The UAE is one of the most popular educational locations in the world. Getting an education in the UAE is simple and inexpensive. This is mostly due to the fact that several financial companies, banks, and colleges provide student loans to assist students. Let’s learn how to apply for a student loan in UAE, including eligibility requirements, necessary paperwork, and more, in this blog.
Eligibility Criteria to Apply for a Student Loan in UAE
To apply for a student loan in the UAE, you must satisfy specific prerequisites. The following are the qualifying requirements for student loans in the UAE:
- You must be a national or resident of the UAE.
- In the UAE, anybody aged 21 to 65 can apply for a student loan.
- A monthly salary of AED 7,000 to AED 10,000 is required to qualify for a student loan.
- You must have a bank account with one of the banks that offers student loans.
Before applying for a student loan, consider the following factors:
Characteristics of a Student Loan in the UAE
Loan Amount
Different banks provide different loan amounts. Some banks in Dubai provide students with a minimum loan of AED 10,000. The amount provided by the bank, however, is entirely dependent on your eligibility.
Repayment Period
Typically, a student is expected to repay the loan within 48 months.
The Student Loan Interest Rate
A student loan, whether in the UAE or elsewhere, generally has a lower interest rate than other forms of loans. However, interest rates differ from bank to bank and are also affected by your earnings. It is preferable to select a flat interest rate (which remains constant throughout the payment cycle) or a lowered interest rate (which decreases after each payment).
Fee for Processing and Settlement
The rates differ from one bank to the next. Research thoroughly to determine which bank charges the lowest interest rate on your student loan, as interest rates are determined by bank policy.
Banks that Provide Student Loans in the UAE
There are many banks offering student loans in UAE to ease the financial burden over parents and support students in catching their dreams.Student loans are available from a number of banks in the UAE. Here is a list of the most popular banks in Dubai and other emirates that provide student loans & personal loans:
Here is a list of UAE banks that provide student loans:
- Abu Dhabi Commercial Bank (ADCB)
- Barclays
- Abu Dhabi Islamic Bank (ADIB)
- Sharjah Islamic Bank
- HSBC
- RAK Bank
- Islamic Bank of Dubai
- Union National Bank
- Mashreq Bank
- National Bank of Abu Dhabi
Comparison of Student Loans in UAE Offered by Different Banks
Abu Dhabi Commercial Bank (ADCB)
Key features of Student Loan in UAE offered by ADCB bank are:
- Provides finance of up to AED 250,000.
- Loan option is available for both Emiratis and Expatriates
- Offers flexible repayment periods of up to 48 months
- Simple documentation with fast approvals
- No salary transfer required
- Takaful insurance coverage
- Keep in mind – One-time processing fees and Takaful fees apply.
Emirates NBD
Key benefits and highlights of the student loan in UAE offered by Emirates NBD Bank are:
- Offers loan amounts of up to AED 300,000
- Loan tenure up to 48 months
- Free Credit life insurance
- Free Global Cash card
- Preferential rates on currency conversions including USD and Pound Sterling (limited to foreign currency accounts)
- Avail up to 2 non-consecutive deferments in a loan cycle
Refer this link to get more details.
RAK Bank
Key features of student loan in UAE or education loan in UAE offered by RAK Bank are:
- Loan amount up to AED 300,000
- Loan tenor up to 48 months
- Competitive interest rates starting from 4.99%
- Preferential currency exchange rates on remittances to foreign institutions
- Approved Credit Card for the parent with a supplementary card for the student (15 years of age or older)
- A dual-currency prepaid card that supports your child’s expenses at foreign destinations (to be issued to the parent or the student aged 18 years or older)
There are certain risks and limitations associated with any kind of loan offered by banks. It is advised to carefully check all details of student loans offered by RAKBANK here.
Abu Dhabi Islamic Bank (ADIB)
Key features of education loan or student loan in UAE offered by ADIB are:
- Finance amounts up to AED 250, 000
- Competitive reduced profit rates starting @ 5.49% and no processing fees.
- You can also have up to 120 days grace period for the first instalment & up to 2 instalment deferments yearly without fee!
- Flexible Repayment Terms up to 48 months.
- 100% processing fee waiver
If you want to explore details on education loan in UAE offered by ADIB bank, you can check the bank official page here.
HSBC Bank
Key benefits of education loan in UAE offered by HSBC Bank are:
- Flexible terms – You can pay your loan back over 6 to 48 months
- Individualized interest rate – Get an interest rate based on your profile.
- Adaptable to meet your needs – Top-up option to accommodate your ever-changing financial needs.
- No need for Credit life insurance – Take out your loan without having to pay for extra insurance.
- Quick Approval – Get an approval in principle on your loan in 10 minutes if you apply online.
If you are willing to explore details of education loan in UAE offered by HSBC bank, you can check the HSBC Bank official page.
Mashreq Bank is also one of the promising bank offering student loan in UAE. Mashreq Bank offers education loan in UAE for the students planning to study in Middlesex University, Dubai. You will find more details about it later in the post. For more details to know about eligibility criteria, key benefits offered by Mashreq Bank for student loan in UAE, you can checkout the official page of Mashreq Bank.
All the above banks offer good benefits in terms of loan interest rates, repayment policies for education loans in UAE.
Before proceeding with the loan, it is critical to carefully assess the terms and condition of each bank and accordingly select the bank to opt for loan.
Universities that Provide Financial Aid in the UAE
Scholarships and student loans in UAE are not available at every university. If you want to study with the support of a loan, Middlesex University is one of the greatest colleges to attend. If you are planning to study at Middlesex University Dubai, education has just got easier with the Mashreq Personal Loan.
Middlesex University Dubai is working with Mashreq Bank to provide prospective students and current students with finance options to ensure they can complete their studies with the stress of payments taken away! Middlesex University’s study loan in UAE has no processing cost, speedy approvals, a remission of the necessary life insurance fee, and an interest rate of 6.99%. You may get additional information regarding loan applications from the university.
Other colleges in the UAE that provide scholarships and finance student loan in UAE include:
- Abu Dhabi University (ADU)
- American University in the Emirates (AUE)
- United Arab Emirates University (UAEU)
Documents Required for a Student Loan in the UAE
The application process for a student loan in UAE is identical to that of a personal loan in UAE. However, whether you apply to a bank or a university, the process will be different. To apply for a student loan in the UAE, the following documents are required:
- A valid passport and a copy of it.
- A valid visa for residency.
- Bank statement over the last 3 to 6 months.
- A copy of your university ID card or enrollment number.
- A security cheque of 120% of the loan amount.
- If you are self-employed, you must present proof of your trade license.
- If you work for a company, you must provide an original salary certificate.
- Loan methods varies amongst colleges. Check with your preferred university to avoid last-minute issues.
Conclusion
Education in the UAE is not as difficult as students may believe. The country’s banks and universities invite both domestic and international students to complete their education. Getting an education in the UAE is not only simple, but it also provides good job guidance. The colleges, banks, and qualifying requirements will not only assist you understand how to receive an education in the UAE, but also how to get scholarships and student loans.
Frequently Asked Questions (FAQs)
Yes, many UAE universities offer scholarships to international students based on academic merit and other criteria.
Yes, some institutions and banks offer loans to international students with valid residency in the UAE. However, eligibility criteria and terms may vary.
Interest rates can range from 3% to 7%, depending on the loan provider and type of loan.
According to the Central Bank of the UAE standards, the amount of a personal loan cannot exceed 20 times the value of your wage or total income.
If your loan payback time expires, the bank may withdraw just 30% of your pension salary or income.
The payback period for student loans is normally 48 months, but you should verify with your bank.
Yes, UAE allows students to work part-time while studying, which can help cover living expenses.
Repayment typically begins six months after graduation. However, this may vary based on the loan provider.
Banks in the UAE will only lend money if the student has a grade point average of 60% or above. A score of 60% or more places you in the category of the deserving applicant.
