Millions of UAE residents, especially lower-income workers, will now qualify for personal loans after the country officially removed the Dh5,000 minimum salary requirement that governed approvals for years. Banks have been instructed to set their own income thresholds, marking a major shift in how personal credit is accessed across the country.
The change allows banks to rely on their internal risk models instead of a national benchmark, opening loan access to workers earning below Dh5,000, students, part-time earners, and those without formal salary slips.
Economists say the move increases financial inclusion while keeping consumer protection intact. Monica Malik, Chief Economist at Abu Dhabi Commercial Bank, said the new framework “places the onus on individual banks to make lending decisions,” noting that limits on loan size and repayment caps will still restrict excessive borrowing.
Loan instalments will increasingly run through the Wage Protection System (WPS), allowing banks to automatically deduct repayments once salaries land in WPS-linked accounts. This gives lenders clearer insight into income consistency while helping borrowers stay on track.
The policy is expected to reduce reliance on informal lenders and bring more low-income workers into the regulated banking system, helping them build credit histories for future products like car loans and mortgages.
Analysts also expect growth in new credit offerings tailored to entry-level workers, including micro-loans, emergency credit lines, small overdrafts, and savings-linked starter products. Terms and thresholds will now vary by bank, making comparison more important for borrowers.
Officials said the rule change is part of a broader national push to expand access to safe, supervised financial services while keeping household risk under control.
