- New rules could allow loans of up to 50 times an applicants’ monthly salary
The draft of a new system for approval of personal loans states that the Dh250,000 limit on personal loans could be removed shortly in UAE. Emarat Al Youm featured the story during the holidays, quoting unnamed sources in the UAE Central Bank.
The salary conversion applicable under the current rules imposes a limit of Dh250,000 on personal loans even for high earning applicants.
The new system will allow the client 20 or 30 or 50 times the [monthly] salary, according to the board of the bank on the final form of the draft.
It was mentioned that bankers in the country have been requesting a reconsideration of the upper limit for personal loans for a while now. The bankers maintain that the current law has been in place for almost 20 years, during which time a significant change in economic conditions and prices has been witnessed.
Emarat Al Youm quoted Suleiman Al Mazroui, board member of the Union of Arab Banks, and General Manager for Group Corporate Communications at Emirates NBD, as saying: “The needs of individuals have changed significantly over the past 10 years, and the prices have witnessed great increases in various fields.â€
