Get personal loan at lowest interest ratePersonal Loan up to 20 times your Salary
Buyout Loan or Debt Consolidation in UAEConsolidation of debts into one installment
Buyout Loan in UAE: A lot of times it happens that you get overburdened with multiple liabilities. Same time you have to manage Loan installment, Car installment, Credit card bills, and all regular expenses. Gradually a situation comes when with a fixed limited income or salary it gets more and more difficult to manage all expenses and you end up being a defaulter. Your creditworthiness decreases, your Credit Score goes down day by day, resulting in no other Bank or Financial Institution take a chance to lend you more money.
Before this situation arrives it’s always better to opt for a Buyout Loan. By choosing Buyout Loan you can consolidate all your loans and credit cards into one easy monthly installment. Get rid of multiple liabilities and live freely. All ex-pats and UAE nationals may apply for a buyout Loan. Easy availability up to 20 multiples of Salary.
Features and Benefits of Buyout Loan in UAE
There is a list of benefits to opting for a Buyout Loan in the UAE:
Consolidation of loans: A buyout loan in Dubai helps to consolidate all your existing loans into one easy installment. The borrower can settle their previous loans and credit cards in Dubai to manage their finances more effectively.
Lower Monthly Installments: A buyout loan reduce the burden of your multiple monthly installments and helps you to plan your monthly budget efficiently.
Access to extra funds: Borrowers can settle their previous loans, with an option to access the remaining extra funds if available for personal use.
Eligibility for Buyout Loan
Minimum fixed income of AED 5,000.
Minimum age of the applicant should be 21.
Good and healthy Credit Score or Credit History.
DBR of existing loans and cards should be below 50%.
Bank account with regular salary credit.
Documents for Buyout Loan
KYC Documents – Passport and Visa Copy, Emirates ID.
Income Proof – Salary Certificate or Payslips.
Latest 3-6 Months Bank statement.
Liability Letters of all existing liabilities that need to be consolidated.
A step by step guide how a buyout loan Dubai works:
Let’s suppose the borrower has an existing loan and credit cards from Bank A and the loan consolidation is applied with Bank B.
Step 1. The borrower has to provide valid KYC documents along with a signed AECB consent form to Bank B to evaluate the credit history, the total number of active loans and credit cards in Dubai, DBR, and eligibility for a Buyout Loan.
Step 2. Once the above step is cleared, the borrower has to furnish all necessary documents to Bank B that include Income proof (Salary Certificate and pay-slips), Bank statement, and additional documents if any at the bank’s discretion to obtain the Loan approval.
Step 3. After the loan is approved Bank B will provide an Offer Letter to the borrower, which states the total approved loan amount, interest rate, loan tenure, and the monthly installment amount.
Step 4. The borrower has to apply for a Liability Letter with Bank A. The liability Letter states the total outstanding dues towards Bank A that meant to be consolidated.
Step 5. The borrower submits the Liability Letter to Bank B. Bank B will issue a bankers’ cheque in favor of Bank A that covers the full outstanding balance amount of each of the loans and cards to be consolidated.
Step 6. Once the Banker’s cheque is submitted to Bank A and gets cleared, Bank A will issue a No-Dues or Clearance certificate to the borrower.
Top Banks offering Buyout Loan in UAE
| Personal Loan Providers | Reducing Interest Rate | Minimum Salary Required | Maximum Loan Amount |
|---|---|---|---|
| ADCB Buyout Loan | 6.99 % | AED 5,000 | NA |
| RAK Bank Buyout Loan | 5.99 % | AED 5,000 | Up to AED 1 million |
| FAB Buyout loan | 4.74 % | AED 7,000 | Up to AED 5 million for UAE nationals and AED 2 million for Expats |
| CBD Personal Loan | 5.50 % | AED 8,000 | Up to AED 3 million for UAE Nationals and AED 750,000 for expats. |
| ADIB Buyout Loan | 3.99 % | AED 8,000 | Up to AED 3 Million for UAE nationals and AED 1 Million for expatriates. |
1. ADCB Buyout Loan
ADCB Buyout Loan Features:
| Minimum salary requirement: AED 5,000 | Maximum Loan Amounts: – NA |
| Sharia-Compliant: YES | Reducing Interest Rate: 6.99% |
| Processing fee is 2.50% | Early Settlement Fees: 1% |
High salary multiples
Competitive interest rates
This finance is sharia-compliant
Free ADCB Credit Card
Eligibility:
The minimum age of the applicant should be 21.
Salary transfer required.
2. RAK Bank Buyout Loan
RAK Bank Buyout Loan Features:
| Minimum salary requirement: AED 5,000 | Maximum Loan Amounts: Up to AED 1 million |
| Sharia-Compliant: NO | Reducing Interest Rate: 5.99% |
| Processing Fee: 1% of the loan amount (min. AED 500, max. AED 2,500) | Early Settlement Fee: 1% of the outstanding value or AED 10,000 whichever is lower |
FREE RAKBANK Credit Card with no annual fee ever
Top up loan after 1 year
Quick approvals
Flexible repayment periods of up to 48 months
Eligibility:
The minimum age of the applicant should be 21.
Salary transfer required
3. FAB Buyout loan
FAB Buyout loan Features:
| Minimum salary requirement: AED 7,000 | Maximum Loan Amounts: – Up to AED 5 million for UAE nationals and AED 2 million for Expats |
| Sharia-Compliant: No | Reducing Interest Rate: 4.74% |
| Processing Fee: 1.05% of the loan amount Min. AED 525 and Max AED 2,625 | Early settlement Fees: 1.05% of the remaining balance (Max AED 10,500) |
90 day grace period before the first repayment
Fast & easy approvals
Comprehensive life insurance coverage
Flexibility with repayment
Eligibility:
The minimum age of the applicant should be 21.
Salary transfer required.
4. CBD Buyout Personal Loan
CBD Buyout Personal Loan Features:
| Minimum salary requirement: AED 8,000 | Maximum Loan Amounts: – up to AED 3 million for UAE Nationals and AED 750,000 for expats. |
| Sharia-Compliant: No | Reducing Interest Rate: 5.50% |
| Processing Fee: 1% flat of loan amount (VAT is applicable) (minimum AED 525 and maximum AED 2,625) | Early settlement Fees: 1% of remaining balance (VAT is applicable) or AED10,500 whichever is lower |
High loan amounts
Competitive interest rates
Available to UAE Nationals & expatriates
Deferment facility
Eligibility:
Minimum age of the applicant should be 21.
Salary transfer required.
5. ADIB Buyout Loan
ADIB Buyout Loan Features:
| Minimum salary requirement: AED 8,000 | Maximum Loan Amounts: Up to AED 3 Million for UAE nationals and AED 1 Million for expatriates. |
| Sharia-Compliant: YES | Reducing Interest Rate: 3.99% |
| Processing Fee: 1% of the financing amount (Max. AED 2,500) | Early Settlement Charges: Minimum of 1% of outstanding Murabaha cost or AED 10,000 |
Two yearly installment deferments.
First installment payment grace period of up to 90 days
Quick Processing
Optional comprehensive personal finance Takaful coverage
Eligibility:
Minimum age of the applicant should be 21.
Salary transfer required
Frequently Asked Questions
What is Debt Burden Ration (DBR)?
Debt Burden Ration is the % of your income every month you are paying to your liabilities. In UAE at per Central Bank law, no one can go above 50% and therefore pay more than half of their income in debt repayment.
How Debt Burden Ration (DBR) is calculated?
Debt Burden Ration should not be above 50% of your salary. DBR can be calculated by adding up all your installments and 5% of total Credit Cards limits.
Ex: Your Salary is AED 5000. You have a Personal Loan Installment of AED 1200 and a Car Loan Installment of AED 400 and 2 Credit Cards with a total limit of AED 10,000. So your monthly liability is AED 1200 + AED 400 + AED 500 (5% of Credit Card Limit) = AED 2100. And your DBR is AED 2100 / AED 5000 x 100 = 42%.
Do Banks check AECB or Credit report for applying Buyout Loan in UAE?
Yes, all banks and financial institutions in UAE do check your Credit Score to evaluate your creditworthiness before providing any credit facility.
My DBR is above 50%, can I apply for Buyout Loan?
If after the consolidation of all your liabilities your DBR comes down below 50%, then yes you can apply for a Buyout Loan.
What is Liability Letter?
A liability letter is a letter of total outstanding dues to the issuing bank.