In a landmark move aimed at boosting financial inclusion, the Central Bank of UAE has officially removed the long-standing minimum salary requirement for obtaining personal loans. This major policy shift allows banks to set their own income criteria for lending, opening the door for low-income workers, young professionals, and labourers to access essential financial services for the first time.
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How the New Rule Expands Access to Banking Services
For decades, most banks across the country followed an unwritten but widely applied rule: residents must earn at least AED 5,000 to qualify for personal loans. The Central Bank of UAE has now eliminated this threshold, enabling banks to create more flexible lending policies that reflect internal risk assessments rather than fixed national criteria.
The change supports the UAE’s broader financial inclusion agenda ensuring residents from all income groups have access to regulated, safe, and affordable credit options. It also aligns the UAE with global financial-access standards championed by institutions such as the IMF and G20.
Better Access for Low-Income Workers
Under the new framework, banks may now offer loan products to:
- WPS-registered labourers
- Domestic workers
- Young graduates entering the workforce
- Entry-level employees
- Low-wage professionals
By linking these loans directly to Wage Protection System (WPS) salary deposits, banks can automatically deduct instalments when wages are transferred, significantly reducing default risks.
This approach allows the Central Bank of UAE to support responsible lending while encouraging banks to innovate new products such as micro-loans, short-term digital credit solutions, and low-limit salary-linked financing.
Opening Bank Accounts Becomes Easier
The directive also ensures that residents earning below traditional salary thresholds can now open bank accounts with greater ease. These accounts are expected to be tied to the WPS, promoting safer salary transfers and eliminating reliance on cash handling or informal channels.
The Central Bank believes this will help millions of low-income workers participate in the formal financial system, strengthening transparency and consumer protection.
A Win for Financial Inclusion and Consumer Rights
By empowering banks to design tailored loan criteria, the Central Bank of UAE is modernizing the nation’s lending framework. It signals a shift toward:
- Fair access to banking
- Reduced barriers for vulnerable income groups
- Stronger oversight through regulated products
- Enhanced financial stability
This initiative is a significant milestone in the UAE’s mission to build a more inclusive and future-ready financial ecosystem. it’s important to know you can always file concerns through official channels such as the office for central bank of uae complaints.
