BankBazaar.ae will help you get all the information you need about personal loans in Abu Dhabi. Whether you need a conventional loan or Islamic finance, we provide you with all relevant details and support.
Abu Dhabi is the capital of the UAE and its second most-populated city. Though not as commercially up-to-date as Dubai, Abu Dhabi is a close second to having a strong banking sector. Both personal and business loans are taken in large quantities in Abu Dhabi. The current market conditions, with the interest/profit rates stabilising and even coming down slightly, are ideal for you take a personal loan.
Features of Personal Loan in Abu Dhabi
Personal Loans are a convenient financial tool because of the following reasons:
- Personal loans can be used for any purpose. This gives you more flexibility.
- Personal loans require very less documentation and are quick to avail.
- Personal loans don’t need you put any collateral guarantee.
- Personal loans come at competitive interest/profit rates.
- Personal loans can help you consolidate debt and reduce your interest payments.
- You can save your expenses on credit cards by using your personal loan wisely.
Types of Personal Loans in the UAE
Banks in the UAE offer 3 main types of personal loans: Personal Loan, Debt Settlement Loan and Islamic Personal Finance. With the help of Debt Settlement Loan, you can consolidate your existing small debts and manage your money better. Many banks also allow you to get a Top-Up Loan on your existing personal loan if your repayments are prompt. Under Islamic Personal Finance, you don’t have to pay interest but it involves Goods/Shares/Certificates Murabaha, in which goods are sold between the bank and the customer and the bank keeps the profit made on the sale.
All major banks offer personal loan and Islamic personal finance, but only a few banks offer debt settlement loans. Personal loans are available for both UAE nationals and expatriates, though the amount expats can acquire as loan would be less than what the Emiratis get. You can also get personal loans with a salary-transfer account in a bank and without, but a non-salary transfer loan comes with higher interest rates.
Banks That Offer Personal Loan in Abu Dhabi
Many banks in the UAE are headquartered in Abu Dhabi, and almost all other UAE banks have branches and offices in the city. The reputed banks in Abu Dhabi include:
- First Gulf Bank
- National Bank of Abu Dhabi (NBAD)
- Abu Dhabi Commercial Bank (ADCB)
- Abu Dhabi Islamic Bank (ADIB)
- Arab Bank
- Finance House
- Union National Bank
- Mashreq Bank
- HSBC Bank
- Commercial Bank of Dubai (CBD)
- Emirates Islamic Bank
- Emirates NBD
- National Bank of Fujairah (NBF)
- Bank of Sharjah
- Standard Chartered Bank
How to Choose the Best Personal Loan in Abu Dhabi
Before you select a personal loan, keep these points in mind:
- Abu Dhabi is the capital city of the UAE and its cost of living is higher than other emirate, except perhaps Dubai. Your personal loan amount should be decided based on this fact.
- Instead of choosing a bank and trying to meet its criteria, find the bank that gives you the loan amount that you require.
- Compare the interest/profit rates of banks before finalising the loan. If you choose a loan scheme with a higher interest rate, you’ll have to pay more money to the bank.
- Personal loans are available for a tenure of 48 months (2 years) only. So choose an amount that you will be able to repay in equated monthly instalments within this period.
- Check for additional perks the banks provide with a personal loan – you could get free credit/debit cards, discounts on processing fee, free life insurance and job loss protection cover, etc.
Best Personal Loans in Abu Dhabi
We have curated for you some of the best personal loans available in Abu Dhabi.
- ADIB Personal Finance: ADIB offers 5 types of personal finance: Personal Finance, Debt Settlement Finance, Instant Finance and Travel Finance. The normal personal finance is available to UAE nationals and expatriates with a minimum salary of AED 3,000 at a profit rate starting from 3.72%. While expats can get up to AED 1 million, UAE nationals can avail up to AED 3 million.
- CBD Personal Loan: Commercial Bank of Dubai offers personal loans at interest rates starting from 4.5%. Emiratis can get up to AED 2.5 million as loan and expatriates can get AED 1.5 million. The minimum salary/monthly income should be AED 8,000.
- HSBC Personal Loan: HSBC offers personal loan to persons with a minimum salary of AED 7,500 starting from an annual rate of 5.99%. UAE nationals can get up to AED 750,000 as loan, and expats are eligible for AED 600,000.
- United Arab Bank Cash Flow Loan: United Arab Bank offers a cash flow loan, which are smaller-amount funds to help you meet immediate requirements. The minimum salary requirement is AED 10,000 for salary-transfer customers and AED 20,000 for non-salary transfer borrowers. Interest rates start from 3.99%, and you can borrow up to AED 400,000.
After you decide the bank that you want to borrow from, you can apply via BankBazaar.ae, through the bank’s website, or by visiting the nearest branch of the bank. However, remember that it is easy to fall into a debt trap if you do not use personal loans and credit cards cautiously.