Personal Loans in UAE

Personal Loans in UAE is considered an unsecured loan where there is no need of any collateral. Personal Loan in UAE can be availed by both UAE Nationals or Expats working in UAE.  Eligibility to avail personal finance in UAE depends on various factors like monthly income, employment status, age, tenure of employment, and most importantly your Credit History.

As per the UAE Law, maximum Personal Loan amount can be availed up to 20 times of the Monthly Salary with a maximum repayment tenure of 48 months.

Personal Loans Interest Rates 

Flat Rate: The calculation on a flat rate loan is based on the total principal of the loan itself and the interest rate calculated for each individual pay period. For example, a loan of AED 1,200 at a rate of 5 percent for one year would be paid on the basis of paying back AED 100 per month for 12 months. At a rate of 5 percent, the monthly interest payment would be AED 5.

Reducing Rate: In reducing rate loans the principal amount of the loan will drop by a certain amount each month, depending upon how much is paid back on a monthly basis. Therefore, the actual amount of interest charged on a monthly basis gradually reduce over time.