Interest Rate on Non-Salary Transfer v/s Salary Transfer Personal Loan
When you are in dire need of funds, a personal loan can turn out to be a good option for your aid. Instead of taking the hassle of borrowing from your family or friends, you can simply opt for this easy finance option.
Now, have you been wondering what makes personal finance convenient? It is convenient as you can make the repayment easily within a flexible period of time through budget-friendly installments. Moreover, with easy and little paperwork, you can enjoy quick disbursal of funds.
You must already know that this type of finance comes in two options- personal loan in UAE without a salary transfer and with salary transfer.
In a Non-salary transfer loan, you can avail this finance from the lender, without having to transfer your salary to an account with them monthly. While in the case of a salary transfer loan, it is mandatory to transfer your monthly income to the account with the concerned bank to be eligible to obtain the finance.
Why Interest Rate on Non-Salary Transfer Personal Loan is higher than Salary Transfer Personal Loan?
Usually, the bank or financial institution charges a higher rate of interest on the loan without salary transfer as there is no definite proof of continuous income with them. In case of a loan with salary transfer, it is mandatory for the borrower to transfer their monthly income, which gives the lender proof that the borrower has a steady source of income.
But, this is not the case when it comes to no salary transfer loans. Also, personal finance is already an unsecured loan, and if there is no income transfer, it further makes it even more unsecured for the loan provider.
Therefore, the lender charges a higher interest rate from the individuals opting for non-salary transfer consumer finance.
Nevertheless, both the type of loans has their amazing features and benefits some of which are listed below.
Benefits of Personal Finance
Here are a few key benefits of this loan in the UAE>
On applying for the loan, you can get your hands on the funds almost instantly as the lenders in the UAE offer the facility of quick disbursal.
No Need for Collaterals
These loans are unsecured, hence, they do not require you to mortgage collaterals like shares, jewellery, home, etc.
With minimal documentation and easy application process, you can easily obtain these loans through online banking, phone banking, or by visiting the bank branch.
You can make the repayment these loans with simple EMIs or monthly installments within a flexible loan tenure. This lets you optimize your outflow every month as per your requirements. Usually, the maximum loan tenure is 48 months in the UAE.
Funds can be used for Various Purposes
Amongst the biggest benefit of this loan is that they can be used for any purpose you want such as holiday, wedding, home renovation, electronics or gadget shopping, business investment, and more. The only thing you need to take care of is that you must not put the funds for any illegal purposes.
How to Apply for these Loans?
To apply for this finance, simply fill up the application form online or at the branch of the bank. Your profile and documents will then be assessed by the agents at the concerned bank who will get back to you with the loan offer.
After determining the rate of interest on the loan, its tenure, other important factors, your loan application will get processed. The banks these days offer quick or instant disbursal of funds after the loan is processed successfully.
To Sum Up!
Every person has dreams, and each of them must have the ability to make these dreams come alive, irrespective of what these dreams are. It can be about studying further or buying the new trendiest gadget in the market, or a vacation with your family or friends. It may also be the case that you simply need some extra funds during a financial crisis.
As a solution for all of these, you have personal loans. You can, however, select the kind of personal finance you need- with a salary transfer or without salary transfer, depending upon your needs as well as the rate of interest you can bear.