Topic: How to get personal loan in UAE with low salary
Financial emergencies can arise unexpectedly, and having access to quick and accessible personal loans can provide crucial relief. In the UAE, where the cost of living can be high, securing a personal loan on a 5,000 AED monthly salary might still be challenging, but it’s more feasible compared to lower salary thresholds.
While many lenders might have stringent criteria, there are notable exceptions. Dubai Islamic Bank and RAKBANK are worth considering for those with a 5,000 AED salary.
In this blog post, we’ll explore the current landscape of personal loans in the UAE, particularly for individuals earning a monthly salary of 5,000 AED. We’ll discuss the challenges faced by borrowers at this income level, the eligibility criteria typically set by banks, and highlight how Dubai Islamic Bank and RAKBANK could offer viable solutions.
Why Securing a Loan with a 5,000 AED Salary Can Be Challenging:
Minimum Salary Requirements:
While many banks set higher minimum salary requirements for personal loans, often ranging from 5,000 AED to 10,000 AED, a 5,000 AED salary might still meet the lower threshold of some banks. However, you may encounter hidden requirements or stricter criteria in practice.
Affordability Concerns to get personal loan:
Lenders assess your ability to repay the loan based on your income and expenses. Although a 5,000 AED salary is better positioned to manage loan repayments, lenders will still scrutinize your financial stability.
Debt-to-Income Ratio (DTI) for UAE personal loan:
Your DTI ratio, which measures your monthly debt obligations against your gross income, is crucial. A high DTI ratio can raise concerns, even with a 5,000 AED salary, potentially impacting loan approval.
Credit History issue for personal loan:
A good credit history enhances your chances of loan approval. If your credit history is limited or has issues, it can further complicate securing a loan, even with a moderate salary.
Banks Offering Personal Loans for a 5,000 AED Salary:
Despite the challenges, some banks in the UAE understand the need to support individuals with a 5,000 AED salary.
Dubai Islamic Bank (DIB):
As the largest Islamic bank in the UAE, Dubai Islamic Bank offers Sharia-compliant financial products and services. They provide personal finance options with a minimum salary requirement of 5,000 AED.
DIB Personal Loan Highlights:
Loan Amounts: UAE Nationals can receive up to 4 million AED, while expatriates can obtain up to 2 million AED.
Profit Rates: Range from 5.99% to 21.99% per annum.
Loan Tenure: Up to 48 months.
Additional Perks: UAE Nationals can defer their first installment for up to 120 days, expatriates for up to 90 days.
Requirements:
Passport copy (with residence visa for expatriates)
Emirates ID
Salary and End of Service Benefit Transfer Letter/Certificate
Bank statements for at least 3 months (6 months for self-employed)
Another option is Al Islami Personal Finance, also offered by Dubai Islamic Bank. This service caters to various needs, including medical emergencies or wedding expenses, with a minimum salary requirement of 5,000 AED.
Al Islami Highlights:
Maximum Loan Amount: Up to 4 million AED for UAE Nationals, and 2 million AED for expatriates.
Profit Rates: From 5.99% to 21.99% per annum.
Tenure: Up to 48 months.
Requirements:
Quotation for services addressed to Dubai Islamic Bank
Passport copy (with residence visa for expatriates)
Emirates ID
Salary Transfer Letter/Certificate
Bank statements for at least 3 months (6 months for self-employed)
Valid trade license (for self-employed)
Proof of ownership or management rights for Rent Ijarah services
RAKBANK:
RAKBANK provides personal loans to UAE Nationals with salaries starting from 5,000 AED, making it a viable option.
RAKBANK Loan Highlights:
Loan Amount: Up to 20 times the monthly salary.
Interest Rates: Starting from 4.89% per annum.
Loan Tenure: Up to 48 months.
Repayment Flexibility: First installment can be deferred for up to 180 days.
Requirements:
UAE Nationals only
Minimum monthly salary of 5,000 AED
At least 3 months of employment in the current job
Employer must be on RAKBANK’s approved list
How to Apply for DIB or RAKBANK Personal Loans:
For Dubai Islamic Bank:
Visit the DIB website or mobile app.
Existing customers can apply through ALT MOBILE or ALT ONLINE.
New customers should provide personal information, employment status, and income details.
Submit the application and wait for DIB’s response.
For RAKBANK:
Visit the RAKBANK application link.
Fill out the form with your name, email, mobile number, and salary details.
Double-check the information and submit.
FAQs about how to get loan in UAE
Can I get a credit card with a 5,000 AED salary? Yes, it is more feasible to obtain a credit card with a 5,000 AED salary compared to lower amounts. However, credit card approvals still depend on other factors like credit history.
Is a loan possible with a 5,000 AED salary? Yes, securing a loan with a 5,000 AED salary is more achievable. Banks like Dubai Islamic Bank and RAKBANK offer loans for this salary range, though terms may still be strict.
What loan types suit a 5,000 AED salary? Personal loans are a viable option. Consider reviewing different loan products to find one that best fits your financial situation.
What fees might apply? Be aware of processing fees, late payment penalties, and early settlement charges. Review loan terms thoroughly to understand all associated costs.
What if I lose my job while repaying a loan? Communicate promptly with your lender to explore options like payment rescheduling or loan protection insurance to avoid defaulting.
