How to get a loan with bad credit in UAE

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The UAE’s banking sector is a booming one, with banks offering an array of financial products. With the UAE’s world-class lifestyle, the easy availability of loans can be tempting but it is important to borrow wisely so that you can stay in control of your finances.

Here is all you need to know about getting loan in UAE with bad credit score.

Key eligibility factors for getting loans in the UAE
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The UAE uses a credit score to check the financial health of a loan applicant. The credit score is a three-digit score provided by Etihad Credit Bureau. The higher the score, the higher the probability of getting a loan approved. You can get your credit report on Etihad Credit Bureau’s website or app, and it will cost you Dh140.

Another factor that can affect your loan eligibility is your debt burden ratio (DBR). Central bank regulations make it mandatory that one’s DBR should not exceed 50 percent of his/her total monthly income.

  • Minimum salary eligibility.
  • Your company is not listed.
  • Your Employment status.

So, we can see that the most important factor for getting a loan approved in UAE is Credit Score. Getting a bank loan in the UAE is not a big deal if you have a good credit score. But if you have a bad credit score, you may have only a few options to choose from, and you will probably have to pay much higher rates of interest.

credit-check

So are there private money lenders for bad credit in UAE?

First, it is important to understand the factors that may cause you to have a low credit score:

  1. Zero Credit History
  2. Late Payments
  3. Bounced cheques
  4. Negative civil judgments
  5. Maxing out credit cards

A poor credit score does not mean that you cannot get a personal loan. There are many private money lenders and few banks, but obviously, it will cost you much more.

Fortunately there are a number of available options to get a loan on bad credit or a loan without credit checks in UAE:

  1. Banks
  2. Peer to Peer lending
  3. Lending using Credit Card
  4. Credit Union
  5. Selling your personal items for Cash

Let’s discuss the pros and cons of each method.

1- Banks

UAE banks have a very strict policy regarding bad credits, and usually they don’t provide unsecured loans. There is a list of documents required to apply for a personal Bank loan:
Emirates ID: you should have a valid passport with valid residence visa.
The bank may need a salary transfer, if so, then a pay transfer letter will also be required.
You should also have the latest 3 months Bank statement with salary credits.
Some banks may also ask for post-dated cheques for security reasons.

Here is a list of Banks in UAE that offer loans:

Noor Bank Personal Loan
https://www.noorbank.com/personal/finance/personal-finance
Minimum salary required AED 5000
Mandatory Salary Transfer
Flat interest rate of 3.49%
Reducing Interest rate of 6.33%

ABCD Personal Loan
https://www.adcb.com/en/personal/loans/personal-loans/personal-loan-expats.aspx
Minimum salary required AED 5000
Mandatory Salary Transfer
Flat interest rate of 3.45%
Reducing Interest rate of 6.25%

 

Deem Finance Personal Loan
https://deem.io/loans/personal
Minimum salary required AED 5000
Salary Transfer not mandatory
Flat interest rate of 8.81%
Reducing Interest rate of 15.99%

CBD Personal Loan
https://www.cbd.ae/personal/borrow/loans/personal-loan/
Minimum salary required AED 8000
Mandatory Salary Transfer
A flat interest rate of 3.03%
Reducing Interest rate of 5.50%

As we can see, these banks have strict requirements. If you are seeking a loan with bad credit in the UAE, a Bank is probably not your best option.

2- Private or Peer-to-Peer Lending

The main idea that comes first to your mind when in need of extra cash is asking a friend/ family member, or colleague. This works sometimes but not always, especially when you need a larger amount of cash. In this case, private lenders are another option for you. There are many private lenders in UAE that provide loans to persons with bad credits, but usually, their interest rates are much more than banks.

You can also go for online money lenders as well. Many online lenders use a model called peer-to-peer lending, where multiple individuals provide all or part of the loan, rather than having it come from the bank.

 

3-Lending using Credit Card

If you have a credit card, it can be the equivalent of an asset. You can get a loan against your credit cards or get cash advance options in the UAE.

Many residents seek credit cards without providing bank statements or minimum salary, but it is not advisable to take out a loan against your credit card if you are in this position, as it is provided at a very high-interest rate which can be a huge burden.

As some ‘must follow’ points to keep in mind:

  1. Always read the fine print and keep a copy for future reference.
  2. Don’t be in a rush, look for all the options from different lenders before making a decision.
  3. Be prepared for a rainy day (Always ensure you have enough money for the next six months of installments as savings in the bank).
  4. Beware of hidden charges, when applying for a loan.
  5. Get the best interest rate and check if it is a flat rate (interest-based on principal amount) or reducing balance rate (interest based on the balance amount that needs to be repaid but the interest rate could be higher)
cash offer

4- Selling your items for Cash

As you can see above, for many years there has not been a suitable way to get short term or emergency cash loans without credit checks.

That’s where Buyback Bazaar comes in!

We realised that many people just like you struggled with getting a cash loan with a low credit score in Dubai and the UAE. We wanted to change this and offer a safe and affordable way to get access to money when you need it most.

No credit checks, get cash Instantly in shops across UAE

Getting immediate, urgent cash with Buyback Bazaar is really simple. When you go to our website, all you have to do is enter the details of your item and in a few clicks you will have a guaranteed best price quote generated.

Our partner shops buy your phone, laptop, gadget or luxury watch and pay you immediate cash. And, you can always come back in 30 or 60 days and BuyBack your asset. All you do is

Get a confirmed price from our website

Take your item to the nearest shop located across the UAE

And collect your cash instantly

No credit check is required, and approval is completed in minutes.

We have many stores in convenient locations across Dubai, Abu Dhabi, Sharjah.

PLUS, we have recently launched “Buyback @Home” where we come to you and collect your item without you having to leave the sofa! So now, you can also get cash in Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah.

100% Guaranteed Safe

Best of all, your item is completely protected against damage and tampering through our use of special sealed bags. Nobody will have access to your goods until you return to Buyback, and that’s guaranteed!

Sell your gadget or luxury watch and still have the option to buy it back later. With 8000+ deals done and a 87% customer return rate, try us now and join thousands of people who get quick cash on our platform!

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