Sometimes we find ourselves in dire need of finances, whether to fulfill our needs and desires or bear some expenses. Living in a cosmopolitan and dynamic UAE offers a plethora of financial opportunities.
With meticulous planning and understanding, individuals can unlock numerous financial possibilities and secure a loan in UAE, even with a modest income.
This article sheds light on the benefits, eligibility criteria, and the best banks to consider for personal loans in the UAE, especially for those earning a salary as low as AED 3000.
How to Get a Loan in UAE with a Low Salary?
Salary is an important criterion for getting a loan in the UAE. Banks generally have a cut-off limit of 3000 or 4000 AED salary for granting loans.
However, you can still get a loan at lower salaries. Here are a few tips to get loans if you have a low salary and it is difficult to find places where you are eligible for loan disbursement.
1. Research loan possibilities:
You must keep doing your research. If you are constantly wondering how to get a loan in UAE for a low salary, then you will come across that UAE’s banks and financial institutions offer a wider range of personalized loan products.
Research the products based on interest rates, repayment terms, etc. Look for loan products with flexible eligibility criteria.
For example- Finance houses like Dunia Finance Or Gulf Finance house offer loans for those with lower salaries with high-interest rates.
2. Work on your credit score:
Your credit score is pivotal in the loan application process as it shows your ability to repay the debts. If you have a higher credit score, then it enhances your credibility as a borrower.
This is how you can have the loan on your favorable terms. Improving the credit score demands some effort and punctuality from your side.
From paying the bills on time to catering debts, maintain a healthy credit utilization ratio to avoid multiple loan applications within a shorter time.
3. Guarantor options and collateral:
If your salary is low and is alone unable to meet the lender’s requirements, then you can proceed with other alternatives, such as considering collateral.
You can also have the guarantor co-sign the loan. Collateral is nothing but an asset of value or security which you can pledge to the lender, such as a vehicle or a property.
On the other hand, a guarantor is an identity with a solid financial position that guarantees to repay the loan if you cannot.
Both options offer a layer of security for the lender, and they feel more inclined and convinced to proceed with your loan application.
4. Peer-to-peer lending:
P2P lending platforms over the years have gained popularity in the UAE in recent years. These peer-to-peer online platforms let you connect with individual lenders, bypassing traditional financial institutions.
From offering lenient eligibility criteria to competitive interest rates, these platforms have come out to be resourceful and more useful than ever.
It is well-suited and viable for individuals with modest salaries.
5. Form a relationship:
This is another key strategy for an effortless loan is to build a connection with the banks and financial institutions, which can always work to your advantage.
The query of how to get a loan in UAE with a low salary becomes much more answerable and workable when you have established stronger ties with financial entities.
If you have a history of responsible financial behavior, your chances of loan approval will be enhanced, even if your earnings are lower than the standard requirements.
6. Stronger loan profile and application:
When proceeding with the loan application, ensure that your application is complete and accurate. Any misleading or false details in your application can hinder the approval process.
Make sure to attach your application with all necessary legal documents, such as income proof, identification, and bank statements, to avoid delays in the approval process.
A well-sorted and prepared application showcases your commitment and trustworthiness as a borrower.
Eligibility for Personal Loans in UAE
|Minimum Salary||AED 3000||AED 3000|
|Salary Transfer||Required (Depends on the bank)||Required (Depends on the bank)|
|Company Listed||Required (Depends on the bank)||Required (Depends on the bank)|
Obtaining a loan in UAE with a modest income can demand meticulous planning, effort, and research.
It is a cakewalk when you follow protocols and strategize to unlock the many financial possibilities in store for you.
Always remember to proceed with a safer loan amount that you can repay and act as a responsible borrower for a better financial future.
Frequently Asked Questions
Q1. Which bank in UAE gives loans for low salaries?
Featuring multiple currencies, Emirates NBD is one of the finest leading banks in UAE. This bank offers a salary account with a minimum salary requirement of around AED 3000.
Q2. Can I get a loan with a 2000 AED salary?
Banks and financial institutions in UAE do not offer loans to those with a monthly salary of AED 2,000. As an applicant, you must fulfill the minimum requirement of the loan eligibility criteria.
Q3. What is the lowest salary account in UAE?
The lowest salary account in UAE is AED 3,000.
Q4. What is the minimum salary for a 1lakh loan?
You must earn a minimum of ₹25,000 monthly to be eligible for the loan.
Q5. Which bank in UAE does not require a minimum salary?
You can acquire all the banking benefits with HSBC without paying your salary into the account. There is no burden of maintaining the minimum balance account even.
Q6. What is the minimum salary for ADBC personal loan?
The monthly fixed salary for ADBC personal loan criteria is AED 5,000 or above.
Q7. What is the minimum salary for Emirates NBD personal loan?
Depending on the nationality and the type of loan, the minimum salary for Emirates NBD personal loan ranges from AED 5,000 – AED 25,000 per month.
Q8. What is the minimum salary for Mashreq?
It requires a minimum salary transfer of AED 10,000.
Q9. What is the minimum salary for HSBC UAE?
It comes with a minimum monthly salary requirement of AED 10,000.
Q10. Can I open a bank account in UAE without Job?
Several banks and financial institutions offer bank account opening to non-working individuals. In such cases, most of the banks levy charges or come with a requirement of minimum balance.