A personal loan can help you meet a variety of immediate financial needs. It can help you cover unexpected expenses or consolidate your debts and can be repaid in monthly instalments with interest. These loans can be obtained through the Central Bank of the UAE and are open to expatriates and locals. The documents required to apply for a personal loan in the UAE are similar to those required for any other type of financial commitment. Here are a few basic documents required when applying for a personal loan in Dubai or UAE.
Documents required to get a personal loan in UAE:
Personal loans are available in UAE, but you must meet certain eligibility criteria. This includes several documents, which will vary based on your status. For example, an expatriate must have a residency visa and UAE ID to be eligible. Salaried applicants should have a salary transfer letter from their employer. You must also be at least 21 years of age and be employed.
Minimum income eligibility:
A personal loan in UAE is available from most banks and lenders. This type of finance is often sought to meet a specific need or to cover an emergency. The eligibility criteria for personal finance in the UAE vary from bank to bank. Some require a minimum income, while others do not.
The income that you earn each month is a major factor in determining your loan eligibility. The higher your income is, the more money you can borrow. If your income is higher than the average salary in the UAE, you will have a better chance of qualifying. Also, your credit score and debt-to-income ratio are important factors in determining whether or not you will be approved.
Salary transfer letter:
A salary transfer letter is an important document that must be submitted with your application for a personal loan in the UAE. It acts as a commitment between you and your employer to transfer your salary to the bank until you repay the loan. It states all the terms of repayment you and your employer have agreed upon.
A salary transfer letter must contain specific clauses that the bank needs. Your HR department should be able to issue this letter for you. Different banks have different salary requirements, but the minimum is usually around AED 5000 per month. They also do security checks and may require you to meet with an officer to discuss the loan details.