7 Important Tips for Choosing the Best Personal Loan in the UAE
You may have the immediate requirement of cash at some point of time in life in order to meet your various personal needs. Be it a medical emergency, debt consolidation, wedding, home renovation, higher education, etc. Whatever your reason is, the best way to fulfil these needs is a personal loan. Personal loans are unsecured loans and are easier to avail due to less paperwork. In addition to this, you don’t need to submit a guarantor or security to procure this type of loan. But before applying for a it, make sure you make a smart choice and avail the best personal finance for your situation.
Here are some useful tips that will help you find a personal finance to meet your various personal needs:
Compare The Personal Loan Interest Rate
While opting for the loan, make sure you avail a personal loan at the low interest rate. Since the interest rate is one of the primary factors that you must consider when procuring a personal loan as it can a significant difference in how much you repay the loan amount. The interest rate differs from lender to lender as different lender or bank offers personal finance at the different interest rate. So, it is very important to compare interest rates offered by the different lenders. You can do your own research by visiting the official websites of various banks and finding out their interest rates. Doing this will help you to opt a personal loan at the low interest rate which ultimately makes the loan repayment easier.
Compare Other Fees & Charges
Interest rate is not only the one thing that you need to compare when procuring a loan. You should also compare various other fees that are charged by the lender or bank. The other fees & charges associated with the personal loan are late payment fees, processing fees, loan cancellation fees, prepayment charges. So, make sure you compare all these fees & charges as well when opting for a loan as all of them make a huge difference when it comes to repaying the loan amount.
Evaluate The Monthly Payments You Can Afford
One of the most important things when it comes to procuring a personal loan is that prepare yourself for making the loan repayment. Most of the lender offers a choice to the loan borrower to return the loan amount within a specific period of time. Generally, banks offer from one year to five years of tenure to return the money with a different personal loan interest that they offer. Be practical and evaluate your ability that how much amount you’re able to pay through EMIs. Also, you should ensure that your income is enough to make the repayment of the loan. Do not plan your EMIs as per your assumptions as you may experience the financial crisis.
Check the Eligibility Criteria
It is quite important to be aware of your personal loan eligibility criteria as this will simplify your application process. From credit score, monthly income, employment type to the age of the applicant and job status, personal loan eligibility criteria tend to vary from lender to lender. The loan amount that is sanctioned to the applicant may also vary. Therefore, you must need to meet these criteria in order to apply for a personal finance from a particular bank or lender.
Check The Disbursal Time
If you have an immediate need for funds then it is very crucial to check the processing & disbursal time. It can make a significant difference when it comes to opting for the best personal finance. So, make sure you check how long it will take for the loan amount to get disbursed into your bank account.
Either Avail Through The Bank or Through a Particular Lender
It is indeed a great idea to avail a loan through a bank where you already have a bank account because that bank has already an idea of your financial credibility. In addition to this, the bank might be quite flexible in offering you a loan if you fulfil the personal loan eligibility criteria pre-decided by the bank. However, if you are planning to procure a personal finance from a particular lender then be sure you verify the credibility of the lender first and then check the loan amount, interest rate, repayment tenure, other fees & charges, terms, etc.
Read The Fine Print Very Carefully & Attentively
It is very important that you attentively read the offer documents and make sure you completely understand the terms & conditions of the personal loan. If you have any sort of doubt regarding the terms and conditions, do not hesitate to clear your doubts with your lender. Just clarify them in order to have a smooth and hassle-free borrowing experience.
Opting for a personal finance to fulfill your monetary needs is indeed a smart idea but only if you have chosen the best personal loan. So, go through all the above-mentioned points to make the right decision.