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What is Personal Loan in UAE

Personal Loan in UAE

What is a personal loan in UAE?

personal loan is an unsecured loan, which means that no collateral or collateral is required to take advantage of it. The personal loan in UAE is purchased by the individual for their various personal financial needs such as weddings, higher education, international travel, starting a new business, and even for debt consolidation.

The maximum loan amount for personal finance can be equal to 20 times the monthly salary, which can be used with a repayment period of up to 48 months. The UAE personal loan interest rate and personal loan amount are determined based on factors such as source of income, credit history, age, employment status of the applicant, etc.

Interest rate on personal loans in UAE

The interest rate for personal loans in the UAE is an additional fee that is charged on the amount of the main loan. There are two types of interest rates applicable to personal loan offers in the UAE:

  • Fixed interest: Fixed interest is calculated on the total amount of the loan, which remains constant for the life of the loan. The lowest interest rate for a Personal Loan Personal Loan in Dubai and the rest of the United Arab Emirates can be 2.63% and can go up to 22.22%, with a range of 2.63% to 22, 22%.
  •  Reduce interest: Unlike a fixed interest rate, this interest rate decreases each time the borrower pays the installment. The interest rate reduction for a personal loan in UAE is calculated only on the outstanding principal amount of the loan, which can fall in the range of 5.24% to 39.99%. You should always compare personal loans online to get the lowest interest rate for UAE personal loan interest rate.


How is interest calculated on personal loans?

Borrowers can use the interest calculator to calculate the amount of interest they will pay. Let's look at the steps to calculate the interest rate to allow comparison of personal loans:

Use the formula - (interest rate / number of payments) * principal = interest

Step 1: Divide the interest rate by the number of payments required per year

Step 2: Multiply it by the loan balance, which for the first installment will be the principal amount of the loan.

Step 3: Now calculate the new balance. To do this, subtract the calculated interest from the amount paid. Subtract this amount from the principal to arrive at your new personal loan balance.

The best personal loan banks in UAE

Here is a list of the top 10 personal loans in UAE in 2021:

  • ADCB Personal Loan
  • RAKBANK personal loan
  • Dubai Islamic Bank personal loan
  • Emirates NBD personal loan without salary transfer
  • FAB Bank personal loan
  • ADIB personal loan - Abu Dhabi Islamic Bank
  • Mashreq Bank expat personal loan
  • Noor Bank personal loan
  • Deem Finance personal loan
  • Finance House personal loan


Check and compare personal loan providers in UAE including the requirements and advantages offered to make the right decision based on your personal loan requirements and apply for the best personal loan online with interest rate lower in just a few steps.

Personal loan in Abu Dhabi

Abu Dhabi is one of the largest financial centers in the United Arab Emirates and offers individuals and companies the most relevant financial solutions. Abu Dhabi Commercial Bank (Abu Dhabi Commercial Bank) and First Abu Dhabi Bank (First Abu Dhabi Bank) are pioneers in the field of personal finance offering personal loans in Abu Dhabi starting at 3.99% for a loan amount that extends to 5 million. For UAE nationals and a maximum of 2 million for UAE residents, offering a low-interest personal loan in the UAE.

What is the term of a personal loan?

The personal loan generally comes with a shorter repayment period; A minimum repayment period of 6 months and a maximum of 48 months in most cases. Depending on the profile of the individual loan applicant, as well as the lender (personal loan provider) for the best personal loan in Dubai and other parts of the UAE, the APR or APR for personal finance can vary from 8% to 34% in the UAE.

  • Commission for processing personal loans: 0.95% of the loan amount.
  • Documentation fee for approval of a personal loan: zero

 

Types of personal loans in the UAE

This multipurpose loan is offered to both expats and citizens of the United Arab Emirates. The different types of personal loans in UAE are listed below.


1. Personal loan in UAE for expats

People who are not residents of the UAE but who live in the country due to jobs or business are called expats who can enjoy the lowest personal loan interest rate available in the country.

2. Personal loan for the United Arab Emirates without a company quote

Now it is possible to obtain a personal loan for professionals working in unlisted companies or start-ups with a range of products specifically designed for unlisted companies that have recently entered the market.

Also, a personal loan can be classified on the basis of the transfer of salary.

3. personal loan in UAE without salary transfer

There are some service providers that do not oblige the applicant to transfer their salary with them for a loan, thus easing the requirements of the personal loan.

4. personal loan  in UAE with salary transfer

Most loan providers in the UAE expect applicants to have a salary account at the bank for immediate personal loan.

5. Personal loan for UAE citizens

For UAE citizens, the requirements for personal loans are more convenient compared to the requirements for a personal loan in the UAE for expats.

6. Personal loan in UAE for freelancers

Freelancers are those who have their own business and can also apply for a personal loan at some of the UAE financial institutions and enjoy the best personal loan rates.

Personal loan in UAE eligibility criteria

Eligibility for a personal loan in the UAE varies for each bank offering personal finance in Dubai. But most of the best personal loans in UAE usually have the following requirements:

1. Age limit
2. Minimum salary for a personal loan in the UAE
3. Employment history
4. Residence in the United Arab Emirates
5. Salary transfer

Documents required for a personal loan in the UAE

Applicants must present the following documents to make use of a personal loan in Dubai or other Emirates. Below are the requirements for a personal loan in the UAE:

  • Application form duly completed
  • Valid Emirates passport, visa and ID for UAE personal loan insurance applicant
  • A valid UAE visa to prove residency for an expatriate personal bank loan
  • Bank statement from 3 to 6 months
  • Salary transfer letter (optional)


How to apply for a personal loan in the UAE

Applying for the best personal loan in the UAE has never been easier. Here is a step-by-step guide on how to get a personal loan in the UAE:

Through bank branches
For those who wish to apply directly through the bank:

  • All you have to do is visit your preferred bank branch
  • Complete the loan application form
  • Get help from a customer service representative or banker to find out the UAE personal loan interest rate and more.


Through the electronic portal
Applying for personal loans online is easy and fast. Online platforms host generous UAE personal loan rates and can be used for a quick UAE personal loan comparison, helping to find the lowest interest rate for UAE personal loans. United. When comparing, the personal loan EMI calculator is recommended to calculate the EMI amount, which makes the online personal loan application procedure easier.

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