How To Get A Personal Loan In UAE Against A Credit Card

If the COVID-19 pandemic taught us anything, it’s that we can be caught short of cash when we least expect it. Taking out a personal loan against a credit card gives you quick access to fast in times that you need it the most, whether that’s for covering school fees, managing medical emergencies, making a mortgage payment, or cutting a rent cheque.

Banks have come up with many ways to support new and existing customers through tough times, with solutions tailored to UAE nationals and expatriates. Personal loans have been one of the fastest-growing debt categories in recent times, favoured for competitive interest rates that make them more attractive than credit cards.

Read on for more information about How to get a personal loan in UAE against a credit card for expatriates.

Personal loans for expatriates

While terms and conditions vary from bank to bank, to qualify for a personal loan for expatriates, there are certain criteria that the applicant must meet. For example, you’ll need to be over 21 years of age, have a minimum salary of AED +5,000 per month, or have a specific monthly income if your company is not registered with the bank you would like to apply for.

Personal loans for UAE nationals

The conditions are much the same for UAE nationals, with a few additional benefits: a lower variable interest rate should be expected, an increased amount can be borrowed and there is a longer grace period before the first repayment needs to be made. Similar to the expat process, the application documentation is designed to be hassle-free, and approvals are swift.

Personal loans without salary transfers

When you’re in a pinch and need quick cash, a little research might reveal that the best loan option for you isn’t with your primary financial organization. Fortunately, obtaining a loan without transferring salary payments is possible at most UAE banks, meaning you can access financial support faster.

The new bank will need some basic information from you and paperwork to back up your application for a non-salary transfer loan and will offer competitive rates with the usual clauses in place. All you have to do is pay your installments from the bank account into which you receive your salary each month. This is available to UAE nationals as well as expatriates.

Questions to ask when you’re researching which personal loan is best for you

Even if you’re the most loyal customer your bank has ever seen, they might not be able to offer you the best personal loan for your unique situation. Make sure you research your options thoroughly, asking the following questions:

• Which is the most competitive interest rate?
• Will I have to transfer my salary to obtain a personal loan from my chosen bank?
• What is the term of the loan?
• Will I be penalised for paying the loan off early?

Points to remember

There are some limitations to personal loans for expatriates. The maximum amount that can be taken is whichever is lower: AED1 million or 20 times the applicant’s monthly salary. Additionally, the maximum loan period is 48 months.