Major news for anyone looking at personal loans in the UAE

If you’ve been thinking about taking out a loan, there’s a new update to personal loans in the UAE that could make the process easier. The Central Bank of the UAE has scrapped the long-standing minimum salary requirement, opening the door to more residents – particularly youth, low-income earners, and labour-sector workers. Here’s what it means and how it could affect you.

Minimum salary rule removed

Previously, most banks required a minimum salary of Dhs5,000 to qualify for personal loans. That barrier kept a large portion of the workforce from accessing formal credit. Now, lenders can set their own thresholds based on internal risk policies, making personal loans in the UAE accessible to a wider audience.

Also read

Dubai property explained: First-time buyers vs Golden Visa investors

Who benefits

The change is a big deal for first-time borrowers, low-income earners, and anyone new to formal banking. Residents with Wage Protection System (WPS) accounts can have repayments automatically deducted, allowing them to start building a credit record while keeping borrowing transparent and regulated.

What’s available now

Analysts expect banks to roll out new options tailored to entry-level workers: micro-loans, emergency credit, WPS-backed overdrafts, and compliant “buy now, pay later” products. Starter credit products linked to savings and financial literacy may also appear, helping borrowers manage funds responsibly.

Things to keep in mind

Existing protections remain: loan limits are tied to salary, repayment terms capped at 48 months, and installments cannot exceed 50% of income. Missed payments could lead to default, so borrowers should plan for job-loss scenarios or restructuring agreements if needed.

Image: Archive