# Minimum loan amount for personal loans required?



## TallyHo (Aug 21, 2011)

Background: person in my office, who I carpool with frequently, wants to buy a used car in cash and was planning to take out a personal loan for 50% of the value of the car, paying the rest from his bank account. The sum isn't large, 30,000 AED, to be paid back in a year. He can easily afford it (I hired him so I know his salary). 

In the car back to Dubai this afternoon, this is what he tells me: started the loan process at his bank this afternoon, which is Emirates NBD. Filled out the paperwork for a 30,000 loan, handed over all required documentations. A hour later he receives a call from the loan officer at the bank. Apparently the bank is requiring a _minimum_ personal loan of 50,000 AED. :confused2:

They've asked him to come back to the bank tomorrow to fill out the paperwork again. 

After his rantings calmed down halfway to Dubai, he said the loan only has a 1% outstanding balance prepayment charge, so he figures he can take the 50,000, use only 30,000 of it as he originally planned, "pay back" the remaining 20,000 plus the 1% of 50,000, which would be 500 AED.

Does anyone have experience with personal loans who can clarify this mystifying minimum loan amount? It's the first time I've heard of one. I can understand a bank needing a minimum to justify the expenses but 50,000? 

The other mystifying element of it is that if there's a minimum loan amount that's required, then why didn't the loan officer know of it and inform him in person whilst filling out the paperwork?


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## Stevesolar (Dec 21, 2012)

Hi,
Why not ring the Emirates NBD call centre?
Our experience of credit card/loan agents in Dubai have seen them being a little less than truthful - presumably to help them meet monthly targets and boost their commission earnings.
This case seems like it could fall into that category.
Cheers
Steve


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## TallyHo (Aug 21, 2011)

Not my problem so I ain't calling no call centre.

But I'll tell him tomorrow morning to go back to the bank and to demand to see the manager for clarification. My bet is that the manager comes back with a different story and they'll back down and offer the loan at the initial requested amount.



Stevesolar said:


> Hi,
> Why not ring the Emirates NBD call centre?
> Our experience of credit card/loan agents in Dubai have seen them being a little less than truthful - presumably to help them meet monthly targets and boost their commission earnings.
> This case seems like it could fall into that category.
> ...


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## Froglet (May 7, 2014)

Whenever there is a problem with regards to anything I always ask for the manager. It solves anything really quickly.


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## A.Abbass (Jun 28, 2014)

TallyHo said:


> The other mystifying element of it is that if there's a minimum loan amount that's required, then why didn't the loan officer know of it and inform him in person whilst filling out the paperwork?


Because they hire a bunch of dolts. I have been contacting ENBD for the past week to buy out my HSBC account. There were 4 employees involved all of which are giving me different rates/conditions/fees. 

One of them even gave me information on phone, I asked her to hang up and email me the whole thing as I was driving, she emailed me totally different figures than those she just communicated to me a few minutes ago on phone.

The loan officer doesn't care, he just wants to tag his name on the deal and introduce the documents to the next higher employee.


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## Sunder (Mar 11, 2014)

TallyHo said:


> Background: person in my office, who I carpool with frequently, wants to buy a used car in cash and was planning to take out a personal loan for 50% of the value of the car, paying the rest from his bank account. The sum isn't large, 30,000 AED, to be paid back in a year. He can easily afford it (I hired him so I know his salary).
> 
> In the car back to Dubai this afternoon, this is what he tells me: started the loan process at his bank this afternoon, which is Emirates NBD. Filled out the paperwork for a 30,000 loan, handed over all required documentations. A hour later he receives a call from the loan officer at the bank. Apparently the bank is requiring a _minimum_ personal loan of 50,000 AED. :confused2:
> 
> ...


Payback option isnt there in Emirates NBD, Either you pay full amount at a time or pay monthly EMI's. I also asked the same for my car loan and they said the same thing. Either pay full or pay every month. Please tell your friend if he is trying to pay back that option isnt possible. There is no minimum personal loan amount. Tell him to try ADCB instead.


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## TallyHo (Aug 21, 2011)

This is the update I got back.

He spoke to the manager, then the actual branch manager, who was an Emirati. 

Yes, there is a minimum 50,000 AED loan balance with Emirates NBD. It's not stated on their website or in their documents because apparently people always go for the maximum balance they can get away with. According to the branch manager, it was the first time he'd met someone who wanted a loan that small?!

Yes, early pay back is possible. Charge is 1% of the amount you're paying back. The bank branch manager confirmed this and even agreed it was a silly requirement. 

He's filled out the paperwork to borrow the minimum 50,000 AED and once the money is transferred, he will pay back 20,000 within a day or two, plus the 1% charge (200 AED). If he elects to pay back the remaining balance at a future date, the charge is 1% of the outstanding balance. In other words, pre-payment is feasible at Emirates NBD. 



Sunder said:


> Payback option isnt there in Emirates NBD, Either you pay full amount at a time or pay monthly EMI's. I also asked the same for my car loan and they said the same thing. Either pay full or pay every month. Please tell your friend if he is trying to pay back that option isnt possible. There is no minimum personal loan amount. Tell him to try ADCB instead.


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## Sunder (Mar 11, 2014)

Nice Info, Now I also want to pay back my car loan asap.


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## rsinner (Feb 3, 2009)

Car loan may be different. 

ALso note that there is an upfront fee (processing + insurance) for any personal loan, which will be calculated on the 50K.


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