Are you relocating to a new apartment, but lack the money to pay for rental advance? Or perhaps you have decided to work from home, but cannot afford to buy a new computer? In times like these, an urgent cash loan would certainly come in handy!
Fortunately, there are many ways to get a personal loan in Dubai. You can apply for loans with banks or lending companies. One of the banks you could visit is the Dubai Islamic Bank (DIB), which happens to be the biggest Islamic bank in the country. The bank offers an extensive range of Sharia-compliant products, including personal loans for both UAE nationals and expatriates.
- Guide to Getting a Personal Loan from Dubai Islamic Bank
- Dubai Islamic Bank’s Personal Loans
- Eligibility for DIB Personal Loan
- Requirements for DIB Personal Loan
- Types of Personal Loans Offered by DIB
- Frequently Asked Questions (FAQs)
- 1. Does my company need to be listed with the bank to get a loan?
- 2. Is salary transfer required?
- 3. Can I skip loan payments?
- 4. What happens if I make a late payment?
- 5. Can I reschedule my loan?
- 6. Can I pay the entire loan amount before the end of the period?
- 7. Can I cancel my approved loan with DIB?
- Contact Information: Dubai Islamic Bank Head Office
Guide to Getting a Personal Loan from Dubai Islamic Bank
The Dubai Islamic Bank (DIB) was established in 1975 by Saeed Bin Ahmed Lootah. It is known as the world’s first full-service Islamic bank. In other words, it is a bank that upholds and incorporates Islamic principles in its practices.
At present, DIB operates 90 branches across the UAE. As mentioned earlier, it is the biggest Islamic bank in the country, and the third-largest Islamic bank in the world. It provides plenty of financial products and services, such as personal loans.
Dubai Islamic Bank’s Personal Loans
The great thing about Dubai Islamic Bank’s personal loans is that the salary requirement is low, and salary transfer is not always necessary. The process for loan assessment and approval is quick, without requiring too many documents.
Moreover, these personal loans can be used to fund specific needs, such as rental advance, school tuition, and medical treatment. They may also be used to buy furniture, electronics, and other Sharia-compliant goods.
Eligibility for DIB Personal Loan
Of course, like any other loan, applicants must meet specific criteria to be eligible for a loan with Dubai Islamic Bank. These qualifications include:
- Minimum salary of AED 3,000;
- 21 to 65 years old (for UAE nationals);
- 21 to 60 years old (for expats); and
- Salaried or Self-Employed (UAE nationals and expats).
Requirements for DIB Personal Loan
With regard to documentary requirements, applicants generally need to prepare:
- Copy of Passport (with Residence Visa for expats);
- Copy of Emirates ID;
- Salary and End-of-Service Benefit Transfer/Certificate from employer;
- Statement of Account for 3 months (if salary is transferred to another bank);
- Statement of Account for 6 months (for self-employed individuals/businessmen); and
- Copy of Valid Trade License (for self-employed individuals/businessmen).
Types of Personal Loans Offered by DIB
The Dubai Islamic Bank provides different types of personal loans, for UAE nationals as well as for expats. Let’s take a look at each type of loan:
1. Al Islami Services Ijarah for UAE Nationals
This type of loan provides financial assistance for specific needs, such as rental advance, medical treatment, and school tuition (educational finance). It may also be used to fund wedding expenses, or to plan a travel vacation. As long as your financial needs are Sharia-approved, you can expect to avail of this loan.
For UAE nationals, this loan is available to those with a minimum salary of AED 3,000. The maximum loan amount is AED 4,000,000 — with a flat rate of 6% and reducing rate of 11%. There’s also an arrangement fee of AED 1,050.
2. Al Islami Goods Finance for UAE Nationals
As the name says, this type of loan can be used to purchase furniture, electronics, personal computers, building materials, machinery, boats, equipment, tools, motorcycles, jet-skis, and other Sharia-compliant goods.
This loan is offered to UAE nationals with a minimum salary of AED 3,000. The maximum loan amount is AED 4,000,000, while the flat rate is 6% and reducing rate is 11%. In addition, there’s an arrangement fee of AED 1,050.
3. Al Islami Services Ijarah for Expats
This loan is similar to Al Islami Services Ijarah for UAE nationals, except for the loan amount. Expats who apply for this loan can expect to get up to AED 2,000,000. However, the criteria and terms are the same — AED 3,000 minimum salary, 6% flat rate, 11% reducing rate, and AED 1,050 arrangement fee.
4. Al Islami Goods Finance for Expats
Likewise, this loan is similar to Al Islami Goods Finance for UAE nationals, except for the loan amount. For expats, the maximum loan amount is AED 2,000,000. Just like the other loans, the required minimum salary is AED 3,000. There’s a flat rate of 6%, a reducing rate of 11%, and an arrangement fee of AED 1,050.
Frequently Asked Questions (FAQs)
Meanwhile, here are some frequently asked questions — and answers — about Dubai Islamic Bank’s personal loans:
1. Does my company need to be listed with the bank to get a loan?
Yes. For your loan application to be approved, your company must be listed with the Dubai Islamic Bank.
2. Is salary transfer required?
No. You can apply for a personal loan with DIB even without salary transfer. However, please note that having a salary transfer comes with extra advantages.
3. Can I skip loan payments?
If your salary is being transferred to DIB, then yes, you can skip up to 2 monthly installments every year. However, if your salary is not being transferred, then this option is not available to you.
4. What happens if I make a late payment?
For late payments, you will be charged a late payment fee of AED 210.
5. Can I reschedule my loan?
Yes. You can reschedule your loan, provided that you pay AED 262.50 as rescheduling charge.
6. Can I pay the entire loan amount before the end of the period?
Yes, you can pay the entire loan amount before the end of the paying period. However, please note that 1% of the outstanding loan amount would be charged as an early settlement fee.
7. Can I cancel my approved loan with DIB?
Yes. You can request for a cancellation of your loan at the nearest DIB branch. However, please note that you will be charged AED 100 as cancellation fee.
Contact Information: Dubai Islamic Bank Head Office
If you have any questions or concerns about Dubai Islamic Bank’s personal loans and other services, you can get in touch with their head office through the following contact details:
Address: Al Maktoom Road, Dubai, United Arab Emirates
Telephone: +971 4 609 2222 / +971 4 295 3000
Without a doubt, Dubai Islamic Bank’s personal loans are a big help to UAE nationals and expats, too. If you are thinking about getting a loan and you think you qualify for DIB’s financial services, we hope that the above guide has been helpful!
Speaking of loans, most UAE banks require a credit check as part of the loan application process. However, if you prefer not to have a credit check, do read this article featuring loans in Dubai without a credit check.