Dubai Forums Dubai Expat Forums Dubai Expat Help Forum

I will be moving to Dubai shortly and will need to take out a personal loan to pay up-front rent and vehicle costs. Couple of questions about this:

1) I understand from looking at the archive of this forum that interest rates vary on a case-by-base basis but are normally around the 10% mark, calculated on a diminishing balance. Is this correct?

2) How easy is it to arrange a personal loan within a couple of weeks of arriving - i.e. before residence visa is completed - assuming that I have a letter from my employer stating my salary? I've heard that it can be easier/cheaper if you get the loan from your employer's bank, is that right?

jayzed wrote:I will be moving to Dubai shortly and will need to take out a personal loan to pay up-front rent and vehicle costs. Couple of questions about this:

1) I understand from looking at the archive of this forum that interest rates vary on a case-by-base basis but are normally around the 10% mark, calculated on a diminishing balance. Is this correct?

2) How easy is it to arrange a personal loan within a couple of weeks of arriving - i.e. before residence visa is completed - assuming that I have a letter from my employer stating my salary? I've heard that it can be easier/cheaper if you get the loan from your employer's bank, is that right?

You probably won't get a loan till you have your residence. Before then the employer cannot legally write that you are employed by them as you are not allowed to work on a visitor's visa. The relationship between the bank and your employer would have to be very strong for them to give you a loan.

You can't even open a bank account in Dubai unless you have are a resident (again, the strength of your employer helps here too).

If that fails, HP can lend you some money! At 35.67% per month.

You can open a bank account prior to obtaining your residency, simply ask your company to provide a letter confirming your employment and that your residence visa is in process.

However opening a bank account is one thing, getting a loan is another and I have to agree with Jayzed that the likelihood of you getting a personal loan upon arrival is slim.

Your best option is probably to stay in a serviced apartment and drive a rental car until you get your residency.

Thanks for your replies.

My understanding is that I would enter the country on a temporary employment visa, and would then obtain a residence visa once I'm there (but don't know how long that would take - a month? more? Any ideas?).

My (potential) employer has said that it is not their policy to advance my upfront annual rent against my salary. Other people I've asked about this say that it's unusual for employers not to do this. Any thoughts about this issue?

If you need to rent apartment and car straightaway (plus other costs), you need at least to have 20-25K in hand (first 3-4 months rent + commission + deposit + utilities + furnishing).
I doubt the bank will give you loan for short time.
Normally you may ask to employer (when negotiating) for advance salary or loan.
And if you can't get those, try to rent apartment by monthly (private or shared).