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Reduced Early Settlement Fee for Mortgages in UAE | Money Clinic

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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.

Best Cashback Credit cards in UAE 2019 (Updated)

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Best Cashback Credit cards
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Looking for Cashback Credit cards in UAE? Then you are in the right place.

Cashback credit cards is one of the most popular kind of credit card in UAE. Cashback credit cards normally reward you for your spending. There are different types of cashback offers available in the UAE market.

You can use this guide to compare cashback credit card options and discover how you can get the most value out of this type of credit card.

              Related: Compare Cashback Credit cards in UAE.

Summary of Best Cashback Credit Cards in UAE 

No time to read? Here are our picks for some of the best cashback credit cards in UAE.

Credit CardsCard FeaturesMinimum Salary Apply Now
Citibank Cashback Credit Card Unlimited and Automatic cashback on all spend.
Complementary access to over 850 airport lounges.
Free for 1st Year.
8000 AEDApply Now
CBD Now Visa Signature Card50% discount on 4 VOX tickets per month across UAE.
Free Valet Parking.
10,000 AEDApply Now
CBD AL Islamic Visa Infinite Card50% discount on VOX cinema tickets across the UAE.
Complimentary Airport Lounge Access.
10,000 AEDApply Now
ADIB Cashback Visa Platinum Card1% Cashback on All Purchases5000 AEDApply Now
CITIBANK City Prestige CardEnjoy Up to 4 "Buy 1 Get 1" complimentary tickets at Vox Cinemas.
24/7 concierge service.
30,000 AEDApply Now
ADIB Spice Card Up to 9% Cashback on restaurant bills.
7% cashback on supermarket and grocery spends.
Get Dining discounts of up to 25% at selected restaurants.
12000 AED Apply Now

Popular Cashback Credit Cards in UAE 2019

1. Citi Cashback Card:

Cashback Credit card uae

This card needs minimum salary level of AED 8000 but does not need a salary transfer or adhere to Islamic finance.

It has zero annual fees for the first year and from year 2 the card is free unless a minimum annual spend of AED 9,000 is not met .

 

Benefits of Citi Cashback Credit Card

  •  Unlimited and Automatic cashback on all spend.
  •  Complimentary Travel Insurance.
  •  2% on grocery spending.
  •  1% cashback on all other expenditure.
  •  Complementary access to over 850 airport lounges.
  •  No earn caps on cashback.
  •  No redemption and no minimum spend.

Documents required include copies of valid visa and passport, Emirates ID copy, salary certificate and 3 months statement of salary in the bank.

               Apply for Citi Bank Cashback Credit Card


2. CBD Now Visa Signature Card

Cbd Cashback credit card

This card needs minimum salary level of AED 10,000. It neither needs salary transfer nor offers Islamic finance.

It has zero annual fees, but a monthly interest rate of 2.99% after a 52-day interest-free period.

Transaction rate of foreign currency is 2% per month. It is applicable only to overseas transactions. Repayment must be done within 52 days.

Benefits of CBD Now Visa Signature Card

  • Easy 12-month installment plan.
  • Unlimited access to over 550 airport lounges worldwide.
  • 50% discount on 4 VOX tickets per month across UAE.
  • Valet Parking.
  • Attijari Loyalty Program can be redeemed into Skyward Miles or Cashback.

Documents required are Emirates ID, a copy of passport, and residence visa and salary certificate. Self-employed must also provide valid trade license.

For minimum annual spend of AED 5000, perks like movie tickets, and valet parking are available without extra charge.

 Apply for CBD Now Visa Signature Credit Card


 

3. CBD AL Islamic Visa Infinite Card

When you apply for this card, you will be awarded a guaranteed Travel voucher worth AED 750.Minimum salary requirement is AED 10,000.

There will be no Annual Charges for the first year and one can get loyalty points for one’s complete expenses which can be redeemed as Cashback.

 

Main Features of CBD AL Islamic Visa Infinite Card

  • Islamic Credit Card.
  • There is balance transfer, and no foreign exchange fee is applicable when you spend overseas.
  • Complimentary Airport Lounge Access.
  • 50% discount on VOX cinema tickets across the UAE.
  • Free Valet Parking.
  • Earn points for every AED 1 spent which can be redeemed as cashback or airline travel miles.

           Click here to apply for the CBD AL Islamic Visa Infinite Credit Card


 

4. ADIB Cashback Visa Platinum Card

The card features a profit rate of 2.99% and stipulates a minimum salary requirement of AED 5000. The card offers 1% unlimited cashback on all retail expenditure.

 

 

Main Benefits of ADIB Cashback Visa Platinum Card

  • Islamic Credit Card.
  • Offers facilities like roadside assistance and 4 supplementary cards.
  • 1% Cashback on All Purchases.
  • No Minimum Spend Required to avail cashback.
  • Valet Parking( only at selected places in UAE)
  • Complimentary Access to Airport Lounges worldwide via Veloce Lounge.

     Click here to apply for the ADIB CashBack Visa Platinum Credit Card


 

5. CITIBANK City Prestige Card

citi prestige cashback card

This is a cashback credit card with an annual fee of AED 1500 and a minimum salary of AED 30,000.

Citi Prestige Card offers 10,000 bonus thank you points when the card is renewed annually.

 

Main Features of City Prestige Credit Card

  • Complementary unlimited access to over 750 airport lounges worldwide.
  • Enjoy Up to 4 “Buy 1 Get 1” complimentary tickets at Vox Cinemas.
  • 24/7 concierge service.
  • Free golf services once a month for both supplementary and basic card members in leading golf courses across the UAE.
  • Unlimited supplementary cards for free.
  • Earn ThankYou® Points on your Citi Prestige card and redeem them for free flights or Air Miles.

Get 10,000 Thank you points on yearly renewal.

                Click Here to Apply for the CITIBANK Prestige Credit Card


 

6. ADIB Spice Card (for Expats)

Adib Cashback credit card

ADIB Spice Card offers one of the best rewards program in UAE. It is an Islamic Credit Card.

Cash withdrawals are available for up to 100% of finance limit. Minimum Salary Requirement is 12000 AED.

 

Major Features of ADIB Spice Credit Card

  • Up to 9% Cashback on restaurant bills.
  • 7% cashback on supermarket and grocery spends.
  • 4% cashback on fuel.
  • 1% cashback on utility payments.
  • Get Dining discounts of up to 25% at selected restaurants.
  • ADIB Reward Points can be redeemed for airline tickets.

Note: Minimum monthly spend of  3,000  AED is required to avail cashback. 

                          Click here to apply for the ADIB Spice Credit Card

Best Air Miles Credit Cards in UAE 2019 | Compare4Benefit

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Best Air Miles Credit Cards UAE
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One of the biggest businesses related to airline traveling are the air miles credit cards in  UAE.

Both UAE residents and expatriates regularly fly in and out of the country consistently.

This is the reason why Air Miles Credit Cards in UAE have gained so much popularity. They allow users to receive air miles, using a special credit card.

Then, the obtained air miles turn into upgrades and free flights as well. There is a huge variation in terms of credit cards for air miles.

Many banks in the UAE offer their best version. But the variety of options can also enhance the confusion when you are trying to select the best-suited credit card.

That’s the reason this post offers a list of best air miles credit cards you can find in the UAE.

Compare Air Miles Credit Cards UAE 2019

 

  1. Emirates Citibank Ultima Credit Card

Citi air miles credit cards

With this credit card, you receive Skywards Miles up to 25,000 the moment you obtain this card.

Emirates Citibank Ultima Credit Card offers Skyward Miles 10,000 on an annual basis. More than 1000 worldwide airport lounges become accessible for an unlimited period.

 

Features of Emirates Citibank Ultima Credit Card

  • Minimum Salary Requirement is 36750 AED.
  • You can also bring one guest for free with every lounge key.
  • The card has an interest rate of 2.99% along with an annual fee of AED 3K.
  • This is a Balance Transfer Credit Card.
  • Several complimentary benefits related to international concierge, travel medical, and more.
  • Earn Skyward Miles 2.5 every time you spend $1 to purchase an online ticket via the official site of Emirates.
  • For local currency, you get Skyward Mile of 1 when the invested currency amounts to 1 US Dollar.

                        Apply for Emirates Citibank Ultima Credit Card                        

2. CBD Visa Infinite Card

Cbd Visa airmiles credit cards

CBD Visa Infinite Credit Card doesn’t ask for an annual fee. The interest rate is 1.5% only and the credit card is available for a person with a minimum salary of AED 30K.

With 10,000 points earned, you can utilize the cashback feature of this card.

 

Features of CBD Visa Platinum Credit Card

  • Minimum Salary Required is 30000 AED.
  • The card provides 2.5 points for each Dirham you invest for airline tickets.
  • The earned points become your air miles.
  • However, you can use the cashback feature as well.
  • Along with that, the additional benefits include unlimited complimentary VIP lounge access on a global level.

                               Apply for a CBD Visa Infinite Credit Card                               

3. Standard Chartered Infinite Credit Card

standard chartered air miles

A minimum salary of AED 30K makes you eligible for the Standard Chartered Infinite credit card. The interest rate is 3.25%, which can seem a bit high.

However, the rewards are exceptionally effective for travelers.

 

Features of Standard Chartered Infinite Credit Card

  • Minimum Salary Requirement is 30000 AED.
  • More than 900 lounges become accessible all across the globe.
  • UAE golf club accessibility.
  • Low rate credit shield.
  • concierge service, and other benefits.

                      Apply for Standard Chartered Infinite Credit Card                          4. Emirates Islamic Flex Card

4. CBD Mastercard Gold Credit Card

cbd air miles credit cardWithout an annual fee, you get to acquire the CBD Master Card Gold credit card with a minimum required salary of AED 10,000.

The interest rate is 2.99% and you can conduct a foreign currency transaction.

 

Features of CBD Mastercard Gold Credit Card

  • However, currency transactions charge a 2 percent rate every month for overseas transactions.
  • You get to obtain 1 point every time you make a grocery purchase and ½ points every time you indulge in government spends.
  • For UAE purchases you obtain 1.5 points and international purchases get your 2 points for every 1 AED used.
  • All these points turn into Etihad Miles, Skywards Miles and you can even get a cashback. At the same time, you obtain travel insurance for free along with worldwide acceptance.

                            Apply For CBD Mastercard Gold Credit Card                         

5. Najm Voyager Platinum Credit Card

Najm Air Miles Credit Card

A minimum monthly salary of AED 8,000, you can attain Najm Voyager Platinum Credit Card to utilize air miles.

The interest rate is 3.25%, however, you can earn voyager rewards every month.

 

Features of Najm Voyager Platinum Credit Card

  • Every international spend gives you 2.5 points or voyager rewards.
  • The domestic spends offer 1.5 points or voyager rewards. These points are
    redeemable with more than 550 airline partners.
  • Earn rewards on Dining, Entertainment & Travel.
  • Purchase protection & extended warranty available.

                        Apply for a Najm Voyager Platinum Credit Card                        

Now, you have a list of best credit cards to obtain air miles in UAE. Use the list to find the best-suited option for yourself.

Best Credit Cards UAE 2019 – UAE Credit Card Offers Comparison

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Best Credit cards UAE

 

Compare4Benefit’s latest picks for UAE’s Best Credit Cards for 2019 should get you lathered-up into a frenzy!

UAE is a happening place with lots to shop, dine, and explore. Credit cards are a good way to enjoy the same.

In addition to the ease of payment, it offers an array of benefits such as cashback option, insurance, travel privileges, and much more that make them a good option for utilization. Some of the best credit cards in UAE for this year are enlisted below:

  • Standard Chartered Titanium Card
  • Majid Al Futtaim Finance  
  • ADIB Etihad Guest Visa Platinum Card
  • NBAD GEMS MasterCard Credit Card
  • Emirates NBD Titanium Credit Card
  • RAKBANK titanium credit card
  • Dubai First Platinum Life Card

Summary of Best Credit Cards in UAE 2019

 

Credit card Card Highlights Card Apply
Standard Chartered Titanium Card
  • 10% cashback in grocery and utility.
  • Upto 10% cashback in school fees.
  • Almost 50% discount on dining, entertainment and movies.
Majid Al Futtaim Finance  
  • 2% cashback on purchases in Carrefour.
  • Travel discounts of about 50%
  • Whopping 30% discount on travel, entertainment, dining, etc.
  • One on one free VOX cinema ticket.
ADIB Etihad Guest Visa Platinum Card
  • Free companion ticket.
  • Complimentary valet parking and roadside assistance.
  • Access to lounge.
  • Great earnings on travel spends.

NBAD GEMS MasterCard Credit Card

  • 7% discount on the annual fees of students studying in GEMS school.
  • Redeemable points for every AED spend.

Emirates NBD Titanium Credit Card

  • 40% discount on worldwide golf course.
  • Attractive discounts on holiday package.
  • VIP lounge access.
RAKBANK titanium credit card
  • 5% Cashback on Dining, fuel, and super mart.
  • Cinema ticket cashback of about 50%.
  • 2% Cashback on retail purchases.

Dubai First Platinum Life Card

  • Insurance facilities.
  • One on one movie free ticket.
  • Special offers on entertainment and lifestyle.

 

 

Best Credit Card for People Looking for Cash Back in UAE

ADIB Spice Card

For those who are looking to save money, taking advantage of the cashback method, the ADIB Spice Card for UAE Nationals is the best option. It offers up to 9% cashback if used efficiently. Cashback of about 9% can be availed in dining option or while eating at restaurants. While doing grocery shopping at a supermart, cashback of about 7% can be enjoyed. While filling up fuel in the tank too, cashback of about 4% can be availed every time the tank is filled up. Further, for other utility items, a minimum cashback of 1% is available with the help of ADIB Spice card. 

Further, one can earn one reward point for 1 AED spent, and then the same can be redeemed. ADIB is indeed one of the best cards to avail cashback option. In order to apply for the same, a minimum salary of 8000 AED is required, and an annual fee of 199 AED is also applicable.       

 

Best Credit Card for Going Out (Restaurant Spend)

Standard Chartered Titanium Card is one card that offers a wide range of benefits in the dining section. Offers of up to 50% can be claimed at popular restaurants, fast food joints, and cafes. At Costa Coffee, a one on one offer is also valid. 

 

Best Credit Card for people who love travel

Travel lovers will love the ADIB Etihad Guest Premium Platinum Card, which is just ideal for them. The card is designed for frequent travellers and offers them 2.5 Etihad miles (which is equivalent to points) for every 4 AED spend on this card. Now, this miles or points can be redeemed while purchasing Etihad airline tickets. In fact, the miles can also be easily used for upgradation of seats. One can also get a free extra or companion ticket in case one spends more than 150K per year on the card. So, frequent travellers can make the most of this card. 

Further, additional benefits of this card include, access to airport lounges, complimentary valet parking (4 times per month) at popular malls in Dubai and Abu Dhabi. Roadside assistance can also be received showing this card. 

In order to be eligible for this card, a minimum salary of 5000 AED is mandatory. Further, the annual charges amounting to 200 AED per month needs to be incurred by the cardholders. 

Best Credit Card with no foreign transaction fees in UAE

Chase Sapphire Preferred is the best credit card that does have the feature of no foreign transaction fees. This means that the card can be used for any foreign transactions without any additional money that ultimately saves almost 3% of the total money. While many other cards are on the way to waive the fees for a foreign transaction, Chase Sapphire Preferred is the oldest and the most trusted card. 

 

Best Promotional offer Credit Card in UAE

Emirates NBD is one card that is accredited with promotional offers of all kinds in UAE. One can get offers on dining, cinema tickets, flights, and even discounts on golf courses. The additional benefit is that one can keep accumulating the reward points and then redeem them for good offers.

 

Best Credit Card with Insurance Coverage

If you are looking for a credit card that has good insurance coverage, then RAKBank credit cards are your pick. Various versions of the cards are available like the RAKBank Red credit card that offers a wide array of insurances that are covered by program credit shield as well as purchase protection. Further, travel accident insurance is also covered in this card that covers issues such as loss or damage to the baggage, abandonment or delay in baggage, accident, and liabilities. In addition, the card also offers other cashback offers. It truly covers most of the insurance, options and hence, is a popular pick in this category.

 

Most Popular Credit cards in UAE

A credit card is one of the most convenient options to shop and pay and with a plethora of additional benefits; it surely does make a good option to opt for these. 

Some of the most popular credit cards in UAE that have spread its popularity are: 

  • Majid Al Futtaim (Najm) Blue Visa card
  • ADIB Etihad Guest Visa Platinum Card
  • NBAD Gems Titanium Credit Card
  • Mashreq Platinum Elite Card
  • RAK Bank Titanium Credit Card
  • Standard Chartered Bank Titanium Credit Card
  • Emirates NBD Titanium Card

 

5 Reasons why RAKBANK Air Arabia Platinum Credit Card should be your first card

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RAKBANK Air Arabia Platinum Credit card
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Looking for your very first credit card? How about you choose a card that would save you money with reward points, travel privileges and other benefits? RAKBANK Air Arabia Platinum Credit Card brings you all those features and more.

Benefits of RAKBANK Air Arabia Platinum Credit Card

These are the 5 reasons why RAKBANK Air Arabia Platinum Credit Card should be your first card:

1. 15,000 Air reward points bonus right away

The moment you get your Air Arabia Platinum Credit Card, RAKBANK begins to impress you with its money saving capabilities. A bonus of 15,000 air reward points is provided right away to kick start your savings.

These rewards points offer a value equivalent to a return flight ticket.

Along with that, you get to enjoy an interest-free period of credit, which is about 55 days with this card.

Note: Payment of joining fee & a Minimum retail spend of AED 5000*  in first three months is required to avail this offer.

2. Get Complimentary Flight Ticket every Year

Charm is not only for the first year, You get a complimentary return flight ticket once every year against a minimum retail spend of AED 15,000.

As per a study in UAE, average monthly spend on groceries and food by a family of 2 is more then 1,500 every month.

3. Save money by redeeming air reward points

With this credit card, you attain a refreshing form of the loyalty program. The rewards attained with this card actually bring value to your money saving goals. Plus, earning the reward points takes no effort at all.

  • 1.75 Air Rewards Points for every 5 AED spent at www.airarabia.com
  • 1.25 Air Rewards Points for every 5 AED spent within UAE
  • 1.75 Air Rewards Points for every 5 AED spent outside UAE
  • 0.30 Air Rewards Points for every 5 AED spent under the category of Government Services, Bill Payments (Telecommunication & utility), Real Estate, Car Rentals, Transport and Petrol/Gas Stations

You can utilize the earned  Air Rewards points in flight bookings, baggage, meals, seats and more. For a long period of 24 months, your reward points stay valid and ready to save you some cash. You can even redeem these points for your family or friends.

4. Earn complimentary travel benefits

Every year, you earn 6 airport transfers including pickup as well as drop off facilities within the Emirates.

About 3 times of the same service are available in several Indian destinations such as Mumbai, Kolkata, Chennai, Delhi, and Bengaluru.

Click here to know more about terms and conditions.

5. Extraordinary discounts

This card is reliable money saving choice due to its unique discount features. For instance, you get a 15% discount from AVIS on renting cars  anywhere across Europe, Africa, the Middle East and Asia.

The discount of 12% is available when you rent cars by AVIS in Canada or the United States.

Similarly, there are discounts available on shopping, hotel booking, and airline tickets. So, you get to save money every possible way.

6. Save money on dining in more than 2000 restaurants

RAKBANK offers a special RAKfoodie program for food lovers who love to eat at the finest restaurants. This program includes more than 2000 restaurants, in which you can get a discount up to 30% by using your Rakfoodie App.

Plus enjoy Buy 1 Get 1 free and Best Foodie Fridays offers on your favorite cuisines and restaurants.

 Apply Now to Get a RAKBANK Air Arabia Platinum Credit Card

So, are you ready to save money with your very first credit card?!

Dubai Apartments At Affordable Prices: An Average Drop of AED 400,000

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Dubai Apartment
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This is the high time for home buyers to get their dream apartment in Dubai.

The last four years have shown a drop of 19% in the prices of Dubai apartments. So, the prices have gone down by around 0.5 million AED.

In the April month of 2019, the selling price of a regular Dubai apartment reduced down to affordable 1.7 million AED.

This is a huge drop of around 400000 AED when you compare with the prices of apartments during September 2015.

Related : Check Mortgage Rates Today

The price drop is visible in all property types

Along with the apartments, the market has become affordable for villa as well as townhouse buyers. The same time period of 4 years has reduced the townhouse and villa prices by 20%. So, a villa valued at 5.6 million AED is now available at 2.5 million AED or less. This is a great time for home buyers to select their favorite properties and invest.

Even the price drop between March 2019 and April 2019 was an impressive value of 1.5%.

Locations and communities with higher price declines

The price decline of properties is higher in certain locations and communities of Dubai. The locations such as Emirates Living, Dubai Silicon Oasis, Jumeirah Lakes, IMPZ and others are showing 14% or more decline in the prices.

Why Dubai properties?

Dubai has immense popularity among international property investors. People from the United Kingdom, India, Pakistan, and nearby Gulf countries invest in the lifestyle of this city.

The latest information from the Land Department of Dubai says that the investor interest is still high. The average transaction in the real estate market of Dubai is about .9 billion AED in a week.

Even in the presence of buyers, the market is expected to showcase a further decrease in the prices of apartments. More properties are getting developed and delivered, which tends to reduce selling prices.

Also Read : Dubai Mortgage Complete Guide

This holds a great opportunity for investors and buyers looking for cost-effective deals on the Dubai real estate market.

How about you leverage this opportunity and get your apartment in Dubai?

5 Money Saving Tips For Small Businesses

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In any economy it can be difficult to keep a small business going – but, with the right guidance on balancing the budget, a business can flourish. Here are some efficient ways costs can be cut even in small businesses:

1. Cutting shipping costs

Businesses that ship products to their customers can often be lumbered with substantial shipping costs, especially when dealing with international orders.

It pays for business owners to shop around for the best shipping rates or negotiate better terms. By doing so, not only can you save a substantial amount of money long-term from lower shipping costs, but you can potentially expand the range of places you can send your products to.

Amazon, for example, was able to sell books to 50 US states and 45 countries by the end of their first month of trading. 

2.Rewarding customers and employees

It pays for even small businesses to reward loyal customers with discounts on company products or services, and this helps to build relationships with the consumer that will bring the company more profit long-term. 

This doesn’t need to be limited to customers – you should also reward employees who are driving company profits. Rewarding profitability encourages more of it and improves the overall work environment.

3. Using open-source software

The overwhelming majority of businesses utilise software for operations at different levels of the business. This can make the workflow more efficient, but can also be very expensive for a small business.

When looking for software to suit different operational requirements, it’s best to also look into free open-source options and compare them with more expensive solutions to see if they meet requirements.

This isn’t just something small businesses take advantage of either, it’s something that large companies such as Yahoo! do too.

4. Cutting maintenance costs

Businesses, both large and small, incur some maintenance costs for different tasks, such as cleaning services or other routine service tasks.

This can accumulate a lot of unnecessary costs. A small business has the advantage of being able to reduce unnecessary services to more infrequent time periods in order to save money (by cutting back on cleaning or other maintenance services, for example).

5. Taking on entry-level recruits 

Small companies should take advantage of hiring inexperienced yet still perfectly competent people who they can pay entry-level salaries to. This would apply particularly to younger people, students for example, with newly acquired degrees who can apply their education to the entry-level sector of the business and gain the experience necessary to progress.

Lots of bespoke software engineering companies take on student developers as apprentices in order to save money, as opposed to spending more on a salary for an employee with years of experience.

6. Outsourcing where applicable

Businesses obviously require staff to carry out daily operations to keep the workflow and productivity of the business intact.

Small businesses, however, can also save money by outsourcing some work to independent contractors rather than hiring more full-time employees requiring expensive salaries in the long term.

Amazon, for example, outsources their inventory management while insourcing logistics to provide same day shipping.

7. Bulk purchases

Saving money by buying in bulk is something any business should be taking advantage of – whether it’s for general office supplies or equipment such as computers and peripherals, or products from online suppliers.

Generally speaking, these should be frequently purchased items or frequently used equipment. In addition to bulk buying, a business should compare and contrast different suppliers to find the best prices.

Loan Against Property in Dubai (Updated) | Compare4Benefit

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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 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.

Credit Score in UAE | All you Need to Know – Compare4Benefit

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Credit score in UAE

This blogs helps to know more about Credit score in UAE.

A credit report plays a significant role in your financial life. It helps banks determine how credit-worthy you are. Though introduced only in 2014, credit reporting is now standard across UAE.

This implies that it is now important to keep a note of your finances such that your credit report does not suffer.

No Annual Fee Credit card

Who Runs Credit Reporting In UAE?

The concerned organization is the Al Etihad Credit Bureau (AECB). It was set up by the federal government of the UAE in 2010.

Its function is to collect regularly, payment and credit information from both non-financial and financial institutions in the UAE.

After analyzing such data, AECB can come up with an accurate report (credit score) on the credit-worthiness of any given person. It indicates whether he or she is likely to default on loans.

What Data Is Collected?

Your bank will access AECB data about your financial obligations. Hence, if you have some loans and a few credit cards, it will be indicated in your credit report. Additionally, the details of your payment history will also be included.

Thus, if you regularly miss loan repayments, or your credit cards are maxed
out, it will be shown in your credit report.

At the same time, if you have a stellar record with no late payments of loans and a credit card which is always paid up, this will also go into your credit report.

AECB will also collect data from non-financial firms to know if you are current on other financial obligations.

Thus, for instance, if your telecom providing company reports on any missed bill payments,
or so does any other company, it will be recorded in your credit report.

Related : Are you Looking for Credit Cards with No Annual Fees. Apply on Compare4Benefit.

What Is Credit Scoring?

Credit scoring was launched last year by the AECB. It is a more advanced version of credit reporting.

For a credit score, the AECB will analyse all the data it collects about you and compiles it into a score.

The score ranges from 300 to 900. A low score indicates that you will be risky to be lent to while a high score indicates that you are dependable and not risky.

How is the Credit Score Calculated?

The process is much like a credit report. But while the credit report simply lists your liabilities and highlights any missed payments, the score provides a general indicator as to how risky a debtor you might be.

Issues like missed telecom bill payments, maxed out credit cards and bouncing cheques will all have a negative impact on your credit score.

The vital point to note is that your credit score is fluid and flexible. It changes much on the basis of your financial behavior.

This implies that if you have a poor credit score, you can adopt steps to improve it.

Why Do You Need Good Credit Scores?

Like the case of credit reports, banks will pull your credit scores when you are applying for a Credit card or Personal loan.

As a rule of thumb, most banks will refuse you a loan in case your credits score is less than 500 or 400. In sum, if you are planning to buy a vehicle or a home, you need a good credit score.

How to Improve the Credit Score?

You can take many steps towards improving your credit score. Firstly, get hold of your credit report and identify issues which are pulling down your credit score. After you do this, you must keep on top of your payments and ensure that all your financial obligations are met.

Improving your credit score is totally possible through careful planning.

How to Save on Car Insurance with a No Claim Certificate

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No Claim Certificate

 

Are you wondering about “No Claim Certificate” benefits for your car insurance? Well, you’re at the perfect place. Just keep on reading.

Actually, “No Claim Bonus” (NCB) is a discount that a policyholder receives from the insurance provider if he/she makes no claims throughout the policy term.

As a result, the policyholder gets a certain discount in times of renewing his/her policy.
Want to shift from the current insurance company to another? Then, collect your no-claim discount certificate from your last insurance company.

Without any doubt, NCB is a great way to save some of your hard-earned money on policy renewal.

car insurance UAE
How No Claim Certificate helps you to save your investment?

You’d be glad to know that a great benefit will be welcoming you in terms of “No Claim Bonus” every year. That means the more years you remain claim-free, the more discount you’ll gain.

In fact, NCB lets car insurance holders save maximum 20% on their premium.
According to the UAE Insurance Authority, a policyholder, who was claim-free for the duration of one to three years, is eligible for a discount anything between 10% and 20% regarding car insurance renewal in Dubai.

More than 10%? Some insurers also offer up to 30% of discount to policyholders, who haven’t claimed for five years. So, having a satisfactory driving history can lead you to a high discount on the premium.

However, a lot of factors are considered in this regard, including the policyholder’s age, occupation, and customer history, etc.

What will be the scenario after making a Claim?

Did you make a claim last year? Are you now wondering for your NCB cancellation? The real scenario is different.

Actually, car insurance providers alleviate the “No Claim Bonus” percentage while it comes to renewal of the policy.

Since no specific rule is there, the reduction amount differs for different insurance companies. So, be assured! Your NCB benefit won’t be nullified even after a claim has been made from your side for any unpredicted event.

If you have any confusion, get your queries resolved from your insurer.

What about transferring No Claim Certificate?

NCB is meant for an insured vehicle and so you can’t transfer it to someone else. Yes, transfer of NCB is possible in case of shifting the car insurance company.

Your previous insurer will provide you with a “No Claims Certificate.” Don’t worry- you won’t need to invest any further amount. The UAE Insurance Authority has set these new regulations.

What is No Claims Discount Protection?

I hope that you have now realized how NCB can be helpful in saving your investment in policy renewal.

However, it’s also important for you to know about No Claims Discount Protection. It’s all about a special protection feature involved with your NCB.

With this feature, you can rest assured of your discount in coming years even after making a claim.

Thus you can keep your NCB as it is in times of policy renewal even a claim has been already presented from your side. But, some limitations will be there.

Different insurance companies obey different rules for No Claims Discount Protection. So, it’s better to ask your insurer about all the guidelines.

If a policyholder meets an accident for his/her own mistake, this feature will not be applicable. A police report for the accident is needed to claim this protection.

Related : Car Insurance Cost in UAE