Private Money Lenders in Dubai — these platforms offer loan services ranging from mortgages to personal loans. The covered loan types include Secured Loans and Unsecured Loans, depending on the magnitude and period of the requested loans.
Also, some lenders operate within certain regions in the UAE, which kind of restricts access to residents outside the service area.
However, most Private Money Lenders in Dubai offer varied options that typically provide loans for every eligible resident (including those who are outside the lenders’ location). Often, these firms don’t require high credit scores or collaterals.
How do loans from Private Money Lenders in Dubai compare to bank loans? Below is a quick comparison of the two loan options.
Private Lenders Vs. Bank Loans
| Bank Loans | Private Lenders |
| Typically requires a collateral and high credit score | Doesn’t require collateral for some specific types of loans, unless a threshold is exceeded |
| Applicable rates may range from low to high depending on the amount requested and the repayment period | Rates charged by private lenders are mostly higher than those charged by banks |
| The period set for loan repayment range from 1-12 months | Periods set for loan repayment are usually short |
| Supporting documents are often required | Overlooks specifics |
| Offers secure loans with reliable security | Offers unsecured loans |
Overall, Private Money Lenders in Dubai don’t avail borrowers of as many opportunities as banks. But they can easily provide loans on short notice.
Also, if you need to get instant loans without pledging properties like cars or real estate, a private lender can take you up on that (although some pawnbrokers might require a swap).
Note:
Dubai has a law that prohibits individuals from charging interest on a loan. Such lenders are referred to as Natural Persons, implying a distinction between entities and persons lending money outside a corporate identity.
Further, Dubai laws don’t mandate any borrower to pay any interest or charges on loans borrowed from an individual. Only lending firms (the legal ones, precisely) and banks can provide loans with interest.
So, this eliminates the chances that loan sharks might be exploiting residents.
In this post, we outline five (5) Private Money Lenders in Dubai and a brief description of the service they generally offer. See details below.
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If you require some minor documentation or brokerage from a lender in Dubai, then check out the options provided by top private firms in regions like Sharjah, Dhabi, etc., as their services cover a range of residents in the UAE.
Alternatively, an instant loan is best sourced from start-ups. You just have to check that the one you are going to patronize is legal, offers good rates, supports possible chargebacks, and has a good reputation.
We selected only five (5) of the best Private Money Lenders in Dubai in this article. Also, most of them are startups, preferring online services to a permanent location.
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Yallacompare
Sometimes lenders offer so many options that the loan applicant may not know which ones are suitable. In such a case, a directory that gives insights about the varied options — especially how they compare — would be invaluable.
That’s the service Yallacompare renders. It doubles as a lender and a reference book for various types of loan products such as Auto loans, mortgages, Personal Loans (this can be an instant loan or the sort of loan that requires collateral), and credit cards.
Yallacompare goes beyond the basic loan request service offered by most fintech to providing insurance products and comparisons for different kinds of accounts.
At the time of writing, the company values up to twenty-one million dollars ($21000000), with investors like Wamda Capital, STC Ventures, and Gulf Insurance. You can easily access them from their official website
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Beehive
If you are in the UAE looking to get a lender that complies with Dubai laws, consider Beehive.
Why is it a good option for you? Beehive operates in a similar way to Substack, as it provides a legal attaché, from which a client can easily retrieve Sharia-complaint procedures for purchases, loans, etc.
The platform is promoted as a marketplace, but it actually lends urgent loans — it offers as much as AED 500000. Also, you get a choice to pay back in installments (usually required on a monthly basis).
In terms of valuation, Beehive (with 9 million dollars in funding) doesn’t compare to Yellowcompare. Still, it remains a reliable and competent fintech payment solution for those seeking instant loans in the UAE. You can easily access them from their official website
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Holo — Offers Mortgage Products
Unlike most of the Private Money Lenders in Dubai, Holo specifically avails people of a good opportunity to buy a house.
Mortgage stays atop the research list of most people looking to get funds to purchase their preferred homes. Holo helps lenders to place mortgage products strategically, where the target market is likely clustered. So, you can easily pick a suitable lender from Holo.
It also offers Mortgage calculators, integrating most of the tools for mortgage research in one platform.
Holo was only recently founded, like most of the fintech Private Money Lenders in Dubai, but it has attracted investors such as Oryx Fund and Dubai Future District Fund. You can easily access them from their official website
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Postpay — Supports POS
Postpay has an app for iOS and Android devices. It integrates several payment options on the UI, allowing the user to select loan payment channels from the partners provided on the official app.
Further, Postpay does not only cater to individuals seeking a personal loan but also fast-tracks payment solutions for online businesses or small companies.
Although the company is only recently founded, its investors include Afterpay and the Commercial Bank of Dubai, culminating in a thirty-five million dollars ($35000000) funding.
It is one of the most reliably well-funded fintech Private Money Lenders in Dubai for loans ranging from personal to business. You can easily access them from their official website
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Datacultr — Coopts AI
Valued at only one million dollars ($1000000), Datacultr would combine AI and a competent backend staff to provide risk-minimal automation for a variety of products in the debt markets.
It runs a series of modern financing services, which include seamless payment solutions, efficient communication lines, debt management, etc.
Datacultr boasts investors like Seedstars and Sturgeon Capital. It looks to be Dubai’s big break on the big data digital financing scene.
The company is most suitable for small companies, firms, or businesses looking for an automated debt management agency. You can easily access them from their official website
Conclusion
Apart from banks and designated Private Money Lenders in Dubai, there are many fintech startups that provide loans in the UAE.
You can easily request an instant loan from these online lenders without collaterals or tedious paperwork. Dubai offers multiple options for residents to access loans on demand.
However, always ensure strict adherence to the prevalent state laws.