There are times when you may find yourself needing an urgent cash loan for some reason or another. Fortunately, there are plenty of loan providers in Dubai, including banks, lending companies, and private lenders.
Usually, one of the criteria when applying for a loan is salary transfer. But what if you don’t want this feature? Due to popular demand, several banks and lending companies have begun offering loans without salary transfer as a requirement. In this article, we will talk about this type of loan in greater detail.
- Getting a Loan Without Salary Transfer
- Eligibility Criteria for Personal Loans
- Required Documents for Personal Loans
- Loans With or Without Salary Transfer
- Types of Interest Rate for Personal Loans
- Banks that Offer Loans Without Salary Transfer
Getting a Loan Without Salary Transfer
For starters, we will discuss eligibility criteria, required documents, interest rates, and related matters, before we tackle loans without salary transfer in Dubai.
Eligibility Criteria for Personal Loans
Each bank or lending company in Dubai has a set of criteria when it comes to approving personal loan applications. Generally speaking, however, here is a list of the most common criteria:
- Age. Applicants must be at least 21 years of age. The maximum age is 60 years for expats, and 65 years for UAE nationals.
- Income. The applicant must be employed or self-employed, with a regular source of income. The minimum salary/income amount differs from bank to bank.
- Work Experience. Some banks require that the applicant should have worked for at least 6 months with his/her current employer during the time of loan application.
- Company Listing. Most banks that provide loans without salary transfer require applicants to be employed by a company that’s included in their list of approved employers. If the company is not listed, they may still approve the loan, but some criteria may change (e.g. higher income, good credit score, etc.).
Required Documents for Personal Loans
Once again, the set of requirements may vary among banks, but the most common necessary documents include the following:
- Filled up application form;
- Identification document (e.g. Emirates ID, passport, etc.);
- Proof of employment (e.g. Salary Certificate);
- Credit history; and
- Bank statements.
Loans With or Without Salary Transfer
At this point, let us distinguish between personal loans with salary transfer and personal loans without salary transfer:
- Loan with Salary Transfer. This type of loan requires the applicant to maintain an account with the loan provider (e.g. bank) and transfer his/her salary into it monthly.
- Loan without Salary Transfer. This type of loan does not require the applicant to transfer his/her salary into an account with the bank or lending company. However, the salary or income requirement might be higher.
Types of Interest Rate for Personal Loans
When planning to apply for a personal loan, you will encounter two types of interest rates: flat interest rate and reducing interest rate. Here’s a description of each type:
- Flat Interest Rate. This type of interest rate is calculated based on the full loan amount, and remains fixed during the payment period. It usually ranges between 4% and 8%.
- Reducing Interest Rate. This type of interest rate is based on the outstanding loan amount. It decreases every time a borrower makes a payment. It usually ranges between 9% and 20%.
Knowing these terms can help you to better understand the terms of a loan, so that you can decide which bank or lending company best fits your needs and preferences.
Banks that Offer Loans Without Salary Transfer
And now, let’s proceed with a list of banks and lending companies that offer loans without salary transfer in Dubai. For each bank/lending company, we have included the minimum salary requirement, payment period, interest rates, and other details.
Those with a minimum salary of AED 8,000 per month can apply for Citibank’s personal loan without salary transfer. The bank provides loans up to 8 times your salary, with a payment period of up to 4 years. The flat rate is 7.7% to 15.2%, while the reducing rate is 14% to 27%.
For more information about this loan, you can go to the official website of Citibank.
2. Deem Finance
Deem Finance’s personal loan is offered to those with a minimum salary of AED 5,000 a month. The payment period is up to 4 years, while the reducing rate is 15.99% to 34.99%. There’s a processing fee of 1%, and an early settlement fee of 1.05% (of the remaining balance).
Head to the official website of Deem Finance for more information about this loan.
3. Dubai Islamic Bank
Dubai Islamic Bank’s (DIB) personal loan without salary transfer caters to those with a minimum salary of AED 8,000. The payment period is up to 4 years, and there’s a processing fee of 1%. As for the flat rate, it is 4.9%, whereas the reducing rate is 8.99%.
4. Emirates NBD
If your monthly salary is AED 10,000 or higher, you can apply for Emirates NBD’s personal loan without salary transfer. Just like the others, the payment period is up to 4 years. There’s a reducing rate of 14.99%, and a flat rate of 7.90%.
Visit the official website of Emirates NBD to learn more about this loan.
5. Finance House
Finance House’s personal loan without salary transfer is offered to those with a minimum salary of AED 5,000. The payment period is up to 3 years, with a reducing rate of 20%, a 1% processing fee, and 1% early settlement fee.
The loan also comes with a “free for life” credit card, a 30-day grace period for the first installment, and flexible payment terms. For more details, you can go to the official website of Finance House. You can also read this article, which features Finance House and other quick cash loan companies in Dubai.
Samba’s personal loan without salary loan is offered to those with a minimum salary of AED 10,000 per month. The payment period is up to 4 years, with a reducing rate of 9% and a flat rate of 4.83%. Moreover, there’s a processing fee of 1% and an early settlement fee of 1%.
Head to the official website of Samba for more information about this loan.
DISCLAIMER: The above information is presented for general, information-sharing purposes only. Please note that each bank’s requirements, interest rates, and payment terms could change at any time. To learn more about the above loans without salary transfer, please visit the official website of the specific bank or company mentioned.
Although salary transfer is a common requirement when applying for personal loans, it is good to know that there are banks and lending companies in Dubai that provide loans, even without salary transfer. In fact, there are banks and lending companies that do not require a credit check, either. Read this article for more details about loans without credit check.