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Best No Annual Fee Credit Cards in UAE 2020 (Updated) | C4B

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Looking for No Annual Fee Credit Cards in UAE ?

Then you’re in the right place.

While plethora of  luxury credit cards in UAE charge an annual fee, there is a vast array of top tier credit cards that offer ample rewards without an annual fee.

In fact, these include some of the best credit cards around.

No Annual Fee Credit card

Summary of No Annual Fee Credit cards in UAE

The table shows a basic summary and comparison of different credit cards in UAE.

Credit cards

Card Feature

Minimum Salary Requirement

Apply Credit card

Citi Bank Simplicity Credit cardNo late fee and over limit fee.
No cash advance fee.
20% offers on selected restaurants.
Unlimited access to selected airport lounges in the Middle East
5000 AEDApply Now
CBD Visa Infinite CardUnlimited Airport Lounge Access.
Free Travel Insurance
50% discounts on VOX tickets online.
30,000 AEDApply Now
CBD Visa Platinum Credit CardRedeem points for Skywards miles.
Discounts on movie tickets.
Discounts on AVIS car rentals.
8000 AEDApply Now
CBD eTijari Web Card Used only for internet transactions.
Facility to set your own credit limit.
8000 AEDApply Now
ADIB Value Plus CardUp to 25% discount on dining.
Get rewards on your domestic & international spends.
Enjoy up to 25% discount on dining across the UAE.
5000 AEDApply Now
Noor Bank Priority World Credit cardEach 2 points (2% of spend) for every AED 1 you spend on your credit card.
Airport pick up & drop off 12 times a year.
Free golf for 2 people at Arabian Ranches Golf Club Dubai.
35,000 AEDApply Now
Najm Platinum Cashback Credit CardExclusive offers and dedicated checkout counters at Carrefour.
Monthly cashback savings up to AED 200.
30% discount on dining.
7,000 AEDApply Now

List of No Annual Fee Credit Cards In UAE

Here are some of the best collection of credit cards that offers maximum benefits for their customers with no annual fee.

1. Citibank Simplicity Credit Card:

No Annual Fee Citibank

Card Description :

CitiCashback Credit cardThe Citibank Simplicity Credit Card has proven to be the stand-out all round no annual fee credit card in UAE 2017, and is maintaining it’s popularity in 2018.

It is basically a free for life & low interest credit card which offers an interest rate of 3.5 % of the outstanding amount with up to a 51 day interest free period.

If you are that forgetful type who tends to run late on payments, then don’t worry..

There is no late time fee ever for this simplicity card.

Main Features of Citibank Simplicity Credit Card

✔  No Late Time Fee   – Ever

✔  No Over Limit Fee  – Ever

✔  No Annual Fee – Ever

✔   No Cash Advance Fee – Ever

✔   Minimum Salary Required is 5000 AED.

Benefits of Citibank Simplicity Credit Card:

  • Shopping and Dining Credit Card.
  • Unlimited lounge access in selected airport lounges across the Middle East.
  • Complimentary Travel Insurance and Purchase Protection.
  • Get hundreds of Buy 1 Get 1 free offers across hotels, dining, spas, leisure & entertainment in cities throughout the Middle East & Africa.

 Click here to Apply for Citibank Simplicity Credit Card.


 

2. CBD Visa Infinite Card:

cbd infinite no annual fee card

CBD Visa infinite credit card

Card Description :

The CBD Visa Infinite Credit Card is a great option for those who want to take advantage of balance transfer and are averse of paying an annual fee.

The main advantage of this credit card is that it can act  both as a low balance transfer card and as a cashback rewards card all in one. This Credit card is great to redeem reward points for skyward air miles.

Major Features of  CBD Visa Infinite Credit Card

✔  Conventional Balance Transfer Credit Card.

✔  Interest rate on this card is 2.99%.

✔  Earn Attijari Points for all your purchases and you can redeem for cashback.

✔  Attijari points can be converted for Skywards Miles.

✔   Minimum Salary Required is 30,000 AED.

Benefits of  CBD Visa Infinite Credit Card

  • Unlimited access to VIP lounges globally.
  • Concierge service available at airports with this card.
  • Avail airport dining discount program with dragon pass.
  • Free Valtrans valet parking at different locations in UAE.
  • Earn 2.5 Attijari points on international spends , 2 points on local spends, 1 point for groceries and supermarkets.
  • 50% discount on VOX Cinema tickets. (T&C Apply).
  • Get discounts on dining, shopping and travel.

Click Here to Apply for CBD Visa Infinite Credit card


3. CBD Visa Platinum card

visa platinum no annual fee

Card Description:

credit card - cbd visa platinum

The CBD Visa Platinum Card ticks off all the boxes of a great balance transfer credit card.

Plus, the card has no annual fee, a low interest rate of 2.99% as well as cashback on purchases.

 

Major Features of  CBD Visa Platinum Credit Card

✔  Zero Balance Transfer offers.

✔  Interest rate on this card is 2.99 %.

✔  Discounts with Agoda.

✔  Redeem points for Skywards miles or cashback.

✔   Minimum Salary Required is 8000 AED.

Benefits of CBD Visa Platinum Credit Card

  • Attijari points can be converted for Emirates Skywards or Etihad Guest Miles.
  • Repayment period of 52 days.
  • Attijari Points Rewards Program – earn up to 2.5 points for every Dirham spent.
  • Get Airport Dining Discount Program with Dragon Pass.
  • Offers free multi-trip travel insurance

Click here to Apply for CBD Visa Platinum Credit Card. 


4. ADIB value plus card

 

adib no fee annual

 

ADIB Visa Credit Card

Card Description :

The ADIB Value Plus Card could be the one worth considering , if you’re looking for a card that will give you valuable cash rewards on every purchase.

Earn reward points while you spend and enjoy the flexibility of converting them into shopping or dining vouchers, airline tickets and more.

Main Features of ADIB Value Plus Card

✔  An Islamic Credit Card with low salary requirement.

✔  Interest rate on this card is 3.09%.

✔  Get rewarded for local and international spend

✔   Minimum Salary Required is 5000 AED.

 Benefits of ADIB Value Plus Card:

  • Access to airport lounges across GCC/MENA Region.
  • Get up to 25% discount on select dining outlets across the UAE.
  • ADIB Reward Points can be redeemed for airline tickets.
  • Earn 1 reward point for 1 AED on domestic spend & 2 reward points for every 1 AED on international spend.
  • Facilities like Road side assistance.
  • You can redeem points for shopping vouchers.

    Click Here to Apply For ADIB Value Plus Credit Card


 

5. Noor Bank Priority World Credit Card

 

Noor Card

Noor Credit Card

Card Description:

The Noor Bank Priority World Credit Card has been designed with UAE golfers in mind.

If you’re a frequent golfer, you may be able to reap some rewards for doing what you love.

Main Features of Noor Bank Priority World Credit Card

✔ This card is an Islamic Card.

✔ Free Access to Premium Gyms (T&C Apply).

✔ Free Golf for two people (T&C Apply).

 Balance Transfer and Credit shield facilities.

✔ Minimum Salary Requirement is 35,000 AED.

Benefits of Noor Bank Priority World Credit Card

  • Free access to selected gyms in Dubai and Abu Dhabi.
  • Get 6 free valet parking services per month at selected locations.
  • Unlimited Airport lounges access around the world.
  • Airport pick up and drop off (6 times a year).
  • Marhaba meet and greet services.
  • For every Dirham you spend on your credit card, you earn 1.5% cashback on domestic spends and 2% cashback on International Spends

Click Here to Apply for Noor Bank Priority World Credit card


 

6. Najm Platinum Cashback Credit Card

 

NAJM ANNUAL FEE NO

Najm Platinum Credit card uae

 Card Description  :

The Najm Platinum Cashback Credit Card is designed for saving money on groceries.

You can maximize your savings with this card and get exclusive category discounts and offers at Carrefour.

Main Features of Najm Platinum Cashback Credit Card

✔ Free for Life Credit Card.

✔ Balance Transfer Facility.

✔ Monthly cashback savings of up to AED 200.

✔ Dedicated check-out counters at Carrefour.

✔ Visa Platinum Extended Warranty.

✔ Minimum Salary Requirement is 7000 AED.

Benefits of Najm Platinum Cashback Credit Card

  • 3% Cashback every Tuesday and 1.5 % everyday at Carrefour.
  • Free unlimited Valet Trolley at Carrefour.
  • Visa Platinum discounts on dining,shopping, travel & cinemas.
  • Visa Platinum Purchase Protection.
  • Weekly category discounts & exclusive offers at Carrefour.

Click here to Apply for Najm Platinum Cashback Credit card


How to Choose No Annual Fee Credit cards in UAE

There is no single best  “no annual fee credit card” as the cardholders have different expectations and requirements, here are some of the factors you can prefer while choosing them.

Fees: Consider other fees like foreign transaction, balance transfer fees, and more in a No annual fee credit card.

Rewards Rate: Choose the credit card that provides the higher value for each purchase and look for cashback offers.

Staying Power: Go with a credit card that favors long-term utility over short-term rewards, this is suitable if the cardholders prefer to hold the credit card for several years.

Sign up Bonus: Prefer no annual fee credit card that offers sign up bonus so that you can avail set of benefits with them.

Other Perks: Also check whether the no annual fee credit card has some other unique benefits like airport lounge access, discount on movie tickets etc.

Related: Best Cashback Credit cards in UAE 2020

Offshore Bank Accounts UAE | Offshore Banking Dubai – C4B

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Offshore bank accounts dubai
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An account held in a foreign offshore bank, is often described as an offshore account. Typically, an individual or company will maintain an offshore account for the financial and legal advantages it provides, including:

  • Greater privacy 
  • Little or no taxation (i.e., tax havens)
  • Easy access to deposits (at least in terms of regulation).
  • Protection against local, political, or financial instability.

 Legally, offshore banking does not prevent assets from being subject to personal income   tax on interest

Offshore banks can sometimes provide access to politically and economically stable jurisdictions. This will be an advantage for residents of areas where there is a risk of political turmoil, who fear their assets may be frozen, seized or disappear.

Offshore banking is often linked to other structures, such as offshore companies, trusts or foundations, which may have specific tax advantages and first security bank solutions incorporated in particular jurisdictions.

Offshore banking Dubai: Typical banks in different jurisdictions

(The information given below may change as per the policy changes of the UAE Central Bank or of the individual banks)

BankAccount Type
Type of usageMinimum Average balanceCurrencies
Noor BankCorporate account with internet bankingRegular trading, accumulation, asset holding, investment
USD 120,000 or equivalentAED, USD, EURO, others
Emirates Islamic BankCorporate account with internet bankingRegular trading, accumulation, asset holding, investment
USD 200,000 or equivalentAED, USD, EURO (multi-currency account allowed)
Emirates NBDCorporate account with internet bankingRegular trading, accumulation, asset holding, investment
USD 200,000 or equivalentAED, USD, EURO (multi-currency account allowed)
Commercial Bank International (CBI)Corporate account with internet bankingRegular trading, accumulation, asset holding, investment
USD 50,000 or equivalentAED, USD, EURO (multi-currency account allowed)
RAK BankCorporate account with internet bankingRegular trading, accumulation, asset holding, investment
USD 200,000 but success rate of opening is lowAED, USD, EURO, others
Abu Dhabi Islamic Bank (ADIB)Corporate account with internet bankingRegular trading, accumulation, asset holding, investment
USD 150,000 AED, USD, EURO, others

 

Offshore Bank Accounts Dubai

Dubai has introduced DIFC (Dubai International Financial Centre) and this business scheme particularly allows free trade in Dubai, which aims at the exponential business growth of the city.

Prongs to keep notice of, about offshore business in UAE are;

  • You need to hold a valid residence visa to proceed with offshore banking in Dubai.
  • An offshore account holder can freely import and export funds from the UAE, without making currency declarations.
  • Offshore banks are experts in international bank transfers which has made it a money-spinning venture for UAE.
  • Major leading offshore banks of the world like HSBC offshore, Abbey National Offshore, ABN Amro, Dresdner and Barclays have marked their eminence in UAE. Keeping this in instance there are greater chances of more offshore accounts in the UAE.
  • Though, all the banking activities of the emirate are under the regulation of the UAE Central Bank you will not find any difficulty transferring or depositing money in different currency denominations if you have an offshore account.
  • Offshore banking in Dubai is increasingly secure, reliable and stable.
  • Opening an Offshore bank account in Dubai is very easy and it takes only about one week after incorporating your company.
  •  Investors who have undertaken Dubai offshore banking can easily track all their worldwide transactions through Internet banking. This facility is available with almost every offshore bank account in Dubai.
  • Dubai offshore bank accounts do not have facilities of ATM, credit and debit cards.

Offshore company jurisdictions in UAE

In UAE there are three offshore jurisdictions – Dubai (Jebel Ali Offshore Company) Ras Al Khaimah and Ajman. They offer similar services but serve different strategic goals of offshore company registration.

The Jebel Ali Offshore Company is an International Business Crown/holds the only offshore vehicle that is permitted to own / hold real estate in the Emirate of Dubai. JAFZA Offshore operated under JAFZA Free zone.

The RAK Offshore and the RAK International Company (RAKICC) are international business companies. They provide a flexible and credible option for foreign investors to register an offshore company in UAE without the need to establish a physical presence in the UAE.

RAKICC is also allowed to hold the freehold property in Dubai.

Documents required to open an offshore account in UAE

  1. Shareholder’s passport copy with the stamp of entry in the United Arab Emirates.

2. Copy of main pages of MD passport, in case he/she is not a shareholder.

3. Company License

Some banks may also require additional documents such as CV of a shareholder, existing contracts, reference letter from business partners, business plan, Memorandum and Articles, the disclosure of the source of funds, Company structure tree diagram on Company Letterhead, Certificate of good standing etc.

If the account is to be opened in a Shareholder’s Company name, then the shareholding company’s documents notarized by court and MOFA are also required.

For offshore accounts, you will need to share a whole lot of information about your business like your primary business area, a total number of deposits, revenues, main suppliers, customers etc.

Banks adhere to strict and international rules and regulations to identify money of criminal origin. But if you have a correctly filled application form and provided all the documents that were required by the bank your offshore account is safe and guaranteed.

The process of opening an account may take from few days to three weeks usually but for offshore accounts, it may take more time due to bank’s financial compliance and management approval.

The fees will be competitive and interest rates will be high. Bank account holders have the option to utilize online banking. This is beneficial for those who cannot go to the bank for every single transaction.

Off shore Banking services in Dubai and UAE

Offshore banking provides a range of business products like;

  • Deposit-taking.
  • Credit
  •  Wire and electronic funds transfers
  • Foreign exchange
  • Letters of credit and trade finance
  • Investment management and investment
  •  Custody
  •  Fund management
  •  Trustee services and corporate administration.

Services may vary depending on the bank you choose. 

Benefits of offshore accounts in Dubai

The major benefits can be classified to seven, which are as follows:

1) Security

By using an offshore bank, in a highly regulated and transparent jurisdiction in UAE , you can feel secure that your money is safe.

2) Service

Offshore bank accounts in UAE usually provide a highly personalized service, giving you round-the-clock access to your money through online and telephone banking, seven days a week, 365 days of the year.

A relationship manager may also be assigned to your account, so you will always have a personal point of contact.

The best banks offer the highest service levels, which can be appealing for expats who have international financial obligations and opportunities.

3) Convenience

As an expatriate, being able to keep your bank account in one place, no matter how many times you move countries, is a major benefit. In fact, this reason alone is enough for you to open an offshore bank account in UAE.

4) Tax

Tax benefits can range from keeping your money outside of the tax jurisdiction of your home country, to protecting it from taxes in the country in which you are currently living.

5) Investing

A good offshore bank will provide you with a wide choice of funds and investments.

Investing through an offshore bank is straightforward, and there may be advice or tools on hand to help you create an investment portfolio appropriate to your risk profile and the outcomes you want to achieve.

6) Foreign exchange services

With multi-currency accounts usually coming as standard, transferring money between accounts will be fast and free.

And, if you need to transfer money between currencies, some offshore banks provide a competitive foreign exchange rate, compared to a regular banking service.

This is one of the biggest advantages of offshore banking facilities for expats with international financial obligations.

7) Lending and credit

Depending on the bank you choose, some offshore accounts are basically a private banking service – a benefit of which is that lending and credit facilities are often much more flexible and tailored to your needs.

Frequently Asked Questions (FAQ)

 

 

Business Accounts in UAE 2020 (Updated) | Compare4Benefit

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Business Accounts in UAE
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This blog covers all you need to know about business accounts in UAE.

With so many options, choosing a business account in UAE seems challenging.

The UAE could be an alluring polestar for investors to locate their business as it
has one of the most liberal trade regimes and attracts strong capital flows with a
well-established infrastructure, strong banking system and a stable political
system.

The UAE also provides for a window of free trade zones that can allow
100% foreign ownership and a nil taxation regime (subject to certain limitations).

For running a successful business you need a good system for managing your
funds. This is when the importance of a business account peeks in.

Now let’s see what is a business account?

A business bank account is an account that helps business owners to track their expenses, manage cash flow, and make it easier to calculate tax liabilities.

Business bank accounts are different to private or personal bank accounts as they are made specifically for businesses.

 

Process to Open Business Accounts in UAE

Usually it starts with a face to face meeting with a bank in the UAE before they’ll
offer you a business account. Then you’ll need to take along paperwork and
provide signatures before your account will operate.

The time period to setup your account may vary depending on the bank, the
account type, and your business. It may take relatively a short period of 2 to 4
months in case of Free Zones and locally registered LLCs, including your face to
face meeting.

When choosing the best business bank account for your company, it is
recommended that you look for one that offers low charges and good interest rates.
It largely depends on what the normal business operations are.

For example, if you expect to primarily make payments electronically, the best business bank account would offer low-cost or free electronic transactions. On the other hand, if your business involves using primarily cheques, you should look for lower charges for
paper transactions.

Many agencies are there to guide you for opening a business bank account. They can be very helpful in starting an account which is apt for your business.

Documents required to open a business account in UAE

These are the type of documents you need to have for opening a business bank
account in the UAE. Be sure that you have all the required documents as per the
banks protocols (may vary for different banks) in hand before you proceed further
for a business account.

THE LIST OF DOCUMENTS ARE LIKELY TO INCLUDE

CategoryDocuments
Application formA completed application form
Identity and
Address proof
Passports or other government ID for the owner and all
shareholders
Documents related
to business
 Company certificate of registration and trade
license
 Share certificates
 Company Memorandum and articles of association
 Board resolution meeting minutes confirming the
opening of the account has been approved properly
Other Documents Letter of reference through the business partners
 Information related to the kind of activities to be
performed on the account.

Banking fees for business or corporate accounts in UAE

Fee structure can vary depending on the bank and the type of account you choose.
Most accounts need a minimum balance requirement, if not maintained you may be charged an additional fee. This may end up being expensive if you have not opted
the right business account for your needs.

Benefits of a business account in UAE

It is a good idea to have a business account in UAE. Take a look at these 8 benefits of a business account:

1. Your business records will be organized

You can keep your business accounting program records organized with a business
checking account. All your business transactions are tracked on a separate
statement.

Thereby ensuring an accurate book keeping which helps with a clean
record for the accountant at the year-end while payment of income tax.

2. Accurate taxes and deductions

A business account helps to ensure you file taxes accurately. You look at your
business account statement and record the figures on your tax return. There by you
can deduct business expenses from your tax return.

3. You can accept credit cards

You limit your customer pool and potential sales when you only accept cash
payments. Many consumers pay with credit cards over cash.

Accepting credit cards helps you serve a larger number of customers. You can also set up a credit acceptance system through the bank with your business account.

4. Business loans

Having a corporate account can be helpful to obtain a credit card or can be
beneficial if the owner wishes to take a loan for their business.

5. You look professional and gain bank relationships

Whether you are a startup or an established business, you want to look
professional. Do you pay vendors with cheques that have your personal
information printed on them? Or, do you tell customers to issue payments to your
personal name? A business bank account gives you a more qualified look.

6. Minimum account balance

Many banks in the UAE offers low to zero balance accounts to the organizations
making it easier to manage cash flows.

7. International Remittance

Banks in UAE offers the facility of making International Remittance on business
bank accounts.

8. Multiple Currency

Apart from UAE dirham, these bank accounts can be opened in many other major
currencies across the globe.

These are the reasons why you would need a business / corporate account in UAE
As you continue to grow your company, keep these business bank account benefits in
mind.

Types of Business Structures in UAE

1. Offshore Company 

UAE Offshore company registration is a very popular method of doing business in
the Middle East region.

In UAE there are three offshore jurisdictions – Dubai (Jebel Ali Offshore Company)  Ras Al Khaimah  and Ajman. They offer similar services but serve different strategic goals of offshore company registration.

They offer similar services but serve different strategic goals of offshore company registration.

The Jebel Ali Offshore Company is an International Business Crown/holds the only
offshore vehicle that is permitted to own / hold real estate in the Emirate of Dubai.
JAFZA Offshore operated under JAFZA Free zone.

The RAK Offshore and the RAK International Company (RAKICC) are
International Business Companies. They provide a flexible and credible option for
foreign investors to register an offshore company in UAE without the need to
establish a physical presence in the UAE.

RAKICC is also allowed to hold the freehold property in Dubai.

UAE Offshore companies offer the following benefits:

 No Corporate tax
 100% foreign ownership
 100% Capital and Profit Repatriation
 UAE Bank Account
 International Invoicing
 Limited Liability Company
 No TIEAs
 Absolute Privacy and Confidentiality
 Ability to maintain multi-currency Bank accounts in the UAE
 Virtual office facilities available in the UAE

2. Sole proprietorship

A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship is a type of enterprise that is owned and run by
one person and in which there is no legal distinction between the owner and
the business entity.

The sole trader receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts.

Every asset of the business is owned by the proprietor and all
debts of the business are the proprietor’s. It is a “sole” proprietorship in contrast
with partnerships (which have at least two owners).

A sole proprietor may use a trade name or business name other than their or its legal name. They may have to legally trademark their business name if it differs from their own legal name, the process varying depending upon country of residence.

3. Dubai/UAE Free zone Companies

It is possible to establish branches of foreign companies in the UAE free zones or
to incorporate a free zone entity.

The types of entities which may be incorporated include single shareholder entities, commonly known as free zone establishments, and free zone companies with commonly two to five shareholders.

In most free zones, both free zone establishments and free zone companies will have limited liability, however, this does vary between free zones and therefore the rules and
regulations as to whether a single shareholder company is given limited liability
should be considered

4. Limited Liability Company in Dubai

A limited liability company (LLC) is the US-specific form of a private limited
company. It is a business structure that can combine the pass-through taxation of
a partnership or sole proprietorship with the limited liability of a corporation.

An LLC is not a corporation under state law; it is a legal form of a company that
provides limited liability to its owners in many jurisdictions.

LLCs are well known for the flexibility that they provide to business owners; depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a
partnership, and, under certain circumstances, LLCs may be organized as not-for-
profit.

5. Private share holder company

Except for provisions regarding the public subscription of shares and debentures,
the provisions governing public joint stock companies are the same as those
applicable to a private joint stock company.

Can I open a business bank account in UAE with a foreign expat entity?

Of course, you can open a business bank account in UAE with a foreign expat
entity. It is legal but there are quite a few hoops to jump through to fulfill local
legislation, which include;

 Most documents originating outside the UAE must be notarized and
legalized through diplomatic channels prior to being submitted to the UAE
authorities. Once legalized it is usually necessary to obtain a certified Arabic
translation of corporate documents before these can be submitted to the UAE
authorities. This latter requirement does not apply to free zone license
applicants.

 You will be asked to share a lot of information with your bank about
yourself, your business and your future plans, to fulfill their duty to stop
illegal activity or money laundering.

Frequently Asked Questions (FAQ) on business accounts in UAE

 

1: Can I open a business bank account as a non-resident?

Legally there is no restriction for a non resident to open a business bank account in
UAE but it completely lies on the discretion of the bank to whether or not you can
open an account – and on the facilities available. Generally the types of accounts
offered by most banks may be limited for non-residents.

2: Which bank should I choose?

The four major banks in the UAE include:
 First Abu Dhabi Bank
 Emirates NBD
 Abu Dhabi Commercial Bank
 Dubai Islamic Bank

You can primarily start with any one as these banks provide options for business
of different sizes with a wide range of business banking products.

3: How long does it usually take to open an business account in UAE?

The time to set up an account may vary depending on the type of account, your bank and your business. It may take relatively a short period of 2 to 4
months in case of Free Zones and locally registered LLCs.

 4: What are the general banking fees charged by banks in UAE for
business bank accounts?

Banking charges vary depending on the bank and the type of account. Normally
these accounts will need to have a minimum balance requirement if not maintained
the bank may charge you an additional fee.

 5: Can a Foreign entity open a business account in the UAE?

Yes, a foreign entity can open a business account in the UAE. But you will require
complying with the criterion of the local legislation, which can be costly and time
consuming.

 6: Are there any minimum holding requirements for banks in the
UAE?

There is a minimum balance requirement for a business accounts which if not
maintained charges a nominal fee to the account. Banks typically require the
account to maintain an average monthly balance between AED 20,000 (approx.
US$ 5500) and AED 150,000.

 7: Can I open a ‘no minimum balance account in UAE’?

There are a few banks in Dubai that provide unique benefits regarding interest rate,
minimum balance, monthly fee and money transfer fees. You will not definitely
find a bank account where you can keep your balance zero, but there are some
banks which keep minimum balance almost zero. Those bank accounts are often
called ‘zero balance account in UAE’ though they require a minimum cash flow to
stay active.

 8: Do a Sole proprietorship company need to open a business account in the UAE?

No, there is no legal requirement for a Sole trader to open a business account as
you are legally authorized to use your personal account for business and non-
business transactions. Still it is advisable to have one as it makes you look more
professional and makes it easier for you to check on your income and expenses of
your business.

 9: Do an Offshore Company require a business account in the
UAE?

Yes, whether an offshore or an onshore company, it definitely needs a bank
account to carry on a business in the UAE. As it keeps the record of cash flow in
and out of the company which makes it easier for smooth financial functioning of
the company.

10: Can I know about some business account products available in
UAE?

Different types of business account products are Business Basic Account, Business Advantage Account, Business Preferred Account, Business Call Account and Fixed Deposit;
each of these accounts provide unique benefits making it flexible for your
differential business needs.

Best Mortgages in Dubai 2020 | Compare4Benefit

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Best Mortgages Dubai
Mortgage Dubai 2020
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This is the most Comprehensive step-by-step approach for applying and attaining  Mortgages in Dubai.

Let’s get started.

What is a Mortgage?

In short , A mortgage is a type of loan you obtain to pay the value of a property.

Generally, a mortgage for your residential property is called a home loan.

Commercial properties can include warehouses, office spaces and other properties used for commercial purposes.

When it comes to mortgage in Dubai, most procedures are similar to conventional banking; however, a few key factors do change.

So, you need to understand each aspect of finding and getting mortgage for your property in Dubai.

 

 

Summary of  Best Mortgages in Dubai 2020

BANKRATE OF INTERESTMINIMUM SALARYLOAN AMOUNT (MAX)
Standard Chartered Mortgage One3.55% (reducing)10000 AED18 Million AED
RAKBANK Home in One3.24% (reducing)15000 AEDNo Limit
Emirates Islamic Manzili Home Finance3.19% (reducing)15000 AED20 Million AED
CBD Mortgage Loan for Expats3.64% (reducing)12000 AED (Salaried people);

20000 AED (Self-employed)
10 Million AED
United Arab Bank Home Finance for UAE National3.69% (reducing)15000 AED (Salaried people);

50000 AED (Self-employed)
10 Million AED
Emirates NBD Home Loan for Expats 5.75% (reducing)20000 AED3 Million AED

Standard Chartered Home Suite
3.75% (reducing)10000 AED18 Million AED

ADIB Home Finance for Expats
3.75%15000 AED15 Million AED

Getting a Mortgage in Dubai

If you decide to purchase a property in UAE, the best suggested destinations are Dubai and Abu Dhabi.

Between the two, Dubai is most popular for the availability of top-notch residential and commercial spaces.

The cost of these properties can seem a pressure on your current financial state. But don’t worry! You can get a mortgage to purchase your very new office or a new place to live.

And the good news is UAE Central bank removes 20% cap on real estate loans but it’s still not applied by the UAE Banks.

To successfully complete the process of getting a mortgage, you should understand all about the eligibility criteria, according to the guidelines of the UAE Central Bank.

UAE Nationals and Expats have to complete different eligibility criteria provided by the UAE Central Bank.  In our previous blog, we covered about expats guide to buying a property in UAE

An LTV value, which is also known as Loan to Value, is an overall loan value you get with respect to the property price.

There was a time before 2008 economic depression when candidates applied and obtained loans with very low and convenient down payments. This requirement used to go down to 5 percent as well. But post-depression period got introduced with new guidelines regarding mortgages and their down payments.

Down payment for a mortgage in Dubai

There are no exceptions when it comes to current down payment guidelines provided by the Central Bank in UAE.

All applicants have to contribute a payment portion.

Maximum LTV or Loan to Value to purchase a ready property:

For expatriates who want to purchase ready properties-

  • If the property value is 5 million in AED or below, the LTV stands 75%.
  • If the property value is more than 5 million in AED, the LTV stands 65%.
  • If you are buying a second investment property or a home, the LTV stands about 60%.

For example, a bank can offer about AED 750,000 for a property with 1 million value in AED, depending on the eligibility.

Similarly, a bank can offer about 3.25 million in AED for a property with 5 million price value in AED, depending on the eligibility.

For UAE nationals who want to purchase ready properties-

  • If the property value is 5 million in AED or below, the LTV stands 80%.
  • If the property value is more than 5 million in AED, the LTV stands 70%.
  • If you are buying a second investment property or a home, the LTV stands about 65%.
  • These LTV values are applicable to freehold as well as leasehold ready properties.

Maximum LTV or Loan to Value to purchase an off property:

The off plan properties have the same 50% of maximum LTV for both UAE nationals as well as expats.

 

Step-by-step approach to applying and attaining a mortgage in Dubai

At a single glance, applying and attaining a mortgage can seem daunting. But you can divide the process into different smaller steps and reduce stress.

Here is how you can do it:

Step #1: Choose your property

dubai property

There are many platforms online to find properties in UAE. You can select a few of many reputed sites to get their listing.

With the lists of properties, you will gain different options of ready properties and off plan properties.

However, ready properties are more popular among buyers. This way, a home or an office comes with all facilities and constructions.

So, you can move right away to utilize the property or get immediate rent. This allows you to start getting an appreciation of your invested capital.

At the same time, bank guidelines are stricter when it comes to off plan property mortgage.

Step #2: Get an agreement from the property seller

Mortgage Agreement Dubai

You can either purchase directly from a property developer or utilize the secondary market. In case of direct purchase, you need to get the sale contract from the developer.

To ease the process, you should consider a licensed broker or a reputed real estate agency to complete the property transaction.

In any case, your involvement in the contract creation matters the most. Know your rights and go through the contract with some help from a professional.

Sellers try to negotiate a higher down payment. You should include a skilled lawyer to structure the agreement in your favour.

Step #3: Calculate mortgage using Mortgage Calculator and find a list of best-suited mortgage options

Mortgage Calculator Dubai

After you have an agreement regarding the purchase price of the selected property, it is time to calculate mortgage.

You can use the Mortgage Calculator provided by Compare4Benefit. The calculator makes mortgage calculation a simple task:

Provide mortgage-related information

You already have your property price in AED.

Include that in the calculator along with the Finance amount you desire, the interest rate you expect and the years of repayment.

After entering all the required information, you can calculate your mortgage with a single push of a button.

 

Mortgage Calculator Working

The results provide mortgage repayment associated details.

The tool also provides bank charges as well as the charges required for land acquisition in UAE.

The calculator shows an amount you will have to pay with respect to the details you enter. This amount has to be convenient as per your financial condition.

Using the results of mortgage calculation, you can obtain a list of best-suited options mortgage options available in UAE.

Compare4Benefit shows mortgage products with details regarding maximum terms, interest rate, required salary and more.

Step #4: Collect and review all the required documents

required documents mortgage

You can get professional mortgage assistance to review your documents. A professional ensures that you collect all the required documents.

This step is critically important to avoid unwanted delays during the approval process conducted by the bank.

Documents Requirement For a Salaried Employee:

  • A copy of valid passport.
  • Expatriates need a valid visa.
  • A valid Emirates identification.
  • Latest certificate of salary.
  • Bank statements with salary credits for the latest 6 months. Provide justification in case you don’t have any salary credits.
  • Disclosure of every monthly liability such as a car loan, credit card, personal loan or others.
  • Payslips in case you have salary variance.
  • Availability of fees required for mortgage processing.
  • Down payment proof

Documents’ requirement for a self-employed:

  • A copy of valid passport.
  • Expatriates should present their valid visa.
  • A valid Emirates identification.
  • MOA or Memorandum of Association, plus, incorporation documents.
  • Audited financials of previous 2 years.
  • Disclosure of any monthly liability such as a car loan, credit card, personal loan, or others.
  • Mortgage processing fees.
  • Down payment proof.

Along with all this, you should collect property associated documents such as the agreement and title deed.

The documentation requirement can increase depending on the guidelines followed by the selected financial institution for mortgage.

Step #5: Submit your documents

Documents dubai mortgage

You can fill the bank forms and provide your documents along with them.

Your representative can contact bank authorities with the forms and the required documents.

Then, the bank authorities review all the submitted documents.

This is the time when you can present your request to obtain a pre-approval.

When it comes to deciding your eligibility, banks follow the same approach as for a personal loan.

The Debt to Burden Ratio or DBR is calculated with respect to your financial condition and the asked loan amount.

Step #6: Get the pre-approval issued from your mortgage provider

Preapproval dubai Mortgage

Bank authorities review documents along with the clarifications you provide. This leads to the process of getting a pre-approval from the bank.

This is a letter, which includes the name of the applicant along with the amount of loan approved by the bank.

Along with that, pre-approval letter also shows tenure of the loan and the interest rate. You can see the conditions written in this letter that help in obtaining the final approval successfully.

The validity of a pre-approval letter lasts for 30 to 90 days. The exact time period depends on the guidelines followed by the selected bank or a financial institution.

Pre-approval letters help in getting a rough idea of loan amount and interest. You can use this information to compare your ability with respect to current liabilities and income.

A few banks ask some fee to provide a pre-approval letter. However, the value of this letter makes the investment a beneficial necessity.

Step #7: Ensure property identification

Mortgage Evaluation

Property identification is the process of inspection before the purchase procedure begins. You need to make sure that you are protected in terms of the commitments made to mortgage finance provider.

This requires getting copies of title deed, floor plan, contracts, tenancy and other documents to strengthen your position as a buyer.

Step #8: Wait for Property Evaluation

Mortgage Evaluation

At this stage, the bank provides a property appraisal with their approval.

This appraisal goes to a valuation team that meets all the concerned parties including you.

The team can take up to 3 consequent working days to provide their valuation report to the bank.

You have to pay a fee for this valuation, which ranges between AED 2500 and Dh 3000 along with taxes.

Step #9: Obtain an Offer Letter

Offer Letter UAE Mortgage

When the bank receives the report on valuation, the final offer is initiated.

This is the phase when all the conditions presented in the pre-approval are fulfilled in order to get the offer approval.

The bank sends you a letter approving their final offer. You and your mortgage representative can review the letter.

Only after thoroughly inspecting and accepting the offer letter, you should sign all the documentation provided by the bank.

Step #10: Go through a medical check-up

Medical Mortgage UAE

The finance amount in most mortgage cases stays high, which is why you are advised to go through some medical check-ups.

Your current medical conditions matter to some financial institutions and mortgage providers. They can ask to get life insurance as well.

Step #11: Fulfill the request for a certificate of no objection

First of all, get all the signed documents and property-related documents in order. The bank asks for a NOC or No Objection Certificate from the seller and buyer.

If you have involved real estate professionals, they take care of arranging this letter.

Step #12: Complete the property transfer

A representative from the bank schedules the property transfer.

The process takes place at one of many Land Department offices in Dubai.

Some transfer processes take place at the respective developer office.

Step #13: Receive documents and the key

Mortgages Dubai Documents

 

It is Land Department’s responsibility to provide you with a Title Deed.

The Title Deed should have your name as the property owner. Plus, the bank is represented as your mortgage provider.

The lender of the mortgage becomes the property owner if you select an Islamic Finance.

You only receive a copy of the prepared Title Deed, as the original Title is received by the lender bank. Plus, you receive a key of the property from the seller.

After completing the last step, your mortgage becomes effective right away. So, your installments begin, which you need to pay every month.


What should be the expected interest rate or profit rate for mortgage in Dubai?

Home loans are considered secure among other types of loans, which is why you get lower interest rates for their mortgage.

Usually, the interest or profit rate stays around 3-7 percent. This range of percentage makes negotiation a necessity for you.

The rates of interest should go down as much as possible. Even if you get a tiny discount, it creates a big impact on your overall mortgage.

You should look at the big picture here and calculate the benefits of a reduced interest rate with respect to the loan period.

How long can it take to get mortgage approved?

These days, lenders don’t waste too much time. There are more efficient ways to conduct and complete required assessments.

Generally, a salaried employee has to wait for 7 working days to get the mortgage approved.

However, the approval of mortgage for a self-employed individual can take a longer time period.

How to ensure the protection of assets?

In certain cases, lenders ask to get life insurance from them against the amount of mortgage.

The insurance providers are offered by the lenders. This allows you to keep your assets protected, in case of your sudden death.

But to get this protection, you will have to pay an insurance premium along with your monthly mortgage installments.

Does pre-approval matter?

Pre-approval is always a good choice to guarantee your eligibility and safeguard your final approval of mortgage.

Imagine a situation when you pay your down payment to the seller, but then, the bank rejects your application for mortgage. No one wants that.

How does the Islamic home mortgage work?

Islamic home mortgage works in compliance with Shariah banking.

Most individuals in the Muslim community prefer this mortgage approach.

The Shariah banking doesn’t ask for interest for the home finance. Also, the finance structure differs than the regular mortgage structure.

In Shariah banking, the roles of lender and borrower turn into Lessor-Lessee. The finance institution works as your lessor, while you borrow mortgage as a lessee.

Monthly installments are called rent and the finance provider operates as the property owner until you pay the whole mortgage back.

Property registration process at the Land Department Dubai

The property registration in Dubai is possible at one of many Land Departments. Registration is necessary to generate evidence of owning a property.

According to Article 22 in the applicable law, Land Department ensures the rights of real property by providing the title deed.

The title deeds are provided according to the records available currently in the registers of real properties.

  • The New Law Article 6 gives property registration rights to the Land Department only. This registration authorization includes leases for long terms and property rights altogether.
  • After getting the property from the seller, you can ask the developer to complete the registration process with your name as the owner.
  • Most probably, the agreement of selling and buying the property will require an Arabic translation. The developer should fulfil this requirement.
  • You, as the purchaser, can sign the transfer form provided by the Land Department. This transfer form is used internally in the department.

The process of property registration is chargeable. Both the buyer and the seller have to pay a 2% charge to the Land Department. But mostly, the seller and developers tend to transfer this amount to the purchaser.

Why should you compare different mortgage options?

Mortgage comparison in UAE is a wise move, as there are many options available. You can choose the best-suited mortgage option by comparing the interest rates, tenure, and other features.


What are the hidden costs to consider when looking for mortgage in Dubai?

When a new home is your ultimate goal, you easily get emotional and make mistakes in terms of money.

Home buying, if requires a mortgage, you need to have a rational approach. You have already read the different steps required for mortgage approval.

And all those steps can present with sudden expenses, which you should be aware of.

  1. Application, documentation, and processing fee

The mortgage provider can ask fees in different ways for the documentation, application, and processing as well. The fee amount can range from 0.5 percent to 1 percent. Some lenders can even go beyond those percentages. You have to have a clear talk regarding the processing and other fee associated with the procedure. Ask your lender if they charge fees for pre-approval and/or any other process.

  1. Valuation fees

The valuation fees are asked by the bank, which reaches a valuation company. This company provides valuation report regarding the property. The valuation authorities can ask for an amount AED 2000. However, it is possible that the bank adds a margin and asks you to pay up to AED 3,000.

  1. Bounced cheque charge

If any instalment cheque bounces, you become liable to pay an additional charge.

  1. Pre-pay charges

In case you successfully pay your loan early, it damages the expected interest. So, the bank charges a penalty for pre-pay to recover the losses.

  1. Loan transfer charge

You can transfer your loan from one provider to another in the middle of your tenure. However, this facility comes with additional fees. The bank or the lender will charge you a fee. Plus, you will have to pay an additional amount of money to the Land Department as well.

Buying your dream home or office in Dubai is possible now! You just need to understand the mortgage process thoroughly and utilize a Mortgage Calculator to find the best-suited loan features. This way, you can secure your financial situation and purchase a property you desire.

For a smooth completion of the process, you should surround yourself with qualified professionals. At the same time, don’t forget to improve your property and mortgage knowledge to make smart decisions.


Who can apply for a mortgage?

An individual working as an employee in UAE can apply for a mortgage. Also, a businessman or any other self-employed person can also apply using the available financial institutions.

Non-residents have to follow different guidelines, but they can also use the available mortgage facilities in Dubai. The eligibility criteria can differ for such candidates.

 

Best Mortgage rates in UAE 2020 | Compare4Benefit

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Mortgage rates
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Looking for Better Mortgage rates in UAE?

In fact, this blog helps you find the same.

You will find some of the best mortgage rates in UAE, and it is also a reason why it attracts many expats each year.

For the average person here in the UAE, owning a house is a legitimate reality. This is possible due to the availability of low mortgage rates.

                                     Check Live Rates Now!!!!                                                

A mortgage is a legal agreement, which allows a bank to lend the debtor money in exchange for the deeds to the property.

In the UAE, there is a multitude of banks that offer best mortgage rates to both expatriates and nationals.

Related: Mortgage Calculator in UAE

Compare Mortgage rates UAE 2020

Here is a list of some of the most financially advantageous ones and how they will benefit you:

BANKRATE OF INTERESTMINIMUM SALARYLOAN AMOUNT (MAX)
Standard Chartered Mortgage One3.55% (reducing)10000 AED18 Million AED
RAKBANK Home in One3.24% (reducing)15000 AEDNo Limit
Emirates Islamic Manzili Home Finance3.19% (reducing)15000 AED20 Million AED
CBD Mortgage Loan for Expats3.64% (reducing)12000 AED (Salaried people);

20000 AED (Self-employed)
10 Million AED
United Arab Bank Home Finance for UAE National3.69% (reducing)15000 AED (Salaried people);

50000 AED (Self-employed)
10 Million AED
Emirates NBD Home Loan for Expats 5.75% (reducing)20000 AED3 Million AED

Standard Chartered Home Suite
3.75% (reducing)10000 AED18 Million AED

ADIB Home Finance for Expats
3.75%15000 AED15 Million AED
  1. Standard Chartered Mortgage One:

 

Mortgage rate standard chartered

Standard Chartered is one of the most well-renowned banks in the world and comes with an assurance of the best available rates and features.

 

Under their Mortgage One scheme, the reducing rate is around 3.49%, and the fixed rate is 2%.

The fixed rate is somewhat fluctuating over the course of around 25 years, which is the maximum term, but it will always hover around the 2% mark.

The advantage of taking up this loan is that the tenure of the loan will be shorter as the majority of the payment goes towards the principal and not the interest.

There is, however, a minimum salary requirement of 10000 AED. The down payment can be around 20% of the property price, and the bank offers up to 18 million AED.

For those of you looking for property in and around Abu Dhabi, Dubai, and Ras Al Khaimah; this should be your first choice.

      Click Here to Apply For Standard Chartered Mortgage One

 

2. RAKBANK Home in One:

 

RAK Mortgage rates

RAKBANK Home in One offers a combination of a current account holding and a home finance.

The interest on the loan is calculated on a daily basis, and you can withdraw your money at any time.

 

The reducing rate is 3.24%, and this can fluctuate over the course of the repayment period.

The minimum salary requirement is 15000 AED, and there is virtually no cap on the amount you can take.

The mortgage can be taken out for a maximum time period of 25 years, and you can purchase any property in Dubai, Abu Dhabi, and RAK.

The only condition is that the property needs to be ready, and you can only purchase under construction property in Dubai.

              Click here to Apply for RAKBANK Home in One

 

3.Emirates Islamic Manzili Home Finance:

 

Mortgage rates Emirates Islamic

Emirates Islamic  bank offers one of the lowest mortgage rates, with a fixed rate of just 1.81%, which is adjusted for 25 years.The reducing rate is around 3.2% per annum.

There is also a minimum salary requirement of just over 15000 AED. You also get a credit card when you take this mortgage option and a 2-month installment deferment. You also have to be a salaried employee for just over 6 months to choose this mortgage.

You can get up to 20 million AED in the mortgage, which will have to be paid over the course of 25 years. This offering also comes with a two month deferment period, which is good and can be availed every year.

    Click Here to Apply for Emirates Islamic Manzili Home Finance

 

4. CBD Mortgage Loan for Expats:

 

Cbd Mortgage Rates

If you are an expatriate looking for the best mortgage loans that will help you buy the house you have been dreaming for, this is it.

The CBD offering is a very lucrative one.

The extremely low fixed rate of just 2.1% over 25 years and the reducing rate of 2.99% per annum are all good for any expatriate looking to put down their roots.

There is a requirement of 12000 AED minimum for salaried individuals and 20000 AED for self-employed people.

You can take up to 10 million AED, which is enough to land you a fantastic place.

The only qualm is that this mortgage is available if the project is already complete.

If you have been waiting this long to buy a house, this option is by far the most cost-effective.

           Click Here to Apply for CBD Mortgage Loan for Expats

 

5. United Arab Bank Home Finance for UAE National:

 

UAB Rates Mortgage

If you are an Emirati national and are looking for the most effective mortgage, this home finance from UAB is the way to go.

With a lowly 1.69% fixed rate per 25 years and a 2.99% reducing rate; for any of you looking to get a brand new villa or put down a real estate investment, this option is the one.

However, you need to have a minimum salary of 15000 AED, and those who are self-employed, the requirement is a steep 50000 AED.

You can get up to 10 million AED and purchase any property with a title deed in Emirates. Such flexibility allows you to invest in the widest range of options and where you feel is going to pay off big dividends.

You also get a pre-approved credit card when you take upon the mortgage option.

Click Here to Apply for United Arab Bank Home Finance for UAE National

As you can see, the choices are endless. This gives you tremendous freedom in choosing the best option, one which will suit your long-term plans as well as your family’s plans.

The UAE is a thriving place where the standard of living seems to shoot up each year.

If you have been in the country for a long time or you are a native, getting a house right now would be a very prudent investment.

Loan Against Property Dubai | Equity Release Dubai – C4B

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Loan Against Property in Dubai
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Here, in this post, you will get the much-needed clarity to successfully attain loan against property or equity release in Dubai.

When looking for a loan against property in Dubai, you need to have an eye to compare multiple loan offerings to find the cheapest option that matches your requirements. You need to consider a variety of factors such as interest rates, your credit score and others to pick the right option.

                                        Compare Mortgage Loan in UAE

There are various options and providers of loan against property. This can lead to confusion regarding the right selection.

What is LAP or Loan against Property?

When attaining a loan against property, you use your house or any other property as a mortgage. A loan provider evaluates the value of your property to decide the loan amount that you can attain.

A particular percentage of your property’s market value is given to you as a loan. The percentage amount can differ from banks to banks.

Getting this type of loan makes your property collateral, which means that your lender holds the right to conduct a property auction if you fail to pay back your loan. This makes loan evaluation extremely important before choosing a provider.

Reasons why people tend to get a loan against property in Dubai

There can be many reasons why people decide to get a loan against their property. Generally, these reasons make such loans effective for a person:

1. Ability to fund your kid’s education

Many people utilize the value of their property by using it as a mortgage to pay for their kid’s education.
A property loan offers a chance of attaining lower interest rates as compared to the interest rates on education loans.

2. Expanding your business

If you are trying to set up your own business, you know the importance of investment. A business requires investment to get bigger and offer more revenue.

Many people decide to utilize their property as a mortgage, so they can fund their business independently. However, it is important to carefully evaluate the chances of success and associated risks of your business plan.

If anything goes wrong, you have to pay the loan back on your own without getting any aid from business revenue.

Similarly, there can be other personal as well as professional reasons to leverage the market value of your property with a loan.

No matter what your reasons are, it is important to create a thorough plan around that reason, to ensure the security of your property.

Dubai Mortgages

Benefits of using a loan against property in Dubai

In Dubai, there are multiple choices of loan providers ready to offer loan against your property. These open gates for property owners with a variety of benefits.

1. Low interest rates

In this type of loan, your property works as collateral, which gives you an opportunity to attain a higher loan amount at a low-interest rate.

The interest rates on these types of loans usually stay considerably lower than personal loan options. However, there is still a wide range of diversity in terms of interest rates
offered by loan providers in Dubai.

Hence, loan product comparison becomes an important aspect of research for you.

Related: Best Mortgage rates in UAE 2019

2. Easy to attain

Due to the use of property as collateral, this type of loan comes within secured loans. Hence, there is a broad range of lenders available to offer these loans. So, the availability of a loan provider doesn’t become a problem.

3. Longer tenure

The tenure of paying your loan back becomes includes multiple choices depending on the lender you select.

Generally, these loan tenures can be around 5-25 years or so. The longer tenure makes repayment way more comfortable than other kinds of loans. However, the tenure factor depends on your loan provider.

Must Read : Rent to Own Schemes Dubai

4. Reduced EMI

As the tenure of a loan increases, the monthly EMI decreases. The opposite condition is also true. With longer tenure, you get to enjoy a convenient EMI to repay your loan.

This resolves the chances of putting too much pressure on your financial condition as a whole. You can find a balance of tenure and EMI to keep the best-suited repayment plan.

What type of property can you utilize to gain a loan?

It has to be your own property if you want to get a loan against it. You can utilize your self-occupied home or rented property to attain this kind of loan. The lenders also accept a land piece that comes within your ownership. But it is critically important to utilize a property that has no other mortgage burden.

What makes you eligible for a loan against property in Dubai?

A lender of a loan against property Dubai can consider these factors to decide your eligibility:

1. The credit score you have

One of the biggest eligibility factors for loan acquisition is your credit score. However, many people think that credit score is important only for an unsecured loan. However, that is not true.

Many loan providers consider your credit score before deciding to offer a secure loan as well. Your credit score tells lenders about your history of loan repayment.

Hence, with a high credit score, you become eligible for a loan easily. Similarly, a bad credit score can lead to complications when trying to acquire a loan against your property.

2. The source of income you have

Your property works as collateral, but most banks and other lenders evaluate your source of income as well. This is to make sure that you have enough financial stability to repay your loan in terms of monthly installments.

In some cases, not having necessary income can lead to loan cancellation, even if you have a high-value property, which is why you should pick your EMI aligned with your overall monthly income.

Also Read : Complete Guide on Mortgage in Dubai

3. The validity of property ownership

You have to present all the necessary documents to prove the authenticity of your ownership. This is highly important in the case of using your property as collateral.

The property documents such as the title deed, building plan, registration, and approval documents from relevant authorities matter too.

There should be no legal complication associated with your property. Before submitting the documents, it is necessary to ensure that your name is there as the property owner or property co-owner.

4. The tenure you aim for

The tenure of a loan is definitely flexible in these types of loans. But, you can’t blindly select a too short tenure, as it can lead to loan rejection.

You need to understand the conditions related to the income you have and the tenure you want to attain. If your monthly income is low, it is better to try attaining longer
loan tenure. Commonly, loan tenure can go up to 15 years of time in Dubai.

5. Your age as the borrower

There are age-related limitations associated with long against property in Dubai. Young eligible people get loan approval easier than older people. At the same time, the tenure options also become limited, depending on how old a borrower is.

So, a person with the age of 55 years needs to repay his or her loan in a short span of time. Which is why the factors age, tenure, and income are all combined together to decide the comprehensive eligibility of a borrower.

6. Your job history

The ability to get loan approval gets partially affected by the history of your job. The stability of your industry, nature of job such as self-employed or professional and other factors are considered by several banks.

The sustainability of your job also matters. So, if you have changed your jobs very frequently in the past, it can put a dent in your loan application. All in all, a stable career increases the strength of your ability to gain loan approval.

7. Availability of your property insurance

The presence of property insurance strengthens your ability to acquire a loan against it. The insurance allows a lender to feel secure about the condition of your property and its value in case of any unforeseen situation.

The insurance also protects your own family from any unforeseen burden of loan repayment. Having insurance also assists in negotiating better interest rates.

8. Previous loan applications

Some lenders look at the history of your loan applications. Any rejected loan puts a red remark on your profile, which can make current loan approval difficult. Hence, you should discuss previous loan applications and their situations with a lender in advance to find effective solutions.

Conclusion:

Getting a loan against your property is easy in Dubai. The factors of eligibility are there to help you acquire the right loan without putting too much effort.

You don’t have to invest a lot of time if you have a systematic plan and proper guidance. Simply clarify your reason for getting a loan against your home or any other property.

Then, use that reason to create a financial profile that would support your eligibility.
This way, you can attain the best-suited loan at a perfect interest rate for a reasonable repayment period.

5 Things to consider before choosing a Rewards Credit Card

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5 things to notice rewards card
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A rewards credit card lets you earn points, rebates, miles or other rewards on your spending.

A card by which you can do a lot shopping, dining, travelling and do all other things which can entertain your self and you will get reward points for the same. But at the same time  you have to be sure whether you are going for the right rewards credit card in uae.

You have to keep in mind these important factors before choosing a rewards credit card

Before deciding if you should use, or even apply for, a rewards credit card, it’s important to ask yourself the following basic questions:

  1. How many reward points you are earning
  2. Where you can spend those points
  3. For how long you can use them
  4. What is minimum value require to redeem those points
  5. Annual fee on the card

 

 

1. How to earn points?

Utilize your credit card every month. Your everyday spending will add up and become future savings after redeeming. But do not spend beyond your means for more rewards.

Many Loyalty programs are running in which you can earn reward points on domestic spends and international spends and Guess what??  You get more points on international spends, many credit cards even allow you to earn a large sum of points in starting months of the cards.

You can earn points by booking flights, making online payments for your hotels , shopping fuel,utility, dining and by other activities. Earning points value vary from card to card some provide 2 points for AED 1 spend ,some 1.75 points and some provide 1.25 points and there are many such figures .So ,go for the card  which provide you more points on AED 1 spend .

Some credit cards even don’t give any minimum cap for earning these reward points, pay monthly bills by credit cards and use credit cards for big purchases.

2. Where to spend these earned reward points?

Many loyalty programs are running for spending these points at various locations.

Travel benefits: You can redeem these points on airlines for booking tickets , booking hotels and on the cab services such as careem.

Lifestyle benefits: You can redeem these points on online shopping malls,  movie tickets , dining & restaurants

Recharges and bills: You can redeem these points for daily use purposes such as utility, fuel, supermarket and other retail spends.

Third party website : These points can be used on third party website also such as Amazon, noon and other popular websites.

Golf is famous sport in UAE,  you get many discounts on that as well.

3. Validity

As there is validity for each and every product so even these points have some validity period.

The most important thing in rewards credit card is to remember redeeming than earning, either you can use it or lose it.

Knowing the expiry date and rules for your rewards use can save you from missing opportunities.

Points you earn with a regular rewards credit card largely don’t expire. But even the few exceptions give up ample time to redeem those rewards.

The terms of these points depends on the card issuers or the loyalty program runners, these terms sometimes change with a respective time.

4. Minimum value require to redeem points

Normally you would need a minimum number of rewards points before you can redeem it

Some card issuers provide minimum cap for the spend and cap may vary product to product, while there are some  card issuers which do not require any minimum cap for availing benefits.

5. Annual fee charged on Card

Annual fee is charged by the issuer of the credit card  for the services which is provided by them. It is charged on an annual (yearly) basis on the card and even it varies from credit card to credit card .

You can use reward points to pay this fee. So, make sure that you are earning enough points to offset annual fee.

But everyone knows that no one want to spend  their hard earned money so don’t worry for the same even there are some credits card that fulfill your this wish too, they don’t charge any annual fee.

Looking for no annual fee credit cards in UAE?

It cares for you as your loved one care for you& gives you sweet gestures in form of points when you spend on it.

Expo 2020 Dubai – A Complete Guide | Compare4Benefit

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Expo 2020 Dubai
Pic Credits: Dubaiexpo2020.com

 This blog covers all you need to know about Expo 2020 Dubai.

With 173 days to celebrate, collaborate and innovate, this is a once-in-a-lifetime experience that you simply cannot miss. With the theme of Connecting Minds, Creating the Future’, aimed to make an impact on the future.

So What  Exactly is Expo 2020 Dubai?

It’s an event going to be hosted by Dubai in the United Arab Emirates. Being a  mega international event in terms of size, scale, and duration and visitor numbers.

It’s an amalgamation where people from all over the world come together and connect with each other, share ideas, learn and innovate.

In March 2016, Expo 2020 Dubai revealed their new logo, which was inspired by a ring found at the Saroug Al Hadeed archaeological site. The sub-themes of the expo will include “Opportunity, Mobility and Sustainability”

Opportunity” unlocks the potential for individuals and communities to shape their future.

Mobility” is to make a smarter and more productive movement of people, goods and ideas, both physically and virtually.

Sustainability” is respecting and living in balance with the world we inhabit Over 200 participants, including 192 countries, and millions of visitors will come together to relish Expo 2020 Dubai.

Need a card to go shopping? Click here to compare the best credit cards in the UAE

Talking about the Expo sites and its main assets : At the heart of the Expo 2020 site will be the Al Wasl Plaza. This will be the focal point for the celebrations over the six months.

Historically, Dubai was called Al Wasl, or the “Connection”, because it had connected people from all over the region. Based on the subthemes, there will be three thematic districts at the Expo site. 

Expo 2020 Dubai is filled with the revelry of human wisdom and achievement. It is a joyous opportunity for people to blend different corners of the world, to rejuvenate in the best of art, culture, geography, science, technology, innovation and invention and turning dreams into the reality of millions of new thoughts and ideas that will make a lasting impact in our lives.

From the beginning, the UAE has portrayed to the world the possibilities of remarkable development. With Expo 2020 Dubai, Dubai will expand the horizons for giving a push to the next generation to motivate them to such an extent to ignite the spark for the innovations.

Rejoice in the Expo 2020 Dubai of the UAE Vision 2021 by supporting the expansion of tourism, stimulating the development of innovative businesses in the UAE, and improving the country’s international reputation as a location to do business.

Focusing entirely on the youth power and digging the potential of one of the world’s youngest and fastest-growing populations.

Expo 2020 Dubai will take place on the same date as UAE’s 50th anniversary in 2021 which is in itself an event which will set and important milestone in the history.

So are you ready for it? We have got everything covered for Expo 2020 Dubai.

Location of  Expo 2020 Dubai.

The Expo 2020 location is around 4.38 square kilometres and is located in the Dubai South district, close to Al Maktoum International Airport and within easy reach of all the airports in Dubai.

You can easily reach the site by car which will take you 40 minutes to reach the Expo site from Downtown Dubai. One can also use the Dubai Metro. Expo 2020.

Dates and times

  • Opening day: October 20, 2020
  • Closing day: April 10, 2021

Site opening hours

  • Weekdays: 9 am-1 am
  • Weekends and special days: 10 am-2 am

Unravel The Facts:

Do you know that the first World Expo was London’s Great Exhibition of 1851? Since then World Expos have been held globally around a theme that can intensify knowledge in arts, culture, science and technology. They are organized every five years and last for six months.

Do you know that the Bureau International des Expositions (BIE) is the intergovernmental organisation that regulates and oversees World Expos? Working on the core values of education, innovation and cooperation on behalf of its 170 member states. It was founded in 1928.

So, The last Expo which took place was in 2015 in Milan. Its theme was ‘Feeding the Planet, Energy for Life’ centralized on nutrition and food. It was the second time the city hosted a World Expo, with the first being in 1906.

Do you know that On November 27, 2013, the UAE was elected as the host country of World Expo 2020 during the 154th General Assembly of the Bureau International des Expositions (BIE)? This was the outcome of the voting of the 164 nation members. 

There are so many innovations that World Expos gave birth to, that includes Eiffel Tower in Paris, the Seattle Space Needle, the typewriter, television and even Heinz Tomato Ketchup.

Delight and Dazzle At The Event

There will be enough for you to relish at Expo 2020 Dubai. From art, music, gastronomy to technology, architecture and entertainment, a day is not enough for you to cherish the magical event.

Start your day at the Al Wasl Plaza, where you get to see the artwork and interactive installations from local and global talents. Embark on a journey where you can visit 192 different countries and learning everything about their history and culture.

There will be more than 60 live shows every day, from operas to pop-up theatres, flash mobs to sports events and even national day celebrations, there will be enough to keep you coming back.

Want to know more about Expo 2020 Credit card offers? Apply Now!

For tech enthusiasts, there will be opportunities to experience a truly connected world with autonomous vehicles, robotics, augmented reality and space explorations.

Expo 2020 will have culinary delight as broad and diverse as the city of Dubai and the 190-plus participant nations are joining this global mega event.

A visitor can expect to see the food of all shapes and sizes and price points to suit different budgets. You can literally taste the world at Expo with cultural influences from around the planet.

There will be around 200 different restaurants celebrating more than 50 different cuisines from around the world.

You can delight your taste buds from a range of options available here – from street fare to haute cuisine, as well as sustainable meals from locally-sourced produce that promote wellness.

You will be able to buy the tickets through the Expo 2020 website, through a network of Authorized ticket re-sellers, contracted with Expo 2020, and at the Expo 2020 gates during the event.

Also, visitors can leverage tickets on sale to the public in April 2020, although visitors to Dubai will be able to buy monthly and season passes directly from Expo from Q4 2019.

Don’t miss this lifetime opportunity!

Dubai Land Department Mortgage Fees | Compare4Benefit

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Dubai Land department fees
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This blog covers all you need to know about Dubai land department mortgage fees.

Dubai Land Department registration fee is levied on registering the sale, purchase and transfer of property and investment interests in property in Dubai.

The fee is levied by the Dubai Land Department (the DLD), which is an agency which was set up by the Emirates government to facilitate the sale of property in Dubai to investors and buyers.

Recently, Dubai Land Department rolls out an online calculator to match buyers to properties,in which interested buyers can fill out their details on the website at www.manzili.ae, along with “current savings” (the cash in hand for a down payment) and “monthly savings” (affordable monthly budget for installments).

The Manzili calculator then generates a list of Dubai real estate projects that match their given budget.

                                         Check Mortgage rates in UAE                                    

If you have dreams to purchase a house, then you should be well aware of the closing costs. Closing costs are the fees and expenses that are levied on the buyer before finalizing the mortgage or in other words, before the seller’s hands over the property to the buyer.

 In the UAE, closing cost covers everything from the land department fee, property registration fee, real estate agency fee, mortgage processing fee, property valuation fee, mortgage registration fee, etc. These costs can go up to 5-7 per cent of the property price.

 

Considering a property value of Dh1 million, so the closing costs can go around Dh70,000, which shows that these exorbitant charges can cost an arm and a leg.

But on conducting an adequate amount of groundwork and research, home buyers can save on these extra costs.

So, If you have to register a title deed to a property in Dubai or transfer ownership, you need to pay the relevant Dubai Land Department transfer fees.

 

     Check: Dubai Mortgage for non residents in UAE

 

Previously, this administration was levied out only at the Land Department’s own offices, during routine office hours.

However, this proved inconvenient for many people. In an effort to encourage the laws and compliance with the various property laws and regulations, the Registration Trustee service was established. These nominated and approved companies can provide you with all the relevant services, satisfying all your property and mortgage registration needs without you having to attend the Land Department offices.

The new system was built in 2013, and makes for the execution and completion of the client’s (owners or investor) transactions outside the working hours of the DLD, via offices licensed through the DLD for property transfer.

The system helps to increase the speed of the process of property transactions and allows users to access the same information as government agencies for registered properties.

As well as facilitating entry and processing of data, it assists to ensure that records will be as accurate as possible. Any appointed Trustee must be a UAE national who is legally qualified to do the tasks.

You can be sure about the work of the Registration Trustee is licensed and monitored, you can be assured that they will fully comply with all Dubai property laws and charges.

To purchase a completed and ready to move property in Dubai, in addition to the down payment, you will also need to pay up to 7% of the property’s value in various purchase costs and fees. Dubai property fees are considerably higher than in neighboring Abu Dhabi.

This is the detailed mortgage Dubai Land Department mortgage fees applied to the loan amount for your reference. Check it out thoroughly for more details.

Example for resale case transaction:

Bank mortgage arrangement fee This is up to 1% of the loan amount, plus 5% VAT
Dubai Land Department mortgage registration fee 0.25% of the loan amount, plus AED 290
Trustee Fee AED 4000

 

Happy Home Buying!

Reduced Early Settlement Fee for Mortgages in UAE | Money Clinic

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Early settlement fee mortgage
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Good news for all home owners! The UAE Central Bank ordered local banks to reduce early settlement fee for mortgages to a maximum of 1% or Dh10,000, whichever is less, to the borrowers who want to exit their mortgages early.

The bank also proclaimed that those borrowers who had already paid three per cent settlement fee can get the refund from their banks within 30 days.

Do you know that the early settlement fee was set at three per cent in June 2018?

But now the early settlement or partial settlement fee applying to home loans has been made to maximum one per cent of the outstanding balance or Dh10,000, whichever is less.

Banks and finance companies that used to charge the stated terms of the fees in existing customer agreements are immediately required to respect the original terms of the agreement and refund all overcharges for all customers based on their original fee within 30 days of this notice.

                                    Find Best deals on Mortgage in UAE                                 

People are so grateful because of this consistent decline in interest rates, mortgage rates have also been going down in the UAE in line with the decline in US Federal Reserve rates.

This move is fascinating for borrowers and will encourage them to switch their mortgage to lenders offering better interest rates and result in an expansion in buyout and remortgaging activity. This move will help boost market sentiment and will result in an increase in buyout and re-mortgaging activity.

The amendment will greatly facilitate the existing mortgage borrowers with flexibility in loan liquidating/transfer decision. These reduced charges for paying off mortgages early in the UAE is a welcome change for current homeowners paying off mortgages and those interested in applying for new home loans.

This new reduced settlement fee law in the UAE applies to the early closure of home loans in Dubai and any other mortgage products offered to individual customers. Bear in mind that the rule does not apply to corporate clients of UAE banks.

Let’s have a look at some valuable insights:

If we quote Dubai Land Department figures, the UAE Central Bank’s 2018 report revealed that investment in real estate with a value of deals of less than Dh10 million in Dubai stood at Dh45.6 billion, of which Dh38.5 billion or 84.4 per cent were paid cash and Dh7.1 billion or 15.6 per cent made through a mortgage. Compared to 2017, it said cash purchases declined by 36.6 per cent, from Dh60.7 billion, while mortgage purchases dropped by 17.6 per cent from Dh8.7 billion. The fall in the amount of all investment transactions was at 34.2 per cent in 2018.

If you are keen to take advantage of these new early settlement laws in the UAE, take a detailed look at the types of mortgages available.