So, you’re approaching or are already well over the age of 60. Yet work is still very much a big part of your daily life. Although you may still have that financial stability, there are some challenges you may face when trying to apply for a personal loan in the UAE. Since this age bracket falls under the retirement category, most banks in the country have a similar set of rules that include a maximum age for borrowers.
Age limits on personal finance in the UAE are around 60 to 70 years
While there is not a uniform age restriction for loans in general, the UAE Central Bank has introduced rules that govern the issuance of mortgages. Under these guidelines, the maximum age for the borrower at the time of the last instalment is set at 70 years for UAE nationals and 65 years for expatriates.
For personal loans, a majority of banks tend to stick to similar age requirements. For salaried customers this is usually 60 years for expats and 65 years for UAE Nationals. Remember that these rules apply to the age of the borrower at the time of the last instalments. In other words, an expat applying for a higher-amount loan at the age of 63 or 64 would not easily be approved.
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Some banks could offer solutions for older customers
Certain banks look at customers’ loan applications on a case by case basis even if the customer is over 60 years old. RAKBANK is an example.
Similarly, Emirates NBD at times, accepts home loan applications from expats who are between the ages of 25 and 65 for salaried individuals, with those who are self-employed having the option to apply until 70 years. HSBC has similar requirements for personal loans, as applications between 21 and 65 years are eligible to apply given they still receive a regular minimum salary of AED 7,500 per month.
Mashreq Bank too has some potential options for expats over the age of 60. Its lending program allows expats under 65 to apply for unsecured loan facilities as long as they still receive a salary. However for every year over the age of 60, the loan tenor becomes shorter. At 60, a maximum tenor of 48 months would apply, but for example, a 62 year-old applicant, if approved, would receive a loan that would cover 36 months.
Although it may prove more difficult to secure a loan if you are over the age of 60, don’t give up on the idea altogether. Your bank may have a solution for you based on your individual case. Also bear in mind that in addition to age, banks take into consideration other factors such as the applicant’s credit history and salary.
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