Major requirements to get a personal loan

Some of the opportunities can change your life completely at a 180 angle, and I think most of us believe in this statement. It’s really hard to find out such offers but a smart eye on all upcoming offers can solve your problem. Suppose you live in Dubai in a rental flat and pay a large amount every month which is a big cut on your salary.

Is there an alternative? Yes for sure, you can approach any Dubai bank for a personal loan package. There are several ways to get a personal loan but keep one thing in your mind that lender will ask you a few requirements. Yes for sure when you will apply for a loan, the lender put some conditions that you have to complete. Best bank personal loans in the UAE are available which facilitate expatriates with maximum ease using such services.

Like most of the lenders in UAE, either a private firm or a bank will demand some proof of property or cash to get a loan package. Most of the banks in UAE demand a check or property at least equal to 10 percent against the loan amount. This means that you have some assets that support your financial statements on practical grounds and this is the only way to evaluate the credibility.

It is necessary to determine all the strong and weak points of lenders and borrowers so that to avoid any inconvenience in the future. If you could not provide any proof or guarantee then you probably will not be considered as an eligible customer. According to the UAE banking rules, an expat has to pay a minimum deposit of 25 percent of the property’s price to take the personal loan. But this condition can vary from one bank to another.

Transfer Fee

Keep one thing in your mind that taking a loan is one thing but repayment of the loan amount is absolutely anther process. Besides this down payment while approaching a bank for a loan, also the lender will demand a four percent transfer fee which isn’t included in the loan amount. There is also a mortgage registration fee which is provided in case of a mortgage loan. All these charges can be calculated through the calculator provided on the official website of the lending institution so that to manage an early application draft. When it comes to meet the requirements and eligibility criteria, it is not that easy it looks like. So I would suggest you all get ready for the necessary things.

The lender in the UAE can be a private financial institution or a bank, but they have their terms and conditions. The above-mentioned items are common from all lenders. You must have to complete the terms and condition which are necessary to fulfill to complete the loan process. Most institutions in the UAE asked for the following details from an expat:

1. First of all your application is evaluated with differentiation as an expat or national. If you are an expat then you have to show your visa type. For permanent residents some of the conditions are lenient but the overall procedure is quite easy for all kinds of customers. If you are working as an employee or staying for a business purpose then you can choose a loan for commercial purposes. If you are a job holder then you have to show a job certificate so that to provide a proof or guarantee.  
2. For most of the businessmen, the route of profit rate agency deposits is pretty suitable. With a business in hand, a borrower has to show tax returns and total asserts to evaluate the overall income and assets.  

How much amount is required by a borrower is a big question and is asked by frequent readers. When you have fulfilled all the above mentioned documental proofs and done with your application, the next step is the pre-approval stage of your loan. The most important thing at this stage is your credit history. I know most of the customers don’t bother about responsibly using a card and at the end of the project, they are usually stuck into an outstanding balance.

For sure it will affect your credit history which can be a reason for your loan rejection. All the sensible buyers should first obtain mortgage service and before that consider their credit score critically. This is because to minimize the chances of rejection for a pre-approval loan form a lender in the UAE.

Above all is the requirement by a lender while you are going to apply for a personal loan. Your loan can be used for two major purposes which are:

• Personal loan for domestic usage
• Personal loan for commercial purpose

If you are working to get a home or a residence in UAE, then property hunting is a most difficult task but you can easily get familiar with the local market using the banking channel. There is no other solution for this because only expert’s opinion from a bank can cover your two most important conditions – first which property will suit your and how much amount will be required to apply for a loan. You have to do some hard work for a property because there are several choices and rates are quite high. I would say to choose a property considering a loan term plan in your mind. When you get dome with your property search, now I would recommend you should apply for a loan with a required amount.

Conclusion

One can either go for a personal loan with interest rate or with an option of a loan without any interest in UAE. The reason behind this is a diverse banking system in the UAE, a traditional bank with interest rate banking and Dubai Islamic bank without interest rate system. Although most of the expatriates prefer Dubai Islamic loan, conventional banking is also popular among locals.

About This Author

Zoe Daniel Joined: March 11th, 2020