How to Find the Best Personal Loan In UAE With Maximum Benefits
The best way to get additional funds quickly for meeting a wide range of personal needs is to opt for a personal loan. Whether, it’s a medical emergency, wedding, home renovation, travel, a child’s education, or any other requirement, consumer finance can help you to deal with the multiple fund requirements. It is an available line of credit that allows you to meet the need of an hour. You can avail the funds very quickly in just a matter of hours or seconds, with minimal documentation. In fact, you can repay the loan amount over some time, either months or years in EMI (Equated monthly installments) as per your convenience.
To sum up this, consumer finance can help you with immediate financial needs whether for emergencies or any other personal need.
Well, there are numerous banks and financial institutions that offer PL; so how do you opt for the best personal loan in UAE?
Let’s have a look at what factors are important when opting for the best personal loan in UAE:
Rate of Interest
One of the primary things that you want to take into consideration while opting for consumer finance is the rate of interest. You know, why? The consumer finance interest rate is typically the factor that will have a great influence on how much you repay over the loan tenor. That is why, personal loans with low interest rate are considered as the best ones.
Well, interest rates vary from lender to lender. So, it is a great idea to shop around for a bit and compares the PL rate of interest offered by the different lenders to find out the best deal. You can compare the rates online easily. However, what you must keep in mind is that lender offer different interest rates to different customers based on several factors such as age, income, credit score, and a lot of other factors. Consumer finance rate of interest plays a vital role since even the differences of a small percentage will make a significant difference in your loan repayment cost.
Note: If you are planning to procure consumer finance for consolidating your debt, make sure that the rate of interest is lower than what you are currently paying on the debt that you want to consolidate. Else, it may not make the sense to opt for PL.
Other Fees & Charges
Another factor that determines the total cost of your loan is the fees & charges that lender levy on it. Well, these fees & charges also may vary from lender to lender so it makes sense to compare different lenders based on these different factors. Following are some of the common fees & charges that lender usually levy on consumer finance:
- Processing fees:Few banks or financial institutions in the UAE may charge you a processing fee at the time of processing consumer finance. The applicant applying for PL can either pay the processing fee straight away or simply having this fee deducted from the actual finance amount at the time of PL disbursement.
- Prepayment charges:Although paying off your finance amount early may seem like a great way to save on PL interest rate, it could end up costing you. Because few lenders may levy prepayment charges if you repay the balance before the end of the repayment tenor.
- Late Payment Charges:When an individual procure consumer loan, he or she is required to repay the finance amount in the form of monthly installments. Thus, it is the responsibility of the borrower to make sure that the EMIs are paid at the right time without any default. Delaying the payment of a monthly installment would attract a late payment fee. Hence, it is better to calculate the monthly installments amount in advance and plan your finances and repayment tenor accordingly.
Apart from comparing the interest rate, be sure you compare all the above-mentioned fees & charges as these charges might burn a hole in your pocket. So, do not simply avoid them while opting for a loan.
The best consumer finance is the one which provides a suitable loan amount to you. Suppose, you need to opt for finance amount of AED 950,000, there is no point to avail PL from the lender that offers a maximum loan amount of AED 750,000. In such cases, you will need to buy PL from another lender that offers an amount which could meet your financial requirements.
How to opt for the best personal loan in UAE? One of the most important things that you must consider is the repayment tenor. The best PL from your point of view is the one that meets your time requirement – whether you need to opt for consumer finance for a few months or a few years. The amount of monthly installments that you will pay solely depends on the loan repayment tenor. A long tenor will simply mean lower EMI (equated monthly installments), but more interest payouts. Therefore, it is advised that select a lender that offers a flexible repayment tenor so that you can choose a tenor period as per your suitability.
The best consumer finances are those that you can opt for with minimal documentation. If you have an emergency fund requirement, the last thing you will do is submit required documents and fill a lot of forms.
Well, big thanks to the Internet, you do not have to do that anymore, and you can apply for PL from the comfort of your home.
The best personal loan in UAE would be one from the bank with which you already have a bank account as the lender will have all of your personal as well as financial details. Thus, you don’t need to do too much for verification from your end. And in these days of Internet banking, you could easily avail the loan amount in your bank account within a matter of a few seconds only.
In A Nutshell
Finding the best personal loan in UAE will require a little bit of work, but it is worth the effort to avail the best available offer from a reputed loan provider. Make sure, you compare various lenders online based on their interest rate, repayment tenor, processing fees, loan amount, and other features to make a well-informed decision.