Need a loan? - You’re at the right place!
BankBazaar is a leading online financial services provider which provides borrowers a one-stop portal to find and compare loans online.
If you’re in need of funds or financial assistance from a bank or financial institution, browse through and compare multiple loan offerings from various lenders in UAE. A rich repository of information lets you make informed decisions and borrow from a lender of choice. Find the lowest interest rates for the highest loan amounts and the longest loan tenures. Check your eligibility for a particular scheme and corresponding documentation requirements.
Types of Loans in UAE - Find the right loan to suit your funding needs!
- Personal Loans: Unsecured, quick and easy to avail for a variety of personal finance needs. Personalised schemes for the salaried or self-employed, for the local resident or expatriate, for those new to the UAE and the pensioners; cash loans, top-up offerings, salary transfer loans, instalment loans, goods financing and Islamic personal finance.
- Car Loans: Auto finance schemes for new and used cars, business and retail vehicles. Includes, loans against deposits, deferred payment plans, buy-back schemes and Islamic car financing.
- Car Ijarah: Car leases as an affordable option to purchase a new or used car.
- Home Loans: Housing loans or home financing to help build or buy residential property. Schemes from a variety of lenders at competitive rates for different borrowers.
- Business Loans: To meet a variety of business requirements including working capital loans, short-term and long-term funding for expansion.
- Education Loans: Affordable funding to pursue higher education for better career prospects with easy repayment options.
- Boat Loans: Pursue oceanic pleasures with loans to buy a yacht, houseboat and other boats of choice including schemes with zero down payment and flexible servicing plans.
Popular Loans in the UAE
Popular Personal Loans
Personal loans are unsecured loans that can be obtained without submitting any collateral guarantee. This is a popular type of loan in the UAE as it is a short-term loan and can be easily acquired. Many banks also offer debt consolidation loans to help you close other sundry loans or credit card dues. Here are the 5 most popular Personal Loans in the UAE:
- CBD Personal Loan for Expats: Commercial Bank of Dubai (CBD) offers personal loans of up to AED 1.5 million to Expats and AED 2.5 million to UAE Nationals. The reputation of this loan is because of its interest rate – which is as low as 4.5%. You also get a free debit card with a personal loan from CBD. It also offers covers the payment of your outstanding loan amount if you die during the loan tenure, reducing the financial burden on your family.
- Dubai Islamic Bank Personal Finance: The Al Islami Salam Finance by Dubai Islamic Bank (DIB) is popular due to its being Sharia-compliant and requiring a minimum salary of just AED 3,000. While Expats can get up to AED 2 million, UAE Nationals can take personal finance to the tune of AED 4 million.
- ADIB Personal Finance: Abu Dhabi International Bank’s (ADIB) Personal Finance requires only AED 3,000 as minimum salary. The bank offers lucrative privileges such as paying the first instalment after 3 months of the loan being disbursed. ADIB also allows you one free instalment postponement option. The loan also entitles you to a job loss insurance on the outstanding credit amount and a free Visa Cashback Credit Card.
Popular Car Loans
A vehicle is an important part of the UAE lifestyle, which makes car loans quite common. Under car finance, the bank owns your vehicle even as you use it, and it becomes yours as soon as you repay the loan amount. Car loans of up to 5 years are available for buying both new cars and used cars. Some of the popular car loans in the UAE are as listed below:
- ADCB Car Loan: Abu Dhabi Commercial Bank offers finance of up to 80% of the cost of the vehicle through its unique “one-signature application”. The loan amount you can get is up to AED 500,000. The bank also offers an option of financing the motor insurance on the vehicle bought with the loan. The ADCB Car Loan is currently well-regarded because the bank is offering special interest rates starting from 2.49% for new cars and 3.25% for used cars.
- Emirates NBD Auto Loan: Emirates NBD Auto Loan is popular because it is available for salaried and self-employed individuals as well as business owners, and allows you to also buy sports cars. You also get a Salik Card and 24x7 roadside assistance if you buy a car with Emirates NBD Car Loan.
- Emirates Islamic Bank Auto Finance: Emirates Islamic Bank’s Auto Finance’s popularity lies in its Sharia-compliant structure; additionally, an account with salary transfer is not compulsory to get the loan. You can also buy a comprehensive Islamic Vehicle Insurance Policy for your car with the Emirates Islamic Auto Finance.
Popular Home Loans & Mortgages
Housing is the most expensive necessity for everyone in the world, which means that most people, unless they are rich, need a loan to buy a house. The UAE is no exception to it, due to which home loans or mortgages are quite common among the people in the country. If your earnings are on the higher end and your family is bigger, it might make more sense for you to buy a house through home loan and pay EMIs on it, rather than paying rent. Home loans are high-value, long-term loans. Some of the well-regarded home loans in the UAE are:
- HSBC Home Loan: HSBC, despite being an international bank, has high credence in the UAE. Its home loan is particularly attractive because of its low interest rate (starting from 3.24%). HSBC also allows free overpayments up to 25% of the outstanding amount each year, thereby reducing your principal amount and the future interest payments. You also don’t need to hold a salary transfer account with HSBC to get a home loan.
- Dubai Islamic Bank Home Finance: Dubai Islamic Bank’s Home Finance is popular because of the number of financing options it gives, which are as follows:
- Al Islami Home Finance for UAE Nationals
- Al Islami Home Finance for Expatriates
- Non-resident programme
- Al Yusr Home Finance (in partnership with Mohammad Bin Rashid Housing Establishment)
- Currently, DIB is offering a special home finance offer with profit rates starting from 3.24% and providing up to 85% of finance for the house you want to own. If you get a home loan, the bank is also offering special privileges on auto finance, personal finance and credit cards.
How to Choose the Best Loan at BankBazaar?
To find the best offer follow these simple steps -
- Decide the nature of your finance requirement i.e. what is being funded, how much you will need to borrow and for how long.
- Once you’ve ascertained whether you need a personal loan, car loan or home loan, or a combination of either or all, compare schemes, all conveniently listed out in one portal.
- Find the lowest interest rates for a loan of your choice by comparing different schemes offered by one lender or between lenders.
- Check your eligibility for a loan scheme to see if you qualify.
- Once you’ve zeroed in on a suitable scheme, determine documentation requirements.
- Browse through user reviews, latest news and informative articles to get a strong understanding of offerings and make an informed choice.
How you benefit - Save time, money and effort!
Information has been carefully collated to bring you the latest and most in-depth repository of data minus the complex jargon. An interactive and dynamic interface makes availing a loan an easy and hassle-free experience.
Avail a gamut of services free of cost, online, from the convenience of your home or workplace. Save on time, effort and money by cutting through middlemen and long queues to find the best loan for your needs.
Frequently Asked Questions - FAQs
- What is credit scoring and how is it determined?
- Will there be any problems if I take a loan in the UAE and then move abroad?
- Are loans available for expatriates?
- Can I apply for loans online?
- How do I get the most competitive rates of interest on loans?
Credit scoring is a system used by banks to determine whether or not a customer is financially fit to borrow from the bank. The bank assesses the customer’s age, job and financial commitments, if any, to ascertain their eligibility for a loan. A good credit history will ensure that customers have no hassles in availing a loan, but poor credit scores reflect badly on the customer’s financial history and may cause problems when applying for loans.
Not necessarily. If you are considering a change in residence to a foreign country, all you have to do is review your accounts, register for telephone and online banking, sign-up for account alerts and update your contact details.
Yes, most banks in the UAE have special schemes for expatriates. The terms and conditions of the loans will differ from bank to bank, but expatriates can avail home loans, personal loans and car loans in the UAE.
Customers have two options when it comes to taking out loans. You can either visit a branch of the bank from which you wish to avail a loan, meet the manager and apply for one, or visit the website of the bank from which you wish to avail a loan and apply for it. Most banks now provide customers with the option to avail loans online as it is an easier and convenient option.
There is no shortcut to availing loans at cheaper rates. If your credit history is perfect then you have a better chance of getting loans at lower rates of interest. Poor credit scores will mean that you will be charged a slightly higher rate of interest.
News about Loans in the UAE
Corporate loan demand slowed down in the third quarter in the UAE
The demand for personal and business credit has slowed down across the UAE. With the tightening of the business loans, the willingness to extend loans among banks and lenders has reduced. The Central Bank said that since the survey was launched it is the second time the business loan demand dropped into the negative territory. The reason for the slowdown has been property market outlook, customer sales, and fixed asset investments. Except for the demand for credit card, demand for personal credit have slowed down especially for non-housing investment and car loans.
21st October 2016
Loan demand to rise in the fourth quarter in the UAE
Loan demand is expected to pick up in the last quarter after the dip in the demand from March to September. Moderate increase in the loan demand has come from real estate, manufacturing, wholesale trade, construction, storage, transport, and communication businesses. The business executives said that the customer sales was one of the main reason for the loan growth in the future. Due to the tightening in the credit standards, a higher degree of risk can be averted in extending loans. The respondents saw a decrease in the demand for loan in Dubai and Abu Dhabi but modest expansion was recorded for business loans in the Northern Emirates.
20th October 2016
Impact of VAT on auto, retail and financial services industry
Introduction of VAT poses a serious question to the retailers in the GCC. Most of the retailers will pass on only a smaller proportion of the cost onto their customer. This means that they will suffer the increase by themselves in order to retain the market share. Automotive dealers will have to make sure that their customers are not disappointed. Financial services on the other hand are difficult to tax. The value is impossible to determine on a transaction-to-transcation basis.
07th October 2016
UAE citizens are borrowing less and spending more
Emirates NBD’s head of retail, Suvo Sarkar said that the demand for vehicle loans and personal loans have dropped by 25% year-on-year. There has been a slowdown in the borrowing. Fewer loans were being underwritten since the credit bureau started giving out credit scores. The banks and lending institutions are being very careful with the lending as well. The wealth management on the other hand is growing at a healthy pace. The balances in the customer’s current and savings account at Emirates NBD has increased by 10-11%.
07th October 2016
By the end of the year, 72 percent UAE expats will be debt free
According to the National Bonds’ Financial Health Check for Q3 2016, 67% of UAE Nationals and 72% of expat residents are planning to pay off their liabilities and become free from debt by the end of the year. The survey also found that 82% of the nationalities who were surveyed did not have takaful coverage. 89% of UAE Nationals did not have insurance against disability through takaful. 83% of expats surveyed did not have takaful life coverage and 76% of expats surveyed were not covered for disabilities through takaful.
27th September 2016
Bankruptcy law will boost the fortunes of SMEs and the economy
The new bankruptcy law will boost the fortunes of the small and medium sized enterprises. The debt is reschedules thus curtailing losses and earning better interest rates in the long run. The law will help recover losses and this will result in a beneficial lending criteria. Many businessmen were detained or they fled the country during the 2009 and 2010 crisis. The law will also put a pause on sending people to jail for a bounced cheque until a plan has been set in place for restructuring. The SME will be able to take more risk without any fear and this in turn will boost the economic growth.
15th September 2016
Deal signed by banks for mWallet
16 banks have become equity partners in an entity that will own and operate mWallet platform. mWallet is a financial component of UAE’s Government Smart Government initiative. Customer can make utility bill payments, money transfers and online shopping. The use of mobile phones to make payments will reduce the queue at exchange companies and banks. The introduction of mWallet will enable cashless payments and cash free environment in the UAE.
01st September 2016
Credit and weak deposits to affect the UAE banks’ profitability
As consumers are making less cash deposits, the business and government loans are slowing down, banks in the UAE will face tough times ahead. The time deposit to cash savings percentage in the UAE has been on a decline for a long time. The customers are discouraged by the lower interest rates and are not keeping cash in the banks. They have shifted towards short term savings rather than the long term savings due to changes in the interest rates. The high exposure to real estate and construction sector poses a threat to the UAE banks due to the cyclical nature of its market. The higher loan loss provisions will affect the profitability of the banks in the UAE.
28th August 2016
RAKBank expects the second half of 2016 to be challenging
The second half of 2016 is expected to be challenging to the banking sector despite the signs of improvement. The RAKBank CEO, Peter England believes the worst is over for the bank. He said that the last 12 months were very challenging. The small business segment is now seeing some improvement. He said that the bank will now focus on productive lending and mortgage lending. The bank has introduced ‘Home in One’, which is a first of its kind home loan facility that offers interest rates at 3.49% per annum. This facility will help the customers to repay the loan much sooner.
26th August 2016
Consumer debt a major concern in the UAE
Economists reported a rising level of personal and consumer debt in the UAE. The consumers are using credit cards and loans to buy automobiles and white goods. They are using personal loans to pay school fees, house rent and settle mortgages. Some consumers are borrowing from loan sharks to settle their personal loan instalments and credit card bills. The consumers are trying to juggle their borrowing and instead diving deep into the never ending cycle of debt. The average resident owes Dh42,600 on loans. Lenders have been conscious of extending loans due to the limited liquidity and because banks have to access centralised data of the borrower and their liabilities. These steps will hopefully reduce the defaults and improve the loan to deposit ratio.
19th August 2016