Lot of times it happens that you get over burdened with multiple liabilities. Same time you have to manage Loan installment, Car installment, Credit card bills and all regular expenses. Gradually a situation comes when with a fixed limited income or salary it gets more and more difficult to manage all expenses and you end up being a defaulter. Your credit worthiness decreases, your Credit Score goes down day by day, resulting no other Bank or Financial Institution take a chance to lend you more money.
Before this situation arrives its always better to opt for a Buyout Loan. By choosing Buyout Loan you can consolidate all your loans and credit cards into one easy monthly installment. Get rid of multiple liabilities and live freely. All expats and UAE National may apply for a buyout Loan. Easy availability up to 20 multiples of Salary.
Eligibility to apply Buyout Loan
- Minimum age of the applicant should be 20 years and maximum 60-65 years old.
- Minimum salary of the loan applicant must be AED 5000 or above.
- Loan applicant must have a clear and healthy credit score with a minimum score of 650 or above.
- Loan applicant must have completed 6 month in the current organization or should be on paper confirmed employee.
- Loan applicant must be ready to transfer salary to lending bank.
Documents needed to apply Buyout Loan
- Loan applicant must provide Passport Copy, Visa Copy and Emirates ID Copy.
- Loan applicant must provide a valid Salary Certificate or Payslip
- Loan applicant must provide 3 to 6 month Salary account statement showing regular salary credits.
- Loan applicant must provide a valid Salary Transfer Letter address to lending bank as per the bank format.
- Loan applicant have to provide Liability Letters of all existing liabilities that need to be consolidated.
Top Banks Providing Buyout Loan
Frequently Asked Questions
Debt Burden Ration is the % of your income every month you are paying to your liabilities. In UAE at per Central Bank law no one can go above 50% and therefore pay more than half of their income in debt repayment.
Debt Burden Ration should not be above 50% of your salary. DBR can be calculated by adding up all your installments and 5% of total Credit Cards limits.
Ex: Your Salary is AED 5000. You have Personal Loan Installment of AED 1200 and Car Loan Installment of AED 400 and 2 Credit Cards with total limit AED 10,000. So your monthly liability is AED 1200 + AED 400 + AED 500 (5% of Credit Card Limit) = AED 2100. And your DBR is AED 2100 / AED 5000 x 100 = 42%.
If after consolidation of all your liabilities your DBR comes down below 50%, then yes you can apply for a Buyout Loan.
May 3, 2020
April 30, 2020