Personal Loans in UAE
Personal loans in the UAE can be a smart solution for handling major expenses—whether it’s for travel, home renovation, education, medical needs, or debt consolidation. But with so many banks and financial institutions offering different rates, fees, and approval conditions, choosing the right loan can be overwhelming.
What is a Personal Loan?
A personal loan in the UAE is a type of financing that allows you to borrow money without providing any collateral or guarantor. Since it is an unsecured loan, you can use the funds freely for different purposes — whether it’s an international vacation, higher education, debt consolidation, home renovation, medical expenses, or even major life events like weddings.
When you apply for a personal loan, you agree to repay the borrowed amount in monthly installments along with interest. In the UAE, personal loan interest can be calculated using a reducing balance rate or a flat rate. The rate you receive depends on factors such as:
WE COMPARE 70+ PERSONAL LOANS
Personal Loan Interest Rate in UAE
Personal loan interest rates in the UAE vary as per the bank, your credit profile, income, and whether the salary is being transferred to the lending bank. In the UAE, personal finance rates can be divided into two categories –
Flat Interest Rate –
A flat rate is estimated on the principal amount throughout the repayment period, irrespective of how much of the loan has been cleared. This results in higher total interest paid compared to reducing the balance rates. Flat rates are often lower, but the actual cost can be higher when compared with reducing rates, especially if you don’t settle the loan early.
Illustration
If you borrow AED 100,000 at a 4% flat rate for 4 years, the total interest would be AED 16,000 (4% of AED 100,000 × 4 years), and your total repayment would be AED 116,000. In this case, the monthly instalments would be around AED 2,417.
Reducing Interest Rate –
A reducing personal loan interest rate is applied to the outstanding balance, meaning the interest payable decreases as the principal is repaid. This results in lower overall interest payments compared to flat rates.
Illustration
If you borrow AED 100,000 at a 7% reducing rate over 4 years, the interest is calculated on the decreasing balance, not the full amount. The first month’s interest would be higher, but as the principal reduces, so does the monthly interest portion.
Over the loan tenure, the total interest paid would be significantly less than a flat-rate loan with a similar percentage, particularly if you choose to repay it before completion.
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 of personal loans in Dubai, UAE –
- 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 personal loans 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 a personal loan with salary transfer, you need to transfer your monthly salary directly to the bank offering the loan. Generally, such a loan comes with lower interest rates and is considered the best personal loan 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.
- Personal Loans for Self-Employed Professionals – If you’re a self-employed individual in the UAE, you can get these loans. Such loans often require proof of income through bank statements. They accommodate the variable income patterns of entrepreneurs and freelancers.
- Personal Loans without Company Listing –Typically, banks prefer lending to employees from listed companies because of perceived stability. However, some lenders do offer loans to individuals whose employers are not listed with the bank. Note that these might come with higher UAE personal loan interest rates.
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Get the Best Personal Loan from the Top UAE Banks
Citi Bank Credit Card
First Abu Dhabi Bank
Standard Chartered Bank
HSBC
ADCB
Liv
Emirates NBD
Invest Bank
RAK Bank
ADIB
Commercial Bank of Dubai
Dubai Islamic Bank
Sharjah Islamic Bank
Finance House
Ajman Bank
deem
Dubai First
NBQ
Emirates Islamic
Emirates Islamic
CBI
NBF
Al Hilal Bank
United Arab Bank
Arab Bank
Al Mawarid
AAFAQ
Mashreq
Bank of Sharjah
Wio Bank
Top 5 Banks for Personal Loan in UAE with Low-Interest Rate and Different Loan Offers
While we took a brief look at the best personal loans in UAE earlier, it’s time for a deep dive. In this section, we will break down the top 5 options from the leading banks – giving you a closer look at what each plan offers beyond the basics. You will find more details on interest rates, eligibility, features, and what makes each loan stand out. So whether you’re looking for lower instalments, swift approvals, or any other perk, this comparison will help you identify the best options that meet your needs.
HSBC
HSBC, with a presence of almost eight decades in the UAE, is one of the leading providers of personal finance in the Emirates. With interest rates starting from just 6.99% p.a., it’s an excellent choice for those seeking low-cost borrowing. Coming with additional perks such as loan top-up, buyout, and more, it can be used to finance all your personal needs — whether it’s education, travel, home improvement, and more.
| Parameter | Description |
|---|---|
| Loan Amount | Up to AED 500,000 |
| Reducing Interest Rate | Starting from 6.99% per annum |
| Top-up Option | Available after the initial 12 successful monthly repayments |
| Life Insurance | Complimentary offering |
Deem Finance
Next on the list of best personal loans in UAE is the Deem Finance Personal loan. This loan, vouched for its high transparency, comes with a high amount of AED 150,000 and is available at a low salary of AED 5,000. It stands out for its flexible repayment periods and not requiring a salary transfer. Plus, with quick eligibility checks and minimal documentation requirements, it’s a convenient option for borrowers seeking a hassle-free process.
| Parameter | Description |
|---|---|
| Loan Amount | Up to AED 150,000 |
| Reducing Interest Rates | Ranging between 15.99% – 34.99% per annum |
| Salary Transfer | Not Required |
Dubai Islamic Bank
Dubai Islamic Bank (DIB) is a popular name among those seeking Sharia-compliant personal finance options in the UAE. Offering loan amounts of up to AED 4 million, it’s ideal for those seeking high financing. One of its most remarkable features is the 120-day period for the first instalment, giving you breathing room to plan your finances. With a low fixed interest rate and quick processing, this loan presents a combination of convenience and affordability.
| Parameter | Description |
|---|---|
| Loan Amount | Up to AED 4 Million for UAE nationals Up to AED 2 Million for expats |
| Fixed Interest Rate | Starting from 4.9% per annum |
| Reducing Interest Rate | Ranging between 5.99% – 21.99% per annum |
| First Instalment in Up to |
|
RAKBANK
RAKBANK, founded in 1976, is another trusted name offering some of the top personal loans in UAE. Known for its seamless documentation and swift approvals, it is a good choice for those who quickly need to access financing for personal requirements. One of its key advantages is the flexibility it offers through loan top-ups and deferments, which makes it easier for you to manage your finances on the go!
| Parameter | Description |
|---|---|
| Fixed Interest Rate | Starting from 2.85% per annum |
| Reducing Interest Rate | Starting from 5.49% per annum |
| Monthly Payment Holidays | Up to 2 monthly deferments |
| First Payment Holiday | First instalment deferment up to 120 days |
Abu Dhabi Islamic Bank
Abu Dhabi Islamic Bank (ADIB) personal finance is a Sharia-compliant option with high financing amounts, which can go up to AED 3 million. Its profit rates, meanwhile, are competitive and keep the borrowing within your budget. With pre-approvals quickly done in 30 minutes, you can easily get the financing you need without much hassle. Moreover, if you face issues in repayment due to unfortunate circumstances, you can make two instalment postponements for free.
| Parameter | Description |
|---|---|
| Finance Amount |
|
| Grace Period | Up to 120 days |
| Takaful Coverage | Included |
Eligibility Criteria to Apply for Personal Loan in UAE & Dubai
| Eligibility Type | Criteria |
|---|---|
| Age |
|
| Salary | Central Bank has removed fixed minimum salary requirement (bank-specific criteria apply) |
| Nationality | UAE nationals and expatriates |
| Employment Status | Salaried and self-employed individuals |
Document Required to Apply for a Personal Loan in Dubai
Given is a list of the general documents required for personal loan application processing –
✔️ Emirates ID
✔️ Passport
✔️ UAE Residence Visa
✔️ Latest 3-6 Months’ Bank Account Statement
✔️ Latest Salary Certificate
✔️ Security Cheque
Note
📝 All the documents must be valid
📝 Keep the originals and copies of each document handy
📝 Additional documents may be required
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