People face varied financial challenges, most of which come as emergencies. Therefore, you will need to have some access to urgent financial services, including personal loans, to solve urgent needs.
UAE now offers loans to both nationals and expatriates in the region. If you work in the UAE, there are high chances that you will qualify for a personal loan.
We regularly survey and analyze available loans in the UAE to give you up-to-date information on UAE loans. This article shares vital details on getting a personal loan on a 1500 salary in the UAE.
What Do I Need To Know About UAE Loans?
With a 1500 salary, getting a loan in the UAE may be difficult. This is because many lenders require a monthly salary of at least AED 5000 to approve personal loans. Here are essential things to know before applying for a loan with a 1500 salary in UAE.
Terms Provided By The Central Bank Of The UAE
According to the Central Bank of the UAE, anyone in the UAE can apply for a personal loan secured by their salary and end of service gratuity or any other regular income earned from a well-defined source.
Other terms of personal loans in the UAE include:
- A personal loan should not be more than 20 times your total income’s salary value.
- The repayment period for personal loans should not be more than 48 months.
- Monthly deductions should not be more than the salary of the borrower.
- If a loan extends to the retirement age, lenders must reduce the repayment to allow a deduction of only 30% of the pension or income.
- All lenders must compute and declare the interest rates they charge on loans and must be determined based on reducing the loan’s balance on annual terms.
High-Interest Rates
Since many banks will not readily give you a loan with a 1500 salary, you may be forced to get a personal loan from private lenders. However, they charge unhealthy interest rates and may not be a good option anyway. The rates can be as high as twice standard bank rates!
Age Criteria
You will generally need to be 21 years old to qualify for a personal loan in the UAE. Lenders will therefore need to confirm proof of your age by looking at your Emirates ID card or passport.
On the other hand, UAE nationals must not be older than 60 years, while ex-pats must not be older than 65 years at the time of application.
Good Credit Score
The credit score is the other key factor lenders consider when deciding whether to qualify for a personal loan. Therefore, a bad credit history will lead to automatic disqualification, while a good one may easily shorten your application prequalification process.
Employment Status
Many banks also require that you should have been working for your current employer for the past one to six months or more.
If you have been in employment with your current employer for more than six months, you will have much more chances to qualify.
Listed Company
Banks generally list particular companies in the UAE to make it easier for their employees to get loans. This is likely to increase your chances of qualifying for a loan with a 2500 salary.
Minimum Salary
It is almost impossible to get a personal loan with a 1500 monthly salary in UAE. This is because many banks in the UAE require a minimum salary of AED 3000 or more to approve personal loans.
However, you can still get a First Abu Dhabi Bank Revolving Overdraft facility with a minimum of AED 2000 salary.
Lengthy Documentation Process
Because UAE banks may not quickly approve a personal loan with a 15000 salary, they will often expose you to a lengthy and highly detailed documentation process. In addition, it may not be very easy for you to fulfill the required documentation.
Here are some of the documents you may need to present when making an application.
- Salary certificate
- Emirates ID for nationals
- Salary transfer letter, where applicable
- Bank account statement
- Trade license for business people
- A valid passport for expats
- Residence visa for expats
- Loan application form
Advantages Of Opting For A Personal Loan In UAE With A 1500 Salary
Getting a personal loan in the UAE can give you a lot of financial advantages, especially with a low salary.
Here are some of the reasons you should consider getting a personal loan with a 1500 salary in the UAE.
- The loan is collateral-free
- Personal loans can help you fulfill personal expenses while working in the UAE, such as emergencies and business investments.
- Personal loans can help you stay longer in a company, as many lenders require, as an employer may not release you until you have fully repaid the loan.
- Loan approval takes a short time, and you get the total amount you apply for
- A personal loan with a 1500 salary will help you maintain a good credit score which will help you qualify for higher loan amounts in the future.
- Eligibility criteria are effortless.
- The application procedure is hassle-free, with a few documents required to verify eligibility.
Types Of Personal Loans In the UAE
With a 1500 salary, you can still get various personal loans in the UAE. Some of these include:
- Loans without company listing,
- Loans for nationals
- Loans for self-employed professionals
- Loans requiring salary transfer.
Different lenders will ask for different documentation to qualify your loan. Also, additional eligibility criteria may be required.
Banks Offering Loans
As we mentioned already, it is not very easy to get banks in the UAE that offer loans on a 1500 salary. You can, however, try the First Abu Dhabi Bank (FAB) Lifeline
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