How to Get Personal Loan with 1500 AED Salary in UAE

All banks and finance companies in UAE provide personal loans on salary. The individuals who work in any part of the UAE are eligible to apply for a personal loan. But they must meet the eligibility criteria for a personal loan.

Every bank in UAE offers personal loans with some eligibility criteria and terms & conditions. The UAE residents, expatriates and citizens can get a personal loan if they are eligible and agree with bank’s terms & conditions.

Can I Get a Personal Loan with a 1500 Salary in UAE?

Yes, you can get a personal loan with a 1500 salary in UAE but not from any bank or finance company registered with Central Bank of the UAE. The person with a salary of AED 1500 per month can get a personal loan from private lenders.

The private lenders provide personal loans to individuals who are in urgent need of funds. But they charge a higher rate of interest that is almost double than any bank in the United Arab Emirates.

If you are in need of funds and agree to pay high interest, only then I recommend you to get a personal loan from a private lender. In case you do not want to pay high interest then avoid taking any loan from private lenders.

Can I Get a Personal Loan on a 1500 Salary in UAE from a Bank?

No, you cannot get a personal loan on a 1500 salary in UAE. Because the minimum salary required for a personal loan from a bank is AED 3000 in the United Arab Emirates.

Actually, the minimum salary criteria for a personal loan is different in every bank. The Dubai Islamic Bank offers personal loans to individuals with minimum salary AED 3000 per month. But other banks have higher minimum salary rules for personal loans.

In case your monthly salary is between AED 1500 and 3000, you are NOT eligible to get a personal loan from a bank or finance company in UAE.

Eligibility Criteria for a Personal Loan in UAE

Every bank in UAE has different eligibility and terms & Conditions for lending personal loans. However, some eligibility criteria are common among all banks.

Before you apply for a personal loan in UAE, it is necessary to know the eligibility criteria for it. Here I provide all important eligibility criteria for getting a personal loan in United Arab Emirates.

Minimum Age and Maximum Age:

To apply for a personal loan in UAE, the minimum age of the applicant must be 21 years. In addition, the maximum age of the applicant must be below 65 years.

In some cases, the banks have set maximum age limit of 60 years, so you should check the age criteria for a personal loan at relevant bank before you apply for it.

Minimum Employment Period:

Many banks in UAE check the employment status and period of the applicant. The minimum employment period for a personal loan is 6 months.

So, you must have worked with your current employer for 6 months or more at the time of applying for a personal loan. In case you have not completed 6 months at your current job, wait to complete it and then apply for a personal loan.

Credit Score and Credit History:

The bank checks the credit score and credit history of the applicant. If the applicant has a good credit score then the chances of a personal loan approval are more.

If you borrowed a loan earlier and paid its installments on time, you must have a good credit score. Timely payments of EMIs build a good credit history which helps the bank to trust you for a new personal loan.

The applicants with bad credit history are likely to have a poor credit score. The bank may not approve any loan to such applicants even if they meet other eligibility criteria.

Minimum Salary in AED:

Every bank has a different minimum salary condition for personal loans. Moreover, one bank offers different amount of personal loans with different minimum salary conditions.

After checking all personal loans from all banks in UAE, I realized that the minimum salary for a personal loan is AED 3000 as the lowest amount till date. This personal loan is offered by Dubai Islamic Bank for UAE nationals and expatriates.

It means that your salary must be at least AED 3000 to get a personal loan from any bank in UAE.

Salary Transfer:

The bank has a condition of salary transfer for approval of a personal loan. The salary of the applicant should be transferred in the account with the same bank where the applicant has applied for a personal loan.

Some banks may offer personal loans to applicants whose salary is transferred to their other bank accounts. But the personal loans with salary transferred in the same bank account offers more benefits

Here, I have explained all important eligibility criteria for a personal loan in UAE. With a salary of AED 1500, it is not possible to get a personal loan from a bank in United Arab Emirates. But I hope that the banks will offer micro loans to people with low salaries to help them manage their expenses.

Personal Loan Rules: Central Bank of the UAE [CBUAE]

The Central Bank of the UAE has set personal loan rules for all banks in the United Arab Emirates. The lenders (banks) and borrowers (applicants) of personal loans must know and follow the rules set by the Central Bank.

Here I provide the personal loan rules by Central Bank of the UAE as follows.

1. Individuals can apply for a personal loan, the loan will be secured by the applicant’s salary and end of service gratuity or any regular income from a well-defined source.
2. The amount of personal loan must not exceed 20 times of the salary value or the total income of the applicant.
3. The monthly repayment amount (EMI) of a personal loan cannot be more than half of the applicant’s salary.
4. The personal loan tenure or repayment period must not exceed 48 months i.e. 4 years together with previous condition.
5. If the loan repayment period is extended to retirement age, the bank or finance company must reduce the monthly repayment amount to 30 percent of the applicant’s pension income. For this reduction, the bank has to reschedule the personal loan repayment period/tenure.
6. The bank can take post-dated cheques from the customer (applicant) to cover loan installments not exceeding 120 percent of the value of the loan or the debit balance.
7. The bank must calculate and declare the rate of interest charged on a personal loan. The rate of interest must be determined with the method of using reducing balance of the loan on annual basis.

All seven rules are mandatory to follow for all banks and finance companies in UAE. When processing a personal loan or taking its installments, the banks must take every step as per guidelines set by the Central Bank of the UAE.

Bottom Line

Before you apply for a personal loan, you must check minimum age, maximum age, minimum salary and other eligibility criteria set by the bank. If you fit in all criteria then you should apply for a personal loan with all required documents.

The minimum salary required for a personal loan is AED 3000 in UAE. If you are looking for a personal loan with AED 1500 salary then you should get the loan from private lenders.

I have explained all important information about personal loans. I hope that you have learned everything about personal loan eligibility, terms & conditions, Central Bank Rules and minimum salary requirements.

FAQs

When you are looking for a personal loan, you have so many queries in mind. Here I provide some common questions and answers in brief. These FAQs will help answering your queries, so read them all thoroughly.