How to apply for student loans in the UAE
Education can be the defining factor that paves your road to better jobs and an improved lifestyle. Thus, it is important to acquire knowledge, skills and values by pursuing higher education. The good news is that there are financing options available for students in the UAE. Read on to learn about the conditions, requirements and application process for obtaining student loans in the UAE
WHAT IS THE ELIGIBILITY CRITERIA TO GET A STUDENT LOAN IN THE UAE?
The process to apply for study loans for international students in the UAE has certain requirements. You must:
- Be a UAE national or resident.
- Aged between 21 and 65-years-old.
- Earn a minimum salary of AED 7,000 to AED 10,000 a month (Salary requirement may differ from bank to bank — check with your respective bank).
- Have a current account at a bank that offers education loans.
WHAT ARE THE FEATURES OF STUDENT LOANS IN THE UAE?
Here are some characteristics of the education loan you should consider when applying for one:
- Loan Amount: The amount varies from bank to bank. Some banks in Dubai offer a minimum loan of up to 10k. The amount available will depend upon your (or your parents) eligibility.
- Student Loan Repayment Tenure: The duration to repay a sanctioned loan is usually up to 48 months.
- Interest Rates: They vary depending upon your salary and the bank’s policies. Generally, you can choose between flat vs. reduced interest rates.
- Early Settlement and Processing Fees: The rates are subject to the policies of banks. Make sure to check with your bank at the time of your loan application.
WHO IS OFFERING A STUDENT LOAN IN THE UAE?
THE UAE BANKS
There are several banks in the UAE that offer student loans. Here’s a list of the popular banks in Dubai and other emirates to borrow personal loans in the country:
- Abu Dhabi Commercial Bank (ADCB)
- Mashreq Bank
- HSBC
- Emirates NBD
- RAK Bank
- Barclays
- Abu Dhabi Islamic Bank (ADIB)
- Union National Bank (UNB)
- Dubai Islamic Bank
- National Bank of Abu Dhabi
- Sharjah Islamic Bank
UNIVERSITIES IN THE UAE
There are many universities in the UAE, out of which Middlesex University offers education loans. The study loan offered by Middlesex University comes with no processing fee, quick approvals, waiver of mandatory life insurance fee and an interest rate of 6.99%. You can contact the university to know more details about the loan applications.
Here are some other universities that offer financial aid/scholarships to their students:
- UAEU (United Arab Emirates University)
- American University in the Emirates (AUE)
- Abu Dhabi University (ADU)
In addition to the aforementioned options, students can apply for these scholarships in the UAE.
HOW CAN I GET A STUDENT LOAN IN THE UAE?
The process for student loan application is similar to that of applying for a personal loan in the UAE, with a few additional steps and/or requirements. The application process will differ depending on whether you’re applying for a student loan through a bank or a university.
You must submit the following documents to secure a loan from the bank:
- Valid passport in original and a copy (expats)
- Valid residence visa
- Bank account statement for the last three to six months
- Copy of University ID card or Enrolment card given by the university
- Quotation addressed to the bank from university or school
- Salary certificate in original
- Bank Statement of Salary for last 6 months in original
- Trade license (for self-employed individuals)
- A security cheque with 120% of the loan amount (if asked by the bank)
- Wait for approval from the bank
The student loan application process for each university is different. Visit your preferred university’s website to learn more about their loan requirements.
FAQs
WHAT IS THE PRIMARY CONDITION FOR A PERSONAL LOAN IN THE UAE?
As per the guidelines released by the Central Bank of the UAE, the amount of a personal loan must not exceed 20 times the value of your salary or total income.
WHAT WILL BE THE BANK’S COURSE OF ACTION IF THE LOAN PERIOD EXTENDS TO RETIREMENT AGE?
The bank will be entitled to deduct only 30% of pension salary or income if your loan repayment period lapses.
ARE EXPATS ELIGIBLE TO APPLY FOR A STUDENT LOAN IN THE UAE?
Yes, expats can apply for a student loan in the UAE. The eligibility criteria could differ though. For instance, the maximum age for the finance tenor completion should be 60 years to apply for an education loan at the ADIB for expats. However, the age limit after which the financial contract for a loan will expire is 65 years for the Emiratis.
WHO OFFERS STUDY LOANS FOR INTERNATIONAL STUDENTS IN THE UAE?
While banks like ADIB offer study loans for international students in the UAE, there is also the option to apply for educational loans or scholarships at Dubai’s top universities.
WHAT IS THE LOAN REPAYMENT TIME?
The student loans repayment time typically extends to 48 months but you must still check with your respective bank.
That brings an end to our guide on obtaining a student loan in the UAE. We hope it helps you to achieve your educational goals smoothly. As per the country’s policy, students can now sponsor families in the UAE. This will further empower you and help you grow both in academics and personal stream.
Education loans are not the only type of loans offered in the UAE. There are various types of home loans in Dubai that can fulfil your dream of buying your own home in the city.
Getting home on a mortgage is always a financing option worth considering as it offers the benefit of leverage. With that in mind, check out our guide to home mortgages in Dubai. You can also look at ADCB Dream Home Solutions to gain essential information about loan pre-approval.
