In the UAE, a comforting factor for the salaried working class is the ready access to personal loans from banks as well as other financial institutions. With ample liquidity in the sector, the cash-strapped resident need not worry over lack of funds for too long.
Depending on whether it is a salary transfer or non-salary transfer loan, interest rates may vary and there are standard conditions such as minimum salary and limits to the maximum monthly instalment compared to one’s salary that are applicable. Fast approval process, access to credit card, top-up facility, revolving credit, greater time period for payment of the first instalment, deferment of instalments during holiday periods, complementary air miles etc. are offered to customers. So it is best to shop around for the best deal and payment terms.
With the Central Bank setting up the Etihad Credit Bureau, a federal government body, banks have access to customers’ credit history. Experts therefore advice one to be clear about the purpose of the loan and one’s ability to pay back within time, instead of juggling with multiple loans as seems to be the norm earlier.
One should choose a loan package that fits the objective for which it is being taken. To tide over a personal or family financial crunch, to pay tuition fees or to fund the children’s education, to take care of rent instalments, to buy a vehicle or home, and vacation travel, there are a variety of reasons. Always discuss with an independent financial adviser or with your personal banking executive the best options available.
Today’s loan applicants are also lucky that they now have access to specialised financial websites that provide a ready reckoner for the various loan packages from banks and other institutions.
Emirates NBD
Loans are offered at competitive rates for the newly employed, salary transfer loans, end-of-service benefit backed loans, home improvement, special loans to Emirati nationals etc. Emirates NBD also offers lower interest personal loans based on transaction behaviour, for those having salary transfer relationship for at least 12 months.
Citibank
Citibank offers interest on Personal loans starting from 4.99 per cent. The bank promises fast approvals and it offers Salary Transfer Loan of up to Dh 500,000. Personal loans without salary transfer is offered up to Dh175,000.
Mashreq Bank
Mashreq promises personal loan disbursal in 24 hours once it is approved. The minimum salary requirement is Dh5,000. The salary needs to be transferred to Mashreq, and the applicant has to have minimum 6 months length of service or be ‘confirmed’ with the current employer. Loan amount can go up to 20 salary multiples, with maximum up to Dh1 million. The minimum tenure for a Personal Loan is 6 months and the maximum tenure is 48 months. You can enjoy zero balance current account for personal loans greater than or equal to Dh25,000 along with a Cheque Book facility and a Debit card. Interest rates are charged on a reducing balance. Mashreq has a separate programme for customers who are new to the UAE or new to the employer.