One of the most common ways of financing is loans. A loan is borrowing money from an entity, financial institution, or lender backed by collateral. Personal loans are not defined for a specific purpose, and they can be secured or unsecured. The borrower is free to spend the money in whatever way he/she likes. The only disadvantage is that the loans are for small amounts, and the interest rate of such loans is higher than secured loans.
Types of Personal Loans
Personal loans have two major categories
- Fixed or Variable rate loans: Personal loans can have a fixed rate, which means that the installments made by the borrower would be set for the tenure of the loan. In a variable interest rate loan, the installments changes with the change in the Emirates interbank offering rate (EIBOR).
- Secured or Unsecured loans: A secured loan is backed by collateral, and an unsecured loan requires no insurance or valuable asset for its security.
How do Personal Loans work?
There are various types of personal loans, which can be secured or unsecured. A secured personal loan must provide collateral or some valuable asset in case it cannot be repaid. By default, the lender gets the asset. A mortgage or car loan is an example of secured debt.
For unsecured loans, the most common type of personal loan, no collateral is required. If the borrower cannot repay the money, the lender cannot decorate the asset. That doesn’t mean there is no effect. Making unsecured personal loans, the default will lower the borrower’s credit score and in some cases, increase the borrowing costs considerably. The lender can then take legal action against you and collect any outstanding debt, interest, and fees.
Personal loans are issued in a lump sum and are deposited in a bank account. In most cases, you need to repay the loan for a specified period at a specific interest rate. The repayment period is short from 1 to 10 years and varies from lender to lender.
Emirates National Bank Dubai offers a variety of personal loans. The bank provides a variety of personal loans to fit the need and aspirations of individuals.
Following are the personal loans offered by Emirates NBD:
1. Personal Cash Loans
This type of loan is for people who need extra cash for their needs. The applicant can score a personal loan of AED 500,000, even if your employer is not on the approved list.
The loan offers the option of a 7-day loan return, in which if the customer is not satisfied with the loan, they can return the loan amount within seven calendar days by informing the sales agent without any additional fee or charges.
Moreover, the loan proceeds credited to the customer’s account are available and have not been withdrawn from the report. The offer is valid for only new applications without liability settlements. The loan has a feature of double insurance coverage where the insurance in any unforeseen events pays the outstanding amount of the loan, and an equivalent amount is given to the customer’s next of kin.
The eligibility criteria of this personal loan are
- Minimum salary of AED 12,000 for bank account holders with no credit card or Auto Loan with Emirates NBD
- Minimum 6 salary credits with six months length of service with the current company
- Minimum salary of AED 10,000 when you have an existing credit card or Auto Loan with Emirates NBD
- Minimum of 12 months of banking relationship
2. Co-applicant Programme
The co-applicant loan, as the name suggests, is for more than two people. If the applicant wants an investment of an amount above their limit, then they have the option of applying for this loan with an employed relative or spouse. The amount of this loan depends on the combined salaries of both the applicants.
The loan offers the option of a 7-day loan return, in which if the customer is not satisfied with the loan, they can return the loan amount within seven calendar days by informing the sales agent without any additional fee or charges.
The loan has a feature of double insurance coverage where the insurance in any unforeseen events pays the outstanding amount of the loan, and an equivalent amount is given to the customer’s next of kin.
The eligibility criteria for this loan are:
- Co-applicant can be a spouse or a direct relative (son or daughter but not brothers)
- Maximum of one co-applicant
- Emirates NBD should employ the principal applicant Approved List of Employers
- No company listing or Salary Transfer required for co-applicant
- A minimum monthly salary of the primary applicant of at least AED 5,000
3. Loan Without Salary Transfer
Emirates NBD aims to provide everyone with an equal opportunity to achieve their goals. This loan does not require you to have a bank account in the Emirates NBD to which your salary is transferred. The loan has the following features:
- Repayment through Direct Debit System (DDS)
- Loan up to AED 500,000 for both UAE Nationals and expatriates
- Competitive interest rates starting at 8.99% reducing the balance
- Repayment period of up to 48 months
The loan offers the option of a 7-day loan return, in which if the customer is not satisfied with the loan, they can return the loan amount within seven calendar days by informing the sales agent without any additional fee or charges.
The loan has a feature of double insurance coverage where the insurance in any unforeseen events pays the outstanding amount of the loan, and an equivalent amount is given to the customer’s next of kin.
The eligibility criteria for this loan are:
- Valid UAE residence visa
- Minimum of 6 months in the current job
- Proof of employment and salary.
4. Loan for new to country/ new to employment
Moving to a new country or having a new job is challenging and exciting. In such a case having organized finances helps in everything. Emirates NBD offers loans to people for relocation.
The features of the loan are:
- Rates starting at 5.99% or 2.63% flat per annum
- Loans up to AED 400,000
- Free International ATM/Debit Card
- The option of Current or Savings Account with no minimum balance required
- No minimum length of service needed
The loan offers the possibility of a 7-day loan return, in which if the customer is not satisfied with the loan, they can return the loan amount within seven calendar days by informing the sales agent without any additional fee or charges.
The loan has a feature of double insurance coverage where the insurance in any unforeseen events pays the outstanding amount of the loan, and an equivalent amount is given to the customer’s next of kin.
The eligibility criteria for the loan is
- The employer must be on Emirates NBD’s Approved List
- First salary to be credited to account with Emirates NBD
- The minimum wage of AED 10,000
5. Short term loans
Emirates NBD offers loans for short term needs as well. For example, quarterly, semiannual, or annual rent cheques are an issue, and you don’t have the cash to cover expenses, then an Emirates NBD Short Term Cash Loan is your answer. This loan could be for cash shortfalls like unexpected travel or credit card debt or medical or school fees, which may also stretch your finances.
The interest rates of this loan start from 2.2%, you can easily manage with such consequences and pay back a little every month.
Features of these loans include:
- Maximum tenor of 24 months.
- Minimum monthly salary requirement of AED 5,000.
- Loan quickly credited into your bank account.
Emirates NBD offers a lot of different loans, as well. Before getting a loan, shop around and look for better rates. Emirates has the lowest interest rate and offers the seven days return option on all its loans.