Personal finance is procured for fulfilling different financial requirements or while emergencies that are cannot be tackled using regular income. The majority of the lenders or banks in the UAE, that offer this finance to any individual who fulfills the eligibility requirements as per the discretion of the concerned bank.
Hence, if you seek to know the personal loan eligibility criteria in uae, then you have reached the correct place. Here is a rundown on some of the requirements that you need to meet in order to apply for this loan.
Age of the Applicant
The applicant’s age is amongst the primary factors, which the lenders consider before they sanction a finance request. If you are at a young age, there are high chances of obtaining this loan because you will have many earning years ahead of you for the loan repayment.
As per the general guidelines of the majority of financial institutions and banks for the approval of the loan, the applicant must have a minimum age of 21 years and maximum age of 65 years for UAE Nationals and 60 years for expats. This, however, may differ from lender to lender.
The company or organization you are currently working with is hands down the most convenient way of measuring your credibility. Working with a high turnover and well-renowned organization is an asset while applying for finance because the chances of your growth are really high. Moreover, your employer must be a part of the approved list of organizations of the lender.
Besides the credibility of the employer, the credit rating of the applicant has immense value. If you have an average to excellent credit rating, it increases the probability of obtaining this finance at low rates of interest, high amount of loan, and flexible tenure.
In case there is an outstanding debt, default in repayment history, or a track record of fraud(s), the bank or lender may rightfully reject your application for the finance. Otherwise, in such a situation they might offer you the loan at high rates. Therefore, clearing off your outstanding debts within time is very important for maintaining a good credit score.
For being eligible for a personal loan in UAE, some of the banks need that the applicant transfers his or her monthly salary to an account held with that lender or to another bank’s account in a few cases.
By doing so, they review the stable and secure salary of the applicant along with appropriate proof of earning continuous income. Hence, if you have been getting a handsome salary, but through cheque or cash, then your potential lender may still hesitate to approve your loan.
Status of Employment
The current status of your employment is also a necessary factor that is taken into consideration by the lender while approving your personal finance. The status of your employment includes the duration of your employment with your current employer.
According to the guidelines of the lenders, this duration must be around 3-6 months. Your loan application may get rejected if your working experience is anything below that.
Your monthly salary is another essential factor that lenders consider while offering a loan in the Emirates. The amount of finance that would be offered to the borrower is basically based on the amount of money you earn.
Hence, the higher the income, the higher would be the finance amount. This is because people with higher income are considered to be those with good repayment ability.
Now, every lender has a different requirement of minimum salary. While comparing various loan options offered by different lenders, you must compare the minimum salary requirement of every lender along with other factors.
To Sum Up!
Living in the UAE, having a personal loan has become an unavoidable requirement. For availing this loan, you must meet all the necessary eligibility criteria. For this, you must make sure that you go through the requirements mentioned above.
However, you must keep in mind that every bank has its own set of guidelines in terms of eligibility. Therefore, make sure you read the fine print carefully before applying for the loan.