Do you live in the UAE and looking for a loan? Here are some of the most common questions and answers that will help you:
How to get a loan in UAE?
For a loan in the UAE, you must be eligible in accordance with the basic eligibility criteria, including the requirement of a minimum salary determined by the bank, as well as the status of your accommodation and the employer and nature.
The first step before getting a loan in Dubai or any other emirate is to start the search. If your company is listed at the bank, which aims to deal with it, access to the loan has become very easy. If the company were not listed, you can start your search within banks that provide loans to non-listed companies.
Another important factor in the process of determining the amount of the loan, a debt burden ratio (DBR). The Bank calculates the ratio of the debt burden through the addition of monthly installments repayment of all existing loans to the monthly payment is expected from the new loan. Moreover, the addition of 5% of the value of the limits of your credit card. According to the instructions and rules of the central bank, can not be the total debt ratio exceeds have about 50% of your salary, and thus will not be approved any new loans may exceed this limit.
How do you get a personal loan?
Apply the basic qualification criteria on personal loans also.
No related to any guarantees may be required by the bank to get a personal loan requirements. The minimum salary in the UAE condition starts from AED 3,000, and each its own policy and its list of companies approved bank. Asking whether you have a fixed salary income level varies, or you business owners and self-employed and ready to convert your income to the bank. Low rates ranging from 4.99% to 24%, and usually have to repay the loan of up to 48 months period.
Basic paperwork required for personal loan include:
A copy of the passport
A copy of a business card or a copy of the government identification card
A copy of the UAE’s identity
Statement vocabulary Salary
Speech salary transfer (optional)
A bank account statement shows the financial transactions during the period ranging from three to six months.
For business owners and self-employed:
For personal loans to the owners of private businesses and self-employed, the bank requires a minimum rate of sales or verification of the average balance in your account within a period ranging from six to 12 months, and the date of the actual presence of the work of important factors. You can check out our article on getting a loan to the owners of private businesses and self-employed for more information. You will need an additional papers such as:
Contract for the construction company
Power of attorney (especially newcomers) clearly states borrowing item (in the case of individual property)
Unaudited financial statement
How do you get a car loan in UAE?
You can get a loan for a car for both new and used cars in the United Arab Emirates, on the car you plan to buy mortgage to the bank as soon as you get a car loan remains, and apply the basic eligibility criteria for this type of loan also.
The minimum salary in the UAE condition starts from AED 3000, and varies from bank to bank. Ratios and interest rates calculated depends on whether you buy a new or used car, usually the ratio ranging from 2.25% to 15% at a constant rate, and the loan repayment period of up to 60 months.
Securities and basic documents required for car loans are the same papers required for personal loans, in addition to:
A copy of driver’s license
Car license card
After selecting a car, the dealer can help you in the following steps. The steps are, send a bill to the price of the merchant bank as well as other securities. If approved for the loan, the bank issuing the local purchase order (LPO) to the dealer, and then asks you to complete the procedures in agency sales within 30 days, and pay the amount provided under the account (10% to 20%) to be able to get the car.
For used cars, you should check the minimum for the year making the car accepted by the bank.
How do you get a Home In UAE ?
Apart from the basic eligibility criteria, it is different for residential loan where the point of reconstruction and construction of your choice is responsible for identifying any banks that you can get a loan through them. While some banks offer mortgages / housing Ready for Real Estate (incomplete construction) with title deeds, others offers the possibility of lending to the construction and reconstruction of some specific points, so you should check the property / construction hand with the bank that you intend to deal with the name.
For housing finance in the UAE, starts requirement of a minimum salary of 7000 AED for citizens, and AED 10,000 entrants, ranging rates and interest rates of 2.99% to 7.25%, and the repayment period of up to 25 years old are required to pay the amount submitted (20 % of citizens, 25% of expatriates).
When you get a mortgage , you should check whether a fixed interest rate (if yes, to how many years?) Or variable. It is important to ask questions – Is the variable rate is determined according to the interest rates agreed between the banks and the banks operating in the country Humic long is the average calculated? Is it a special Standard Bank? What is the bank’s margin ratio? What is the minimum of the variable rate at which the Bank supposed to pose? Ask these questions will contribute to verify that there are no surprises in the future when the fixed rate period ends.
Basic paperwork required for the loan residential / home match of the papers required for personal loans, in addition to:
Property such as the sales contract papers.
Proof of payment under the account (the amount provided).
Additional papers asking for business owners and self-employed:
Business license, a copy of the Chamber of Commerce registration, memorandum and papers of incorporation
Two years of audited financial statements
The company put the file
Letter of Intent specifies the use of property for rent or for the purpose of investment, according to a formula Bank
How fast I got my loan?
Approval of the loan on the value and type of loan application speed depends. After the completion of the submission of documents, in the case of whether your profile is compatible with the bank’s standards, you may get approval within five to seven business days for personal loans and car loans. It takes more time in the case of mortgage loans and commercial loans where the time period ranging from 10 to 15 working days. After approval of the loan, the loan may be disbursed in two days.