Salary Transfer Personal Loan in UAE – A Detailed Guide

UAE is one of the richest countries now that always gives priority to the good financial life of their public. During any tough situation of the financial crisis, the UAE’s financial institutions provide loans to everyone including nationals, expats, etc. The most common type of loan that is easily available through any lender is a personal loan. When a person chooses this loan, the salary transfer is a mandatory step. You must have your personal account in the lender’s bank. As compared to non-salary transfer personal loans, it comes with a little more paperwork for transferring your salary. But the positive point is that there are various benefits of it to other loans. Moreover, the financial company Emirates Loan offers this loan with different options of interest rates. So, you can decide efficiently which is appropriate for you.   

Types of Interest Rates on Salary Transfer Personal Loans

Both expats & nationals can choose the interest rate type according to their convenience of repayments. The types of interest are:  

Flat rate: This rate is fixed throughout the tenure of repayments. The lender decides this rate in the beginning when they provide the funds. It will never reduce over time or after one year.  

Reducing rate: It is opposite from the flat type. This rate will continuously decrease after every continuous payment. But its overall rate is a little higher than other rates. 

Prominent Requirements for Personal Loans with Salary Transfer in the UAE

Certain requirements are important that all applicants must consider when they want to apply for personal loans with salary transfers. These requirements are:   

Salary transfer: 

As we told the salary transfer is an essential requirement that you have to fulfill to become an eligible applicant. It is not much complicated task but requires a little more time.  

Minimum income: 

The criteria of minimum income are different in every lender’s terms. Most lenders’ criterion of minimum income is five thousand AED monthly. However, some lenders are with the criterion of a fixed salary of 7000 AED monthly. In general, the higher salary means you will get approval soon without any delay. 

Age: 

One thing to remember is to always know the lender’s criteria of minimum & maximum age limit. The maximum age is 60 and the minimum is 21.  

Employment status: 

The salaried individuals have to show their employment status. This criterion is for the knowing that applicant is working hard in their profession and they can easily pay off the debt. Employees of both listed and non-listed companies are eligible to apply.   

Residency proof: 

Residency proof is a basic requirement of every lender. Lenders get surety of authentic identification of borrowers when they get their residence proof. You can easily provide this proof through copies of your passport, visa, and other documents. 

Income proof:

Your monthly income must be higher than the lender’s criterion. And, there is a need to show your employment status through the monthly salary slip or other documentation. In addition, some lenders also demand a specific experience of employment. In this scenario, you can submit your joining letter to the current company. Always check the requirement of minimum income. Emirates Loan should be your first choice because this lender’s requirements are not too tough including minimum monthly income.    

For Self-employed applicants: 

Self-employed applicants are also eligible to apply but they have to provide the details of their businesses. The working duration of the business is at least three years.  

Credit history:

The credit history is good if the credit score is excellent. In UAE, the lenders check the credit score compulsory. A great credit report is crucial for becoming an eligible applicant. All those applicants get preference from the lender if their credit score is higher. And, the amazing point is that the repaying of monthly payments enhances the credit score easily & quickly.  

Bank statements: 

Generally, the requirement of bank statements is from the last 3-6 months depending on the lender’s terms. This document must be attached to the application form.   

Required documents for applicants’ identification

With eligibility criteria, you have to submit the official documents to your lender. Then, your application will get approval. The required documents are: 

• Valid Emirates ID 
• Copy of applicant’s visa 
• To give the address proof, you can provide the utility bills. 
• One security cheque 

Some other documents are also required that depend on the profession of borrowers: 

For Salaried applicants: 

• The salaried applicants must provide these documents:  
• Salary certificate letter 
• Bank statement for the last three months 

For self-employed applicants: 

• Trade licenses 
• Power of attorney 
• Bank statements 

Tips for Instantly Getting Loan Approval

Always apply for a loan with full confidence that your application will never be rejected. Consider the following tips to avail a loan: 

• Make sure you meet the eligibility criteria. Your request will be denied if you do not meet them.  
• Your credit score must be excellent but if it is lower, you should first focus on the improvement of the credit score. Then, you will get a loan with a lower interest rate.  
• Make your financial budget according to the monthly repayments. So, you will not face the burden of repaying the debt amount. And, you will easily manage all other expenses of daily life. 
• You will get the option of repaying the debt in four years. And, the tenure also depends on the debt. 
• It is not a wiser step to apply for multiple loans at a time because it will only hurt the credit score. Apply for one personal loan at a time.