Types of UAE Bank Loans and How to apply for any UAE Bank loan in Dubai?


This article will gives you some important information about types of loans provided by UAE banks. In this article I will help you to get details about Loan amounts, interest rates and Tenor of the Loan and also documents required for applying a loan in Dubai.

There are different type of banks in UAE which are providing Loan facility. You can apply loans for business purpose as well as for individual needs. Banks such as HSBC, Citibank, Arab bank,Standard chartered bank,Bank of Baroda, Doha bank etc in UAE will provide Loan facility. This article will really help those people in UAE who are planning to take a loan for fulfilling their business or individual needs. You will get information regarding types of UAE bank Loans and its interest rates. Documents required for taking Loans and tenor of these Loans are also pointed in this article.


Types of UAE Bank Loans


Personal Loan in UAE and Dubai


Personal Loans are offered to salaried people and Businessmen. These are small loans and the amount ranges from AED 20,000/- to AED 200,000. There are many banks and non-banking financial institutions offer personal loans in UAE. All procedure of personal loan is controlled by retail banking departments of the banks and completed within 4-10 working days. Personal loan has got a tenor of 12 to 48 months and the interest rate of personal loan is around 25% per annum on reducing balance.

Documents required for taking personal loan in Dubai

*12 month bank statement of personal account
*Clear repayment history of any other loans/credit cards

How to get a Home Loan in UAE and Dubai


Only few banks and Housing finance institutions in UAE offer mortgage loan which are offered on fully completed residential apartments and villas. The loan is given on basis of cash flow of the individual and business and not on the basis of value of the property. As a rule of thumb loan is offered 5-8 times on annual gross salary. The value of loan floats around 70% to 80%on basis of value of the property. It normally takes 2-3 weeks for processing the loan activities. Home loan has got a tenor of 10 to 20 years and its interest rate comes around 6.5% to 8.5% per annum on reducing balance.

Documents required for taking Home loan in Dubai

*6 month bank statement of salary account
*Salary certificate from the employer
*Details of any loans/credit cards
*Property details
*Clear repayment history of any other loans/credit cards


How to get a Car Loan in Dubai and UAE


Car Loans are offered by few banks and financial institutions in UAE on selective basis. These are simple loans and are offered on the basis of salary of the employee. Any one can take car loan in UAE with a minimum salary of AED 6000/- per month. The tenor of car loan is 5 to 8 years and interest rate values around 9% to 11% per annum on reducing balance.

Documents required for taking Car Loan in Dubai

* 6 month bank statement of salary account
* Salary certificate from the employer
* Details of any loans/credit cards
* Car details
* Clear repayment history of any other loans/credit cards

Loan against property in Dubai and UAE


Property loans are almost similar to home loans. Loan against property is offered on the basis of cash flow of the individual and business and not on the basis of value of the property. According to rule of thumb, Loan can be expected around 4 to 6 times of your annual gross salary. The value of the loan comes around 50% to 65% on basis of value of the property. The processing time of Loan against property takes 2 to 3 weeks. This loan has got a tenor of 5 to 15 years and interest rate comes around 7.5% to 9.5% per annum on reducing balance.

Documents required for taking Loan against Property in Dubai

* 6 month bank statement of salary account
* Salary certificate from the employer
* Details of any loans/credit cards
* Property details
* Clear repayment history of any other loans/credit cards

Salary transfer Loan in Dubai and UAE


Almost all banks in UAE offer Salary transfer Loan. These are small loans offered to salaried employees and the loan amount ranges from AED 20,000 to AED 250,000. Salary Transfer Loans are offered and controlled by retail banking departments of banks. The processing time of these loans takes around 4 to 10 working days. The interest rates are good in this loan compared to personal Loan. This Loan has got a tenor of 12 to 48 months interest rates comes around 12% to 16% per annum on reducing balance.

Documents required for taking Salary Transfer Loan in Dubai

* 12 month bank statement of personal account with salary credits
* Clear repayment history of any other loans/credit cards
* Salary certificate including a declaration from the employer agreeing to transfer salary only to the bank providing loan

Business Loan in Dubai and UAE


Business Loans are taken for fulfilling business needs. Many Banks in UAE provides small business loan. These loans are also offered to small and medium Enterprise customers. The amount of business loan ranges from AED 150,000 to AED 750,000. Business loans are offered and controlled by business banking department of the banks. The processing time of these loans takes around 7 to 15 working days. This loan has got a tenor of 12 to 48 months and interest rate comes around 18 to 24% per annum on reducing balance. If your company is operated on a large scale, many banks will offer term loans which will provide attractive interest rates which is based on company credentials and finance.

Documents required for taking Business Loan in Dubai

* 12 month bank statement of Business account and/or personal account.
* Years in business: Minimum 2 years
* Clear repayment history of any other loans/credit cards
* Business turnover of minimum AED 3 million per year
* Company financial – preferred

You can apply all types of Loans in UAE through online.


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