• Personal Loan for employees of Non-Listed Company in UAE

    Most banks in the UAE offer personal loans to those who are working in a listed company. What happens if your company is not listed? There are many companies in the UAE and the lending institutions available are less than 35. It is not possible for all companies to be listed with the lenders. Read on to find out if you can get a personal loan even if your company is not listed.

    What is a listed company?

    Banks in the UAE are trying to minimize the risk every time they are lending the money. UAE is still in the process of setting up a credit bureau. Only basic credit information is provided to the banks in the UAE. Banks find it hard to assess customer’s creditworthiness. So, the banks in the UAE use other methods to assess risk of lending and one of the criteria is they look into the company that you work for. They take into consideration the number of employees, revenue of the company, etc. Most large corporations will be listed with the bank and they are stable and have a credit history when compared to smaller firms. You can find out if your company is listed is to call the bank and determine it for yourself. Even your company HR will know if your company is listed or not.

    Most companies that have a global presence will be listed with the bank. Once your company is listed, you will be considered a lower risk.

    How do companies get listed?

    Every bank in the UAE have their own criteria to list out a company. Most banks are consistent that the company must be trading for a minimum of 2 years within the Emirates or must be generating a set level of revenue. Banks also look into the financial records of the company and look for assurances of stability and trading. When a company is listed, the employees of that company get access to a wide range of the bank’s financial products. Banks will also look into your personal eligibility and set the rates based on it.

    Do you still get personal loan if your company is not listed?

    If the company you are working for is not listed in any of the banks in the UAE, it is still possible for you get a loan. You will have to show a proof of sustained income, but there will be limitation on the funds you can borrow. It is an added advantage if you are transferring your salary to the bank with whom you are applying for a personal loan. This will help build up consistent banking history.

    Banks offering personal loan for employees of a non-listed company

    Following are the banks that are offering personal loan for employees of a non-listed company:

    • Citibank personal instalment loan:

      The minimum salary requirement is AED5,000. Salary transfer is not required. Maximum loan amount you can get is AED175,000. Arrangement fee charged is 1%. Interest is charged on a reducing balance method. Flat rate starts at 9.92% per annum. Early settlement fee charged is 1% of the outstanding amount. Income determines the loan amount and rates. Insurance can be taken on this loan.

    • Emirates NBD personal cash loan:

      The minimum salary requirement is AED10,000. Salary transfer is required. Maximum loan amount you can get is AED500,000 for both expats and UAE Nationals. Arrangement fee charged is 1%. Interest is charged on a reducing balance method. Flat rate starts at 4.86% per annum. Early settlement fee charged is 1% of the outstanding amount. You get a free bank account and credit card free for the first year. There is an exclusive loan return option. You get enhanced credit life coverage. Loan deferment option is available, you can skip two instalments in 12 months which are non-consecutive.

    • ADCB Smart Finance:

      The minimum salary requirement is AED5,000. Salary transfer is not required. Maximum loan amount you can get is AED150,000. Arrangement fee charged is 1%. Interest is charged on a reducing balance method. Flat rate starts at 5.51% per annum. Early settlement fee charged is 1% of the outstanding amount. Loan repayment is up to 48 months. This product is shariah compliant. Takaful fee is 0.75% of the loan amount.

    • Citibank salary transfer loan:

      The minimum salary requirement is AED8,000. Salary transfer is required. Maximum loan amount you can get is AED250,000. Arrangement fee charged is 1%. Interest is charged on a reducing balance method. Flat rate starts at 2.75% per annum. Early settlement fee charged is 1% of the outstanding amount. Loan repayment period is up to 48 months. Insurance can be taken on the loan.

    Tips:

    So if in case you are not working for a listed company, then choose a bank which offers better rates for your personal loan. It’s always advisable to check all the fees before you apply with a bank in UAE.

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