Are you someone who has been trying to get loans for various banks in Dubai and getting rejected every time? There are several reasons for a loan getting rejected.
From the lack of proper documents to failure to meet the eligibility criteria, banks have more than enough reasons to not accept your application. However, does that mean that you won’t get a loan? Are there no other options for getting a loan in Dubai?
However, with these options, there are a lot of risks and hurdles. In this article, we are going to cover the various aspects of loans from private lenders and the risks associated with getting a loan from them.
What are the eligibility criteria for getting loans from private lenders?
There is no eligibility requirement for getting loans from private lenders. You can get a loan immediately.
There is no documentation and there is no minimum salary requirement. You do not have to worry about rejection when you are taking loans from this kind of loan provider.
However, there are disadvantages of getting loans from such lenders which you will get to know in the latter part of this article.
What are the interest rates?
People usually approach private lenders when their loan application gets rejected from banks. Lenders take advantage of the situation and offer loans at a very high-interest rate.
Borrowers have to repay the loan on short tenures and if they fail to repay on time, they have to bear an even higher interest rate.
The interest rates charged are almost double the amount charged by banks. In some cases, it is even higher.
Is personal money lending illegal in the UAE?
Private money lending without the required license is illegal in the UAE. On top of that, harassing people who are not able to repay the loan is a heinous crime.
On getting caught, both the lender and the borrower may have to face legal consequences. There have been cases where borrowers had to submit their passport as collateral to the lender. This is another illegal activity that is punishable by law.
Where can a person get a private loan in Dubai?
There are some government registered private lenders that operate legally. You can approach these companies, apply for a loan and get it approved without getting into any legal issue. You can also consider crowdfunding if you want money for your business. You can also approach financial institutions which offer loan through collaterals. This is particularly useful when you do not have the required salary to get loan approval. All these options are better than getting loans from private lenders who charge insanely high interests and that too illegally.
Other legal options
There are two financial institutions in particular that provide private loans following the legal process. To get a loan from these companies, you have to meet the eligibility requirements as with any other banks.
If you meet the basic eligibility criteria, you can initiate a private loan application in the UAE. To apply for a loan:
Take into account the monthly installment plan of your preferred bank
Check how much you can borrow
Visit the bank or apply online on their website
Submit the following documents with the loan application form:
Emirates ID
Salary transfer letter
A passport copy with a UAE resident visa (for expats)
Bank account statement of three to six months
Trade license (for self-employed individuals)
Wait for the loan provider to verify your application
Final words
Getting loans from private money lenders in the UAE is easy. You can get a loan in a matter of minutes. However, considering the risks and the law against this kind of activity, it is better to stay away from illegal private lenders in Dubai.
Private money lending without the required license is illegal in the UAE. Lenders and borrowers are equally held guilty and punishable for such conduct.
Private lending has become common these days. The reason for their growth is the increase in the number of borrowers. When borrowers fail to get loans from banks, they sort to approach private lenders in the UAE.
The thing about private lending that makes it more desirable than bank loans is that there are fewer restrictions in the process of loan approval. Unlike banks, most private lenders do not require minimum salary requirements and other details. Let’s understand what exactly are the parameters of loan approval from private lenders in the UAE.
Eligibility and Requirements for Private Loan
There are basically no eligibility criteria or any kind of requirement for getting a loan from private lenders.
Factors like-
minimum salary
nationality
age
are not taken into consideration. You can get instant loans from private lenders.
However, there are certain disadvantages of getting loans from this kind of lender. The interest rates are very high and it keeps on increasing if you fail to repay the loan on time. On top of that, these people go to the extent of threatening you to get the repayment on time.
Is personal money lending legal in the UAE?
Private money lending without the required license is illegal in the UAE. Lenders and borrowers are equally held guilty and punishable for such conduct. There have been cases where borrowers had to submit their passports as collateral to the lender. These activities are considered a crime by the law in UAE. That is why private lending and borrowing is risky in the UAE.
However, there are legally established companies that are authorized to offer private loans.
Legal Private Lending companies
These are government-registered companies and borrowers have to go qualify and go through a documentation process to get loans from these companies. Two such companies that currently operate in the UAE are Finance House and Mawarid Finance.
Established in the year 2004, Finance House is one of UAE’s first finance companies to be independently operated. This company has helped a lot of businesses and individuals overcome financial hurdles. It is a personal loan type facility which offers private loans to professional executives to meet their immediate cash needs.
With a reducing interest rate, starting as low as 20% , this company gives short term loans for a maximum period of 36 months.
Eligibility Criteria
Should have a minimum salary of 5000 AED per month.
Should be UAE residents or expatriate residents of the UAE
Minimum age of borrower should be 21 years and maximum age at loan maturity is 60 years.
Six months service confirmation from current employer or job confirmation
Documents Required
The following documents are required:
Original Passport
Latest 3 months bank statements
Current dated salary certificate
Direct Debit Authority
With an easy credit approval in just one day, Finance House charges only 1% processing fee with extra benefits of free for life credit card, Auto Insurance, Balance Transfer Facility etc.
Mawarid Finance is a private finance corporation in the UAE providing Sharia-compliant financial services. It is particularly helpful for small and medium-sized businesses (SMEs) and individuals who are looking for loans and other financial services.
It offers ‘Floosi’ which is a short-term & hassle-free private money lending option for UAE nationals & expats. This finance is easily managed with post-dated cheques or bank transfers.
Eligibility Criteria
Agreed contract between lender & borrower
Good credit rating
Documents Required
Passport with Visa page
Emirates ID
Bank Statement of last 6 months
Salary Certificate
Liability Letter
Features of Floosi Finance
Facility limit up to AED 100,000.
No salary transfer required.
Get your finance within 3 working days.
30 days grace period.
No early settlement fees.
Private Loan for Business
Crowdfunding
The majority of small-scale business owners borrow money from private lenders for short-term purposes. But the hassle starts if the payments are delayed or if the tenure is exceeded.
Getting a personal loan from a private lender is not recommended for business purposes if you are not knowledgeable about the business. If the business occurs losses it is almost impossible to pay back to the private lender. It is even not recommended if the interest rates are higher than what you can afford.
An alternative option is Crowdfunding. There are various crowdfunding investors who invest in your business for shares in return or some profits.
You can get some investors by registering your business in these platforms
Here are few tips to help you get the money from private companies faster –
• Paying bills timely — This is a very common yet important way everyone suggests with regards to credit score improvement. Even a one-day late payment also will be added to the credit report and can have an impact on the credit score.
• Full Credit utilization — Despite the credit limit, it is important to utilize the provided credit wisely. It is recommended to use only 30 per cent of your credit limit.
• Pay credit card bills in full – Credit cardholders are given a provision of paying only 5 percent of the credit bill monthly. But this can have a negative impact on your credit report. Therefore pay the bills in full on time.
• Manage your debts — Try clearing the loans that are consuming high interest rates. Have fewer debts in your pocket. Don’t apply for a loan that you don’t need.
• Credit card accounts — There is often a misconception that having too many credit cards will have a positive impact on the credit score. The number of credit cards has nothing to do with the credit score. The way these credit cards are utilized plays a major role.
Final Thoughts
Getting a private loan in the UAE is very easy. You can get a loan in a matter of minutes. In some cases, you will have to submit your passport or other important documents to the lender as collateral. Once you do this, you are offered the loan without any questions. However, considering the risks involved and the law against this kind of activity, you might consider staying away from this kind of money-lenders.
There are various other alternatives to get a loan for personal use and businesses. You can apply for a loan from registered finance companies which are mentioned in this article. You can also get a loan from your close friends, acquaintances and family members. These are safer options and there is no collateral damage in the process. If you are taking a loan for business reasons, you can opt for crowdfunding. It is much more reliable and safe.
Getting urgent cash loans in Dubai is not a very difficult task these days. When you have the right information and follow the right steps to get a loan, you can easily get approval from loan providers in Dubai. Whether you are a national of UAE or expatriate, this article will help you understand how to get urgent cash loans in Dubai.
As a borrower, you have four main prospects for getting loans.
Private lenders
Banks
Pawn shop or broker – Sell or deposit valuables ( Phone, Gold, Car etc. )
Loan Sharks ( Illegal – Not recommended )
You will be able to find the best suitable option for you using the table below ->
This is the most secure way to get a loan but will prove to be slow & cumbersome
These are much faster & require less documents than banks. But, the interest rate is a little higher.
This is the best way to get Urgent cash loan. But, beware of illegal pawnbrokers & scams.
*Note:Loan sharks also provide instant & urgent loans but they must be avoided at all costs. These are informal money lenders who will charge you insane interest rates of upto 1200% per year & also threaten your peace & safety.
Most private lenders are illegal in Dubai. There are, however, two major private lenders who operate legally. You can get quick cash loan approval from these lenders with minimal documentation. These private lenders are:
Mawarid Finance is a private finance company in the UAE. The services offered by them are Sharia-compliant. It is suitable for small and medium-sized businesses (SMEs) and individuals who are looking for fast loans.
Finance House was established in the year 2004. It is an independently operated organization and it offers various financial services to individuals and businesses in the UAE.
Top 10 banks for urgent cash loan in Dubai
There are many banks and private loan providers in Dubai who offer quick cash loans. Below listed are some of the best ones among all the loan providers in the region.
One of the best options for personal banking in Dubai is the Doha Bank. It provides loan services various categories and you can get a quick loan with this bank for sure.
This Singaporean Multinational bank has its presence in many countries of the world including the UAE. It is a reliable option for getting instant loans in Dubai.
The United Arab Bank is one of the best banks in the UAE. It offers financial solutions in retail as well as corporate sectors. It is one of the best options for easy loans in Dubai.
One of the most trusted and well-known banking institution in Dubai is the Dubai Islamic Bank. It is the go-to bank for expats and UAE nationals who are looking for loans immediately.
With a wide range of financial services, the RAK Bank stands as a really good option for loans in Dubai. This is a government-funded bank and you can expect really good options for personal loans and business loans from it.
When it comes to personal loans, HSBC is an option to take into consideration. It offers a wide range of financial services. Personal loans are one of the best ones among them.
If you are looking for attractive personal loan offers, you can choose to go with Emirates NBD. This bank offers quick loans to individuals and businesses who meet the eligibility criteria.
If you want urgent loans for your business in Dubai, you can approach Abu Dhabi Commercial Bank. It offers loans to UAE nationals and expatriates at reasonable interest rates.
Commercial Bank of Dubai offers personal loans at a very minimal rate of interest. You can get a loan from this bank faster than most other banks in Dubai.
Now that you have come to know about the top loan providers in Dubai, you must understand the important details for getting through the application procedure. Read on to know all the details you need to know.
Is getting a cash loan in Dubai really easy? Find out now.
If you are wondering if getting a loan is easy, let me tell you that it is absolutely easy when your profile fits right as a loan applicant. To get a cash loan in Dubai you have to fulfill certain requirements that we are going to cover in this section of the article.
You will get to know about the most essential requirements for getting a loan approved quickly and conveniently.
In fact, when you follow through these requirements and understand them clearly you can get your loan in a very short span of time.
So, here are the important steps that you need to follow to get a quick loan in Dubai.
First of all, you also have to make sure that you are eligible for the loan application.
Now, you might have this question regarding the eligibility and the requirements that need to be fulfilled for being able to apply for the loan.
Read through the following paragraph to understand the eligibility criteria for loan application in Dubai.
Eligibility Criteria to Get Urgent Cash Loan in Dubai
Below are the eligibility criteria to apply for an urgent cash loan in Dubai:
Age Limit
The minimum age for loan application in Dubai is 21 years. Once you are 21 and above, you can apply for an immediate cash loan. The maximum age for loan applications in Dubai depends on the bank. In most cases, it is 65 years.
Loan Amount
The maximum loan amount depends on the bank you are seeking the loan from. Some banks can offer a loan amount up to AED 5 million.
Employment
In terms of employment, different banks will have different criteria. However, in general, the applicant must be salaried and work at a reputed firm when applying for an urgent cash loan in Dubai.
The minimum income criteria for applicants depends on the bank. Most banks approve loan applications from individuals who have a minimum salary of AED 5000.
However, there are some lenders that require the monthly income of the applicant to be at least AED 25,000.
Salary Account
Some banks require individuals to transfer their salary to an account held in their bank.
Once you have made sure that you are eligible for a loan, the next important aspect is documentation.
If you do not have the required documents for getting your loan approved, you are going to have a tough time.
Documents required
UAE national ID card (for UAE nationals) – Original and a Copy
Valid passport (for expats) – Original and a Copy
Valid residency visa (for expats) – Original and a Copy
Salary certificates/Appointment Letter – for employment verification of salaried applicants
Latest three bank statements – for income verification of self-employed applicants
Salary transfer letter –for income verification of salaried applicants
Once you have these documents, you can remain assured that you are going to get the approval for the loan.
However, in case you do not get the loan approved in the first attempt, you can figure out the reason for rejection and apply again. Alternatively, you can also apply for loans from personal money lenders in Dubai.
Life is uncertain and so are the unexpected expenses coming up at inappropriate moments. The urgent cash loans help you meet such sudden financial requirements. Getting an urgent cash loan in Dubai is an easy task. You can get easy approval for the same if you follow the right process.
Whether you are a UAE national or an expatriate, here is how you can get an urgent cash loan in Dubai in just a few simple steps. In this post, we have also mentioned the eligibility criteria and documents required, followed by the list of banks offering cash loans in Dubai.
Steps to Get Urgent Cash Loan in Dubai
To get an urgent cash loan in Dubai, there are a few steps you need to take. Here are the 4 simple steps you need to take to get an instant cash loan in Dubai:
1. Research and Consider Your Options
The first step in the process is research. You need to perform thorough research to get the best interest rate and find the best quick cash loan. Obviously, you have already started this process by reading this article. You can also visit various different cash loan lenders’ websites and find the best-fit cash loan with reasonable interest rates.
Of course, we have a list of lenders above that you can check out. Ensure that you check out the various requirements and choose the one that best suits your needs.
2. Check Your Eligibility and Requirements
The next step is to check if you are eligible for a loan from the institution you wish to work with. If you want your loan application approved quickly, you must meet the lender’s criteria. Make surer you meet the requirements of the lender or bank before your apply. All banks and lenders will require some sort of documentation. You will need to validate your identity, income, address, and so on.
3. Apply For The Loan
Now that you have determined that you are eligible, you need to apply for a cash loan. Get your documents ready and submit them to the lender online or by going into one of their branches.
Most lenders and banks will have online portals that allow you to submit an application in a few clicks. Ensure you have all your documents ready. Simply fill out the application form and submit the documents.
4. Wait For Approval
The final step is to simply wait for the loan to be approved. If you believe that your chances are low, you can always apply to multiple banks and lenders as listed above. However, if you are rejected, you can always reapply. Keep in mind however that most lenders and banks in the UAE approve urgent cash loans in Dubai quite quickly.
UAELoanBazaar.com is an online authority on loans, credit cards, banks and the general financial industry in the UAE and the emirate of Dubai. We strive to provide up-to-date and accurate information on the financial industry in the UAE. Our aim is to become a one-stop shop for your personal finance needs in the UAE market.
