United Arab Emirates removes minimum wage requirement to access bank loans

A key change in the United Arab Emirates' financial system is paving the way for greater financial inclusion across the country. El UAE Central Bank You have ordered banks to eliminate the minimum wage requirement which until now conditioned access to personal finance — generally fixed around 5,000 dirhams per month.

This new policy allows each bank to determine its own internal criteria for loan approval, opening the door to people with lower incomes can access financial products such as personal loans and options for cash on demand.

Financial inclusion for all residents

According to Central Bank officials quoted by Emarat Al Youm, it is expected that all residents UAE nationals can open bank accounts, including:

- Young people starting their working life

- Low-wage workers

- Employees in the labor sector and services

These accounts will be linked to Wage Protection System (WPS/SPS), which will allow banks automatically deduct fees of the customer's monthly salary loans as soon as it is deposited.

A measure to boost financial access

The initiative focuses on:

- Expand access to essential banking services
- Reduce financial barriers for vulnerable segments
- Facilitating access to credit no wage exclusions
- Refining the control of loan payments through the WPS

This change represents a further step towards a fairer banking ecosystem, aligned with the country's financial sustainability objectives and its vision of strengthening the economic well-being of all its residents.

Conclusion

The Central Bank's decision represents a significant improvement in financial accessibility within the UAE, providing new opportunities to those who were previously outside the traditional banking system. Now, more people will be able to save, finance personal projects and build credit history, thus contributing to a more dynamic and inclusive economy.

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