Article image: How to get a loan in the UAE

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Modern practice shows that bank lending instruments are extensively used by people and getting a loan has become a normal and natural issue. People in developed countries have successfully applied loans for various tasks. The United Arab Emirates are no exception. In this country there is a developed and stable banking system, which is ready to provide its clients with a full range of modern lending instruments / facilities.

Types of loans / lending in the United Arab Emirates

By the intended purpose there are three main groups of personal lending instruments / loans that are common on the territory of the Emirates:

  • Mortgages - secured by a collateral in the form of purchased property;
  • Car loans - purchased vehicle acts as a collateral. It should be noted that the car purchased under loan cannot be exported from the country until the complete repayment of the loan;
  • Consumer loans - this group serves a wide range of lending instruments for various private needs.

How to get a loan in the United Arab Emirates

If you decided to take a loan in the UAE you should know that a mandatory requirement of lending / loan is a residence visa in the country. With the appropriate visa you need to decide on the banking institution and the proposed loan packages.

Failure to fulfill obligations under the loan in the UAE may lead to harmful consequences.

That is why there is a number of factors which you should pay attention to:

  • Loan payments being in line with your available income;
  • Current loan interest rates applied by bank;
  • Additional services related the loan / lending (account maintenance fees, insurance, etc.);
  • Currency of lending;
  • Terms and conditions of loan and collateral.

Terms and conditions of loan and interest rates may vary significantly in different lending and banking institutions.

Documents required to get a loan in the United Arab Emirates

A standard set of documents to get a loan:

  • Application form for loan;
  • Bank statement;
  • Letter of recommendation from another banking institution;
  • Information on current income received.

List of documents required for receiving a loan may be extended depending on the requirements of a each individual banking or lending institution.

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