Introduction
Personal loans are always the first option when in need of fast cash in the UAE. They also have less rigid repayment schedules, low paperwork and can suit a broad spectrum of requirements- education to home remodelling. However, there are numerous banks in terms of interest rates and benefits, the question is: which bank is the best to borrow some money personally in UAE? We will discuss the best ones, why they are best, and how to find the one that suits your financial status.
Knowing the Personal Loans in the UAE
In UAE, a personal loan is considered to be a borrowed sum of money that is fixed and that can be repaid in monthly payments within a specified time. These loans may be salary transfer and non-salary transfer based on your working and banking relationship.
The UAE has a majority of banks that are providing personal loans to salaried employees, the self-employed, and the expats. The process of loan-approval is fast as long as you have all the documents and your income is steady making you to obtain better interest rates.
Things to think of before settling on a bank
There are certain factors to consider before deciding on which bank is giving the best personal loan.
Interest Rate: The fixed rate of interest which is reducing balance interest rate would affect the amount you pay in total.
Eligibility Requirements:Every bank has certain eligibility requirements in terms of salary and employment.
Loan Amount and Tenure: The bigger the expense, the better a higher loan amount and longer period of repayment.
Processing Fees: There are banks that impose initial charges which will impact on your overall cost.
Early Settlement Alternative: In the event that you are going to pay off early, ensure that you look into fines or flexibility.
Which Bank Is Best for Personal Loan in UAE?
Emirates NBD Personal Loan
Emirates NBD is a bank that is trusted the most in the UAE. It provides personal loan to people who have salaries at a competitive interest rate of about 5.99% per annum. It has a hassle free loan application procedure, which can be done online or at a branch.
Key Benefits:
- Loan amount up to AED 4 million.
- Flexible tenure up to 48 months
- Quick approval process
- Transfer of salary not always required.
ADCB Personal Loan
Abu Dhabi commercial bank (ADCB) has customized personal loans to both UAE national and expatriates. It is one of the cheapest as its rates of interest are reducing balance.
Key Benefits:
- Competitive interest rates that begin with 6.25%.
- Loan up to 20 X annual salary.
- Flexible repayment options
- Existing customer top up loan facility.
Mashreq Bank Personal Loan
Mashreq Bank has a reputation of a digital-first behavior. It is possible to apply online and receive a loan within several hours.
Key Benefits:
- Instant online approval
- Interest rate as low as 5.75%
- No hidden charges
- The expats and UAE nationals have high loan limits.
HSBC Personal Loan
The best option would be the HSBC in case you like international banking. The bank provides individual loans with clear terms and lax repayment.
Key Benefits:
No salary transfer necessary in case of select customers.
- Fast approval within 24 hours
- Low competitive rates of 6.99 percent.
- Choice to pay first installment in arrears.
RAKBANK Personal Loan
The RAKBANK is well-liked by the UAE citizens due to its simple eligibility and fast disbursement. The loan suits very well in case one is in need of quick cash or he has to consolidate his/her debts.
Key Benefits:
- Interest rate from 6.49%
- Large Loans and lenient conditions.
- Fast processing time
- Perfect among expats and those who are self-employed.
The best way to select among the different banks
The selection of the most suitable personal loan would be based on your personal and financial status. Consider:
- In case you require a high volume in a short period, then Emirates NBD or RAKBANK will be the best.
- Mashreq Bank is preferable in case you want convenience digitally.
- ADCB is a good choice in terms of low interest rates and flexible terms.
- HSBC offers an added advantage and security in case you desire an international bank.
Always be able to compare the overall amount repayment not the interest rate on the advertisement. Minor variations in rates can cause significant variations in costs in the long run.
How to increase your chances of approval of the loan?
It is possible to obtain personal loan in the UAE, which may be easier if one considers the following tips:
- Have an excellent credit score (above 700).
- Has a regular job and good salary.
- Do not submit applications to different banks simultaneously.
- Provide any necessary documents without any mistakes.
- Select short loan terms to cut on the interest.
Such procedures enhance your credibility and enhance the likelihood of approval by a lower rate of interest.
Try Our Personal Loan Calculator to Plan your Loan Amount : Click Here
Conclusion
In making the decision of which bank to take personal loan in UAE, one must ensure that they make the right decision based on his or her needs, occupation and the level of income. Emirates NBD and ADCB are the best choices among the salaried employees, whereas Mashreq and RAKBANK are convenient to expatriates and entrepreneurs. It is always important to compare the rates, understand all the terms and conditions, and select the one that will not restrict you but will be affordable and reliable.