Debt Consolidations loans in UAE
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Advantages
- Free debit card
- Current account with no minimum balance
- Can avail top-up facility
Features
- Repayment period is up to 4 years
- The reduction rate and the flat rate is 5.5% and 3.03%. This denotes that the computation done was a division of the reduction rate by 1.814
- The loan is provided for a interest rate of 5.5%
Features
- Repayment period is up to 4 years
- The loan is provided for a interest rate of 5.5%
- Minimum salary of AED 8,000 is required
- The reduction rate and the flat rate is 5.5% and 3.03%. This denotes that the computation done was a division of the reduction rate by 1.814
- It is mandatory to transfer your salary to apply for this scheme
- Finance up to AED 750,000
- Early settlement fee is 1% of finance amount
- Takaful fee is 0.82% of the finance amount
- Arrangement fee is 1% of loan amount
Benefits
- High Finance amount is provided by the bank
- Availability of buy-out facility
- Determent facility available - maximum 2 times a year without additional profit
- Free Debit Card is provided along with this scheme
- Free Current Account is provided along with this scheme with no minimum balance requirement
Explore
Hide ExploreAdvantages
- Free debit card
- Current account with no minimum balance
- Can avail top-up facility
Features
- Repayment period is up to 4 years
- Only UAE Nationals can apply for this scheme
- The reduction rate and the flat rate is 5.5% and 3%. This denotes that the computation done was a division of the reduction rate by 1.836
Features
- Repayment period is up to 4 years
- Only UAE Nationals can apply for this scheme
- Enjoy the benefit of competitive interest rates & Interest rates range from a low 5.50% to a maximum of 18% per annum (reducing).
- Minimum salary of AED 8,000 is required
- The reduction rate and the flat rate is 5.5% and 3%. This denotes that the computation done was a division of the reduction rate by 1.836
- It is mandatory to transfer your salary to apply for this scheme
- Finance up to AED 2,500,000
- Early settlement fee is 1% of finance amount
- Life insurance is provided at 0.82%
- Arrangement fee is 1% of loan amount
Benefits
- For every loan amount of AED 100,000 you can earn up to 500 Attijari points
- High Finance amount is provided by the bank
- Availability of buy-out facility
- Determent facility available - maximum 2 times a year without additional profit
- Free Debit Card is provided along with this scheme
- Free Current Account is provided along with this scheme with no minimum balance requirement
Advantages
- No processing fees
- Free ADIB Visa Cashback Card
- Can postpone 2 installments per year
Overview
- No processing fees are charged
- Applicants must submit liability certificate
- Free ADIB card can be availed
Overview
- No processing fees are charged
- Applicants must submit liability certificate
- Free ADIB card can be availed
- Can postponement installments
- The maximum tenure of 4 years is provided
- Grace period is provided to pay the first installment
- Can get pre-approval for the loan
Advantages
- No processing fees
- Free ADIB Visa Cashback Card
- Can postpone 2 installments per year
Features
- Latest bank account statements are needed
- Required to submit Liability Certificate
- Loan applicant must be 21 years old to apply for this scheme
Features
- Latest bank account statements are needed
- Required to submit Liability Certificate
- Loan applicant must be 21 years old to apply for this scheme
- Should have worked for at least 6 months at the current organization before applying for this scheme
- Profit rate of 5.99% is charged
- Minimum salary of AED 5,000 is required
- It is a requirement to transfer your salary to apply
- Finance up to AED 3,000,000
- The early settlement fee is 1% of the outstanding amount to date
- Takaful cover is 1.25% of the finance amount.
- No Arrangement fee is charged
Benefits
- ADIB VISA Cashback Card will be provided free for the first year
- You are allowed to postpone two payments per year (without any additional charges)
- Finance repayment period is upto 48 months
- Processing fees is zero
- Free ADIB card can be availed
- Can postponement installments
- The maximum tenure of 4 years is provided
- Grace period is provided to pay the first installment
- Can get pre-approval for the loan
Features
- Repayment period is up to 4 years
- Only UAE Nationals can apply for this scheme
- The interest rate starts at 4.89%
Features
- Repayment period is up to 4 years
- Only UAE Nationals can apply for this scheme
- Minimum salary of AED 6,000 is required
- The interest rate starts at 4.89%
- It is mandatory to transfer your salary to apply for this scheme
- Finance up to AED 3,000,000
- Early settlement fee is 1% of loan amount
- Arrangement fee is 1% of loan amount
Benefits
- Can get up to AED 3,000,000 loan amount
- Repayment period is long
Features
- Repayment period is up to 4 years
- The reduction rate and the flat rate is 5.99% and 3.3%. This denotes that the computation done was a division of the reduction rate by 1.814
- The loan is provided for a interest rate of 5.99%
Features
- Repayment period is up to 4 years
- The loan is provided for a interest rate of 5.99%
- Minimum salary of AED 7,500 is required
- The reduction rate and the flat rate is 5.99% and 3.3%. This denotes that the computation done was a division of the reduction rate by 1.814
- It is not mandatory to transfer your salary to apply for this scheme
- Finance up to AED 730000
- Early settlement fee is 1% of finance amount
- Takaful fee is 0.5% of the finance amount
- Arrangement fee is 1% of loan amount
Benefits
- Arab bank provides loan boy-out facility
- About 45 days grace period is provided by the bank
- Loan application processing is fast
- A dedicated manager will assist you all throughout the process
Features
- Required to submit bank statement for last 6 months
- Finance repayment period is up to 25 years
- The rates applicable depend on salary
Features
- Required to submit bank statement for last 6 months
- Finance repayment period is up to 25 years
- The rates applicable depend on salary
- Only UAE Nationals can apply for this finance
- Required to submit quotation of the required goods addressed to Ajman Bank
- Minimum age of 21 years is required
- The loan is provided for a interest rate of 5.99%
- Minimum salary of AED 20,000 is required
- The reduction rate and the flat rate is 5.99% and 3.18%. This denotes that the computation done was a division of the reduction rate by 1.814
- It is a requirement to transfer your salary to apply
- Finance upto AED 4,500,000
- The early settlement fee is 1% of the outstanding amount to date
- Free takaful offered.
- Arrangement fee is 1% of loan amount
Benefits
- Repayment tenor of up to 25 years
- Simple documentation
- Quick processing
- Pre-Approved Credit Card with lifestyle benefits
- Takaful is offered free of cost
Features
- The repayment period is up to 4 years
- Can combine multiple finances into one
- Interest rate starts at 7%
Features
- The repayment period is up to 4 years
- Can combine multiple finances into one
- Interest rate starts at 7%
- Minimum salary of AED 3000 is required
- Early settlement fee is 1% of outstanding finance amount
- Arrangement fee is 1.05% of the finance amount
Benefits
- Finance is provided to consolidate existing loans
- Additional finance is provided after consolidating the loans
- Repayment period is long
- High loan amount is provided
- Can pay the first instalment upto 120 days
- Processing is quick
Debt Consolidation in UAE
In recent times, many debtors are juggling between many loans like home loan, car loan, personal loans and credit cards. The high cost of living, especially in the UAE region and the upscale lifestyle causes people to spend beyond their means. When the debt goes beyond control, they approach banks or financial institutions for a debt consolidation loan.
What is Debt Consolidation Loan?
Imagine managing 3-4 loans and paying different installments for each one of them. These loans can be different rates of interest and also with different banks. Debt consolidation loan is a product offered by most banks and financial institutions which help consolidate all your loans into one single loan. The tenure, rate of interest and benefits can vary but the consumers believe it helps them begin their journey of a debt-free life.
Benefits
- Better tracking of finances – Since you have only one loan to repay, the number of installments come down to one too. This saves you a lot of time, effort, and money, involved in making multiple payments. This way you can track your loan components like interest rate being charged, etc easily.
- Manage debts easily - Having multiple loans can be a little confusing. A single loan can be managed easily and the payments can be done on time without any delays.
- Lesser interest to be paid– Usually, banks and financial institutions offering debt consolidation loans offer a lower rate of interest. So, by consolidating various loans, you can be assured of saving money which was being paid as interest.
- Less percentage of Debt repayment amount on monthly expenses - Low interest rate will indeed reduce the monthly payment made on the debts which can save the loan holder a significant amount of money.
- Credit rating– When you are juggling between multiple payments for different loans, chances are that you might miss or delay certain installments. This can adversely affect your credit rating and cause problems for availing further loans if required. Debt consolidation loans helps you by reducing the chances of missing or delaying payments thereby improving your credit score.
- Stress-free- We live in a world full of stress. A loan is probably the biggest contributor to stress in our lives. By consolidating your debts you will feel a drop in your stress levels since all your installments would be merged into a single payment every month.
- Additional benefits- Along with these banks might offer benefits like free postponement of installments, grace period for installment payments, discounts on processing fees, etc.
Eligibility
Every bank and financial institution have its own eligibility criteria which needs to be checked individually. However, some basic requirements are as follows:
- Debt to Burden ratio [DBR] should not exceed 50 percent
- Most banks have a requirement of salary transfer
- Minimum salary starts at AED 7000
- Must be a UAE resident
- Should have loans in UAE to consolidate
Fees and charges are usually similar to normal personal loans but they must be checked before applying.
Which banks offer debt consolidation loans in UAE?
Abu Dhabi Islamic Bank [ADIB] Debt Consolidation Loan
Features
- Interest rate starts from 3.44%
- Can get a grace period of 90 days for the 1st installment
- Can postpone up to 2 installments every year
- NO processing fee
- High finance amount of up to 3000K AED
- Quick approvals
- Job loss protection
- ADIB Visa cashback credit card as complimentary
| Minimum Salary | AED 8000 |
| Loan Amount | AED 3000 K |
| Benefits | Free Credit Card; No Processing Fees |
Mashreq Bank Debt Consolidation Loan
Features
- Lower monthly payments
- Higher Loan amount – AED 1 Million for Expats and AED 3 Million for UAE Nationals
- Maximum repayment tenure of up to 48 months
- Salary transfer is mandatory
| Minimum Salary | AED 5000 |
| Loan Amount | AED 3000K |
First Abu Dhabi Bank[FAB] Debt Consolidation Loan
Features
- Long repayment period is provided
- Interest rates start from 5.12%
- Only UAE nationals are eligible
- Salary transfer to FAB account is mandatory
| Minimum Salary | AED 10,000 |
| Loan Amount | AED 5000K |
You will also have to prove that your outstanding credit was granted before May 2011 and your DBR is higher than 50 percent of your monthly salary.
Debt consolidation is a tool to help you get your loans under control. It can help you minimize the number of installments and in certain cases reduce the interest rates too. However, it does not make your debt disappear. You have to repay what you have borrowed and with 100 percent dedication, you can use this tool to reach a debt free existence.
Documents Required
- Liability Letter
- Salary Transfer Letter as per the bank's format
- Last 3 - 6 months bank Statements
- Completed and signed branch application form
- Passport Copy
- Valid Emirates ID
- Residence Visa(only for expats)
How to know that Debt consolidation loan will work for you?
Debt consolidation is a long drawn process. Consumers with multiple credit cards and no savings to repay them should primarily consider debt consolidation as this can significantly reduce the interest rates. Debt consolidation requires an unwavering commitment to new repayment structure and persistence to follow it throughout the tenure of the loan. If this is you, then debt consolidation loan can help you become debt-free.
Remember: if you start taking more loans/credit cards, then debt consolidation will not work for you.