Personal Loan is a type of credit which lets you borrow a specific amount of money to use for multiple purposes. The borrowed amount can be used for renovating homes, buying cars, education fees, investing in business or consolidating debts. You need to repay the amount within a certain time period including additional interest and fees. Generally there are two types of personal loans, secured and unsecured loans, depending upon the collaterals. Banks in Dubai are offering competitive personal loan products to ease the financial burden of individuals.
You must be aware of a few terms before applying for a personal loan in Dubai. Here we have tried to put those terms as below.
- Interest Rate:
The specific amount is charged in proportion to the loan amount over a time period. Generally it is considered on an annual basis represented as Annual Percentage Rate (APR).
Banks may charge certain application fee, monthly ongoing fee, exit fee, early repayment fee and other fees as well. It is always best if you ask for all the fees involved before taking a decision of applying for a loan.
- Loan Terms:
Loan terms can be represented as the time period within which a borrower is supposed to pay the loan amount. This is determined by mutual understanding between bank and borrower.
Repayments are the loan installment that need to be paid regularly over a time period until it gets fully paid including all interest and fees.
- Credit Score:
Credit score is the numeric representation of credit worthiness of an individual. Bank will check the borrower’s credit score to approve a personal loan in Dubai.
- Approval Time:
Loan approval time is the time taken by banks to get approved for a loan. Banks will review your eligibility and check submitted documents within this span.
Typically, you can use two ways to apply for personal loans, Visiting to Bank or via Online. You can check the bank’s requirements on age, salaries, minimum credit score and other documents for applying for personal loans. These things can be asked to the Bank or they might be available on their respective website. It may save thousands of Dirhams if you compare interest rates, fees and other details among Banks and select the right one for you.
After choosing the right bank for you, you can fill the application form visiting the nearby branch or via online on their web portal. You need to decide how much loan amount you want to borrow and choose loan terms considering the personal loan repayments. You may need to provide your personal details along with your financial history and provide income or salary statements. Depending upon your submission, Banks will turn around your loan and deposit your loan amount in your bank account deducting the processing fees. There might be the option of top up loan in between the loan term again if required.
Personal loans for UAE nationals costs are cheaper compared to personal loans for expats. There are a wide range of banks that are offering unsecured personal loans with faster processing and minimum paperworks. Personal loans can be a great idea for paying up credit card debts with a higher penalty fee, emergency money usages, startup business, investing in stocks or migrating to another place as well. You can apply up to million of Dirhams with a very competitive interest rate.