UAE Banks with the Best Personal Loans – Updated Guide for 2025

Personal loans in the UAE have become a go-to financial tool for residents seeking quick funding for education, travel, weddings, or emergencies. With a competitive banking landscape, several banks offer flexible and affordable personal loans with attractive interest rates and minimal documentation.

This guide highlights the best banks in the UAE for personal loans, comparing their features, eligibility, and benefits—so you can make an informed financial decision.

Why Personal Loans Are Popular in the UAE

Many UAE residents, both locals and expats, turn to personal loans for:

• Debt consolidation

• Education expenses

• Home renovations

• Medical emergencies

• Travel or weddings

Unlike credit cards, personal loans typically have fixed monthly repayments, making it easier to budget and plan. Most UAE banks offer competitive interest rates, instant approvals (especially for salaried individuals), and high loan amounts based on salary.

Key Factors to Consider When Choosing a Personal Loan

Before jumping into the list of banks, consider these vital factors:

• Interest Rate: Flat vs. reducing rates

• Loan Amount: Usually up to 20x monthly salary

• Repayment Period: From 6 months to 48 months

• Processing Fees: Typically 1% of the loan amount

• Early Settlement Fee: Generally 1% of outstanding amount

• Salary Transfer Requirement: Some banks require salary transfer

Top UAE Banks Offering the Best Personal Loans in 2025

1. Emirates NBD Personal Loan

Key Features:

• Loan up to AED 4 million (for UAE Nationals)

• Low reducing interest rates starting from 5.49% p.a.

• Tenure: Up to 48 months

• Loan approval within 24 hours

• Optional insurance cover

Best for: Salaried individuals with existing Emirates NBD accounts.

2. Abu Dhabi Commercial Bank (ADCB)

Key Features:

• Competitive flat rates starting from 2.63%

• Loan up to AED 1.5 million

• Free credit life insurance

• Flexible tenure of up to 48 months

• Salary transfer required

Best for: Government or semi-government employees.

3. Mashreq Bank

Key Features:

• Personal loans up to AED 1 million

• Interest rates from 5.99% (reducing)

• Fast processing – sometimes within 1 working day

• No salary transfer option available (at higher interest rate)

• Zero documentation loan offers for existing clients

Best for: Expats with no salary transfer but stable income.

4. First Abu Dhabi Bank (FAB)

Key Features:

• Personal loans for both salary and non-salary transfer customers

• UAE Nationals: Loans up to AED 5 million

• Expats: Up to AED 2 million

• Competitive reducing rate as low as 3.85%

• Easy top-up options and flexible tenure

Best for: UAE Nationals and high-income expats.

5. HSBC UAE

Key Features:

• Personal loans up to AED 750,000

• Repayment from 6 to 48 months

• Early settlement allowed without penalties (for loans above 1 year)

• No processing fee for Premier customers

• Available for both conventional and Islamic banking

Best for: Existing HSBC customers or high-income earners.

6. Dubai Islamic Bank (DIB) – Islamic Personal Finance

Key Features:

• Shariah-compliant loan structure (Murabaha)

• Financing up to AED 4 million

• Profit rate from 6.49% (reducing)

• Takaful (Islamic insurance) included

• High approval rate for UAE Nationals

Best for: Those seeking Shariah-compliant financing.

7. Citibank UAE

Key Features:

• Personal loan up to AED 175,000

• Instant online eligibility check

• Approval within 24 hours

• No salary transfer required

• Transparent flat rates from 3.89%

Best for: Freelancers or contract workers without salary transfer.

Eligibility Criteria (General)

Though requirements vary slightly by bank, here’s what’s typically needed:

• Minimum Salary: AED 3,000 to AED 5,000

• Age: 21 – 60 (65 for UAE Nationals)

• Employment: Minimum 6 months at current job

• UAE Residency: Valid Emirates ID + Visa

• Salary Transfer Letter (if required)

Required Documents

• Emirates ID (original and copy)

• Passport and residence visa copy

• Salary certificate or 3-month bank statement

• Salary transfer letter (if needed by bank)

• Security cheque (in some cases)

Pros and Cons of Taking a Personal Loan in UAE

Pros:

• Quick access to funds

• Competitive interest rates

• Fixed repayment structure

• Available even for non-salary transfer clients

• Digital applications and instant approvals

Cons:

• High penalties for missed payments

• Early settlement fees

• Risk of over-borrowing

• Impact on credit score if not managed properly

Tips for Getting the Best Personal Loan in UAE

• Compare reducing rates over flat rates—more accurate reflection of cost

• Always read the fine print (processing fees, insurance, early payment penalty)

• Use loan calculators on bank websites before applying

• Improve your credit score for better interest rates

• Avoid borrowing more than necessary

Final Thoughts

Whether you’re a UAE National or an expat, there are multiple personal loan options available that fit different income levels and employment types. From Islamic finance to digital-only banks, the market is expanding rapidly in 2025.