An accident. A natural disaster. A family emergency. All of these are possible reasons why a person would need an urgent cash loan. Fortunately, here in the UAE, there are several ways to apply for a cash loan in banks as well as lending companies.
Whether you are a citizen or a foreign worker, you are likely to qualify for a personal loan in the UAE. But what if your salary is AED 1500? In this article, we will discuss options for getting a personal loan with this amount of monthly salary.
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Getting a Personal Loan with AED 1500 Salary
You are probably thinking, “Can I get a personal loan if my salary is AED 1500?” The quick answer is yes, you can get a loan. But perhaps the better question is, “Where can I get a personal loan with this amount of monthly salary?”
Indeed, getting a personal loan with AED 1500 salary is possible. However, you cannot get them banks or lending companies that are registered with the Central Bank of the UAE. This is because most banks or lending companies require a monthly salary of at least AED 5,000 to approve a personal loan. There are some that require a minimum of AED 3,000 salary monthly — but not lower.
If you do not qualify for a personal loan with banks or lending companies, your option would be to borrow from private lenders. However, please keep in mind that private lenders usually charge a higher rate of interest on their loans.
Eligibility to Get a Personal Loan in UAE
How can you know if you qualify for a personal loan? Generally speaking, here are some of the criteria that most UAE banks and lending companies look for when someone applies for a personal loan:
- Age. The minimum age to apply for a personal loan is 21 years old; while the maximum age is 65 years old. Some banks may have a maximum age limit of 60 years old, so it’s best to inquire first.
- Employment Period. Most banks require that the applicant must have completed at least 6 months of service with his/her current employer.
- Credit Score. If you have a good credit score, you have a better chance of getting your personal loan approved. This means that in your previous loans (if any), you had made your payments on time.
- Monthly Salary. As mentioned earlier, most banks in the UAE require a monthly salary AED 5,000. Some banks require a minimum of AED 3,000 monthly salary.
- Salary Transfer. Some banks require that your salary be transferred into an account with them, as part of the conditions in applying for a personal loan.
Getting a Loan from Private Lenders
Once again, if you do not qualify for a personal loan with banks, you can try getting a loan from private lenders. They usually ask for fewer documentary requirements, and the loan processing period is shorter compared to most banks.
That being said, please remember that private lenders usually charge higher interest rates… sometimes up to two times higher than banks!
Warning: Loan Sharks
Another thing to watch out for are “loan sharks.” They may be offering instant cash loans, but their interest rates are super high compared to most banks and lending companies. Moreover, if fail to make your payments on time, some loan sharks resort to making threats to your peace and safety.
Therefore, be sure to do your research and always ask for recommendations before taking out a loan with anyone. Also… avoid loan sharks at all costs!
The Bottom Line
If you need a personal loan and your monthly salary is AED 1,500 — take note that you may not qualify for a loan with most banks and lending companies. You could try getting a loan from private lenders, but do make sure that they have a good reputation. What’s more, remember that they usually charge at higher interest rates.
On the other hand, if you think you qualify for bank loan, here is a list of UAE banks where you can apply for a personal loan.