Get personal loan at lowest interest rate
Get personal loan at lowest interest rate
Personal Loan up to 8 times your Salary
Personal loans often turn out to be a reliable option for a wide variety of circumstances. Unlike other loans such as car loans or home loans that are used for a specific purpose, personal loans can be used for anything that is legally acceptable. Easy accessibility to banking services has made it very simple to opt for a personal loan in the UAE.
Financial institutions in the UAE allow borrowers to pay the outstanding amount before the due date. The process of paying the outstanding amount of a personal loan ahead of due date in a single installment is called foreclosure of personal loan in UAE. Ideally, personal loan accounts in UAE come with a minimum one year lock-in period, after which borrowers can start making the repayment in order to settle the loan amount.
While opting for a personal loan in UAE borrowers usually do not expect to repay the outstanding amount ahead of the due date. However many borrowers explore the option of foreclosure of personal loans in UAE during the tenure of the loan. If you have opted for a personal loan and you want to clear the outstanding debt before the due date you should definitely consider foreclosing your personal loan in UAE. This article will help you to foreclose your personal loan in UAE without any hassle.
By convention, borrowers can repay the outstanding debt in three ways i.e. part-payment/ prepayment or foreclosure and regular closure. In the case of part-payment borrowers have a lump sum that is not equivalent to the outstanding amount of the loan.
Part-payment is useful as it helps borrowers to reduce the amount of outstanding debt which eventually lowers down the payable interest and EMI. Part-payment is an easy and effective way to repay an outstanding amount of loans in UAE as it saves a huge chunk of money that would have been paid in the form of interest. One of the major advantages of part-payment of loans in UAE is that can be done multiple times with the objective of lowering down the monthly EMI and thereby the interest.
On the other hand, borrowers can go for prepayment or foreclosure of personal loan in UAE. The primary benefit of prepayment is that borrowers tend to save a lot of interest. Foreclosure of personal loans in UAE allows borrowers to enjoy the advantage of foregoing less interest in comparison to conventional methods of repayment.
Some financial institutions charge penalties up to 5% when the borrower decides to go for foreclosure of personal loan in UAE. Borrowers can use idle capital to repay the loan and get rid of outstanding debts. This not only reduces financial burden but also offers peace of mind. Foreclosure of personal loans in UAE does not affect the credit rating of an individual immediately, however, in the long run, it helps to clear outstanding debts which improve the overall credit rating of an individual in UAE.
If you have surplus capital lying idle you can use it clear outstanding debts. Doing this will remove the financial obligation of paying monthly EMIs and will offer peace of mind. However, foreclosure or prepayment of personal loans in the UAE involves certain factors that are to be taken into consideration before you choose to repay the outstanding amount in one installment. Here’s a quick run-down on important things to consider before foreclosure of personal loan in UAE.
Majority of lenders and financial institutions charge a penalty called foreclosure fee if the borrowers choose to repay the outstanding amount ahead of the due date. Typically the penalty varies from two percent to six percent over the total outstanding amount that is to be paid at the time of prepayment.
Most of the financial institutions have a minimum lock-in period varying from a couple of months to one year. Once the issued loan has completed the minimum lock-in period borrowers can make the prepayment to settle the loan.
Borrowers can assess the outstanding amount in the form of EMI and make a comparison of the total amount payable in case the borrower chooses to foreclose the personal loan. This will help you to calculate the total savings that you’ll end up with if you opt for foreclosure of personal loan in UAE.
Opting for prepayment of personal loan in UAE has numerous benefits in comparison to regular closure of the loan. This segment of the article will shed light on the major benefits of foreclosure of personal loan in UAE.
The first and foremost benefit of foreclosure of personal loan in UAE is savings. Unlike other loans, personal loans are provided without any collateral which leads to the imposition of higher rates of interest in comparison to other loans. Making regular payments in the form of EMI reduces the principal amount and gradually covers the interest to be paid. However, if you prepay the loan amount, you can end up saving a considerable amount of capital that would have been paid in the form of interest.
Foreclosure of personal loans in UAE makes you debt-free which offers peace of mind. It helps you to plan your finances and accumulate wealth to build a corpus for the future.
The process of foreclosure of personal loan in UAE is quite simple; borrowers can follow the mentioned process to prepay their outstanding debts.
The first step borrower needs to get in touch with the loan provider i.e. financial institution. Borrowers can call the toll free helpline number or drop an email at the helpdesk of the bank stating the request for foreclosure of personal loan in UAE. The application must include the loan account number along with other important details.
Once the bank receives the foreclosure application, officials calculate the outstanding amount at the time of foreclosure. Once the bank is done with calculating the outstanding amount the bank officially notifies the borrower about the outstanding amount and the date on which the final amount is payable. The full and final amount will include the foreclosure fee as well.
Once the borrower is done with paying the outstanding amount, the lender is supposed to issue a no-dues certificate that acts as proof depicting the clearance of the outstanding debt. Borrowers must collect the no dues certificate after making the prepayment.
There are numerous factors to be taken into consideration while opting for foreclosure of personal loan in UAE. Borrowers should be clear about the terms and conditions associated with a foreclosure so as to avoid any hassle later. Foreclosing the loan not only saves a lot of your money but also helps you to improve your credit rating in UAE.