The UAE stands as one of the most preferred destinations for education. Getting an education in the UAE is easy and pocket friendly. This is mostly because multiple financial institutions, banks and universities offer student loans to help them out. In this blog, let’s get to know how you can apply for student loans in the UAE, its eligibility criteria, required documents and more.
Eligibility Criteria to Apply for the Student Loan in UAE
There are certain requirements you need to meet to apply for a student loan in the UAE. The eligibility criteria for student loans in the UAE are as follows:
- You must be a UAE national or resident.
- People aged 21 to 65-year-old can apply for a student loan in the UAE.
- The minimum salary one must earn monthly is between AED 7,000 to AED 10,000 to get a student loan.
- You must have an account in any of the banks that provide student loans.
Characteristics of Student Loan in the UAE
Some characteristics you should consider looking at before applying for a student loan:
Different banks offer different loan amounts. Some banks in Dubai offer a minimum amount of AED 10,000 to students. However, the amount the bank will provide totally depends on your eligibility.
Usually, a student is supposed to repay the loan within 48 months.
The Interest Rate on Student Loans
Whether it’s the UAE or any other country, the interest rate on a student loan is usually less than other types of loans. However, the interest rate varies from bank to bank, and it also depends on your salary. It’s better to choose the flat interest rate (which remains the same throughout the payment cycle) and the reduced interest rate (the interest rate keeps decreasing after every payment).
Processing and Settlement Fee
The rates vary from bank to bank. Research well so that you know which bank costs less for your student loan, as the rates are a matter of the bank policies.
Banks that Provide Student Loans in the UAE
Here is a list of the banks of the UAE that offers a student loan:
- RAK Bank
- Emirates NBD
- Abu Dhabi Commercial Bank (ADCB)
- Abu Dhabi Islamic Bank (ADIB)
- Sharjah Islamic Bank
- Dubai Islamic Bank
- Mashreq Bank
- Union National Bank
- National Bank of Abu Dhabi
Universities that Provide Financial Aid in the UAE
Not every university offers scholarships and student loans. Middlesex University is one of the best universities to pursue your education if you are planning to study with the help of a loan. The university charges no processing fee, waive off mandatory life insurance fees, approves quickly, and the interest rate is lower than 7%.
The list of other universities that offer scholarships and student loans in the UAE are as follows:
- United Arab Emirates University (UAEU)
- Abu Dhabi University (ADU)
- American University in the Emirates (AUE)
Documents Required for a Student Loan in the UAE
The procedure of applying for a student loan is similar to applying for a personal loan. However, the process will be different whether you apply from a bank or a university. The following documents are required to apply for a student loan in the UAE:
- A valid passport and copy.
- A valid residence visa.
- Bank statement for the last 3 to 6 months.
- Copy of the university ID card or the enrolment number.
- A security cheque with 120% of the loan amount.
- If you are self-employed, you are supposed to show a trade licence.
- Original salary certificate if you are an employee of any organisation.
Different universities have different loan procedures. Cross-check with your desired university to avoid last moment complications.
Getting an education in the UAE is not as hard as students might think. The banks and universities of the country welcome both national and international students with open arms to pursue their education. Getting an education in the UAE is not only easy, but it also helps you with excellent career counselling. The universities, banks and eligibility criteria will not only give you an understanding of how you can get your education in the UAE but also how you can get scholarships and student loans.
Frequently Asked Questions (FAQs)
Are student loans available in the UAE?
Yes, numerous banks and universities offer student financial aid/ scholarships. Students have to meet the criteria that are required for loan approval. For scholarship, they have to excel in academics.
What is the repayment time of the loan?
A student loan repayment can be extended up to 24 months. Most of the time, it depends on the bank you have taken the loan from or the university that offered you the financial aid. Check their policies before enrolment.
Is an education loan available for international students in the UAE?
Yes, Abu Dhabi Islamic Bank (ADIB) offers loans to international students who desire to pursue their education in the UAE. Top universities like the United Arab Emirates University (UAEU), Abu Dhabi University (ADU), American University in the Emirates (AUE) also offer financial aid and scholarships.
What is the amount of a personal loan in the UAE?
According to the guideline of the Central Bank of the UAE, an individual can take a loan up to 20 times the value of the salary or the total income.
How much percentage is required to take a personal loan?
The banks of the UAE only provide funds if the student secures 60% or above. Scoring 60% and above puts you in the category of the meritable candidate.