As an ex-pat, banks in UAE welcome your request with open arms, provided you have a residency (employment or business) visa. Yes, a personal loan for expat is possible in UAE from the bank provided he meets the required eligibility criteria as defined by the bank.
Expat is an abbreviation used for Expatriates. An expatriate in UAE is a person who is a non-UAE/ foreign national living in the country either for a job or business. Almost 70% of the UAE population is of ex-pats coming from different countries across the world. With only 25-30% local residents, UAE has managed to accommodate all nationalities with a spirit of equality. As an expatriate, while in UAE, it may happen that you need some financial assistance to meet an immediate financial requirement when you are also falling short of savings. These loans can be with Salary Transfer or loans without Salary Transfer.
There are no standard criteria for all banks to apply for a personal loan in UAE. This varies for each bank. However, some of the basic requirements which must be fulfilled are listed below:
- The minimum age should be 21 Years.
- The minimum salary should be at least AED 5000.
- The minimum credit score needed is 650, however that depends on bank to bank.
- Minimum 6 Months should be completed in current employment.
Some other criteria can be:
- Listing of Company (Listed or Not-Listed with the bank): An employee of a company Listed with a particular bank has a plausible opportunity to avail loan from that bank. However, there are many banks that easily offer loans to Non-Listed company employees as well with a slight difference in the interest rate.
- Financial History: Apart from your credit score, in order to apply for a personal loan in Dubai, UAE, banks also ask for your bank statement to verify your salary and to check your financial history. A person with a fair and balanced financial history stands a better chance of a loan getting approved.
- Debt Burden Ration (DBR): The bank from your bank statement and other collected information also checks your Debt to Burden Ratio to check the feasibility of loan re-payment.
Documents required for submission by an Expat for Personal Loan in UAE:
- A valid passport, visa, and national ID (Emirates ID)
- Duly filled & signed Loan Application
- Salary Certificate (for salaried employees)
- Bank statement of 6-12 months (as per bank criteria)
- Recent utility bill in applicant’s name (as per bank criteria)
Published By: UAE Cash Loans Team
Published On: 11th May 2021