Personal Loans in Dubai – Introduction
The term, “personal loans” is used in Dubai for a loan given to you privately by bank. Personal Loans in Dubai is given based on the Salary, or other source of income, and you can pay it back in installments.
Personal loans can be applied from any bank in Dubai, not just the bank where your salary is being deposited or where your whole savings are. UAE Govt. states that the total sum of Loan amount should not exceed the 20 times your salary and you should pay the loan back within 48 months of issuance. Dubai Personal Loans can be a great way to meet your long term and short term financial goals, but it is highly recommended to only avail this facility of easy personal loans in Dubai, when you can afford to pay it back easily.
Personal Loans Dubai – Eligibility Criteria
You can easily get a Personal loan in Dubai, but the easiest way to get it, is by having a clean and credible credit history. It is seen that people with bad credit history tend to get greater interest rates, or sometimes they are simply not eligible to get a personal Loan in Dubai. Banks tend to share the credit information of their customers to help each other out in determining the credit history of potential loan getter. If you have had a bad credit history with one bank, than leaving that bank, and joining some other bank will not solve your issue, you will still get a higher rate on loan because of the sharing of information among banks. Also, having your employer`s approval is also important in order to get a personal loan in Dubai. Normally personal loans Dubai are given on the interest rate of 14-25%, but it depends from bank to bank and on your credit history.
Easy personal loans in Dubai – Required Documentation
As in any other process in Dubai, you will have to go through a proper process of documentation in order to get personal loan in Dubai. In normal cases, you would require to produce following documents:
- UAE Residency Visa
- Proof of Identity (e.g. Passport)
- Income Documents
- Bank Statements
Some Useful Tips
How Can You Get The Best Deal On Personal Loans?
The best deal on Dubai personal Loans depends on how easily you can pay back the loan. If you cannot handle the interest rate of larger loans, do not opt for them. You will be able to easily pay back your debt if the rate of interest is lower, and only smaller loans have lower interest rates. You have to keep in mind that interest is not the only thing you will be paying back: there are some other charges that apply when getting a personal Loan in Dubai as well:
- Processing Fees
- Cheque Book Charges
- Late Payment Charges
- Pre-Payment charges.
When You Should or Shouldn’t Take A Personal Loan?
You should only get a personal loan when you are sure that you have continuous and non-interrupted flow of income in place to pay back the installments in time, and you are sure that you will not find yourself in a debt-trap.
Personal Loans in Dubai comes in handy when you are in an emergency and have no other means to solve the problem. Do not get Personal Loans in Dubai to invest money somewhere else, as this will end up being more costly for you. In addition, getting a personal loan just to ride a new model car is not a wise thing to do.
If you take Dubai Personal Loans, you have to keep up with the payments at all cost, as if you cannot do that, your credit history will be destroyed and you can get internationally banned for credit card and loans, and in 2 years time you will be arrested if you try to run away from your loans payments.