• Personal Loans in UAE

    Personal loans today are the preferred means of short term credit in the UAE. People prefer taking personal loans to using their credit cards for large expenditures like travel, purchasing large business assets, meeting expenses like weddings, college tuition, etc.

    Banks that offer personal loans in the UAE do so on the basis of two types of interest rates – flat rates and reducing rates.

    Flat rate of interest on a loan refers to when the interest and sum payable is calculated at the start of the repayment schedule, and does not change till the loan has been paid off. For example, A loan of AED 12,000 taken for a period of 12 months, means payments of AED 1,000 every month (without interest). Add to this the flat rate of interest at 5%, which equals AED 1,050 per month (with interest), for 12 months, which adds up to a total interest payment of AED600.

    Reducing rate of interest on a loan takes into consideration the fact that, after each instalment, the principal amount reduces. The interest percentage (which remains the same) is charged on the reduced amount, every month. Thus resulting in different instalment amounts each month.

    Popular Personal Loan Interest Rates in UAE

    Below is a comparison of the rates of interest* offered by some banks in UAE

    Personal Loan Table
    Bank Name of Personal Loan Interest Rates Tenure Maximum Loan Amount
    ADIB Personal Loan Non Salary Transfer 16% to 18% Up to 4 years Over AED 200,000
    ADIB Debt settlement 6.75% to 9.99% Up to 4 years Over AED 200,000
    ADIB Salary transfer 7.25% to 18% Up to 4 years Over AED 200,000
    ADCB Personal Loan for UAE Expats 4.99% to 13.99% Up to 4 years AED 3 million
    ADCB Personal Loan for UAE Nationals 4.99% to 13.99% Up to 4 years AED 3 million
    Emirates NBD salary transfer loans 2.63% to 4.99% Up to 4 years Up to AED 500,000
    Emirates NBD Personal loans for self-employed individuals 2.63% to 4.99% Up to 4 years Up to AED 500,000
    Emirates NBD Personal loans for self-employed professionals 2.63% to 4.99% Up to 4 years Up to AED 500,000
    FGB Personal Installment Loan 24% Not mentioned Up to AED 200,000
    FGB Salary Transfer loan 24% Not mentioned Up to AED 200,000
    Citibank Salary Transfer Personal Loan 4.99% to 14.99% 6 months to 48 months Up to AED 250,000
    NBAD Personal Loan Starting at 4.74% Upto UAE Armed Forces Personnel: 60 months UAE nationals and Expats: 48 months UAE Nationals: AED 5 million Expats: AED 2.5 million
    Mashreq Bank Personal Loan 6.25% Up to 48 months Up to AED 1 million
    NBF Personal Loan Starting from 6.25% Up to 48 months Upto 20 times the applicant’s salary
    CBD Personal Loan 4.50% Up to 48 months UAE Nationals: Upto AED 2.5 million Expats: Upto AED 1.5 million
    Noor Bank Personal Loan Reducing rate: 4.56% Flat rate: 2.75% Up to 48 months Up to AED 1 million
    CBI UAE Personal Loan 5.25% Up to 48 months Upto AED 500,000
    Finance House Personal Loan 16 to 24% Up to 48 months Upto AED 250,000
    United Arab Bank Personal Loan Starting at 5.49% Upto 4 years Up to AED 2.5 million

    *Rates are subject to change

    The aforementioned parameters help you make an assessment of the personal loan market in the UAE including the several benefits offered by most banks. Take an informed decision based on your personal financial requirements and not compromise on the little joys of life.

    Top UAE Banks with Personal Loan Products

    Abu Dhabi Commercial Bank (ADCB)

    The Abu Dhabi Commercial Bank offers made-to-measure personal loan packages for UAE Nationals as well as expatriates residing in the UAE. The personal loan offers come with low interest rates, higher salary multiples and flexible eligibility criteria.

    Some of the other features and benefits that of ADCB personal loans are

    • Free credit life insurance
    • Longest repayment period
    • Consolidation of loans available
    • Simple documentation
    • Free ADCB credit card
    • Up to 3 times salary overdraft for UAE nationals and 2 times for expatriates.

    Abu Dhabi Islamic Bank (ADIB)

    The Abu Dhabi Islamic Bank offers instant approval and provides personal loans of up to one million Dirhams at a highly competitive profit rate. ADIB personal loans can be used to settle conventional finance and credit cards as well and offer repayment periods of up to 48 months.

    Some of the other features and benefits of ADIB personal loans are:

    • Freedom of trading with the shares at your will (after purchasing them from ADIB)
    • 1% Processing Fees (Min AED 500 and Max AED 2,500)
    • No installment for the first three months
    • Free postponement option
    • Free ADIB VISA Cashback Card

    Dubai Islamic Bank (DIB)

    The Dubai Islamic Bank offers personal loans at an excellent profit rate of 8.82% and a high finance amount, and is considered one of the best in the UAE at present. DIB offers upfront cash payment to the customer with no early settlement fees and a maximum loan repayment period of 48 months.

    Some of the other features and benefits of DIB personal loans are:

    • Fixed arrangement fee ranging between AED600 and AED800
    • Maximum finance amount of 2 million Dirhams for UAE nationals and 1 million Dirhams for expatriates.

    Emirates NBD

    The Emirates NBD provides people with personal cash loans at competitive interest rates, low monthly payments and long repayment periods of 1 - 4 years. One of the main features of this loan is that it offers financial assistance to even those who are employed by companies that are not on the Emirates NBD approved list.

    Some of the other features and benefits of Emirates NBD personal loans are:

    • Minimum loan amount up to AED 500,000
    • Loan repayment period of 1- 4 years.
    • Effective rate of 5.38% per annum.

    Emirates Islamic Bank

    Emirates Islamic Bank offers personal loans based on a Murabaha arrangement through trading of Shari’a compliant instruments like shares or Wakala certificates. Their personal loans come at very competitive profit rates and are available to both salaried and self employed customers.

    Some of the other features and benefits of Emirates Islamic Bank personal loans are:

    • Financing up to 3 million for UAE Nationals and 1 million for Expatriates.
    • Approvals in 24 hours
    • Preapproved credit card and 100% discount on first year's annual fees
    • Nominal processing fees
    • Exclusive policy terms on buyout loans/finances
    • Certificate of Takaful / Insurance Cover

    National Bank of Abu Dhabi (NBAD)

    The National Bank of Abu Dhabi offers personal loans at very low interest rates of 4.49% per annum and provides loan amounts of up to 5 million Dirhams for UAE nationals and 2 million Dirhams for expatriates.

    Some of the other features and benefits of NBAD personal loans are:

    • 25% discount on processing fee for Elite Gold customers
    • First repayment after 90 days for buyout loans
    • Option to switch to fixed rate at any time with no additional cost involved.


    RAKBANK is the trading name of the National Bank of Ras Al-Khaimah PJSC. It offers high personal loan amounts at low interest rates with flexible repayment periods of up to 48 months for both UAE nationals as well as expatriates and 60 months for staff of the Armed Forces.

    Some of the other features and benefits of RAKBANK personal loans are:

    • Quick approvals
    • Top up loan after 1 year
    • Hassle-free takeover from other banks
    • Free Debit Card and personalized cheque book
    • Free Credit Card with no annual fee and low interest rates

    Mashreq Bank

    Mashreq Bank offers personal loans of up to 1 million Dirhams with a 24 hour loan disbursal. A major feature of their personal loan is the cash back the customer will receive at the time of disbursal, which amounts to an extra 1% of the loan amount. Mashreq Bank also offers a loan repayment period of up to 4 years with an easy and straight-forward documentation and application process, with an option for Islamic Finance as well.

    Types of Personal Loans

    Salient Features and Benefits of Personal Loans

    Some of the salient features of personal loans offered by banks are as listed below

    • High loan amounts (i.e. AED 200,000 to 5 million for UAE nationals) based on monthly salary and length of employment of the customer.
    • Several banks offer attractive reducing interest rates starting from 4.99% or 2.63% flat p.a. depending on customer income and loan amount based on the type of calculation they choose: reducing or flat rate.
    • Different packages for salaried and non-salaried customers i.e. Emiratis and Expatriates.
    • Almost all banks offer loan tenures of up to 48 months.
    • Most banks offer optional insurance coverage.
    • Minimum salary required starts from AED 3000 depending on the customer’s profile and income.
    • Several banks offer free lifetime credit card.
    • Life takaful coverage which is an Islamic insurance product is offered by various banks.
    • Customers can opt for top-ups depending on salary hike or as per their requirements.
    • Several banks offer maximum loan amount up to 20 times of monthly gross salary of their customers.
    • Some banks offer no payment option for the first two months.
    • Most banks offer the option of Islamic finance to customers.
    • Pull-over finance from other banks is offered in some cases.
    • Several banks offer value-added banking services apart from instalment deferred option.
    • Free debit card is offered by several banks to expatriates.
    • Customers can also avail the loan return option which is often offered by some UAE banks.

    Personal Loan eligibility for UAE Nationals and Expats:

    Loan eligibility in the UAE can differ from one bank to another, but the general eligibility criteria for most banks in the UAE is:

    • The applicant must be a minimum of 21 years of age
    • The length of service can range from one month to six months
    • The applicant must be drawing a minimum salary ranging from AED 3,000 to AED 5,000, and in some cases it may rise up to AED 15,000.
    • Salary transfer is generally a requirement
    • At the time of maturity, the maximum age for UAE nationals is 60 years and for expatriates 65 years.

    Personal Loan documentation required:

    The documentation required to avail of personal loans in the UAE can vary from bank to bank as well. However, the general documentation required usually consists of the following:

    • Completed loan application form
    • Identity documents (Passport copy, VISA copy, Emirates ID)
    • Copy of valid passport with valid UAE residence visa for expatriates (Original required for verification)
    • Salary transfer letter / salary certificate (For salaried employees)
    • Bank statements - 3 to 6 months
    • Trade license (For self-employed customers)

    Banking sector in UAE

    The banking sector in UAE is, by and large, protected, albeit, the presence of foreign banks has gradually been on the rise in the recent past. There are about 46 banks (including foreign banks) operating in UAE. Banks incorporated in Dubai and Abu Dhabi contribute almost 90% of the total domestic assets.

    Islamic banking in UAE, was legalized in 1985. As per Islamic banking, banks cannot charge fixed interest rates on loans or deposits. There is a view that the central bank of UAE can only play a limited role in terms of setting interest rates and monetary policy as UAE currency is pegged to the US dollar.

    Expatriate population

    There is a view that most UAE banks, by and large, are wary of becoming dependent on a personal loan market share (most banks do not have robust credit reports) owing to an expatriate workforce which, more often than not, does not have a long-term residency status. Expatriates in UAE can, therefore, open a bank account or avail any service only after they furnish a guarantee letter from their employers in addition to other guarantees.

    Personal Loan in UAE - FAQ

    1. Will the death of the personal loan applicant affect the family?
    2. Personal loans taken from banks like Emirates NBD are automatically insured at a nominal fee and in the event of an untimely death the partner insurance company covers the entire loan amount, protecting the family from financial risk.

    3. Do I need to provide security for my loan?
    4. Assets are not required as security against your loan

    5. Are there any advance costs involved when applying for a personal loan?
    6. Generally the only advance costs pertaining to a personal loan are processing and insurance fees

    7. What is Murabaha?
    8. Murabaha is the sale of goods as ordered by the customer with a price consisting of cost plus promised profit margin paid on deferred installment payment.

    Relevant Blog Posts on Personal Loan

    Why the UAE Economic Slowdown Can Hurt Your Chances of Getting a Loan

    It sure seems like this year is going to be tough for our oil-dependent economy, what with the crude oil prices constantly going down – lower by around 70% in the last 2 years! While the government tries to work out a plan to increase non-oil revenues (did you know that over 60% of the UAE budget is funded by oil revenues?) and spend less on infrastructure, the banks are worried about bad debt from small and medium enterprises (SMEs). Read More…

    News about Personal Loan in UAE

    • 7.5% growth in personal loans in the UAE

      According to NBAD, the average debt of a person in the UAE now stands at Dh42,600. The total personal loan debt reached 430 billion during the 2016 second quarter. Many households are feeling the pinch as there is no cash buffers as the economic environment remained subdued due to the decline in oil prices. The employment opportunity is limited, there have been job cuts but the high cost of living is putting pressure on the household budgets. The major concern according to a significant number of residents is that the cost of housing is high and the rise in education and utility bills also add to the problems. The rise in the personal loan is a huge concern as the population isn’t expanding as fast as it used to. The deposits aren’t strong and the banks are relying on borrowed funds.

      19th August 2016

    • Demand for Line of Credits Slowing Down

      The demand for loans seem to be slowing down especially in the business loan sector and personal loan sectors. The slump in demand has been felt particularly strongly in Dubai but has been a trend across UAE during the second quarter of 2016 and was confirmed through the latest report from the Central Bank of the country.

      The slump in demand can be attributed to higher standards of credit. Defaulting loans has become a prime concern and due to the higher degree in averting risk, the standards for considering a loan application as viable have become much more stringent. The central bank survey also showed that the decline for business loans will continue into the third quarter of 2016. But individual requests such as car loans have only seen a moderate decline.

      14th July 2016

    • UAE Residents looking out for Finance details online

      It is seen that the majority of UAE residents are searching for financial products online. It is revealed by a survey made by one of the leading financial comparison sites in the UAE. According the survey, the search for financial products such as Credit Card and Personal Loans has gone up remarkably in the 1st quarter of 2016 compared to 2015. Also, the search for mortgage without salary transfer has increased by 450%. Simultaneously, the search for Islamic finance loan and Islamic finance mortgage has gone up by 240% and 380% respectively. The search for air miles and cashback benefits has also increased to 367% and 500% respectively. Also, the search for free credit cards has gone up by 543%.

      29th June 2016

    • CSR Initiatives introduced by Emirates Islamic for Holy Month of Ramadan

      With the onset of the holy month of Ramadan, one of the largest Islamic financial institutions in the country, Emirates Islamic has introduced a slew of promotional activities and CSR initiatives.

      To spread joy during this holy month, Emirates Islamic has joined hands with a range of service providers that aim to make the lives of those in need easier and happier. Initiatives include the partnering up with the transportation company ‘Careem’ and providing free rides to the mosque.

      Iftar Meals are also provided through their partnership with Dar Al Ber. Along with this, Emirates Islamic has also sponsoring the Dubai International Holy Quran Award.

      14th June 2016

    • Islamic Banks in UAE Now Offering Loans for Payday

      In UAE, companies generally offer their employee's salary advance in the case of an emergency or even for a vacation. Also there are provisions by banks in the country to take loan against their salary credit. Some of these banks include Dubai Islamic Bank (DIB) along with ADCB (Islamic Banking) who provide this advantage to their existing and new customers as long as their salaries are credited regularly to the bank.

      This type of loan is already popular in America, Europe and Africa, and it is picking up pace in UAE with some banks in the country offering this advantage too. Dubai Islamic Bank (DIB) has a particular scheme allowing borrowers to withdraw up to 90% of their salary. They charge AED 295 for every transaction for this salary in-advance advance facility AED 1,000 to AED 13,500. For withdrawing a salary advance within AED 13,501 to AED 30,000, a service fee is charged amounting to AED 500 for every transaction.

      07th June 2016

    • New Short-Term Loans From banks in UAE

      ADCB Smart Cash Loan

      ADCB’s Smart Cash Loans comes with the advantage for people earning DH 8,000 to be able to borrow and also not having to transfer their salary to ADCB on the condition that they submit post-dated cheques. The maximum loan amount that can be borrowed is DH 150,000, has tenures of up to 3 years or 36 months. Customers can also earn points for the bank’s loyalty scheme. One needs to be aware of their high annual reducing rate which is from 18% to 24%.

      Emirates NBD Short-Term Cash Loan

      People residing in UAE and who are earning over DH 5,000 can use this short-term cash loan from Emirates NBD receiving a DH500 voucher as an offer. The loan has a reducing rate starting from 3.99%. The loan tenure is only 12 months and failing to pay regularly will leading to penalties.

      HSBC 12-month Personal Loan

      People residing in UAE and who are earning over DH 7,500 can use this loan to meet immediate monetary requirements. He or she should be between 21 and 65 years. People borrowing more than DH 50,000 would be offered 20,000 Air Miles. Interest rates range from 5.99% annually on a reducing balance. The applicant must have a debt-burden ratio should be less than 50%.

      28th May 2016

    • GCC Banks To face Liquidity crush and tighter monetary policy

      Liquidity squeeze and tighter monetary policy to become heavy on the GCC banks. These are two main challenges most of the banks in the Middle East and North Africa region are going to face in the coming days. This is revealed by a report namely “MENA Financials-Selective Opportunities” released by Arqaam Capital. The report also highlights the Non-Performing Loans evolution is minimizing deterioration in assets quality of the banks. The report also expects that there may be limited revenue growth for Gulf banks.

      05th May 2016

    • UAE lending to increase further

      The appetite for personal credit has grown stronger says a Credit Survey that has been issued by the UAE Central Bank. The survey respondents suggested that the low oil prices have had a negative impact on the loan demand and this has led to the tightening of the credit standards. Personal loan demand strengthened and has moved back to positive growth territory. The demand for personal loan has grown at a slower pace when compared to the demand for business loans. The June quarter showed a positive stance and suggested a modest growth of demand. The demand for loan was most evident in Abu Dhabi. The second quarter is expecting demand for business loan to increase. The business loan demand increase is expected to increase for industries except mining and quarrying.

      22nd April 2016

    • UAE residents retirement saving and paying off loans, Trending Higher

      It has been noticed that more UAE residents have started saving for retirement, based on the findings of a report published by the National Bonds Corporation recently.

      This second-quarter survey by NBC, Dubai-based savings and Investment Company realized that more people are paying off personal loans, which showing that the cost of living in the Emirates is on the rise and that the residents are struggling to make ends meet.

      42% of respondents to the survey mentioned that they saved for retirement, a 6% point rise from the first quarter of this year, which is drastic.

      The company is trying to encourage financial literacy especially because of consumer lending being on the rise.

      22nd April 2016

    • Abu Dhabi Debt Percentage Shows Improvement

      Less percentage of family heads in the Emirate of Abu Dhabi were under debt in 2015 compared to the previous, a report by National Family Status Observatory (NFSO) has said. In 2014, 24 percent of family heads were in debt, while in 2015 the number declined to 19.9 percent.

      Abu Dhabi Department of Economic Development (ADDED)’s Deputy Undersecretary Khalifa Bin Salem Al Mansoori said these figures indicate improvement in loan behaviour of UAE nationals, especially in terms of personal loans.

      The NFSO report also revealed that car loan was the most popular loan, taken by 46.8 percent of the survey respondents. This was followed by 34.8 percent who took a home loan. The remaining admitted to taking personal loans for travel, wedding, investment and other reasons.

      This data was included in the Economic Performance Report 2015 based on a survey conducted by the Statistic Centre - Abu Dhabi (SCAD) for ADDED.

      06th April 2016

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