Is Personal Insurance the Right Choice to Combat your Financial Burden?
Living in the UAE can be quite expensive. While the UAE offers an upgraded lifestyle, the cost of living is very steep too. Maintaining that lifestyle can dig quite a hole in your wallet. Sometimes that lifestyle can become a financial burden. It can also lead to debt which can, in turn, lead you to prison. Delay in repayment of debt is taken very seriously in the UAE. It can lead to a blemished record or local prison time. So, we have listed best banks in the UAE that will help you with your financial burdens
Ajman Bank Service Ijarah
This personal loan in UAE is best for people having education finance burden, medical finance, rent payment issues, wedding finance issues, etc.
UAE nationals should earn a minimum salary of AED 8000 per month
Expats should earn a minimum salary of AED 6,500 per month
Features of this Personal Finance are
AED 3,000,000 or less of personal finance for UAE nationals
AED 1,000,000 or less of personal finance for expats
The processing fee is (minimum AED 500 and maximum AED 2500) 1% of the loan
Takaful fee is 1% of the loan
2% of the late amount is charged as a late fee (between AED 50 200)
1% of the outstanding loan is charged as early settlement fee or AED 10,000
AED 10,000 or 1% of the partially settled amount is charged as partial settlement fee
Abu Dhabi Commercial Bank
Abu Dhabi Commercial bank offer 3 times salary overdraft, flexible eligibility criteria, competitive rate of interest and extended tenure for personal finance. ADCB starts the interest rate for personal finance from 5.25% per annum.
Life insurance coverage with a onetime fee is also provided by the bank. The insurance can also cover unfortunate loss of job for an added monthly fee.
Benefits of the Abu Dhabi Commercial Bank are
Competitive rate of interest
Salary multiples are high
Available loan consolidation
Life insurance for the credit
Up to triple salary overdraft
Cover for the unfortunate loss of job
Free credit card of ADCB bank
For the finance amount of AED 150,000 or less, 200 touchpoints are awarded on every 1000 AED
For the finance amount above 150,000, 300 touchpoints are awarded on every 1000 AED
Charges and Fees
1.05% of the finance amount is charged as processing fee (minimum amount is AED 525)
Up to 1.05% of the finance amount is charged for credit life insurance
1.05% of the decided amount is charged as partial settlement fee or early settlement fee
AED 105 is charged for every deferment of payment
2.10% of the late amount is charged as late fee AED 105 is charged as loan cancellation fee
Abu Dhabi Islamic bank com signature card is free for the first year
Grace period for the payment of the first installment is up to 90 days
Protection of the takaful cover in competitive rates
Every year, postponements of 2 installments are free
Zero processing fee
Eligibility Required are
Minimum income of AED 8000 per month
Age limit for UAE nationals is between 21 65
Age limit for expats is between 21 60
UAE nationals should be employed for a minimum of 3 months in the present company
Expats should be employed for a minimum of 6 months in the present company
Copy and original Emirates ID
Copy and original passport
Bank statements of 3 months
Charges and Fees
Zero processing fee
Debt settlement fee starts from 6.25%
Union National Bank
Union national bank offers competitive rates of interest and high finance amount.
Benefits of the Union National Bank Personal Finance Include
The repayment tenure is flexible based on the type of personal finance
Consolidation of debt payment
Possible payment after 90 days (of the first installment)
Postponement of 4 installments in 1 year
Free credit card
Eligibility Requirements are
Minimum salary of AED 10,000 per month
The applicant must be of UAE nationality
The applicant must be employed in a government, a semi government, or approved private company.
Charges and Fees
The processing fee is 1.05% of the finance amount (Minimum AED 525 and maximum AED 2625)
Applicable insurance fee
The partial settlement fee is 1.05% of the partially settled amount
The early settlement fee is 1.05% of the outstanding amount (or AED 10,000)
Late payment fee is AED 210
AED 105 is charged for postponement
Loan cancellation fee is AED 105
Above were the four banks that are a good option to take care of your financial burdens. Although getting personal finance has become approachable, there are some applicants that fail to secure a personal loan. So here a few tips to secure a personal loan
Debtburden ratio The legal debtburden ratio in the UAE is 50% of your salary. Make sure to not exceed that limit. The lower debtburden ratio is always better.
Repay on time Always make sure to pay your debt on time. Multiple delays in payments of the debt will affect your credit score. The credit score, in turn, will affect your financial prospects in the future.
Work in reputable companies Not everyone can work in reputable companies. But banks prefer giving personal finance to the employees of the reputed and well established companies. The applicant should be working for a company that is listed by the bank. This will have a better chance of getting personal finance.
Compare Before you sign on any fine print, compare the personal finances. There is always a better option. Research personal finances of other banks too before deciding on one.
Personal finance should be opted for when you have no other options left. Try bringing down your expenses, cut down on luxuries and see if that help a bit. Don’t jump to personal finance without using other options first. But if personal finance is the only options left, above 4 banks provide the best terms in personal finance. Morever, the personal loan interest rate is much better than the interest rate of the credit card.