Things Expats Need To Know About Taking Out Loans In Dubai

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Things Expats Need To Know About Taking Out Loans In Dubai

Dubai offers a blend of modernity and tradition. However, as an expat, navigating the financial landscape can be challenging, especially when it comes to taking out loans. In this article, the experts at Pacific Prime Dubai will outline essential information for expats considering loans in Dubai, including tips for securing the best deal.

Types of Personal Loans Available

In Dubai, expats can access two primary types of personal loans:

Salary transfer loans: These require borrowers to transfer their salaries to the lending bank, often resulting in lower interest rates and better terms.
Non-salary transfer loans: These offer greater flexibility but may come with higher interest rates.

Banks Offering Personal Loans

Several banks in Dubai provide competitive loan options for expats:

Bank	Loan Amount (AED)	Flat Interest Rate (%)	Reducing Interest Rate (%)
FAB	2,000,000	2.64	3.99
Citibank	1,000,000	2.99	5.99
ADIB	3,000,000	4.50	6.65
Emirates Islamic	1,000,000	3.25	5.35
Dubai Islamic Bank	5,000,000	3.99	6.79
ADCB	2,000,000	3.79	7.29

Here’re the loan amounts translated into USD, GBP, and EUR:

AED	Approximate Equivalence in USD	Approximate Equivalence in GBP	Approximate Equivalence in EUR
1,000,000	272,260	211,910	251,700
2,000,000	544,510	423,820	503,400
3,000,000	816,770	635,730	755,100
5,000,000	1,361,290	1,059,550	1,258,490

Eligibility and Requirements

Expats looking to apply for a personal loan in Dubai must be:

At least 21 years old.
Employed by a governmental, semi-governmental, or reputable private organization.
Making at least AED 5,000 to AED 8,000 (approximately USD1,360 to 2,180 / GBP1,060 to 1,700 / EUR1,260 to 2,010) per month.

Documentation Needed

When applying for a personal loan, you’ll need the following documents:

Copies of your ID and residency proof (valid passport with UAE visa)
Bank statements
A salary certificate
An employment contract

If you are self-employed, you will need to provide a trade license.

Tips for Securing a Loan

In addition to comparing different banks and their offerings, paying attention to interest rates, repayment terms, and any additional fees, you should:

Check Your Credit History: A good credit history can significantly improve your chances of loan approval and may lead to better interest rates.
Understand the Terms: Carefully read the loan agreement, including any terms related to early repayment or penalties.
Consult a Financial Advisor: If you’re uncertain about the best loan option for your situation, consider consulting a financial advisor familiar with the Dubai market.

Home Loans for Expats

If you’re considering buying property in Dubai, various home loan options are available in addition to fixed-rate mortgage and variable-rate mortgage:

Discounted Rate Mortgage: Provides a lower interest rate for a specified time, ideal for first-time buyers.
Capped Rate Mortgage: Limits how high the interest rate can go, protecting borrowers from significant increases.
Offset Mortgage: Links your savings to your mortgage, reducing the interest charged.

Let Pacific Prime Dubai Be Your Partner

Relocating can be both exciting and overwhelming. One way to bring some predictability to this uncertain time is by obtaining the right insurance for your needs.

With extensive experience in insurance, Pacific Prime Dubai is your trusted partner for international health insurance, expat health insurance, and more. They understand the complexities of adapting to new environments and can guide you in the right direction.

So contact them and start the conversation today!

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.