Personal loan interest rate in UAE
There is a wider service of offering personal loans in the United Arab Emirates. The world’s large financial hubs are present in this country. These loans provide the great benefit of financial help to every individual or businessman. The banks & lenders give the personal loan to their clients but with interest rates. Therefore, it is essential to know about the Personal loan interest rate in UAE. Every lender has different terms of rates. So, it is better to give attention to interest rates when choosing a specific lender for a particular debt amount.
How to choose the best personal loan in UAE?
In general, personal loans come with a repayment period of monthly installments in the decided tenure. The monthly installments contain the outstanding amount of the loan with the interest amount. The only way to choose the best personal finance is through the comparison between the lenders. In the comparison, you will need to compare the loans’ rates. For your convenience, Loansforgulf is an exceptional financial company that offers personal loans at the lowest rates. You can easily compare the different bank’s interest rates of this loan through this company also.
APR of personal loans
APR means the Annual Percentage Rate. This rate is different for every debt. In particular, the APR of personal finances is from 8% to 34%. The interest rate includes in the APR also. When you choose a low-interest rate, the APR is also lower. Therefore, the repaying of the debt amount is also not stressful for all borrowers.
Besides, in contrast to different banks, the processing fee of Loansforgulf is zero. Without submitting any fee, the application process will be complete. However, some lenders’ processing fee is 0.95%. But, the charges for approval of documents are nil.
Types of Interest Rates in UAE
In the repaying of the loan amount, the interest amount is an additional charge. The combination of the principal amount of debt with these rates makes monthly installments. Overall in the UAE, there are 2 general types of interest:
Flat rates:
The tenure is selected at the time of signing of the contract between the lender & the borrower. Also, the flat interest amount remains the same for the complete tenure. The lowest rate is 2% in UAE for flat type. On the other hand, the higher rate of it is 22%.
Reducing rates:
It is completely different from the flat type. Its rate is higher than flat. But, it reduces when a borrower pays down every installment. Normally, it ranges from 5% to 39%. The online comparison between the loans’ rate types is important.
Personal Loans in UAE with lower interest rates
Now, we will explain those personal loans that come with lower interest rates in the UAE. All of these loans are easier to apply & avail. Check out these banks for applying for a personal loan with a low rate:
Emirates NBD
The UAE’s bank that is amazing in offering loans to all nationals & expats is Emirates NBD. The loan amount depends on the applicant’s nationality. You can apply for the maximum loan amount of 2 Million AED. But, your salary must be higher than 5000 AED. The flat and reducing rates are 3% and 5.6% annually. There is also an option for loan deferments. Without any collateral, you will not only get the loan but also get free insurance of credit life.
Deem
The Deem bank is most popular because of the attractive interest rate of personal finance. The range of rate is from 15% to 34%. It is a type of reduced rate. Its tenure is 48 months. After fulfilling the criteria, apply for the loan if the salary is more than five thousand AED. It is free from the criterion of salary transfer. The minimum paperwork is the ensuring of the hassle-free documentation process. Furthermore, Deem Credit Life Plus gives many benefits to clients.
ADCB
Any expat or national can apply for ADCB’s personal finance anytime. It has both options flat & reducing rates. For flat, the interest starts from 4%. And for reducing, it starts from 8%. The applicants need to pay the processing fee of 1.05%. According to this percentage, the amount is a minimum of 525 AED. Many lenders do not allow early settlement. This bank allows the early settlement of the debt before the ending of the debt but with a fee of 10500 AED.
HSBC
The application request for the loans is a maximum of 10000 AED. All the borrowers have a duration of 6-48 months for repaying. The personal loan of HSBC is with reducing rate. Its reducing interest rate is 6% annually. If your application is valid with meets all criteria, you will get approval in only ten minutes. Further, insurance is included also. The transferring of salary is required. You must have the salary transfer certificate when you want the debt from HSBC.
Mashreq Bank
For applying for higher amounts of loans, Mashreq Bank is an appropriate option. You can apply for the amount of twenty times more of your salary. In addition, the higher amounts are also with low-interest rates of 3%. Both arrangement & early settlement fees are off by 1%. If you are a new employee in a company, you can apply but your salary must be higher than 10000 AED. In one year, you have a lender’s permission to miss a maximum of two installments.
FAB
The FAB bank offers loan amounts of any range. You can apply for more than 5 million AED. The minimum salary must be at least 7000 AED. A good advantage of a higher applicant’s salary is to pay low-interest rates. However, the minimum is 2.64%. Even after the approval of the loan, the time for the disbursal of the amount is also shorter. There is a requirement for both processing & early settlement fees.
ADIB
Although ADIB provides loans to any national & expat, there is a difference in the interest rates. For ex-pats, the reduced rates are 8% and the flat is 4.8%. And, for the nationals of UAE, the reducing rates are 7.75% and the flat is 4.2%. You have a choice of postponements of two installments in one year. The benefit of choosing ADIB is that the grace period is of 90 days. Its process completes without the processing fee.
RAKBANK
RAKBANK is famous for its flexible tenures & attractive interest rate. The approximate rate of flat interest is less than 4%. And, the reducing rate is less than 6%. The fee for the arrangement process is at least 500 AED and a maximum of 2500 AED. For the early settlement fee, you will need 10000 AED. The RAKBANK debit card is free with the loan. Moreover, the credit card is free from any annual fee. Lastly, the personalized checkbook is completely free.
Emirates Islamic Bank
Emirates Islamic Bank is one of the Shariah-based banks. It follows every rule of Islamic principles. If you are new to the UAE, you should choose this bank for getting a debt without any hassle. But, you must do work in a company and earn at least 10000 AED. The profit rate is a minimum of 2.8%. This lender helps applicants with the providing of the debt of four million AED. The processing fee is not higher but there is no additional charge.
Dubai Islamic Bank
This bank offers personal loans to nationals as well as expatriates. But, the maximum loan amount limit is different. The national can avail of 4000000 AED. But if you are an ex-pat, the maximum limit for applying is 2000000 AED. The tenure is four years and the requirement of the monthly salary is eight thousand AED. And, the arrangement charges are fixed for every individual. The processing fee is from 1050 to 2620 AED. The lender’s term for the interest rate is 6%.
CDB
Unlike traditional banking, CBD considers the comfortability of customers in applying for personal loans. Therefore, they offer digital debt for everyone. With the use of the CBD mobile app, you can apply for it. There is only one sort of interest rate which ranges from 15%-18%. It is a reducing type. This digital process requires just a few minutes to complete. But, the required salary is more than 10000 AED.
Calculate personal loan EMI with interest rates
The EMI of personal finances can easily calculate through the online interest calculator. The interest calculator finds out the amount of interest that must repay with every monthly payment. All the banks have their websites that provide the service of interest calculators. However, the steps are easier for calculating the interest by your own self also.
For knowing the monthly installment, the first step is to divide the amount of interest by the total payment numbers. And then, the next step is to multiply the amount of division the loan’s principal amount. In this way, you can make your budget of finances accordingly. So, there is no problem of financial stress when repaying the amount.
