UAE Central Bank Removes Minimum Salary Requirement for Personal Loans: Are You Eligible?

The Central Bank of the UAE (CBUAE) has officially ordered banks to cancel the long-standing minimum salary requirement of Dh5,000 for obtaining personal loans and other financial products. However, the UAE Central Bank has taken this decision in a major shift aimed at improving financial inclusion. Moreover, the directive was confirmed by reports by Emarat Al Youm.

The move is a significant transformation in how financial services will be offered across the country. However, many banks strictly adhered to a Dh5,000 salary threshold for years to limit access for low-income workers, youth, and labor-sector employees.

Banks to Set Their Own Criteria

According to the new CBUAE guidance, banks are now going to decide salary eligibility requirements based on their risk assessment policies, rather than a unified national limit. This flexibility is expected to open new opportunities for the following people:

• Low-income workers
• Young residents entering the workforce
• Labour-sector employees
• Blue-collar workers
• Residents previously unable to meet minimum salary rules

Many banks are expected to redesign their policies for products, like personal loans, cash-on-demand services, basic bank accounts, etc. 

WPS-Linked Accounts to Boost Security and Repayment Efficiency

The UAE Central Bank has also highlighted that new bank accounts opened by low-wage earners will be linked to the Wage Protection System (WPS). However, this integration allows banks to automatically deduct installments from salaries as soon as they are transferred. Take a look at how the WPS system helps:

• Ensures timely loan repayments
• Increases financial security for banks
• Reduces debt risks for borrowers
• Encourages responsible lending
• Provides a regulated environment for low-income workers

The Central Bank officials clarified that this system ensures that personal financing remains trustworthy, secure, and compliant with national regulations.

A Major Step Toward Financial Inclusion

The official stated that the decision of the UAE Central Bank aligns with the national strategy of the country to expand financial inclusion and ensure that every person, regardless of salary, gets access to the UAE banking services. The following is the list of those services:

• Salary accounts
• Digital banking services
• Regulated personal loans
• Mobile-based financial tools

The UAE Central Bank campaign is expected to benefit the following people:

• Domestic workers
• Construction and industrial labourers
• Entry-level employees
• Freelancers under company payroll
• Individuals transitioning from cash-only jobs to formal banking

Experts believe that the policy is going to strengthen the position of the UAE as a globally competitive, digitally advanced, and financially inclusive economy.

Why This Decision of the UAE Central Bank Matters for UAE Residents?

It was challenging to meet the previous UAE Central Bank threshold of Dh5,000 for many residents in the UAE. Now, this policy indicates the following meanings:

• More people can apply for loans because there is no fixed minimum salary barrier. 
• Easier access to a bank account, especially for newly arrived workers and youth. 
• Better financial security and trust through the WPS-linked payments. 
• Increased protection against loan default for banks and borrowers. 
• A boost in the labor market of the UAE to help employers onboard workers with proper financial tools.

Key takeaways

The decision of the UAE Central Bank to remove the UAE minimum salary requirements for personal loans is a landmark decision that reshapes the financial landscape for millions of residents. 

Moreover, it empowers banks to set their own criteria and ensure WPS-linked repayment security. Hence, this policy is set to enhance financial inclusion, support economic stability, and provide broader access to essential banking services across the country. In short, this new policy is going to help low-wage workers to secure personal loans and banking services in the UAE instantly. 

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