Interest-free loans can prove to be quite useful when it comes to financial stability. They not only facilitate repayments but also help you build positive credit habits.

In this article, we will discuss simple ways to get an interest-free loan in the UAE.

Interest-Free Loan in UAE

1. Al Maryah Community Bank

Al Maryah Community Bank is the UAE’s first digital bank that offers an interest-free loan through their ‘Raha Debt Takeover’.

The ‘Raha Debt Takeover’ helps account holders manage their debts by consolidating them into one loan, allowing convenient repayment over three months.

By opting for the ‘Raha Debt Takeover’ scheme, account holders get a chance to win a zero-interest loan.

Participants must enter the raffle or lucky draw organized by Al Maryah Community Bank LLC at 454 Shakhbout Bin Sultan St, Al Mushrif, Abu Dhabi, United Arab Emirates.

Here are some of the terms and conditions that participants need to be aware of:

  1. Apart from being a resident of the UAE, the participant must have an account with Al Maryah Community Bank.
  2. UAE Nationals must have a minimum salary of AED 10,000 along with minimum employment tenure of 6 months.
  3. Expatriates living in UAE must have a minimum salary of AED 15,000, along with a minimum employment tenure of 1 year.
  4. All participants must ensure that their previous month’s salary is reflected in their Al Maryah Community Bank account.
  5. Any participant who has previously won the raffle is not allowed to participate again.
  6. Participants should maintain a good credit score that complies with the bank’s credit policies.
  7. Employees of the bank are not allowed to participate in the raffle.
  8. Participants must ensure that their Customer Debt Service Ratio (DSR) does not exceed the 50% threshold specified by the Central Bank of the United Arab Emirates (CBUAE). If the DSR exceeds the limit set by CBUAE, the participant will not be offered the loan products.

Things to keep in mind:

  • Monitor your inbox and mail as winners will be notified of their details within 3 days after the draw has taken place.
  • Participants must abide by all the terms and conditions laid out in the Personal Loan Agreement, including timely repayment of the loan to avoid penalties and charges.
  • The bank reserves the right to disqualify, suspend, or terminate participation under certain circumstances. Check out the Al Maryah Community Bank’s official website for more information.

2. Emirates Islamic Bank

Established in 2004, Emirates Islamic Bank follows the highest standards of Islamic Banking as per Sharia principles.

As they adhere to these principles, laid down by the Quran, Sunnah, and Hadith, they do not charge interest on personal finance.

Here is a list of documents required to apply for Personal Finance from Emirates Islamic Bank:

  • Filled application form
  • Bank statements from the last three months
  • A valid passport and its copy (required for verification); a valid UAE residence visa and its copy for expatriates (required for verification)
  • Salary certificate
  • Valid Trade License if you are self-employed
  • Liability Letter
  • Account Opening Form

Who is eligible for Emirates Islamic Bank Personal Finance?

  • You must be 21 years and above to apply for Personal Finance.
  • Your minimum salary should be AED 10,000 (for both UAE Nationals and expatriates).
  • Your age should not exceed 65 years at the time of maturity if you are a UAE National
  • Your age should not exceed 60 years at the time of maturity if you are an expatriate.
  • You must have at least one month’s salary credited into your Emirates Islamic account.
  • Tenure of 48 months for standard debt settlement; Tenure of 300 months for special debt settlement.

3. Financial Institutions Offering Lowest Interest Rates on Personal Loans

  1. Emirates NBD Personal Loan

    • Minimum salary required: AED 5,000
    • Interest Rate: Starting from 2.81% p.a.
    • Reducing Interest Rate: 5.29% p.a.
  2. RAKBANK Personal Loan

    • Minimum salary required: AED 3,000
    • Interest Rate: Starting from 5.49% p.a.
    • Reducing Interest Rate: 19.99% p.a.
  3. Abu Dhabi Commercial Bank

    • Minimum salary required: AED 5,000
    • Interest Rate: Starting from 4.99% p.a.
    • Reducing Interest Rate: 6.00% p.a.

Frequently Asked Questions

  1. Is there interest on loans in UAE? The interest rate on loans can depend on the account holder’s income and loan amount. However, the interest rate on loans in UAE can range from 3.99% p.a. to 7.71% p.a.
  2. Which bank gives personal loans with the lowest interest rate in UAE? Some of the banks that offer personal loans with the lowest interest rate include Emirates NBD Personal Loan, RAKBANK Personal Loan, and Abu Dhabi Commercial Bank, among others.
  3. Which loan has no interest? Several banks in UAE follow Islamic Banking rules, as specified by Sharia Law. According to this law, a bank cannot charge interest from its customers.


We hope that this article is helpful for those navigating the numerous loan options available in the financial market.

We urge our readers to carefully read all terms and conditions before committing to any loan to avoid fraudulent and malicious activities.


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