How to get a loan from a bank in Dubai?

15 / 07 / 2020

Getting a loan in the UAE is a simple operation. You rarely meet a bank that does not issue loans. On the contrary, banks are expanding the range of offers and improving the process of obtaining a loan, in other words, loans in the UAE are becoming more and more accessible every day. The easiest way to get a loan is to contact the institution where your bank account is currently being serviced. Your good reputation as a client will play a huge role in what lending conditions the bank will offer you.

There are 3 types of loans in the United Arab Emirates:

    ●  Mortgage with a rate of 5-8%. The most common collateral for the bank, with this type of lending, is the property that is purchased by the client, but you can agree with the bank on other options for collateral;

    ●  A loan to buy a car with a rate of 3-4%. As in the case of a mortgage, the purchased car acts as collateral, other options are included too;

    ●  Loan for consumer needs at a rate of 6% or more.

The issue of a loan depends on the availability of a residence permit. If you do not have one, then, unfortunately, you should not rely on any type of lending. A resident visa is the first and, in most cases, the only global condition for lending.

The rules in the UAE are strictly observed, which is why the Emirates are considered as one of the safest places to store financial resources. Putting forward sanctions in case of non-compliance with the rules can affect everyone who gets into the list of non-payers. Before taking a loan, find out about all the nuances and types of lending, pay attention to:

    ●  the cost of servicing your future account;

    ●  availability of compulsory collateral;

    ●  loan repayment periods.

Calculate the currency in which the loan will be issued, which type of currency will be most profitable for you.

In addition to a resident visa, there is a list of documents that you will need when applying for a loan:

    ●  income statement;

    ●  if your bank account is opened in another bank, take a recommendation letter from it;

    ●  fill in the sample form in English and provide it to the bank employees.