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.

Eligibility Required

  • 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
  • Up to 48 months of repayment tenure
  • Quick processing
  • Lifestyle benefits credit card
  • Simple documentation

Documents Required

  • Completed application form
  • Quotation of the goods addressing Ajman bank
  • Residence visa proof of expats
  • Copy of passport
  • Copy of Emirates ID
  • Bank statements of 3 6 months
  • Salary transfer letter/ salary certificate

Charges and Fees

  • 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
  • Simple documentation
  • Up to triple salary overdraft
  • Cover for the unfortunate loss of job
  • Free credit card of ADCB bank

Rewards

  • 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

Abu Dhabi Islamic Bank is one of the best personal finance banks in the UAE.

Benefits of Abu Dhabi Islamic Bank are

  • 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

Documents Required

  • 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 semigovernment 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

  1. 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.
  2. 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.
  3. 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.
  4. 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.

Final Verdict

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.

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