Top personal loans with less interest rates

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

  1. Fixed or Variable rate loans: Personal loans can have a fixed rate, which means that the installments made by the borrower would be fixed 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). 
  2. 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.

Top Personal Loans with Fewer Interest Rates

  1. RAK BANK
  2. Emirates Islamic Bank
  3. Citi Bank
  4. Emirates NBD
  5. Commercial Bank of Dubai
  6. Standard Chartered Bank Limited

1. RAKBANK

Also known as the National Bank of Ras Al Khaimah is one of the most dynamic and oldest banks in the United Arab Emirates. It was founded in the year 1976; the bank went a significant transformation in which the bank shifted its focus from corporate to personal and business banking. The bank has 36 branches, and it offers sharia-compliant products and services. 

For those who need a large loan, RAK Bank’s loan is the ideal option because it offers a loan by providing up to 20 times the salary. The effective interest rate of 3.18% is one of the lowest in the 4-year loan market.

Also, RAK Bank’s personal loans are suitable for low-income borrowers because they provide loans to individuals with a salary of at least 5000 AED, much lower than other banks.

  • Flat interest rate is 3.19 %
  • Minimum Salary Requirement is 5000 AED
  • 1 % of the loan amount is charged as the processing fee.
  • Loan Payment Period is limited to 4 years. (5 Years for Armed Forces Employees).
  • Salary transfer is compulsory to avail of RAK Bank Loan.
  • A top-up loan is available with a tenure of 1 year.
  • Flexible Loan Payment Options
  • Free RAK Bank Life Time Free Credit cards

2. Emirates Islamic Bank

The bank was launched in the year 2004. The bank offers the highest banking services and products with compliance to sharia law. It provides a wide range of products to small companies, corporations, and individuals.

Emirates Islamic Personal Loans is Islamic finance that provides customers with up to 2 million AED loans.

They charge a lower profit margin, and there are no over-limit fees or associated additional charges. The profit margin starts at 3.99%.

Emirates Islamic Personal Loan has the following features:

Required Minimum salary is 5000 AED for salary transfer loans and 10,000 AED for non-salary transfer loans.

  • This loan includes a Takaful charge, which is 0.75% of the financed amount.
  • Quick and straightforward documentation, which gets approved in one day.
  • Islamic financial structure is adopted.
  • The processing fee is 2.50% of the amount.
  • There is no credit card for the first year.
  • The early settlement fee is 1% of the remaining balance.

3. Citi Bank

Citi bank has been present in the banking industry since 1955. It has long been present in the Middle East and Africa. It offers investment and corporate banking services in the UAE, Egypt, Qatar, Bahrain, Kuwait, Jordan, Algeria, Morocco, Lebanon, and Pakistan. Citi Bank has been in the UAE since 1964, and its first branch was opened in Dubai. Citi bank is known for its world-class banking and professional services that it provides the local market.

Citibank salary transfer loans are one of the best options on the market for those who are looking for a high-finance personal loan in UAE and expect to be able to repay within three years. The bank offers loans to office workers without many hindrances.

For a 1- to 4-year loan, Citibank’s effective fixed interest rate is 3.73%. Citibank also offers personal loans in the UAE without salary transfers.

Citibank’s payroll loan function

  • 1% of the loan amount will be charged as processing fee.
  • Optional insurance.
  • The uniform interest rate is 3.73%.
  • Quick approval is a significant advantage of this loan.
  • The minimum wage requirement is 8000 AED.

4. Emirates NBD

One of the leading banking groups in the United Arab Emirates was established in 1963. It has operations in the United Kingdom, Egypt, India, United Arab Emirates, Singapore, and Saudi Arabia. 

Immigrants working in the United Arab Emirates consider applying for a personal loan through Emirates NBD, which provides a 5000 AED, the minimum income requirement for foreign residents. This loan has an exclusive loan repayment option.

Emirates NBD Personal Loan has the following Features:

  • The uniform interest rate is 2.69%.
  • The fee is 1% of the loan amount.
  • The insurance premium will be added to the loan amount.
  • Insurance usually has double credit life insurance.
  • Minimum Ideal for free bank accounts that do not require a minimum balance.
  • The minimum salary requirement is 5000 AED.
  • Emirates NBD offers a loan deferral option. 

5. Commercial Bank of Dubai

Established in 1969, the bank started as a joint venture with Commerzbank, Chase Manhattan Bank, and Kuwait Commercial Bank, with a few UAE businessmen holding shares.

In 1982, CBD reached a significant milestone when it transformed into a domestic holding company due to substantial restructuring and an increase in capital base. It is represented as a significant turning point in the history of the bank, where the Dubai government became a significant shareholder. Over the decades, CBD has transformed into a progressive and modern banking institution.

In the Commercial Bank of Dubai, it allows you to borrow up to 20 times your salary. The bank offers free life insurance to cover unpaid loans.

  • Overview of Dubai Commercial Bank personal loans.
  • You can purchase a personal loan with or without replenishing the loan amount.
  • Free life insurance that covers outstanding loans.
  • Huge funds for foreigners and UAE citizens.
  • Competitive interest rates starting at an annual rate of 5.50%.
  • Required Minimum required salary is 10,000 AED.
  • The processing fee is 1% of the financial amount
  • CBD provides customers with a deferral option.

6. Standard Chartered Bank Limited

Standard Chartered is a leading international banking group with over 80,000 employees and a 150-year history of the world’s most dynamic market. UAE opened its first branch in Sharjah in 1958. In the United Arab Emirates, the Group’s business has gradually expanded with the opening of several offices, and now Dubai is the regional hub for banks in Africa and the Middle East.

If you need a quick source of funding, Standard Chartered Bank will provide you with a fast, approved personal loan.

  • Rental facilities are available.
  • If you apply online, you will receive AED 2,500 cashback. Interest rates starting from 3.55%.
  • Required Minimum required salary is 30,000 AED.
  • Overview of Standard Chartered Bank personal loans
  • 1% of the finance amount will be charged as processing fee.
  • Loan transfer facilities are available.
  • The maximum financial amount is 1 million.
  • During the loan period, the minimum balance requirement is exempted.

Install the installment option available.

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