Personal Loan in UAE

What is Personal Loan?

A personal loan helps in managing expenses. Unlike other loan types, it does not require any collateral, which makes it convenient and accessible. You can use it for various needs, like covering higher education costs, funding a wedding, consolidating debt, or even financing an international trip.

Choosing the right loan helps you get favourable terms and affordable repayments. With numerous options for personal loans in Dubai, Abu Dhabi, and other emirates, you must compare and choose the right option wisely. Banks even offer flexible repayment tenures, so immediate repayment is not required.

Personal Loan Interest Rate in UAE

The personal loan interest rate in UAE is simply the cost that you pay for the borrowed loan amount. These rates are available as a flat interest rate or a reducing interest. Given below is the explanation -

Flat Interest Rate -

Under the flat interest rate method, the interest is charged on the entire loan amount initially borrowed. It remains constant throughout the repayment tenure.

For instance, if you secure a loan at a flat rate, even as you pay down the balance, the interest calculation does not change. So if the lowest interest rate for personal loan in UAE starts at, say, 2.63%, your interest payments remain consistent, whether it is the first month or the last. In this case, the rates can possibly reach up to 22.22%.

Reducing Interest Rate -

On the other hand, under reducing interest rate, the interest decreases over time as you continue to pay off the loan amount. The interest is calculated on the remaining principal amount, which decreases after each installment.

For example, if you start with a loan at a reducing rate, each payment you make reduces the principal. The subsequent interest is then calculated on this reduced amount.The rates for reducing interest can vary from 5.24% to 39.99% in the UAE.

Types of Personal Loans in Dubai, UAE

Personal loans in UAE come in a variety of options — you can find ample options to meet your specific financial needs and eligibility criteria.

Here is a look at some of the common types:

• Personal Loans for UAE Nationals - These loans are specifically designed for UAE nationals, often featuring favourable terms such as higher loan amounts and lower UAE personal loan interest rates.
• Personal Loans for Expatriates - Expats in the UAE can also access financing options that are crafted to suit their specific conditions and residency status. These loans might have slightly different terms compared to those for UAE nationals.
• Personal Loans with Salary Transfer - For this type, you need to transfer your monthly salary directly to the bank offering the loan. Generally, such products come with lower interest rates and are considered the best personal loans in UAE.
• Personal Loans without Salary Transfer - For those who prefer not to transfer their salary to the lender, there are options available that don’t require salary transfer. However, keep in mind that these loans might carry a higher interest rate due to the increased risk to the lender.

Why are People Looking for Personal Loan in Dubai, UAE?

Personal loans are quite popular in the UAE as their applications are usually processed instantly. In fact, the loan amount, too, is disbursed quickly. With such features, this type of financing serves multiple purposes and lets you access funds in an instant without much stringent conditions.

Here’s what these loans are usually used for in the UAE -

• For Debt Consolidation: Personal loans are one of the best options to consolidate the existing debt. You can use the amount to pay off your debts and repay the new loan in easy monthly instalments at attractive rates.
• Access Emergency Funds: Medical emergencies can come at any time that requires instant financing. In such a scenario, you can get this loan instantly to finance the necessary medical treatment.
• Finance Higher Education: With the rising inflation, financing your child’s education can be expensive. A personal loan helps you in funding the tuition fee, meaning you can provide your children with the best education without worrying about finances.
• Finance Wedding Expenses: The high-end costs associated with weddings can often hurt your pocket. However, with this type of financing, you can ease the burden and plan that dream wedding.

Best Personal Loan Plans in Dubai, UAE - 2024

Here is the list of the Best Personal Loan in UAE in 2024 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

How to Calculate Your Personal Loan EMI in UAE

You can use Policybazaar.ae's personal loan calculator UAE to know your installments for the loan. As an online automated tool, this calculator provides you with an estimated EMI amount based on the information that you enter. Using this loan calculator in UAE, you can make an informed decision and get the best personal finance as per your requirements.

Steps to Compare Personal Loans in UAE

It’s important to remember that the cheapest personal loan in UAE may not always be the best!

To get the best plan for yourself, you need to check the costs as well as loan amounts, eligibility requirements, provider reviews, and more. For that, it’s always good to compare the top options.

To simplify the comparison process, here are some steps -

• Research Options: Start by visiting Policybazaar.ae to explore the different features of personal loans.
• Compare Interest Rates: Review the interest rates and profit rates of each loan to find the lowest interest rate for personal loan that comfortably fits within your budget.
• Assess Salary Requirements: Verify the minimum salary required by the banks to qualify.
• Calculate Instalments: Make use of the bank’s EMI (Equated Monthly Instalment) calculator to get the proposed instalments.
• Salary Transfer Requirements: Determine if transferring your salary to the bank is necessary to get the loan.
• Repayment Flexibility: Look into the repayment terms, including the grace period and the ease of repayment options provided by the bank.
• Additional Features: Check for additional loan features like deferred payment options, credit shield, and conditions for early settlement to better manage your loan in UAE.

Final Decision: Once you have reviewed all these factors and decided which plan suits your needs best, learn more about how to proceed with the application process to get a personal loan in Dubai.

Top 5 Banks for Personal Loan in UAE with Low-Interest Rate and Different Loan Offers

Let's take a look at the best and cheapest personal loans in UAE:

1- Emirates NBD

Emirates NBD has a comprehensive range of options to meet various financial needs. The bank provides loans with attractive interest rates starting from as low as 5.99%. The wide range of loan amounts and the simple application process make Emirates NBD a strong contender for the best personal loan in UAE for those who qualify under its terms​.

Parameters	Emirates NBD Personal Loan for UAE Nationals	Emirates NBD Personal Loan for Expatriates
Loan Amount	Up to AED 4 Million	Up to AED 2 Million
Zero Balance Account	Free	Free
Requirement of Collateral or Guarantor	No	No
Repayment Tenure	Up to 48 Months (Up to 60 months for Ministry of Defence employees)	Up to 48 months
Salary Transfer	Mandatory	Mandatory
Insurance	Included	Included

2- Commercial Bank of Dubai

Commercial Bank of Dubai (CBD) offers a range of best personal loan options that you can access without mandatory salary transfer. The bank provides instant loan approvals for amounts up to AED 150,000 through its mobile app — all with just an Emirates ID. CBD's flexible repayment terms and easy application process make its offerings some of the most user-friendly ones in the market.

Parameters	Commercial Bank of Dubai Personal Loan
Salary Transfer	Not required
Who can Apply	Both new and existing customers
Documents Required	Emirates ID
Maximum Loan amount	AED 150,000
Age Required	Minimum – 21 Years and Maximum – 60 Years
Loan Repayment Tenure	Minimum – 1 Year and Maximum – 4 Years

3- First Abu Dhabi Bank

First Abu Dhabi Bank (FAB) has a diverse range of loans for various segments of the population — UAE nationals, expats, and those new to the country or employment. FAB is known for its competitive interest rates and flexible repayment terms, making it a favourable choice for many looking for the cheapest personal loan in the UAE.

Parameters	First Abu Dhabi Bank Personal Loan for UAE Nationals	First Abu Dhabi Bank Personal Loan for Expatriates
Salary Transfer	Mandatory	Mandatory
Comprehensive Life Insurance Coverage	Included	Included
Grace Period for First Repayment	210 Days	120 Days
Processing Fee	One-time upfront processing fee of 1.05% on the loan amount (minimum AED 525 and maximum AED 2,625)	One-time upfront processing fee of 1.05% on the loan amount (minimum AED 525 and maximum AED 2,625)
Fast and Easy Approvals	Included	Included
Maximum Loan Amount	AED 5 Million	AED 2 Million

4- HSBC

HSBC UAE offers a diverse suite of cheapest personal loan UAE options. These loans can be used for a wide range of needs — from education and home improvements to personal liquidity and rent payments. They are also known for flexible repayment terms — ranging from 6 to 48 months — and competitive interest rates.

Parameters	HSBC Personal Loan
Repayment Period	6 to 48 months
Insurance	Included
Salary Transfer	Mandatory
Maximum Loan Amount	AED 500,000
Eligibility	Must have a current account with HSBC — your salary must be credited to that account
Nationality	UAE resident

5- Dubai Islamic Bank

Dubai Islamic Bank (DIB) personal loans can go up to AED 4 million for UAE nationals and AED 2 million for expats. Their profit rates, meanwhile, start from 5.99% per annum on a reducing basis. DIB personal finance products are Sharia-compliant and offer a financial solution without the imposition of traditional interest, which aligns with Islamic finance principles. The bank also provides a quick and easy application process with minimal documentation required.

Parameters	Dubai Islamic Bank
Maximum Loan Amount	AED 4 Million for UAE Nationals  AED 2 Million for Expats
First Instalment Payment	Up to 120 days for UAE Nationals Up to 90 days for Expats
Repayment Tenure	Up to 48 months
Insurance	Included
Salary Transfer	Mandatory

Eligibility Criteria to Apply for Personal Loan in UAE & Dubai

Eligibility criteria for personal loans in the UAE vary from one financial institution to another, but there are common requirements that most banks and lending institutions generally consider.

Here is a table summarising these criteria:

Aspect	Personal Loan in UAE Eligibility
Age	Minimum: 21 years Maximum: 60-65 years (Some banks may allow applicants as young as 18)
Minimum Salary	Approximately AED 5,000 to AED 8,000, varying by financial institution
Employment Status	Must be employed with at least 6 months of confirmed salary at the current job
credit Score	A good credit score is required to demonstrate creditworthiness and the capability to repay
Residency	Must be a UAE resident
Salary Transfer	Some may require, others may not

How to Apply for Personal Loan in UAE?

Applying for a personal loan UAE online is both convenient and quick. The best platform for this is Policybazaar.ae. As one of the pioneering digital brands in the UAE financial services sector, Policybazaar.ae offers a convenient solution for those seeking financial products. Boasting an impressive Google rating of 4.6 from over 23,780 reviews, the platform provides unbiased financial expert advice and offers a wide range of financial institutions to choose from.

To apply via Policybazaar.ae, you can follow these steps:

• Visit the official website: Navigate to Policybazaar.ae.
• Look for the personal loan option: Find the relevant section on the website.
• Fill out the lead form: Provide the necessary details to initiate your inquiry.
• Review personal loan quotes: After submitting your information, a page with various quotes will appear.
• Compare and apply: Examine the different offers and compare them based on your needs and financial circumstances. Next, apply for the best option that suits your requirements.

Document Required to Apply for Personal Loan in Dubai, the UAE

To get a personal loan in the UAE, you need to provide several key documents to the bank or financial institution to verify your identity, financial stability, and employment status.

The following documents are required -

• Duly Filled Application Form: To provide personal details and consent for the loan process
• Copy of Emirates ID: To verify your identity and residency status
• Passport and Visa Copy: Required for expats to confirm their legal status in the UAE
• Bank Statement: For the last 3 to 6 months (as per the bank’s requirements) — this tells about your financial health and cash flow
• Salary Transfer Certificate (Optional): Some banks may request this if you choose to transfer your salary directly to them.

FAQs About Personal Loan Dubai