Personal Loan up to 8 times your Salary
Get personal loan at lowest interest rate
Here are 7 useful tips that will you to find the best interest rate on personal loan:
A good credit score shows that you’re creditworthy. Banks and financial institutions decide the approval of a personal loan based on your credit score. A good credit score provides you a better chance of availing the low interest rate for personal loan in UAE. Well, your credit score can easily be maintained by making payments on the right time as well as continuing to keep clean credit history.
A long term repayment track record also plays a vital role in getting the competitive personal loan interest rate in UAE as a good credit score. If your repayment record is good, you will be at a better position for negotiating on interest rates. Lenders usually take your repayment history into account before deciding the interest rate for a personal loan. Those people who have paid their credit card bills and EMIs on time are likely to avail the low interest rate for personal loan in UAE.
Before opting for a personal loan in UAE, it is quite essential to compare personal loan lenders in the market to avail best interest rates. This process might take some time but it will definitely help you avail the best personal loan in UAE at attractive interest rates. In addition to this, you can compare different personal loan lenders on the basis of repayment period option, processing fee, and other features.
Personal loan lenders offer a special rate of interest for a very limited period of time during festive occasions. They generally notify customers about special offers via email or SMS. So, you must keep a watch for these special offers in order to make your personal loan for affordable. If you apply for a personal loan while such an amazing offer is running, you may avail the attractive interest rate.
If you’re an existing customer of a particular bank or you have built a good relationship with the lender, you can negotiate for a low rate of interest. Make sure, you submit a formal written request to the personal loan lender.
If you work for a well-reputed public or private sector company and draw a high monthly salary, it definitely makes a stable candidate in the eye of the personal loan lender. So, don’t forget to use your professional credentials to negotiate a lower interest rate. Your organization’s good reputation can probably help you avail the best interest rate on personal loan since the lender is assured that you will make the repayment on time. In fact, some banks also have the tie-up with corporate companies that enable you to avail discounted interest rate on a personal loan.
Well, do not simply apply for a personal loan based on its low rate of interest. You must also understand the interest calculation method while opting for a personal loan in UAE. Although some lenders or banks may offer personal loan at the lowest interest rate, sometimes the calculation doesn’t include the gradual repayment of principal & interest amount.
Sometimes you may get a flat interest rate that could cost you more than a reducing rate of interest. Well, a reducing interest rate on a personal loan takes into consideration the fact that, after each and every installment, the principal amount reduces. The interest percentage (it remains the same) is charged on the reduced amount on a monthly basis. Thus, it results in different installment amounts every month. However, the flat interest rate on a personal loan refers to when the interest & sum payable is calculated at the start of repayment. It does not change until and unless the loan amount has been paid off.
In A Nutshell!
If you are looking to apply for a personal loan in Dubai or in the UAE, just keep these important tips in mind to avail a competitive interest rate on a personal loan. With all the above-mentioned tips, finding the low interest rate on a personal loan is not difficult. So, make the most of your employment status and a good credit score to avail personal loan at low interest rate in UAE.