Education Loan for expats in UAE – An Absolute Guide

It is the era of competition. Today it is hard to excel in any walk of life. The same is the case with education. It is the wish of every student to get higher education from some prestigious international institution. This will enable them to polish their technical skills.

Unfortunately, the biggest hurdle for students aspiring for higher education from a foreign country is finance.

It is very costly to get higher education from a reputable international institution. Therefore, at times students try to look for financial aids or scholarships, or educational loans. Undoubtedly, studying abroad is an adventure of a Lifetime. But it is essential that you understand that while considering on student loan scheme, you may have to face some consequences as an expat.

Why study in the UAE?

Study in UAE - Education Loan for expats in UAE

Renowned Arabic country located on the southeastern peninsula. It has a border with KSA and other Arabic countries. UAE has rich oil reserves and has undergone rapid economic development in the previous decade. This has helped UAE in getting an essential room in the world.

The government of the UAE has exceptional attention to education improvement. They believe that educational reforms can bring more economic growth to the country. Therefore, the government has created education as its top priority for some years now. They have spent a lot of money to bring modernization to the education system of the UAE.

The government has the aim to bring UAE as amongst the empowering countries in the leading statistics of the world. They have set their target to bring the UAE among the top 20 nations delivering the best education in the world. Therefore, the Emirates is now the focus of attention for students globally.

The UAE and Dubai have now become the hub of higher education. There are plenty of international-level universities. Although the universities are spread throughout the Emirates states, Dubai has the most number of universities. Since the government of UAE spending billions of dollars on the expansion of higher education.

As a result, many top-class Global universities have now opened their campuses in the UAE. Some notable universities in the UAE are but not limited to the American University in Dubai, American University in The Emirates, and London Business School.

How to finance your education in Dubai?

How to finance your education in Dubai?One might think that training in the UAE and Dubai is quite expensive. This is undoubtedly true. However, if you are scheduling to continue your higher education in Dubai, you will feel blessed who have plenty of options to finance your education.

First of all, the government of Dubai offers a wide range of scholarships. They have the aim to promote and encourage international students to come to Dubai to pursue higher education. So you should look for a government scholarship as your top priority.

But that is not the end; there are plenty of other scholarship options available. The universities offer the award to high-profile students. Happily, this scholarship is enough to sponsor your education and personal living expenses in Dubai.

Unfortunately, most of the universities do not offer a 100% scholarship. So you can expect to get 75%, 50% or 25% waive in the tuition fee.

However, you can do part-time jobs to sponsor your education yourself. Dubai is the hub of International tourism and a very modern and industrialized City. Hence, you will probably find a part-time student job very quickly. You can earn enough to cover your personal as well as educational expenses.

Finally, you can look for several student loan options to sponsor your education in Dubai. You will be happy to know that there are extensive options of loan selections available. Most of the loans are given in very flexible conditions.

Therefore, you can expect to receive a student loan on zero-markup and a very adaptable loan repayment plan. Although there are many choices, two popular options are listed below:

  • Personal, educational loans offered by the Banks
  • Educational loans offered by UAE universities.

1. Islamic Abu Dhabi Bank (ADIB) personal loan scheme

Islamic Bank Abu Dhabi is among the most renowned banks in the UAE. It provides a number of options to lend loans on the basis of Islamic Sharia. The personal loan scheme is one of its quite outstanding services and products. They basically give the opportunity as follows:

  • Personal loan for UAE Nationals.
  • Personal loan for expats.

There are certain conditions for lending personal loans to expats. These conditions are related to minimum salary requirements, duration of stay in UAE or Dubai, and age of the applicant.

Eligibility criteria for ADIB personal loan for expat

  • Minimum wage requirement: 8000 AED
  • Age of the applicant: 21 years (minimum) & 60 years (maximum)
  • Work experience in UAE: Should we confirmed a job or a min. of 6 months experience.

Mandatory documents for ADIB loan application

  • Original update passport and one photocopy.
  • An up-to-date and valid residence visa.
  • Original up to date UAE CNIC card and one photocopy
  • Valid Account Statement from the bank for the time period of the previous three months.
  • Reference letter from the applicant university addressed to ADIB (the format is given on ADIB website)

Benefits of ADIB personal loan for expats

This education loan scheme has made life easy for millions of students. This scheme can land you a maximum of 250000 AED or as much as you require. The bank gives easy study loan repayment plans. Play some rice benefits of this particular loan scheme are as follows:

  • Maximum loan value: up to AED 1 million.
  • The term for loan repayment: Maximum of 48 months.
  • Loan processing costs: Can range from AED 500 – AED 2500. But depending upon the situation. Most of the time it is 1% of your total loan amount.

Ad-On with a personal loan from ADIB

  • Optional takaful insurance with a life risk coverage up to AED 2 million.
  • A gift of signature card from ADIB. The card owner can avail of various discounts on travel, hotels, flight bookings, fuels, restaurants, etc.
  • The option of suspension of the loan scheme.

Review about ADIB Personal Loan for Expats Scheme

The personal loan scheme for expats introduced by ADIB is very beneficial and helpful for students to pursue higher education in the UAE. Millions of students are already availing of this golden opportunity. Most of them are happy customers. People like to avail this loan opportunity to buy a property as mortgage loans.

Except there are few complaints. The supreme collective complaint is about the rigidity of the bank in regard to the repayment of the study loan. Obviously, a person cannot always pay the loan installment precisely on time.

Therefore, the students expect to have some flexibility from the bank authorities. But most of the time they get disappointed.

2. Union National Bank Education Loan

Union bank education loan for expats in UAE scheme is another golden opportunity for students to finance their education in Dubai. It is among the most trustworthy banks in Dubai lending loans for decades. Following are the eligibility criteria for UNB personal loan for expats

Eligibility Criteria for UNB personal loan for expats

  • Minimum income/wage: AED 5000 each month.
  • Age requirement: Not specified (maybe 21 years as criteria for other loan lenders)
  • Work experience in UAE: Not specified

Mandatory documents with the UNB loan application

  • True income certificate.
  • Valid account statement for the time period of the previous six months (show clearly show the salary of the applicant)
  • Original passport with a visa sheet and one photocopy.
  • Verified UAE work permit visa.
  • Photocopy of UAE identification card or a photocopy of overseas CNIC all of your home country.
  • A verified letter from the University authority spoken to Union Bank requesting to lend the loan to the applicant (must be in the correct format as prescribed)

Additional conditions for the loan from UNB

  • Compulsory salary transfer certificate.
  • The loan has a fixed charge of 2.89%.
  • The reduction flat rate is 5.25% supreme.
  • The processing charges are 1% of the total loan amount.
  • There is no early settlement fees.

Benefits of Union Bank personal loan for expats scheme

Following are the essential benefits of a personal loan from Union Bank:

  • The loan can be as high in an amount as 20 times your salary in Dubai. Although in this can be a maximum of AED 500,000 as per the bank policy.
  • The choice of suspension of loan repayment anytime as per the rules and regulations of the bank.
  • An applicant can avail a maximum of 2 times the option of loan repayment postponement. It will be done with an additional of AED 100 each time.
  • An added advantage of takaful insurance from UNB.
  • A complimentary credit card from UNB as a gift.
  • Maximum loan repayment time of 48 months.

Review about personal loan scheme from UNB

The loan scheme introduced by UNB is a significant step. It is an excellent opportunity for students to support their education. This scheme has many advantages except that it has a more substantial rate of return. Also, the reduction rate is higher, which makes it difficult for the students to repay in time.

Moreover, this scheme does not give complimentary services such as discount credit cards with the loan. Therefore, ADIB personal loan scheme is better than the UNB loan plan. It is recommended to consider this option to apply for a personal loan or home loan in Dubai for expats.

3. Mashreq Bank personal loan for expats in UAE

Mashreq bank has developed an important place in the banking sector of UAE in the past decade. It is among customer’s top choices when it comes to loan schemes. They offer a variety of loan plans. The following are eligibility criteria for a salaried and non-salaried person.

Eligibility Criteria for Mashreq personal loan for expats

  • Monthly income: AED 7000 minimum.
  • Work experience in UAE: Minimum of 1 year with your current company.

Mandatory documents with the loan application at Mashreq bank

  • An up-to-date and valid salary certificate from the employer.
  • Original and up-to-date UAE ID card and one photocopy.
  • A signed check from the applicant having an amount of 120% of the total loan amount.
  • Attachment of completely filled personal loan utilization form provided by the bank.
  • True and up-to-date work permit and residence visa and one photocopy.
  • Authentic passport with the visa page and one photocopy.
  • Bank account statement last three months.

Benefits of personal loan for expats from Mashreq Bank, UAE

  • The total can be up to AED 200,000.
  • Flexibility in the loan repayment time period.
  • Education loan repayment can be in up to 48 months.
  • Free Islamic Sharia financing option.
  • It guaranteed 24-hour processing time.

Review about Mashreq Bank Personal Loan for Expats Scheme

It is a common and useful approach to take a loan from a trustworthy source to meet your current expenses. Although most of the loan-takers are businessmen and investors. This can also be taken as a home loan, for real estate, or for home improvement. But, Mashreq bank personal loan scheme is also an excellent opportunity for needy students.

The banking staff of Mashreq bank is highly cooperative. If you are facing any difficulty, add the new time of loan application, the relationship manager will totally guide you. One great valuable feature of the Mashreq bank personal loan scheme is there quick processing time. They guarantee you to process your application within 24 hours of applying.

4. The Abu Dhabi National Bank personal loan for expats in the UAE

The national Abu Dhabi Bank provides personal as well as educational loan schemes. The personal loan schemes can be used for business as well as private utilities. But the educational loan scheme is mainly designed to sponsor the education of poor students.

Emirates NBD is one popular choice for students to get student loans. National Bank of Abu Dhabi, also called Abu Dhabi First Bank (FAB) has different eligibility criteria for a personal loan for UAE Nationals and for expat. Following is the acceptability criteria for personal loan scheme for expat in UAE:

Eligibility Criteria for ABNB personal loan for expats

  • Qualification standards to avail FAB personal loan scheme
  • Minimum monthly income: AED 7000
  • Minimum age requirement: 21 years Min. or 25 year Max.
  • Employment status: Should be employed by some government, semi-government or renowned private business company.
  • For students: Should be a full-time student at some reputable University or College. Must have 21-24 years of age when applying.

Mandatory documents required with the loan application

  • Photocopy of up-to-date passport clearly showing the visa page.
  • The applicant has to present a valid resident/ work permit Visa for UAE.
  • It is mandatory to display a legitimate UAE ID card along with the application.
  • True account statement from the bank for the period of the previous three months. It should clearly show per month credit of salary into your account.
  • Salary transfer certificate address to the manager of First Abu Dhabi Bank.
  • For students, an authority letter from the university to the first Abu Dhabi bank requesting the issuance of study loan to the student.
  • Completely filled application form duly signed by the applicant.

Benefits of personal loan from First Abu Dhabi bank

  • The applicant can avail the opportunity of grace Time up to 90 days for the first educational loan repayment.
  • Very country genius rate of the loan in the Abu Dhabi Market.
  • The loan amount can be up to AED 2 million.
  • Very manageable loan repayment conditions.
  • Smallest documentation requirements compared with other loan lenders.
  • Fast approval rate.
  • Complete life insurance coverage along with loan schemes.

Review of personal loan from First Abu Dhabi bank

The national Abu Dhabi Bank provides attractive loan schemes. This is the reason that plenty of students are utilizing the study and educational loan plan from the First Abu Dhabi central bank. Indeed, the rate of return for the lawn plans is very compelling.

Moreover, the approval rate for loan plans is speedy. They give the additional benefit of the minimum requirement of documentation for loan pre-approval.

5. Abu Dhabi Comm. Bank (ADCB) Educational Loan for Expat

Abu Dhabi comm. bank financial loan scheme is mainly designed to assist the students in continuing their education without hardship. It is amongst the mission statements of ADCB to help needy students continue without financial difficulties.

This is the reason that Abu Dhabi Comm. Bank gets flexible study loan repayment plans.

Eligibility criteria for ADCB educational loan scheme

  • Minimum salary requirement: AED 8000.
  • Minimum age requirement: 21 years or above.
  • Status as a student in UAE: Show me a regular and full-time student at some well-known University.

Documentation for ADCB educational loan plan for expat

  • Very little documentation is required.
  • You need a plan with very low interest rates.
  • Optional Islamic Sharia financing scheme.
  • Lengthy repayment plans for student loans.
  • Complimentary Abu Dhabi Comm. Bank discount credit card.
  • Free additional life insurance plan.
  • The loan amount can be up to AED 250,000.

Additional information requirement

  • Specific details of the applicant. It will include name, email, and language selection.
  • Mailing information of the applicant. It will cover the address with PO Box, the UAE ID card. Also, home phone number with country code add mobile contact details.
  • Workplace details of the applicant. This involves workplace name, contact details with country code. Fax number of the business (optional).

Review for ADCB educational loan plan for expat

Abu Dhabi Commercial Bank offers an education loan scheme for students in UAE. This is very useful for students who want to avail themselves of extended repayment plans. The interest rate of ACDB is meager compared with other banks.

The banking staff is very cooperative. Emirates Islamic is another key option given for study loans. ACDB does not demand lengthy documentation for loan applications. It is a highly recommended lawn plan for part-time working students in Dubai.

Education Loans awarded by Universities in the UAE

The UAE universities also offer plenty of scholarships for brilliant students. Besides scholarships, many universities also offer flexible loan schemes for needy students. If you are a student in Dubai, and you are facing financial hardship, you should contact your university for financial aid.

For this purpose, you can contact the University finance office and get these specific application details. Most of the UAE universities offer two types of scholarships:

  • Merit-based scholarships
  • Need-based scholarships.

Eligibility condition for a merit-based scholarship

There are specific eligibility requirements. If you are looking for a merit scholarship, you might be judged on your previous education record. Mostly Merit Scholarships are offered to high-profile students.

  • The student should have an updated emirates ID card and University card.
  • Should have more than 3.5 GPA (or as specified by your university)
  • The applicant should have Proficiency in the English language (has to present an English proficiency certificate)

Eligibility condition for need-based scholarship/ student loan

  • You should be here full-time student at the university.
  • Must have a current university ID card.
  • The applicant has to present a valid study visa and passport.
  • You should have to prove the low income of your parents/guardians (or as specified by your university)
  • To have a valid UAE bank account.

FAQs about the Education Loans in Dubai

The education loan in Dubai is a kind of loan that may be applied for by foreign students who are studying at universities or other institutions in Dubai. As a rule, the student is expected to repay the borrowed amount after completing their higher education program.

The education loan in Dubai can cover any study-related expenses, including tuition fees, living costs, and transportation. However, some institutions may require the student to pay an additional sum from their own funds for everyday expenses.

The so-called education loan in Dubai is usually provided by private banks, but there are also institutions that support students with a scholarship fund. Directors of such institutions can play a vital role when it comes to opening doors at prestigious universities or institutions.

Who can apply for a loan?

In Dubai, there are no restrictions as to who may be eligible for an education loan. The only requirement that the student must meet is being a full-time student at a recognized institution of higher education in the emirate.

Who can provide me with this type of loan?

Since there are no regulations regarding this particular type of loan, the student may choose any bank or financial institution to apply for the necessary amount. The education loan in Dubai can be provided by both local and international banks that operate in the emirate.

Why do I need an education loan?

The main benefit that this loan offers is convenience; it allows saving time and energy taken for searching for funds and fulfilling application requirements, such as credit history.

What documents do I need to apply for?

Typically, banks expect the student to present all necessary documents proving that they are full-time students at a recognized university or other institution in Dubai. The education loan in Dubai is usually granted based on this criterion alone; however, the student may also be required to show that they are capable of repaying the loan.

How do I apply?

Typically, education loans in Dubai can be applied for either online or through a bank branch. Students usually provide their personal information and other details on an application form. The student’s academic performance is also taken into account when considering whether or not to grant the education loan in Dubai.

What are the advantages of an education loan?

First and foremost, this type of loan can be used for covering tuition fees, living costs, and transportation expenses while studying at a higher education institution in Dubai. Secondly, time can be saved as no extra effort is required on the student’s part when searching for funding sources. Finally, some institutions offer scholarship funds that may cover 100% of expenses; however, such opportunities are usually rare.

Are there any drawbacks associated with an education loan?

Although no restrictions are imposed on who may apply for this type of loan, banks typically require that the student proves their full-time enrollment status by providing relevant documents before approving an application. Therefore, the student must take the time to provide all necessary documentation. Also, since interest rates may vary among banks and institutions, students should shop around for a loan with an affordable rate before making a final decision.

What if I’m a co-signer?

Typically, being a co-signer is not required when applying for education loans in Dubai; however, it may be recommended to have someone acting as a guarantor in case the borrower fails to pay the monthly amount.

What is the procedure for repaying an education loan?

Typically, the student needs to repay their education loan in Dubai during or directly after graduation. Repayment terms depend on the bank that provided the funding; however, no penalty fees are applied if a monthly amount is paid by a certain date.

How long do I have to repay my loan?

Repayment plans may vary depending on whether they were borrowed from a local or international financial institution. Generally speaking, students need to apply for refinancing once they complete their academic program and find employment. In some cases, this type of loan can be paid back gradually without incurring any penalties. However, this option should be carefully reviewed due to its particularities.

Are there any official education loan companies?

As far as the student is concerned, there are no particular entities or companies that provide this type of fund in Dubai. However, banks do offer private loans for higher education expenses.

How quickly can I get an education loan?

Typically, students need to wait for between seven and ten business days when applying for an education loan through a bank branch. This amount may be extended if documents are not sufficient or if additional information is required. Also, it may take up to fourteen days before receiving the final decision once applying online. Finally, some institutions defer giving either answer or funding until after acceptance letters have been issued by their respective universities

Is getting an education loan in Dubai worth it?

It is important to note that education loans in Dubai come with varying fees, terms, and conditions. Therefore, students should consider various parameters before making the final decision to borrow money for their higher education expenses. Generally speaking, it may prove beneficial to borrow an amount equal to or less than one’s expected future monthly income. This way, once employed full-time, students are able to pay back the loan without incurring financial hardship. Additionally, since interest rates are determined based on each bank’s policies, students should assess all available options prior to accepting a final offer.

What are some other notable things to keep in mind when considering education loans in Dubai?

Keep in mind: education loans in Dubai have certain requirements which may include providing proof of enrollment status or employment after graduation. Also while this type of financing does not require a co-signer it may be recommended to have someone acting as a guarantor in case the borrower fails to pay the monthly amount.

Once the student has been accepted by a university an education loan might help cover expenses such as tuition fees, living costs, and more. Also, some institutions defer giving either answer or funding until after acceptance letters have been issued by their respective universities [include link].

As long as students borrow within their expected future salaries they can afford to repay these loans once they find employment full-time. In addition, since interest rates are determined based on each bank’s policies, students should assess all available options prior to accepting a final offer [link lenders].

Conclusion

Although no restrictions are imposed on who can get an education loan, students should carefully consider the terms and conditions prior to signing off on a final offer. Keep in mind that since no official entities or companies provide this type of funding in Dubai banks are the only source for educational financing. Also, applicants may have to wait for seven to ten business days before getting an answer once applying through a bank’s local branch. Finally, students should carefully assess all available options prior to accepting a final offer.

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