Be it home renovations, weddings, starting up a business, investing in yourself or paying for higher education, applying for personal loans are most often the most popular choice of raising funds.

A personal loan, when handled carefully, can help you cover a gap in your budget without jeopardizing your home or other assets.

Personal loan rates are based on your credit score, income, and debt-to-income ratio, much like other loans, and they’re not for everyone. Hence, not everyone is granted a personal loan, so here are 5 ways to you BAG a personal loan without a salary transfer in the UAE!

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5. Ensure you have a shining credit history!

Your credit history includes information about your current and previous loans, as well as how quickly or late you paid them back. Before qualifying you for a loan, banks frequently look over your credit history. They are unlikely to approve your loan if they find that you have too many pending or late payments.

4. Work on having a GOOD credit score

One of the most important factors that banks consider when considering whether or not to approve you for a loan is your credit score.

Minimum credit score restrictions are frequently imposed by lenders.

3. Minimum age: Expats have to be 21+ to qualify for a loan

To qualify for a personal loan in the UAE, an expat must be at least 21 years old.

2. There will be a minimum salary requirement

Different banks may have different minimum salaries. However, most banks accept applicants who have a minimum salary of AED 5,000.

Some minimum salaries banks in UAE require are:

• Emirates – AED 5,000
• Dubai Islamic Bank – AED 3,000
• Emirates Islamic Bank – AED 5,000
• RAKBANK – AED 5,000
• ADCB – AED 5,000

Before applying for a personal loan, double-check to see if you match the bank’s minimal salary requirements. However, some banks allow expats to request financing without a salary transfer, even if their employers are not on their list of approved employers. #LifeHACKS!

1. Work on having a low debt burden ratio in your portfolio

The debt load ratio determines how much debt a person now owes. Before qualifying you for a personal loan, banks often look at how much debt you have.

Banks in the UAE expect you to have a debt load ratio of no less than 50%. This figure depicts the amount by which your monthly instalments exceed your income. You are unlikely to be accepted if the difference is greater than 50%.