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Confused between which Bank to Choose for Personal Loan in Dubai? Read This!

A personal loan is a sum of money that you can borrow and spend for a number of things. For instance, you may utilize a personal loan to pay off debt, finance home improvements, or finance your ideal wedding. Banks, credit unions, and online lenders all provide personal loans. You have to pay back the borrowed funds over time, usually with interest. Additionally, certain lenders may levy fees for personal loans.

You can borrow money for personal purposes with a personal loan and repay the money over time. You can get a lump sum of money by taking out a personal loan, which is a kind of installment debt.

Therefore, in today’s blog, Dhanguard will extensively discuss the best banks for personal loans in Dubai. So without any further ado, let’s learn!

For instance, you may utilize a personal loan to pay for:

  1. The Cost of moving

  2. To consolidate debt

  3. Medical costs

  4. Cost of the wedding

  5. Home improvements or repairs

  6. Travel expenses

  7. Unexpected costs

How do Personal Loans operate?

Applying to a lender is required in order to obtain a personal loan. It could be a bank, credit union, or online personal loan provider, once again.

  • Usually, you'd have to fill out an application first. After reviewing it, the lender makes a decision regarding whether or not to accept it.

  • You'll be offered the loan terms if you're accepted, and you can decide whether to accept them or not. The process of finishing your loan paperwork will then begin if you accept them.

  • Following completion of that, the lender will fund the loan, which entails paying you the money received. 

  • These can show up as a check or a direct deposit into your bank account, depending on the lender. 

  • You can put the money to any use after the loan is funded. 

  • Following that, you must start repaying the loan in accordance with the conditions outlined in the loan agreement.

Which are the best Banks to provide Personal Loans in Dubai?

The best banks to provide Personal Loans in Dubai are listed below- 

Emirates NBD Self Employed Personal Loan for Individuals or Entities

About the Loan-

  • Flat Rate- 11.51%

  • Minimum Salary Requirement- AED 25,000

  • Reducing Rate- 19.99%

  • Maximum Loan Amount granted- AED 300,000

  • Early Settlement Fees- 1%

  • Arrangement Fees- 1%

  • Tenure of Loan- Upto 4 Years

  • Salary Transfer- Not Mandatory

Benefits of the Loan-

  • Both expatriates and UAE citizens may apply for this programme despite the lengthy repayment period.

  • The documentation is clear and uncomplicated.

  • Up to AED 300,000 in loan amount is available to applicants.

  • In the UAE, there are around 560 Emirates NBD ATMs.

National Bank of Fujairah Personal Finance

About the Loan-

 

  • Flat Rate- 2.75%

  • Minimum Salary Requirement- AED 5,000

  • Reducing Rate- 4.99%

  • Maximum Loan Amount granted- AED 3,000,000

  • Early Settlement Fee- 1%

  • Arrangement Fee- 1%

  • Option of Buy Out- Yes

  • Salary Transfer- Mandatory

 

Benefits of the Loan-

  • It's basic and easy to document.

  • Along with this loan, it has a low salary requirement and a protracted repayment time.

  • The maximum loan amount available to applicants is AED 3,000,000.

  • Together with this loan, offers free Takaful insurance

Mashreq Personal loan for UAE Nationals

About the loan-

  • Flat Rate- 3.3%

  • Minimum Salary Requirement- AED 10,000

  • Reducing Rate- 5.99%

  • Maximum Loan Amount granted- AED 3,000,000

  • Early Settlement Fee- 1%

  • Arrangement Fee- 1%

 

Benefits of the loan-

  • Along with this programme, there are minimal salary requirements and lengthy repayment terms.

  • There is availability of Islamic finance

  • Candidates are eligible for loans of up to AED 3,000,000

  • It's easy and simple to document.

Emirates NBD Personal Loan without Salary Transfer

About the Loan-

  • Flat Rate- 7.9%

  • Minimum Salary Requirement- AED 10,000

  • Reducing Rate- 14.99%

  • Maximum Loan Amount sanctioned- AED 500K

  • Early Settlement Fee- 1%

  • Arrangement Fee- 1%

  • Salary Transfer- not Mandatory

  • Tenure of Loan- Upto 4 years

 

Benefits of the Loan-

  • Two non consecutive missed installments are allowed per year.

  • In conjunction with this programme, a free debit card and bank account are offered.

  • Long repayment period

  • A loan sum of up to AED 500,000 is available to both expats and UAE citizens.

  • The UAE is home to about 560 Emirates NBD ATMs.

 

Best Tips You can Implement to get your Loan Approved

A personal loan should only be taken out to cover immediate financial requirements. In order to ensure that your application is granted without any issues, it is crucial to do so when making one. If the borrower perfectly meets the bank's requirements and all the submitted documentation is legitimate, the loan is usually approved promptly. Take a look at these suggestions to get your personal loan accepted.

 

  • Have a reliable source of income, which means you should have been employed by your current company for at least a year.

  • Do not submit applications to multiple banks at the same time.

  • Without omitting anything, have all the necessary paperwork on hand.

  • Don't apply for a loan amount that is greater than what you can afford or what you need.

  • Verify that your debt to burden ratio (DBR) is less than 50%.

  • Make sure you haven't taken out any additional loans in the previous six months as this will raise your DBR.

  • Obtain a high credit score

  • Verify that your previous loan records are accurate.

  • Make sure you satisfy the loan's qualifying requirements.

  • Without making any mistakes, complete the personal loan application.

 

Read More: Need a Small Business Loan in Dubai? Read this Blog Prior to Applying for One!

Instances when your Personal Loan Application can be Denied

Before requesting a bank loan, you should take the time to study the eligibility requirements. There may be a number of factors at play. Common justifications include:

  • Your DBR, or debt to burden ratio, is very high. Simply put, you are using more than 50% of your salary to pay off all of your debts.

  • The reason for rejection is typically kept confidential by banks. You can increase your application's approval prospects by following the fundamental hygiene rules, such as completing a complete and accurate application, verifying your eligibility and credit score, and paying off any outstanding debts.

  • Unable to pay salary.

  • You do not have a listing with the bank for the business you work for.

  • Your credit rating is low.

  • Provided personal data is inaccurate or insufficient.

Benefits of Personal Loan in Dubai

People that use personal finance in Dubai can take advantage of a variety of benefits. Let's examine a couple of them:

  • Few banks provide a payment free period for the first few months. After this grace period expires, the installments will begin.

  • Holders of personal loans may use the repayment holiday option, which allows them to postpone making payments on their installments for one to two months.

  • In the UAE, the majority of banks offer personal loans that are consistent with Islamic law.

  • According to the rise in wages, top up choices are offered.

  • Personal loans in the UAE can be covered by takaful, which provides financial protection in the event of an individual's handicap or demise.

  • There are various alternatives accessible for both paid employees and independent contractors.

  • Numerous banks in Dubai provide free debit and credit cards to people who have personal loans.

  • To protect against unforeseen circumstances, you can choose an insurance cover for your loan.

Features of a Personal Loan in the Dubai

The features of personal loan in Dubai are listed below-

  • Personal financing is available in the UAE to both residents and foreigners.

  • To qualify for a personal loan in the UAE, you must make at least AED 3,000 per month.

  • Generally speaking, banks base loan amounts on the applicant's gross monthly income.

  • Up to 48 months may be included in the bank loan's term (4 years).

  • Processing fees at most banks typically amount to 1% of the accepted loan amount.

  • AED 5 million is the most which is provided as the maximum amount of loan sanctioned

  • According to your salary and the loan amount, the interest rate on personal loans in the UAE varies. The starting rate varies by bank and can be as low as 3.99 % per year (decreasing or reducing rate) or 2.19 % per year (fixed or flat rate).

Conclusion

There is no saying as to when you might require extra financial assistance in the course of life. That's when personal loans come to the rescue. Banks in Dubai offer great Personal Loans and one can get a Personal Loan easily in Dubai as per their requirement. Thus we hope this blog provided you with insightful information. For more information on other related aspects, feel free to visit our Branch Office or our website as well.

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Frequently Asked Questions

Personal loans that are taken from banks are automatically insured at a nominal fee and in the event of any premature demise the partner insurance company covers the entire loan amount, protecting the family from any financial risk.

Assets are not required as security against your personal loan.

Normally, the only advance costs pertaining to a personal loan are dispensation and insurance fees.

According to the issuer's policy, some lenders enable the borrower to 'defer' or postpone a month's payment once every few months. To take advantage of these benefits, the borrower must make timely payments. Deferred payments do not reduce the principal amount, and hence will not lower the lowering personal loan interest rate in UAE.

Top-up or add-on personal loans are renewable loans that can be used to supplement an existing loan after the borrower has paid a certain number of payments. Top-up personal loans in the UAE are used to reward loyal, non-delinquent borrowers by providing longer tenors or reduced interest rates, depending on the bank's policy.

No, unless the bank expressly states otherwise or the student has a guarantor, a student cannot apply for this loan. The loan's eligibility restrictions include a minimum monthly salary and a maximum age range of 21 to 65 years. Some lenders may require a salary transfer and confirmation of employment with a lender-approved organization. However, some lenders offer personal loans in the UAE without requiring a company listing. As a guarantor, you can always apply for a student/education loan.

It would be up to you to decide. You should be informed that you must pay the loan's EMI from the beginning of the month, followed by the disbursal. You can take out a loan if you're confident that you'll be able to pay the monthly EMIs at the very least.

If you're having trouble paying your loan EMI, contact your bank to see if there's anything you can do. If you try to avoid the problem, it will only get worse. Banks will issue warnings before dispatching debt collectors. If you do not respond, they may designate you as a defaulter and may even take you to court for the unpaid personal loan in UAE. As a result, it is preferable that you call the bank and explain your circumstances. They may be able to lower your EMIs in some cases.

Almost all personal loans include a life insurance plan for applicants. This insurance coverage protects the borrower from having to make payments in the event of a fatal disease, permanent incapacity, or death. Some personal loans in Dubai also include life insurance plans that pay back the entire loan amount to the policyholder's family members in the event of the policyholder's death.

A personal loan can be used to pay off credit card debt. By consolidating the debt, the loan might assist in the payment of the credit card bill. When compared to credit cards, it has lower interest rates. Even if the applicant has a personal loan minimum wage of AED 2,000, you can return the loan in easy monthly installments over the following few years.

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