NBF Personal Loan Interest Rate

Personal Loan in UAE
  • Minimum Salary 5000 AED
  • EMI Tenure up to 48 Months
  • Lowest Interest Rates

Get personal loan at Lowest Interest Rate

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The National Bank of Fujairah (NBF) offers banking solutions for both personal and business banking, with one of its products being personal loans. NBF personal loans have been curated with a range of flexible and convenient features to meet the financial needs of potential borrowers. These personal loans in UAE make for an ideal choice for fast and easy access to funds. With a simple and hassle-free application process, you can quickly get approved for a loan.

Before applying, however, it is crucial to look into the benefits and interest rates to analyse whether the loan product fulfils your requirements. This article will provide you with insights into the NBF personal loan interest rate and its related information.  

NBF Personal Loan Interest Rate

The NBF personal loan interest rate (reducing balance) starts from 5.99% per annum. 

Note: The interest is calculated on the reducing balance of your loan - the bank does not charge interest on interest. 

Features of NBF Personal Loan

Mentioned below are the key features of the personal loan offered by the National Bank of Fujairah:

  • The minimum loan amount is AED 20,000.
  • The maximum loan amount offered by the financial institution is up to AED 3 million for UAE nationals and AED 1 million for UAE expatriates.
  • You would need to transfer your salary to an NBF account.
  • The bank offers a flexible loan repayment tenure of 48 months. For GHQ staff, the repayment tenure can be stretched to 60 months. 

Factors Affecting NBF Personal Loan Interest Rates

Here are some of the major factors that influence your NBF personal loan interest rates in the UAE -

1. Loan Tenure

Loan tenure affects your personal loan interest rates as it is the amount of time in which you agree to repay the loan amount. Generally, a longer tenure leads to higher interest rates as the risk for the lender is there for a longer tenure. On the other hand, a shorter tenure, while resulting in a higher instalment amount, may lead to lower interest rates as the lender would recover the loan amount in a shorter time frame.  

2. Income

Generally, a higher income will result in a lower interest rate as financial institutions view higher earners as less risky borrowers. So if you have a steady stream of income, the lender may be more willing to offer a lower rate. On the other hand, if you have a lower income or are self-employed, the lender may require a higher rate to compensate for the risk. 

3. Credit Score

Your credit score plays a key role in determining the interest rate for your loan. Lenders use your credit score to assess whether you are a reliable borrower. The higher your credit score, the better your chances of getting a loan at a lower interest rate. A good credit score can make you more likely to get a loan with a lower interest rate, while a poor credit score may mean that you won’t get the loan or would have to pay a higher interest rate. 

4. Relationship with the Bank

Having a good relationship with a bank can help you get a lower interest rate on a personal loan. This is because banks tend to reward customers who have a long and reliable history with them. Consequently, customers who have established a good relationship with their bank by managing their finances responsibly and maintaining a good credit score may be able to negotiate a better interest rate on personal loans.  

5. Debt Burden Ratio

The debt-to-income ratio is the percentage of your income spent on debt payments. A high debt burden ratio suggests that you are already highly leveraged and may be more likely to default on your loan. In this case, lenders will usually charge a higher interest rate to offset the loan repayment risk. 

Conversely, a low debt burden ratio indicates a good financial position, in which case most lenders will typically offer you a lower interest rate. For this reason, it is necessary to maintain a low debt burden ratio in order to get the best personal loan interest rate. 

NBF Personal Loan: Fees and Charges

Let’s go through the major fees and charges associated with NBF personal loans -

Types of Fees Charges
Early Settlement Fee 1% of the Outstanding Loan Amount or AED 10,000 (whichever is lower)
Processing Fee 1% of the Loan Amount (Minimum of AED 500 and Maximum of AED 2,500)
Partial Settlement Fee 1% of the Outstanding Loan Amount or AED 10,000 (whichever is lower)
Life Insurance Fee 0.01902 x Loan Tenure in Months x Loan Amount
Late Payment Fee AED 200
Deferment Fee AED 100
Product Discounts Customers with an NBF credit card may be offered lower interest rates

How to Calculate NBF Personal Loan Monthly Instalments?

Banks and lending institutions in the UAE have their online calculators to help borrowers get an estimation of their monthly instalments. These types of loan calculators are available for free. The same goes for the National Bank of Fujairah, which has its calculator available on its official website itself. 

If you plan to finance your personal needs with the bank’s personal loan and want to assess your monthly instalments, refer to the following instructions -

  1. From the homepage of NBF’s website, move to the ‘Loans’ section.
  2. Select ‘Personal Loan’.
  3. Once directed to the next page, scroll to the bottom of the page and click ‘Calculators’.
  4. Select ‘Financial Calculators’ and hit ‘Loan Repayment & Loan Calculator’.
  5. Choose ‘Personal’ and provide all the essential details.
  6. The final result will be instantly displayed. 

It is pretty convenient to use the calculator as you won’t have to do any manual calculations. Moreover, it saves your time as the automated result is generated within seconds. Note that while the calculator shows accurate results, the actual instalment amount can vary. This is because the interest rate and other factors generally vary as per your income, credit score, and other factors. 

Let’s take a glance at some of the most frequently asked questions regarding NBF personal loan interest rates!

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FAQ's

Q1. Which methods are available to repay the NBF personal loan amount?

Ans: Your loan instalment amount will be automatically deducted from your NBF bank account on a monthly basis.

Q2. How long does the National Bank of Fujairah take to process a personal loan?

Ans: The entire process takes up to 6 business days.

Q3. Is it mandatory to make a salary transfer to an NBF account if one has taken a personal loan from the bank?

Ans: Yes, salary transfer is compulsory for NBF personal loan borrowers.

Q4. Is there an option for a top-up loan for a personal loan at the National Bank of Fujairah?

Ans: Yes, a top-up loan is available. Here, borrowers are required to pay the insurance premium for the complete amount, after which the difference will be debited to their bank accounts.

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