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Answers to the most frequently asked questions

Personal Loan

Who can apply for an ADCB Personal Loan?

All salaried UAE residents (UAE Nationals and Expatriates) earning sufficient income from a reputed employer, which is already listed with ADCB or is eligible for listing with ADCB, are eligible to apply for an ADCB Personal Loan. The applicant must be aged 21 and above to be eligible for a Personal Loan from ADCB.

Do I need to be an existing ADCB Account holder or Customer to apply for a Personal Loan?

You do not need to have an Account or be an existing Customer of ADCB to take a Personal Loan. However, should you wish to do so, it will be mandatory to open a Current Account with ADCB and to transfer your salary to this Account, which will then also be acting as your Personal Loan Repayment Account. An existing Savings Account from ADCB will not be accepted as a Personal Loan Repayment Account.

How do I apply for an ADCB Personal Loan?

There are multiple convenient ways to apply for an ADCB Personal Loan.

If you are an existing ADCB Customer, simply apply online through our ADCB Mobile Banking Mobile App or adcb.com website, or visit any of our ADCB branches. Alternatively, you may also simply call our ADCB Contact Centre on 600 50 2030, for one of our dedicated Personal Loan relationship managers to further assist you with your requirement.

If you are new to ADCB, simply apply online through our ADCB Hayyak Mobile App or adcb.com website, or visit any of our ADCB branches. Alternatively, you may also simply call our ADCB Contact Centre on 600 50 2030, for one of our dedicated Personal Loan relationship managers to further assist you with your requirement.

What is the maximum and minimum Personal Loan amount that I can take?

The maximum Loan amount is AED 4,000,000 for UAE Nationals and AED 1,500,000 for Expatriates. The minimum Loan amount is AED 15,000 for both. However, please note that the maximum Loan amount could vary according to Customer salary, credit score and other financial factors affecting the Personal Loan eligibility.

What is the applicable interest rate?

Currently ADCB offers Customers a choice to select any one of the two types of interest rate options on Personal Loans – Variable or Fixed rate options.

Fixed Rate Option: This type of rate option allows Customers to fix their applicable interest for the Loan period.

Variable Rate Option: Commonly known as a floating rate Loan where the Loan is variable from inception. The variable rate offered is relevant EIBOR + Margin subject to a minimum ‘Floor Rate’. EIBOR used for Personal Loan is ‘3 Month EIBOR’.

Where can the Customer find the relevant EIBOR and Margin applicable to the Customer?

The relevant EIBOR and the Margin will be set out in the Approval Letter or the Loan Advice or in the Loan application or any other Loan document or ADCB may advise the Customer through any other channel.

Important Notes & Definitions:

EIBOR means Emirates Interbank Offered Rate as determined by ADCB from time to time.

‘Floor Rate’ means the minimum rate charged on the Personal Loan should the value returned by adding the applicable EIBOR and Margin is lower than the Floor Rate.

Example:

  • a. If the applicable EIBOR rate is 0.35% p.a., applicable Margin is 4% and the applicable Floor Rate on your loan is 5%, then the Interest rate charged will be 5% p.a. (i.e. higher of ‘0.35% +4%’ or 5%).
  • b. If the applicable EIBOR rate is 1.35% p.a., applicable Margin is 4% and the applicable Floor Rate on your loan is 5%, then the Interest rate charged will be 5.35% p.a. (i.e. higher of ‘1.35% +4%’ or 5%).

Historic 3M EIBOR Resets:

Sr No. 3 months EIBOR as on Value
1 19-Apr-2022 1.05%
1 28-Jan-2022 0.42%
2 19-Oct-2021 0.35%
3 29-Jul-2021 0.35%
4 12-Apr-2021 0.35%
5 12-Jan-2021 0.42%
6 13-Oct-2020 0.43%
7 13-Jul-2020 0.60%
8 16-Apr-2020 1.57%
9 13-Jan-2020 2.07%

For more information on the current applicable pricing, please call our 24-hour Contact Centre on 600 50 2030 or alternatively visit one of the ADCB branches.

Is it mandatory to take a life insurance to take a Personal Loan from ADCB?

Yes, life insurance is a mandatory requirement to apply for a Personal Loan from ADCB. As an added convenience, ADCB does offer a competitive life insurance to Personal Loan Customers. Please visit the ADCB Schedule of Fees on Charges & Fees - Personal Banking | ADCB.

I have an existing life insurance policy. Do I still need to take a policy from ADCB?

Yes. ADCB has obtained a group life policy cover for all its Personal Loan Customers at very competitive rates which covers death and total disability.

Am I allowed to partially or fully settle my loan at any time?

Yes, you may partially or fully repay your Personal Loan at any time. However, ADCB may charge an early settlement fee each time you make additional repayments. Please visit the ADCB Schedule of Fees on Charges & Fees - Personal Banking | ADCB for the current early settlement fee structure.

Do I have to transfer my salary income to ADCB to take an ADCB Personal Loan?

Yes, it is a mandatory requirement to transfer your Salary income and end of service benefits/gratuity to ADCB. A Salary Assignment Letter is also required from the employer as a commitment for continuous Salary transfer to ADCB Account. However, ADCB may offer additional benefits to the Customers who are willing to transfer their income to ADCB such as reduced interest rates, discounts etc. on other banking relationships.

What is the maximum number of years I can take a Personal Loan for?

UAE Residents can take a Personal Loan for a maximum period of 4 years. However please note, that at the time of maturity, the maximum Loan tenor should not cross 60 years of age for Expatriates, and 65 years of age for UAE Nationals.

How is the interest calculated on my Personal Loan?

Interest is generated based on your daily Loan outstanding balance, in accordance with UAE Central Bank directives. The interest that is levied are recovered on a monthly basis along with your principal repayments as per standard amortization.

When do I start making my monthly repayments?

Your first monthly repayment towards your Personal Loan (EMI*) is due any time after loan disbursal based on the grace period you have selected in the Loan Application Form or communicated over email or calling the ADCB Call Centre or otherwise.

*EMI – Equal Monthly Installment

How can I request details of my existing loan (i.e. outstanding Loan amount, current Loan Interest Rate applied, and current monthly instalment calculation)?

You may obtain this information by logging into your ADCB Internet Banking or ADCB Mobile Banking Mobile App or alternatively you may also visit any of our ADCB branches for one of our dedicated customer service representatives to assist you with your requirement.

Can I defer my Personal Loan repayment?

ADCB generally allows up to two (2) deferments in a calendar year for Personal Loan repayments as per the applicable Terms & Conditions as part of the ADCB Policy.

What if I am no longer a UAE resident, but I a still holding an ADCB Personal Loan; will the terms of my loan change or will I need to settle my loan?

Having a valid residency is an important Loan condition. If you lose your residency, it will be an event of default under your Loan terms and it will be a Termination Event. You are requested to visit any of our ADCB branches, or contact our 24 hours Call Centre on 600 50 2030, prior to leaving the UAE. You need to settle the outstanding Loan amount along with applicable Charges on your Personal loan.

Can I reschedule my existing Personal Loan?

Yes, you may do this by submitting fresh financial documents (i.e., Statement of Account, income statements etc.) and it will be subject to ADCB’s approval. A rescheduling fee may apply.

What is the procedure for Loan settlement?

You may initiate the settlement process by visiting any of the ADCB branches and signing the liability letter request. After obtaining the liability letter, you may settle your Personal Loan by depositing the outstanding Loan amount along with the early settlement fee in your salary Current Account with ADCB and signing the Loan closure request at any ADCB branch.

I am having an existing Personal Loan with ADCB, can I increase my Personal Loan amount?

Yes. You may do so by applying for the Personal Loan top up. This will require fresh eligibility assessment and documentation. Please also note that you may typically apply for the top up after paying 12 EMIs unless you have initially applied for lower than the maximum allowed eligibility on your existing Personal Loan or if your income has increased since applying for the previous Personal Loan.

*EMI – Equal Monthly Installment

I am looking for a short-term Personal Loan, is there any specific programme that ADCB has for my needs?

Yes, ADCB exclusively offers short-term Personal Loan for all your small and short-period financing needs. This programme offers lower interest rates compared to the standard Personal Loan programme and simpler documentation requirements such as no Salary Assignment Letter required for existing customers already transferring their salary to ADCB Account.

I have an existing Personal Loan outside, can I transfer it to ADCB?

Yes. You may do so by applying for the Personal Loan buyout offer from ADCB. ADCB offers a complete settlement of your existing Loan with other bank in a direct and hassle-free manner and you may get exclusive benefits including ADCB TouchPoints and increased Loan amount (if your Loan eligibility assessment allows to do so), and also preferential pricing.

Disclaimer

Unless defined herein, the capitalised term used in these FAQ shall bear the same meaning as defined in the ADCB Consumer Banking Terms and Conditions available on ADCB Website adcb.com. In an event of conflict between these FAQs and ADCB Consumer Banking Terms and Conditions available on ADCB Website adcb.com the latter shall prevail.

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