What is Personal Loan?

How Gulf Finance helps you to find a Personal Loan?

Gulf Finance helps you to fetch all the important information that you need to get a Personal Loan, at one place. Easily apply for Salary Transfer, Non-Salary Transfer or Buyout Loans in Dubai. All you need to do is to fill your details in the Personal Loan application form on the website and Bankers from all major banks will contact you instantly to assist you with your application. Get a quote for Personal Loans in 60 minutes!

The maximum loan amount as a personal loan can be availed up to 20 times your monthly salary with a repayment tenure option of up to 48 months. Any salaried or self-employed individual can apply for personal loans in UAE.

Types of Personal Loans in UAE

There is a wide range of Personal loans offered from the top banks and financial institutions in the UAE. Listed below are the types of personal loans in the UAE:

1. Salary Transfer Personal Loan in UAE: Salary Transfer Loan is considered as a secured personal loan in UAE as to avail it the applicant needs to transfer his/her monthly salary to the lending bank. The interest rate is quite less in comparison to loans without salary transfer.
2. Non-Salary Transfer Personal Loan in UAE: There are few options where the applicant does not have to transfer the salary to a lending bank and can easily avail of a personal loan. The interest rates charged for Non-Salary Transfer Loan is quite high than for Salary Transfer Loan.
3. Personal Loan in UAE without Company listing: Mostly Banks prefer lending to those people who were working in the approved list of companies with the bank. But with time there are few Banks and Financial Institutions designed loans product to cater to people working for Non listed companies in UAE.
4. Personal Loan for UAE Expats: All the people who do not belong to UAE and working here as a Salaried or Self-employed with a valid Residence Visa are considered as UAE Expats. All UAE Expats are eligible to avail loans in Dubai and the other emirates of UAE as per their eligibility.
5. Personal Loan for UAE Locals or UAE Nationals: Bank has designed special loan products for the UAE locals with affordable interest rates and other benefits.

Personal Loan Interest Rate in UAE

There are two ways of calculating interest rates on personal loans in UAE:

1. Flat Interest Rate: Flat interest is calculated on the total loan amount which remains fixed for the complete duration of the loan. The flat interest rate for a personal loan in Dubai and the other Emirates of UAE can vary from 2% – 24%.
2. Reducing Interest Rate: Reducing or Diminishing Interest is calculated every month on the remaining outstanding balance of the Loan Amount. Reducing the interest rate for a personal loan in UAE may vary from 5.23% – 39.99%.

How to Convert Reducing Interest Rate to Flat Interest Rate?

To convert the reducing rate to a flat rate just divide the reducing interest rate by 1.83. For example, if the reducing rate is 39.99% the flat rate will be 39.99/1.83= 21.85%.

Eligibility Criteria for a Personal Loan in Dubai

Eligibility criteria for a Personal Loan in Dubai vary from bank to bank depending upon the type and purpose of the loan. A few of the basic eligibility criteria for a loan in Dubai are mentioned below:

1. Age Criteria: To avail of a personal loan in Dubai the minimum age of the applicant should be 21 years and a maximum of 60-65 years.
2. Salary Criteria: Minimum Salary to apply for a personal loan in Dubai is AED 5000 in most banks however few banks may provide at a salary of AED 3000 depending on other parameters.
3. Employment Tenure: To apply for a personal loan in Dubai the applicant must be a confirmed employee or have completed 6 months in the company.