If you are looking for a personal loan in Dubai, look no further – all you need to know is here at BankBazaar.ae. Here you can find the best personal loan interest rates – in both conventional and Islamic banking – in Dubai city and apply for the finance of your choice.
Dubai is the commercial hub of the UAE, and the banking sector is very strong in the city. According to industry experts, this is a good time to take a personal loan as the interest rates are finally stabilising. In the last year, as per a research by Gulf News, interest or profit rates on salary transfer loans have decreased from 7.2 percent to 6.9 percent on an average, while the average lending rates on non-salary transfer loans have fallen slightly from 15 percent to 14.7 percent.
Why Take a Personal Loan in Dubai?
The main features of personal loans that make it a convenient financial instrument are:
- Personal loans are unsecured loans, which means that you are not endangering any asset and you don’t need any guarantor to get the loan.
- You can use the personal loan for any purpose and hence offer you more flexibility.
- Personal loan documentation is simple and can be availed with the least trouble.
- Personal loans come at competitive interest/profit rates.
- Most of the banks offer personal loans, so you can shop around and compare to find the one that suits you the best.
- You can save your expense and interest payments on credit cards by taking a personal loan instead.
Types of Personal Loans in Dubai
You can get 3 main types of personal loans in Dubai: Personal Loan, Islamic Personal Finance and Debt Settlement Loan. Islamic Personal Finance works on the principle of Goods/Shares/Certificates Murabaha, where interest is not charged but goods are sold between the bank and the customer and the bank keeps the profit made on the sale. Debt Settlement Loan is a great way to consolidate your existing small debts and ensure better money management. You can also get a Top-Up Loan which allows you to get additional funds, if your repayments have been prompt and regular.
While all major banks offer personal loan and Islamic personal finance, debt settlement loans are available only with a few banks. Both the UAE nationals and expatriates can get personal loans in the UAE. You can get personal loans in both salary-transfer and non-salary transfer formats, but if you do not have a salary transfer account with the bank, the interest rates would be higher.
Banks That Offer Personal Loan in Dubai
Dubai is host to a lot of banks, while all other UAE banks also have branches and offices in the city. This includes conventional banks and Islamic banks. Almost all these banks offer personal loans to customers, including Islamic banks, where you can get personal finance on a Murabaha basis. The important banks in Dubai include:
- Emirates NBD
- Emirates Islamic Bank
- Commercial Bank of Dubai (CBD)
- Dubai Islamic Bank
- Mashreq Bank
- Noor Bank
- First Gulf Bank
- Commercial Bank International (CBI)
- HSBC Bank
- Abu Dhabi Commercial Bank (ADCB)
- National Bank of Fujairah (NBF)
- National Bank of Abu Dhabi (NBAD)
- National Bank of Umm Al Quwain (NBQ)
- Standard Chartered Bank
- Citibank Dubai
How to Choose the Best Personal Loan in Dubai
Before you select a personal loan, keep these points in mind:
- Dubai is a shopping city and has a higher cost of living than many other emirates in the UAE. So ensure that the loan amount you take does not get used up in shopping and entertainment if your reason for taking the loan is of greater priority.
- Find a bank that gives the loan amount that you require, instead of choosing a bank and then adjusting your money requirements to suit the bank’s criteria.
- Compare the interest/profit rates of banks before finalising the loan. The higher the interest rate, the more money you’ll end up paying the bank.
- Personal loans have to repaid in 48 months. Decide your loan amount keeping this in mind. If you default on payments, your credit score will be affected and your credibility will decline.
- Check the privileges that come with the loan – some banks offer you free credit/debit cards with the loan, while others offer discounts on processing fee, free job loss protection and life insurance cover on the remaining loan amount.
Best Personal Loans in Dubai
Let us take a look at some of the best personal loans that you can avail if you live in Dubai.
- Noor Bank Personal Finance: Noor Bank Personal Finance profit rates are among the lowest, starting from 2.75%, and the tenure can be extended up to 4 years. Your salary should be at least AED 5,000 to get this loan. Noor Bank will give you up to AED 2 million for UAE nationals and AED 1 million for expats.
- Emirates Islamic Personal Finance: With Emirates Islamic Bank, an Emirati can get up to AED 3 million as personal finance and expats can seek up to AED 1 million. The bank also waives off the first year’s annual fees and offers a profit rates starting from 4.69%. The minimum salary requirement is AED 5,000.
- CBD Personal Loan: Commercial Bank of Dubai (CBD) offers personal loans at a competitive reducing interest rate starting from 4.5%. The bank offers up to AED 2.5 million for UAE nationals and AED 1.5 million for expats, but requires your minimum salary/monthly income to be AED 8,000.
- NBAD Personal Loan: NBAD offers many kinds of personal loans: for UAE nationals, for expats, start-up loans, buyout loans, debt consolidation loans, secured loans and landlord loans. The normal personal loans start at an interest rate of 4.74%. While UAE nationals can get up to AED 5 million, expats get up to AED 2 million. The minimum salary requirement is AED 7,000.
- Citibank Salary Transfer Loan: If you have a salary transfer account with Citibank, you can get loans of up to AED 250,000 or 20 times your salary. Interest rates start from 4.99%, but the minimum salary requirement is only AED 5,000.
- ADIB Al Khair Debt Settlement Loan: With a minimum salary of AED 5,000, you can get up to AED 1 million as debt settlement loan for expats and AED 3 million for UAE nationals, from ADIB. The annual profit rate starts from 6.25%.
Once you decide which bank you want to take the loan from, you can apply via BankBazaar.ae, through the bank’s website, or by visiting the nearest branch of the bank. But be aware that it’s easy to fall into a debt trap if you do not use personal loans and credit cards judiciously.