A personal loan is money borrowed from a bank, finance company or money lender in UAE that you pay back in fixed monthly installments,
typically over one to four years, along with interest. The annual percentage rates on Salary Loan in UAE from mainstream lenders can range from 3% to 25% and from finance companies range from 12% to 39% depending on the customer’s credit score.
Types of personal loans in UAE.
They are two types of personal loans. Secured loans and unsecured personal loans however 70% of loans in UAE are unsecured, which means they aren’t backed by collateral. A salary loan in UAE is not backed by any collateral.
A Secured loan is backed by collateral e.g. backed by a car or house, typically these kinds of loans are cheaper, but you can lose the asset if you default on paying it back.
Unless you qualify for a 0% interest balance transfer credit card, the rates on personal loans are typically cheaper than those on credit cards, and the amounts you can borrow are usually higher. If you have big balances on multiple high-interest credit cards, a personal loan can help you. consolidate the debts into one payment at a lower rate. let’s learn more about Salary transfer personal Loans in UAE.
Salary Loan in UAE.
A salary loan is a type of loan where the borrower is required to transfer his/her salary to the bank and provide an STL from the company authorizing the bank to issue a personal loan to the borrower on a condition that they will notify the bank of any changes in the terms of employment of their employee.
The interest rates on most Salary Loan in UAE range from 3% to 25% depending on the customer credit score and company category.
How to apply for a salary loan in UAE.
Applying for a salary loan is a very simple process especially if the borrower understands the entire process very well. The only complex issue involved is looking for the best rate for your Salary Loan in UAE and knowing the bank that will approve your loan as per your financial need.
Let’s take you through the steps you should take to apply for Salary Loan in UAE.
Step 1.
Inquire with your bank about their requirements for Salary Loan. Most banks in UAE have standard requirements any borrower wishing to apply for a personal loan must fulfill before the loan is provided to them and these may include the following.
- A minimum salary requirement. Most banks set their minimum salary requirement at DHS 5000 to 8000.
- The company category. Almost all banks in UAE only process loans for customers working with the bank listed companies.
- If you qualify for the first and second point then check with your company HR policy if they issue salary transfer letters to the employees. If they do go ahead and put in your request to get a salary transfer letter for your loan. Read more
- Prepare your KYC documents ie a copy of Passport copy, Emirates ID copy, visa copy and salary certificate.
- Fill a complete loan application form and provide all the documents to the bank agent and wait for the feedback after one to two days. check how we can help.
- The assigned bank agent will contact you with the status of your loan and the loan details including the interest rate and the amount approved.
- Once you’re OK with the terms and conditions of the approval details of your loan. The loan will be booked. learn more.
Here is how we make the all process simple for you once you apply through Moneymall.info for your salary loan in UAE.
we shall help you save on your loan.
For example if your bank approves your loan at 9% and another bank would be willing to offer you 5% on your loan. It means you would save 4% on your loan if you applied through moneymall.info since our loans portal helps you submit your application to over 10 banks in uae and all will get back to you with their offers and therefore you’re in position to choose the best rate for your loan.
we advice that you compare rates from multiple banks before choosing to apply for salary loan in abudhabi. The loan with the lowest rate of interest is the least expensive — and therefore, usually the best choice. learn how we can help you on this.
What rate should I expect for my salary loan?
Rates vary from lender to lender and depend heavily on your credit history and ability to repay, expect a rate from a flat rate of 5% to 13%.
Know this before you apply for a salary loan in UAE.
Borrowers with excellent credit and low debt-to-income ratios may qualify for interest rates at the low end of lenders’ ranges.
Someone with poor or average credit score may be able to get a salary loan on the strength of a steady income and low debt levels but expect rates near the higher end of the range — up to 20%.
Some lenders say they don’t have minimum credit score requirements, but that doesn’t mean they don’t check your credit report. Knowing your credit profile before you apply can help set expectations. Several personal finance websites, including moneymall.info, offer a free assessment and credit advice on salary loan process. Look for a site that offers educational tools such as a moneymall.info.
If you can’t qualify for a salary loan through your bank, don’t head to a payday lender just yet. We shall try to connect you to the right finance company in UAE that will provide you the right loan for you. Check also credit cards for non listed companies in UAE.
Feel free to contact us if you need help with applying for your salary loan. We shall be happy to help you.