minimum Documentation: Enjoy quick loan approvals and minimal paperwork, which makes the process hassle-free and efficient.

Policybazaar UAE – Helping you navigate the wilderness of the insurance world!