The Central Bank of the UAE has removed the minimum salary requirement for personal loans, giving banks more flexibility to evaluate applicants based on their internal policies.
Loan eligibility changes
Previously, individuals needed a minimum monthly salary, typically around Dhs 5,000, to qualify for personal loans. Under the new rules, banks can approve loans without a fixed salary floor. This change aims to increase financial access for a wider range of residents, including younger workers and employees in lower-wage sectors.
Banks can continue to deduct loan repayments directly from salaries using the Wage Protection System (WPS). While the minimum salary requirement has been lifted, standard limits and repayment conditions still apply, ensuring responsible lending practices.
Impact on financial inclusion
The move is part of the Central Bank’s broader strategy to enhance financial inclusion in the UAE. By giving banks flexibility, more residents can access personal financing, supporting everyday expenses, education, and personal development.
In parallel, the Central Bank has suspended plans to raise the minimum balance requirement on bank accounts, which was previously set to increase from Dhs 3,000 to Dhs 5,000. The review reflects the regulator’s focus on protecting low-income account holders and maintaining accessibility to basic banking services.
Analysts expect the changes to encourage more UAE residents to apply for personal loans, while banks will adjust their internal criteria to balance risk and access. The updates reinforce the UAE’s ongoing efforts to modernize its financial sector and support residents across all income levels.
tanvir@dubainewsweek.com
