RAK Bank Personal Loan

Overview

RAK Bank or National Bank of Ras Al Khaimah is a joint stock company and is amongst the most dynamic and oldest banks in UAE. The bank offers a host of business and personal banking services throughout its 36 branches. It has a portfolio of electronic banking solutions that include Digital and Telephone Banking.

Headquartered in the emirate of Ras Al Khaimah, this bank also offers business and personal services in compliance with Sharia through the Islamic banking unit called RAKislamic. Amongst the various banking services offered by RAK Bank, one is personal loans. The applicant can get a high amount of personal loan at low rates of interest. These loans can be availed at a flexible repayment tenure of up to 4 years for both UAE nationals and expatriates (5 years for the staff of Armed Forces).

Features & Benefits of RAK BANK Personal Loan

Here are a few features and benefits of RAK Bank Personal Loan.

Fast Approvals

The RAK Bank provides quick approvals on personal loans so that the applicants can easily and quickly avail this loan.

Interest Rate

The RAK Bank Personal Loan is available at competitive rates of interest. The interest rate  starts from 5.99 percent.

Repayment Period

The borrower can make the repayment in the form of installments in a maximum of 48 months’ flexible repayment tenure.

Loan Takeover

The applicant can use the loan takeover facility for transferring their loan that is pre-existing with some other bank to the RAK Bank without any hassle.

Debit/credit Card Facility

The borrower can avail a free debit card from RAK Bank and a cheque book that can be personalized with this RAK personal loan. The loan also offers a free credit card with zero annual fees throughout its life along with low rates of interest.

Simple Documentation

The applicant can get this personal loan hassle-free. The requirement for RAK Bank Personal Loan Documents is minimum and simple with an easy application procedure.

Deferred Payment

After six months of regular repayments on RAKloan, the borrower can apply for deferred payment for a month.

Top-up Loan

The borrower can top-up their RAK personal loan to the original amount after 1 year of making regular repayments.

Eligibility Criteria for RAK Bank Personal Loan

Following are the RAK Bank personal loan eligibility.

Category For Expats For UAE Nationals
Age Criteria Minimum: 21 yearsMaximum: 60 years or age of retirement (whichever comes earlier on loan maturity) Minimum: 20 years & 6 monthsMaximum: 65 years or age of retirement (whichever comes earlier on loan maturity)

Interest Rates on RAK Bank Personal Loan

The RAK Bank personal loan interest rate starts from 5.99 percent.

Frequently Asked Questions on RAK BANK Personal Loan

Q.1. What is meant by RAKloan?

Ans: RAKloan refers to a personal loan that is granted to those salaried individuals who have their salaries credited to RAK Bank. The maximum RAKloan amount is twenty times your salary (fifteen times the salary in case of staff of Armed Forces). The loan is taken for personal use and is to be paid back through deductions from the salary of the borrower.

Q.2. Is it compulsory to transfer salary to RAK Bank?

Ans: Yes. In the case of personal loan, it is compulsory to transfer your monthly salary to RAK Bank.

Q.3. What should be the minimum requirement for age to apply for a RAKloan?

Ans: The applicant should have a minimum age of 20 years & six months for UAE nationals, & 21 years in case of expatriates.

Q.4. How should I make repayment on my RAKloan?

Ans: The method of repayment of RAK Bank Personal Loan is by debiting the amount of repayment from your salary every month once it has been transferred to your bank account with RAK Bank.

Q.5. What should be the maximum age of the borrower during the maturity of the loan?

Ans: In the case of UAE Nationals, the maximum age of the borrower should be 65 years or age of retirement, whichever comes earlier on the maturity of the loan. In the case of expats, this age is 60 years or age of retirement, whichever comes earlier on the maturity of the loan.

Q.6. Do I get any insurance cover for my RAKloan?

Ans: You will get life insurance which is available at a nominal cost. In case of death, the loan amount outstanding is covered in this insurance scheme.

Q.7. Will I be eligible for RAKloan if I have just joined the company I am working in?

Ans: Yes. After receiving a letter from your current employer, that confirms your appointment and the basis of credit approval, you can be eligible for RAKloan.

Q.8. What can be the maximum repayment tenure for RAKloan?

Ans: The UAE nationals and expatriates have a repayment period of 48 months (maximum). While the staff of the Armed Forces has a repayment tenure of up to 60 months.

Q.9. Can I make early settlement on my loan?

Ans: Yes. You can make an early settlement or partial settlement of your RAK Bank Personal Loan. However, you will have to pay a part or early settlement charge of one percent of the value outstanding or 10,000 AED (whichever lower).

Q.10. Can I reschedule or cancel my loan?

Ans: Yes. You can re-schedule or cancel your loan, however, you will have to pay a loan re-scheduling charge of 250 AED and cancellation charge of 100 AED.