There are different types of bank loans in Dubai. These loans can be classified into personal loan, home loan, business loan, car loan, salary transfer loan, loan against properties. All of these loans are described here:
Various banks and financial companies offer personal loans. Employees and businessmen are offered this loan. This loan is small in amount ranging from 20000 to 200000 AED. Retail department of bank offers this loan with 4-10 working days turn around time. Tenor of this loan is 12-48 months. Annual interest rate is around 25%. You need to provide 12 month statement of your personal bank account and history of clear repayment of previous loans or credit cards.
Several banks and institutions of housing finance offer this mortgage loan in Dubai. But, the loan is offered on a selective basis. The loan is offered on residential apartments which are fully completed. You are eligible if you have cash flow of your business. You can get loan of 5-8 times of your gross salary in a year. If you have other installments to pay then you will get lesser amount. Projects for which most banks finance are Lakes, Springs, Greens, Emirate Hills, Meadows, Downtown Dubai, Jumeirah Islands, Jumeirah Beach Residence, Executive Towers. The loan amount for home is 70%- 80% of your property. Turnaround time is 2-3 weeks. Evaluation of property is done by reputed valuers like Better Homes, J&J, Colliers and Cluttons. Tenor of this loan is 10-20 years. Annual interest rate is 6.5%-8.5%. You need to provide your salary bank account’s 6 months statement, employer’s salary certificate, loans or credit cards detail, property details and history of clear payment of previous loans.
Many banks in Dubai offer business loans for SME customers and business banking. This loan ranges from 150000 to 750000 AED. Department of business banking offer this loan. The loan can be distributed within a turnaround time of 7-15 working days. Tenor of this loan is 12-48 months. Annual interest rate is 18-24%. You need to provide statement of your personal account or business account. You should have business of minimum 2 years, clear payment of previous loans. Your yearly business turnover should be 3 million minimum. You should also provide company financials. According to your company financials and credentials you can have better interest and loan offer.
Few of the Dubai financial institutions and banks offer car loans. This loan depends on the employee salary. You are eligible to take this loan if you get a monthly salary of 6000 AED. Tenor of this loan is 5-8 years. Annual interest rate is 9-11%. You need to provide bank statements of 6 months, salary certificate, details of any credit cards or loans, details of car and clear repayment of other loans.
Safety Transfer loan:
This loan is offered by most banks in Dubai. The amount range is from 20000 to 250000 AED. Retail banking department offer this loan with 4-10 working days turn around time. The interest rate is better than the personal loan and depends on the strength of employer. Tenor of this loan is 12-48 months. Annual interest rate is 12-16%. You need to provide clear repayment of other loans, salary certificate and bank statement of 12 months.
Loan against property:
This is same as home loan except in this loan you can borrow against the asset. You are eligible if you can show the cash floe of your business. The loan amount is 52-65% of the property value. Tenor of this loan is 5-15 years. Annual interest rate is 7.5-9.5%. You need to provide salary certificate, bank statement of 6 months, details of credit cards or loans, details of property and clear repayment history.