Whatever could be the reason, if ever an urgent requirement of funds come up, a personal loan in UAE can be quite a viable option. Generally, the personal loans offered by financial institutions or banks are unsecured loans as do not involve any collateral.
You must be wondering:
How can you get a personal loan quickly and without any hassle?
These days, the process of availing a personal loan has totally online and it helps in saving time. Hence, you can apply for the loan easily through online portals.
Listed below are a few things that will help you get a swift approval of your personal loan.
1) Keeping a Track of the Credit Score
It can be helpful to stay updated about your credit score at all times. So, whenever you are in need of a instantly, you make a decision as per your credit score.
The banks and financial institutions have a certain margin. If your credit score is above the margin then it is considered from good to excellent (depending upon the exact score). Hence, if you end up needing a quick loan, your credit score can help you in making it happen.
2) Calculating the Repayments
Finalizing on a personal loan without calculating your repayments can be dangerous. Make sure you calculate the monthly repayments you will have to make on each loan accurately. Only then decide on an affordable and realistic amount of loan for borrowing from the lender.
3) Check the Fees and Charges
Ensure that you have researched on all the fees and charges that are applicable to the personal loan. These may include late payment charges, processing fee, early settlement fee, loan re-scheduling fee, and more. Also, check for hidden charges levied by the lender (if any).
4) Check the Rate of Interest Charged
You should have complete knowledge about the personal loan you are considering. Ensure that you know the personal loan interest rate charged by the lender. Check if it suits your budget or not. Compare different personal loan options and the interest rate charged on them.
5) Shopping Around for Various Personal Loan Options
Different lenders may offer different personal loan benefits in the UAE. Before finalizing the deal, you should compare the loan offer you are considering with the loans offered by other lenders. This way you can select the most suitable personal loan for yourself.
6) Debt Consolidation
If you have multiple debts, then consolidating them into one loan that has a low-interest rate is a good option. If you are consolidating all your debts into one in order to save money, make sure you do not invest all that money in paying the early settlement fees for all those existing debts.
7) Checking the Eligibility Criteria
Obtaining a personal loan in UAE is quite simple when you have all the required documents and fulfill the eligibility requirements of the lender. The eligibility criteria include your age, monthly income, and your employment status amongst other things.
Your employment details include the length of your employment with the current employer. The lenders in the UAE generally want this duration to be around 3-6 months. They may reject your loan application if your service duration is less than that. The lenders also check if the employer you are working with is a part of their approved list of employers or not.
8) Reading all the Necessary Information Carefully
You should read all the necessary information regarding the lender and the loan carefully. Look out for the details related to hidden charges, processing fees, early settlement fees, payment features, and more.
Common Benefits and Features of Personal Loan in UAE
Here are a few common salient features & benefits of personal loans offered in the UAE.
1) A high amount of loan, depending upon your monthly income and employment duration
2) Attractive rates of interest on reducing balance (offered by most of the banks) based on the income and amount of loan
3) Varying deals for expats, UAE Nationals, salaries, and non-salaried applicants
4) A lot of banks offer long loan tenure of up to 48 months usually
5) Many banks offer free for a life credit card with the personal loan
6) Life insurance is offered by various banks as a part of the personal loan benefits
7) You can opt for a loan top-up option depending upon the discretion of the lender
8) A few lenders may offer an option of no-payment for the initial few months
9) There are some Islamic banks from where you can obtain Islamic Finance for your needs
10) Other than installment deferred option, you can also avail value-added services along with the personal loan from a few banks
Personal Loan Eligibility Requirements for Expats and UAE Nationals
Here are some general eligibility criteria that you have to meet (whether you are an expat or UAE National) for obtaining the personal loan in UAE.
1) Length of employment ranging from one to six months
2) Minimum salary requirement as determined by the lender
3) A salary transfer may or may not be mandatory
4) Age limit which is generally 21 years (minimum) and 65 years (maximum for UAE Nationals) and 60 years (maximum for Expats)
Documentation Needed for Availing Personal Loan
Here is a list of documents that are usually submitted for obtaining a personal loan in UAE.
1) Duly filled the application form
1) Identity proof including Emirates ID, passport, and Visa
2) Proof of residence of UAE
3) Salary transfer letter or salary certificate (only for the salaried employees)
4) Previous months’ bank statements
5) Trade license (only for the self-employed applicants)
Over to You!
For those who are looking to borrow, even if you need a loan instantly, do not seal the deal with the first loan you come across. Think wisely before you decide.
If you urgently need a personal loan in UAE, make sure you are taking proper steps for obtaining the loan in order to get it approved easily and quickly.