What is a listed company?
Banks in the United Arab Emirates ( UAE ) try to minimize risk every time they lend money. They do this by looking for stability and assurances of customer repayment.
It is common in other countries that an independent credit checker provides financial information to a bank about potential new customers.
The UAE is moving in this direction but currently are still developing their own credit bureau, the UAE credit bureau is known as the Al Etihad Credit Bureau ( AECB ) ( AECB ).
The AECB provide basic credit information to UAE banks giving them a greater understanding of their applicant’s financial history.
AECB credit reporting is not yet comprehensive enough to provide a full credit analysis on all UAE residents or applicants so lenders look for other reassurances and due diligence.
A way of gaining this reassurance is to look at the company or employer you work for, assessing their revenues, longevity and company structure.
Companies that have a global presence or have been established in the UAE for a while tend to be listed with a local bank. This means they have a proven credit history or track record of stability and reliance in the country. In summary once listed, employees of that company are considered a lower risk.
When you apply for any financial product almost every bank will ask who you work for and if they are a listed company, they generally have to be listed with the bank to whom you are applying for your application to be successful.
The best way to find out which, if any, your employer is listed with is to ask your HR or payroll department.
How does your company become approved or listed?
Every UAE bank wants to build up as many approved or listed companies as they can as they will make revenues from every company they work with. Each provider has their own criteria to move a company onto their approved list,
All UAE banks are consistent in that a company must have been trading for a minimum of two years within the Emirates or generate a set level of revenue.
Outside of longevity banks will also approach a business and ask to view their financial records. They look for assurances of stability and trading history. If approved employees of that company will have access to a range of the banks financial products.
The fact that your employer has an existing relationship with the bank is the first hurdle, however individual employees will also be assessed. Personal eligibility is still the bank’s main approval criteria, as an example, you would not expect a bank to offer the same rates of lending to a CEO compared with an office manager.
Can I be approved for a personal loan if my company is not listed?
If you work for a company that is not listed with any UAE bank it is still possible to gain approval for numerous financial products. You will have to produce proof of a sustained income and may face limitations with the funds you may borrow. It will work to your advantage if you do transfer your salary to the bank with whom you are applying, this allows you to form a relationship and build up a consistent banking history.
However, it is possible to get a loan without your company being listed and we here are our pick of the top two personal loans that fall into that category.
Citibank personal instalment loan:
You may apply for this Citibank personal loan with a minimum salary of AED 8,000. You do not have to transfer your salary to Citibank and it is not a requirement that your company is listed. You may borrow up to AED 175,000 with this personal loan.
Emirates NBD cash loan:
The amount of this cash loan is dependent on your salary which must be a minimum of AED 10,000. You may borrow up to AED 350,000 over a 4 year period and your company does not have to be listed to apply.