There are personal loans available from both traditional banks and alternative lenders to those who qualify. If you want to get a loan quickly and easily, it will help to know what you need to qualify for one. The minimum age, annual income, credit score, and kind of job required by each bank might vary widely. Lenders use these to determine whether or not to provide a loan to a certain person.
Your loan application might be denied for a variety of reasons. The fact that the firm is not a member of the financial institution’s database is a major factor in the lending decision. You may not be able to find the businesses you collaborate with on a bank’s or institution’s public database. It might be difficult to apply for a personal loan in the UAE if your firm is not publicly traded. Yet, have no fear! Employees at non-listed enterprises in the UAE have easier access to personal loans thanks to a number of banks’ loosened lending standards.
The establishment of the Al Etihad Credit Score bureau has resulted in a rise in the number of financial institutions that are willing to provide credit to people on the basis on their credit scores, regardless of whether or not their respective businesses are listed with the institution.
Eligibility criteria for employees of a non-listed company
Credit Score
Having a high credit score is a major consideration when deciding whether or not to provide a loan. Aside from the interest rate, the length of time you may utilise the money, and the total amount you can borrow all depend on your credit history. A high credit score is evidence of fiscal responsibility and proves you are a reliable borrower. This is a major deciding element for lenders when deciding whether or not to grant you a loan in the UAE. Keeping a high credit score is especially important if your line of work involves dealing with smaller and medium-sized businesses.
Income
Since these businesses are not listed with any financial institutions, the lender views them as high-risk borrowers. Therefore, their monthly income is one of several criteria that may determine whether or not their loan applications are approved. Listed organisations that work with such applicants in the UAE may need a larger revenue base than is typical in order to provide personal financial services.
Age
Institutions ranging from banks to movie theatres have established minimum age requirements. Individuals between the ages of 21 and 60 may apply for a personal loan in the UAE without having their businesses registered there. Personal loans made in the UAE by foreign nationals often adhere to these age requirements. United Arab Emirates citizens may be eligible for a loan in Dubai until they are 65.
Work Experience
A loan application may be more likely to be approved if the applicant has extensive job experience but no established banking relationships on behalf of their firm. The candidate has established creditworthiness and is a good risk for the lender. The longer you’ve been employed, the better your chances of having your loan application approved by the bank because of your proven track record of responsible debt payments.
Loans for non-listed firm workers are available with perks and minimal conditions from well-known financial institutions such as Abu Dhabi Commercial Bank and Emirates National Bank of Dubai.
Launched by the Al Etihad Credit Bureau, the credit rating system aids financial institutions in reducing their risk exposure throughout the loan process. It was difficult for the bank to make lending choices before the new system was implemented since it only had access to the most fundamental consumer credit data. Financial institutions often investigate applicants’ places of employment in order to gauge the long-term viability of their income. They came to this conclusion based on the fact that they have found that employees of long-standing companies tend to have excellent credit and payback records. Soon, they had a prioritised list of firms whose workers they felt could safely take out loans.
Banks and other financial institutions have researched commercial and financial data throughout the years, but they all adhere to their own internal rules. This is now the most important factor taken into account by banks in the UAE when determining whether a client is qualified for a personal loan.
A personal loan may be obtained by anybody in the United Arab Emirates, regardless of whether or not their business is registered with a local bank. The applicant’s credit score is only one criteria considered by banks. Working for an unpublicized firm increases the likelihood that you will be offered a high interest rate by certain lenders. Instead of applying for the first loan you come across, take the time to shop around and identify reputable lenders offering competitive rates on sizeable loans. Before signing for a loan, it’s smart to learn as much as possible about the terms, including the interest rate, fees, and repayment schedule.