The UAE has officially removed the long-standing Dh5,000 minimum salary rule that previously governed the eligibility criteria for personal loans. The change comes after the UAE Central Bank issued an updated set of regulations, granting financial institutions more flexibility in determining who can access personal finance products.
Under the earlier framework, banks and finance companies generally required customers to earn a minimum monthly salary of Dh5,000 to qualify for personal loans. This condition became a widely accepted benchmark across the country’s banking sector. With the rule now scrapped, lenders will be able to evaluate loan applications based on their own internal risk assessments, credit scoring systems, and affordability checks.
The Central Bank said the new guidelines are designed to promote financial inclusion and support a more diversified credit market. The revised regulation emphasises responsible lending, requiring banks to ensure that borrowers are not overburdened and that repayment capacity is clearly established.
Industry experts believe the updated policy will open doors for more segments of the population, including low-income earners who were previously unable to access personal credit despite having stable employment. However, they also note that approval standards may vary significantly between institutions as banks adjust their internal policies to align with risk management frameworks.
The Central Bank’s move is expected to influence the broader financial landscape by encouraging healthy competition among lenders and offering consumers more choice. As the UAE continues refining its regulatory environment, the focus remains on balancing accessibility with financial stability, ensuring that both banks and borrowers are protected.
