Every bank has its own policy and a list of approved employers. The required income level varies on whether you are salaried or are a business owner and whether you are willing to transfer your salary to the bank. The minimum salary requirements start from AED 5,000 per month. For Business owners, banks will ask for a minimum turnover or will check the average balance in your account for the last six to twelve months. The length of your business will also be taken into consideration. The minimum age should be 21 years.

Basic documents for personal loans – Passport copy, Residency VISA Copy, Emirates ID copy, Salary certificate, Salary transfer letter, FTS Consent form to extract your bank a/c statement, Credit Bureau consent form to extract your credit reports.

For business owners, you will need to submit additional documents – Trade license copy, Memorandum of association copy, Power of attorney of expat mentioning the borrowing clause clearly (in case of a sole proprietor), Audited financials.

A flat interest rate is an interest rate calculated on the full original loan amount (the principal) for the whole term without taking into consideration the reduced amount of debt. A reducing rate is an interest rate that is calculated every month on the outstanding loan amount. Each time you make a repayment on the loan, the interest payment will decrease. To know what is the indicative reducing rate, you can convert the flat rate by multiplying the flat rate by 1.83 to know the corresponding indicative reducing rate.

Salary transfer to the specific bank is mandatory to avail a Salary Transfer Personal Loan. Some banks offer personal loans to customers who are unwilling to transfer salary. The interest rates and terms will differ for such non-salary transfer personal loans.

The maximum loan tenor for Personal Loan is 48 months. For Ministry of Defense employees, the maximum tenor offered is at 60 months.

No, you don’t need to keep any assets as a security or collateral against your personal loan.

It is important for the company to be listed to avail a salary transfer personal loan. Some banks offer personal loans to employees of unlisted employers. Terms will differ for such loans.

Policies differ with every bank. Generally, if your length of service with your current employer is less than 6 months or you have recently moved to the UAE, you may not be eligible to apply. However, some banks do have special programs for customers who are New to UAE or New to Employer.

The maximum you can borrow will be up to 20 multiples of your monthly income. The installment should be within the 50% debt-burden-ratio (DBR) cap. There will also be an amount cap depending on your credit profile, nationality, etc.

As a UAE National, you have the facility to turn your extra, rental income or earned sponsorship fee into a loan opportunity and get additional financing.

A top up loan is an additional amount to an existing running loan and can be availed after 12 monthly installments have been repaid to the bank.

This is an option for you to close or settle your existing Personal Loan with your own cash or through another bank, prior to completing the tenure you had originally planned.

Early Settlement Fee of 1% of the loan outstanding amount is charged for a loan foreclosure/early settlement.

Installment Deferral is the delay or suspension of repayment of a personal loan’s monthly installment.

Most banks generally allow up to two deferrals per year. Deferrals should be done for non-consecutive months and your personal loan with the bank should not have any late or missed payments.

A Liability letter is issued by the bank which states the specific liabilities across all products owed by a customer.

A clearance letter is issued by the bank which states that the customer owes no liabilities towards the bank across all products.