The UAE Central Bank has officially removed the minimum salary requirement for personal loans, marking one of the most significant financial reforms in recent years. For millions of UAE residents — especially low-income workers, labour staff, youth, and entry-level employees — this decision opens access to regulated, safe, and formal credit that was previously out of reach.

🔍 What Exactly Changed?

For years, most banks required a Dh5,000 minimum salary before issuing personal loans.
Now:

• ✔ Banks must cancel the Dh5,000 threshold
• ✔ Each bank can set its own minimum salary requirement
• ✔ Eligibility will be based on internal risk policies, not a fixed rule

This means workers earning below Dh5,000 now have a realistic chance to qualify for personal financing.

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🏦 Why the Central Bank Made This Change

According to Central Bank officials, the goal is to promote financial inclusion.
The move aims to ensure everyone in the UAE — regardless of income level — has access to:

• bank accounts
• regulated financial services
• safe credit options

For many workers who rely on cash or informal lenders, this is a major step toward financial security.

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💳 The Role of the Wage Protection System (WPS)

All salaries of eligible workers will pass through the Wage Protection System (WPS).
This allows banks to:

• track salary consistency
• automatically deduct loan installments
• reduce risk of non-payment

This system gives banks more confidence to lend to low-income employees.

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📈 Who Benefits the Most?

A large portion of the UAE workforce earns below Dh5,000 per month — a group that had almost zero access to official credit.
Now, they can begin building:

• a repayment record
• credit history
• eligibility for future products like auto loans, credit cards, and even home finance

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💡 What New Loan Options to Expect

Industry experts expect a surge in lending products tailored for low-income workers, including:

✔ Micro-financing

✔ WPS-backed overdrafts

✔ Emergency small loans

✔ Savings-linked starter credit

✔ Buy Now, Pay Later (BNPL) services

✔ Low-limit personal loans

This shift gives low-income employees more flexibility and safer alternatives to informal borrowing.

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📌 Important Limitations Still Apply

Even with this change, consumer-protection caps remain:

• Loan amount cannot exceed 20x monthly salary
• Repayment period capped at 48 months
• Installments cannot exceed 50% of income
• Bank policies may still vary widely

Comparing offers is now more important than ever.

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⚠️ The Risk: What Happens If You Lose Your Job?

Financial experts warn that while access has improved, responsibility has increased.

Banks are not required to pause your installments if you lose your job.
If payments stop:

• You may face penalties
• Loans can enter default
• Salary freezes or legal processes could follow

Borrowers must request a restructuring agreement immediately if they lose employment.

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✨ Final Word: Opportunity With Caution

The removal of the minimum salary requirement is a huge opportunity, especially for those who were previously left out of the financial system.
But like every opportunity — it comes with responsibility.

Borrow only what you can repay. Understand the terms. Compare offers. Plan ahead.
Because smart borrowing today can open the door to bigger financial opportunities tomorrow.