Buyout Loan in UAE: Lot of times it happens that you get overburdened 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 creditworthiness decreases, your Credit Score goes down day by day, resulting in no other Bank or Financial Institution take a chance to lend you more money.
Before this situation arrives it’s 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 ex-pats 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
|Personal Loan Provider
|Minimum Salary Required||Reducing Interest Rate|
|RAK Bank Personal Loan
|AED 5000||Starting From 5.99%|
|Dubai Islamic Bank Personal Loan
|AED 3000||Starting From 10.92%|
|Emirates Islamic Bank Personal Loan
|AED 5000||Starting From 7.34%|
|CBI Bank Personal Loan
|AED 8000||Starting From 6.99%|
|ADCB Roll Over Loan
|AED 5000||Starting From 6.99%|
Frequently Asked Questions
What is Debt Burden Ratio?
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.
How Debt Burden Ratio (DBR) is calculated?
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 a Personal Loan Installment of AED 1200 and Car Loan Installment of AED 400 and 2 Credit Cards with a 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%.
My DBR is above 50%, can I apply for a Loan?
If after the consolidation of all your liabilities your DBR comes down below 50%, then yes you can apply for a Buyout Loan.