Two of Dubai's largest banks have hiked the minimum salary required to get a personal loan amid the escalating financial crisis and growing concern over bad debt.
Emirates Bank International on Monday doubled the minimum monthly salary threshold to Dhs10,000 ($2,722) from Dhs5,000, citing the financial crisis.
Staff at the company, which is a subsidiary of the country’s largest bank by assets, Emirates NBD, said they had been told to process applications already in the pipeline, given that all the documentation required was provided.
The move comes just a month after Emirates Bank increased the amount customers must earn in order to get a loan to Dhs5,000 ($1,361) from Dhs3,000.
An Emirates Bank spokesman said the company did not comment on credit policy for retail customers, but that the policy was "revised in a timely manner, according to market conditions".
Meanwhile, Dubai Islamic Bank, the UAE's largest sharia compliant lender, more than doubled its minimum monthly salary threshold two weeks ago to Dhs8,000 from Dhs2,500.
Emirates Bank and Dubai Islamic are the latest in a long line of UAE-based banks to tighten lending conditions due to the freeze in credit markets.