Personal Loan in UAE
Personal loan in UAE/Dubai Is a loan that establishes consumer credit which is granted for personal use; usually unsecured and based on the borrower's integrity and ability to repay. Employees in Dubai describe it as an amount given to an individual to use for personal benefit that must be paid off at a specified time.
UAE Banks-Offers in Dubai/UAE
UAE Banks compete on a daily basis for one to be named as a Best bank in Dubai offering the most suitable loans together with a combination of either a debit cardor credit card in UAE, thus this leaves employees working for established Dubai Companies with unlimited options on which product to take up , be it a visa card, auto loan in Dubai (which is commonly known as a car loan)etc., thus making it a very exciting platform for banks to showcase their products. Such high levels of competition, brought about by each and every bank in Dubai, or Abu Dhabi Bank(s), signify the reason why the UAE has magnificent offers in Dubai and all other Emirates, for salary transfer loans or on a personal loan without salary transfer. As a result, Dubai and the UAE at large, are redefining banking and Gulf Finance in the Middle East Region. One may view the list of banks in Dubai which is radially available and accessible on the UAE Business Directory . Each and every Bank offers a unique loan in UAE, together with credit card offerswith unique loan repayment periods which are computed by different loan emi calculator(s) .In Dubai/UAE, financial products keep evolving and getting better by the day.
Personal Loan in Dubai - Characteristics
Characteristics of Personal Loans in Dubai - The main characteristic of a personal loan in UAE is that it is unsecured by any form of collateral finance and this also applies to a personal loan in UAE without a salary transfer. "Collateral" is simply any economic resource of fundamental value, like a house, boat car or employment terminal benefits (in Dubai) that the lender can repossess if the borrower fails to repay or meet their obligation as agreed. Personal loans in UAE are backed only by your promise to repay (salary certificate), and for this reason they are also known as unsecured loans in Dubai. This kind of financing usually has two forms of interest calculation methods notably 1) Fixed rate of interest in Dubai (as determined by the loan calculator) and 2) Reducing balance rate in Dubai. Amounts on Unsecured loans in Dubai differ, but most run between a minimum of 10000AED and a maximum of 300000AED .The better your credit score, the more money you can borrow for personal loans in UAE is dependent upon your credit rating. A good credit rating will afford you huge personal loan principal amounts at low interest rates, whilst a negative credit rating would reduce the principal and hike the interest rate at which the loan in Dubai is dished at. This is a common feature of banks across the world including Banks in Dubai.
Qualifying for AE loans
Qualifying for a Personal Loan - lender must rely solely on the borrower's willingness to repay the personal loan as agreed, credit scoring is extremely important -- it's widely believed that in dubai today, the way you've managed your obligations in the past is highly predictive of your performance when borrowing in the future (precedence) for personal loans in Dubai/UAE.The Bank takes applications and verifies your income and debts, and the Best bank in UAE,. Your income and debt picture influences the personal loan amount the lender is willing to disburse to you and how long they are willing to lend the personal loan. For personal loans in Dubai/UAE the lender also pulls a credit report, examines your scores and assigns you a credit grade.Depending on your credit grade, personal loan amount and the length of time you wish to borrow, your personal loan interest rate in Dubai will likely fall between 4 and 21 percent (Fixed rates). Rates and terms vary considerably as they (the interest rates in Dubai) are affected by liquidity, market risk, the stock exchange, commodities exchange among others. For this sole reason interest rates in Dubai fluctuate, to an extent that Dubai Banks conduct asset and liability management in a diligent and productive manner, in order to safeguard their assets against wild volatile market movements, which may end up tempering or affecting interest rates in Dubai.
Dubai Personal Loan-Uses
Dubai Personal Loan-Uses - Personal loans in Dubai are mostly used consolidating debt to funding investments or financing big-ticket purchases. If buying a car, secured auto financing is probably cheaper. However, with unsecured loans in Dubai, loan interest rates are likely to be lower than those of a credit card, and personal loans can make budgeting easier with their fixed rates and unchanging payment schedule but 80% of Dubai loans are pinned on the reducing rate.
Dubai Personal Loan-Advantages
Dubai Personal Loan-Advantages - Dubai Personal loans are unsecured, which means the lender cannot repossess your property should you become unable to repay your balance. There is no collateral to appraise, so getting an underwriting decision and receiving your funds can happen very quickly. Personal loans can improve your credit rating though credit scoring systems treat installment debt more favorably than revolving debt like credit cards. Finally, personal loans usually come with lower rates than comparable credit cards .
Personal loan in UAE- Salary Transfer
A Salary Transfer personal loan in Dubai/UAE are offered by Dubai banks at the most lucrative interest rates and bring about real solutions to expats and UAE nationals procuring personal loans for the first time(Debt in Dubai) and also as debt consolidation loans. These fresher loans offer a time limit mostly of 48 months though in some circumstances they reach up-to 60 months. STL loans are offered by both Islamic banks and conventional banks together with finances houses in Dubai/UAE to employees aged from 21 years up to 60 years at time of the loan maturity. Salary transfer loans come from as low as 2.89% flat and employees earning from AED3000 qualify for loans in Dubai Islamic Bank thus making it a very attractive form of gulf finance as compared to non salary transfer loans in UAE. Personal loans in Dubai Islamic Bank (DIB) and Abu Dhabi Islamic Bank (ADIB) start from as low as AED3000.
Emi calculator Dubai on Personal loan
Salary transfer loans come with a minimum of 6 multiples of your salary and a maximum of 20 times of your salary. Some banks factor in incentives, overtime and other benefits in calculating the income and other do not, this is purely an option at the discretion of the bank. These loans are offered to employees working for listed companies who are either six months and above, or holding a confirmation letter. In some cases, but rare, employees are given STL loans on joining a particular organisation, but this rarely occurs since it is a risky form of funding. Insurance on Salary transfer loans starts from as low as 0.5% to as high as 1% depending on which bank is disbursing. As a result of the low interest rates attached to these personal loans, employees may do top up or apply for a buyout should they realise they need extra funding in future. These salary transfer loans are so cheap and extremely competitive even on a global scale.
Salary Transfer Loans in Dubai
Salary transfer Loans in Dubai do not fall under the group of quick loans in UAE and thus require the signing of an undertaking between the bank and the employee together with a precondition of the employee agreeing to transfer his salary and benefits to the bank intending to provide the salary transfer personal loan in UAE. Thereafter, these UAE loans come with a direct debit facility whereby the salary is automatically deducted as soon as it credits the account. Employees should always ensure that they have enough balance before the Direct Debit instruction is effected, otherwise the DDA will hit the underfunded account, thereby attracting a charge of at least AED100 for DDA return. Before a salary transfer loan comes into existence, the client should be willing to transfer their salary for instance from RAK Bank, to the new bank for instance ADCB thus one ends up getting an ADCB Salary transfer loan or from National Bank of Abu Dhabi (NBAD).Transferring your salary from one bank to the other is no walk in the park as it requires a liability letter together with salary transfer letter. These two documents are not easy to procure and they take huge amounts of time to be available thus most employees end up opting for a loans in Dubai without salary transfer
It should however be noted that for car loans in Dubai/UAE, business loans in Dubai, and
home loans in Dubai do not require salary transfer and these set of loans may be procured as loans in Dubai without salary transfer.It is key to find the best bank in Dubai/UAE to assist you with your financial needs.
Interest rates Dubai on Unsecured Personal loans
Unsecured Personal loans in Dubai - That means the loan in Dubai doesn't require you to use any asset as collateral. So, if you default on a personal loan in Dubai, the lender can't automatically take a piece of your property as payment for the loan in UAE. This is the primary reason that Dubai personal loans are more difficult to get. In relation to personal loans in Dubai/UAE, banks in Dubai lending don't have any asset to seize if you decide you can't make loan payments anymore. Even though the lender can't automatically take your house or car, it can take other collection actions. That is why Banks in Dubai require security cheques and salary transfer to their coffers.Like the loan amount in UAE, Dubai interest rates or rather interest rates on personal loans in UAE are based on credit rating. The better your credit score, the lower your interest rate in UAE. Lower interest rates in Dubai are ideal because it means you pay a lower cost for borrowing the loan. Dubai personal loans come with variable interest rates which change periodically.
Interest Rate in Dubai:Fixed
Fixed Interest Rate in Dubai - An interest rate on a liability, such as a personal loan in UAE or auto loan in Dubai, remains constant either for the entire term of the loan or for part of the term. In relation to personal loans in Dubai/UAE, a fixed interest rate may be attractive to a borrower who feels that the interest rate in UAE may rise over the term of the loan, which would increase his or her interest expense in Dubai
Interest rates in Dubai:Reducing balance
Reducing balance interest rate in Dubai - The reducing interest rate means that as a payment is made on the principal amount of a personal loan in Dubai or auto loan in UAE’s interest payment reduces as well. Interest repayments are usually huge at first but as time passes, they become so diminished and dwindled
Personal loan in UAE-Repayment
Personal loan in UAE - Fixed repayment period - You have a set period of time to repay your personal loan. Loan periods in Dubai are stated in months for example 12, 24, 36, 48, and 60. Longer repayment periods lower the monthly loan installment in Dubai, but they also mean you pay more in interest than if you had a shorter repayment period. Interest rate in Dubai may also be tied to the repayment period, each and every bank has its own features, as shown on the list of banks in UAE
Why banks in Dubai offer PDC Personal Loans
Post Dated Cheque personal loans abbreviated as PDC loans are available to employees in the United Arab Emirates in all Emirates and they come with unique characteristics meant to solve the financial strains met by employees in the UAE as they go on with their lives and careers thus most also name them easy loans in Dubai. A post-dated cheque loan (PDC Personal loan) is a financing facility offered by banks and finance houses across the UAE and they are purely secured by post-dated cheques thus their name PDC Loans.
Features of PDC Personal Loans in Dubai/UAE
These PDC loans are debt consolidation loans which come with non-salary transfer and their interest rate is a notch higher compared to salary transfer loans in UAE. One may wonder why such a product with a relatively higher interest rate, before I thought as wise but after dealing with these PDC loans I have come up with the following finding. PDC loans in UAE are mainly offered by banks which do not check credit bureau, and as a result, they are used mainly to close credit card liabilities which balloon if unpaid and have a huge impact on the credit rating of the client in question. Such a PDC personal loan in Dubai/UAE reduces the emi on credit cards together with penalties by up to 70% and they are quick to process with a 7 day turnaround time that is the catch. PDC loans are quick to process with the turnaround time from application to disbursal being 3 days – 4 days for approval and 2 extra days for disbursal. This makes the required finance available within a week to 2 weeks.
Main Uses of PDC personal loans
This Loan in Dubai specifically buyout credit card debts and they offer value and savings when used along this channel, the PDC loan may not however be used to close off or buyout salary transfer loans since their interest rate is already a notch higher compared to the salary transfer loans, this will defeat the purpose and will not make any financial sense to the expat or local in need of a better financial solution .PDC loans are increasingly becoming popular among the UAE community notably in Abu Dhabi, Dubai, Sharjah, and Ajman .
PDC loans also have drawbacks like any other banking or financial product. These loans are relatively expensive compared to salary transfer loans, thus inasmuch as it saves with paying the ballooning credit card bills, comes with a higher financial cost and many clients procuring money from PDC loans end up diverting it for other use thereby worsening the financial crisis.