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Loan Against Property in Dubai (Updated) | Compare4Benefit

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Loan Against Property in Dubai
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Find The Best Mortgage, Home Loan In Just A Few Simple Steps!

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

 

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Mortgage mistakes first time home buyers should avoid

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Find The Best Mortgage, Home Loan In Just A Few Simple Steps!

This post highlights potential mortgage mistakes first time home buyers should avoid.

You don’t buy a home every day. It is a critically important decision that requires a strategy to perfection.

But, a first-time home buyer is more likely to make a few mistakes. Most mistakes happen when you decide to select a mortgage for your first house.

It is a common concept that we learn from our own mistakes. However, your house mortgage is not something you can afford to make a mistake with.

Related : Check Mortgage rates in UAE

Five First-time Home-Buying Mistakes to Avoid

 

  1. Not knowing multiple loan options

The biggest mistake you can make it not investing your time and effort in mortgage product research.

There are various options provided by the banks in the UAE for mortgage loans. Each comes with their specific benefits and features. But if you stay unaware of those features, mistakes happen.

People tend to ask a family member or their realtor and make their decision. You can’t afford to make an uninformed decision.

Thanks to online comparison sites for financial products, you can conduct comprehensive research in advance.

This way, you can find an exact match of mortgage for your needs.

Related : Compare Mortgages in UAE

2. Forgetting about a credit score analysis and pre-approvals

According to many people, finding a mortgage can take more effort than searching a property in the UAE.

There is a whole list of factors that go under evaluation before you get loan approval.

Banks, generally, look into your monthly income, credit score, and other factors to decide the loan amount you can acquire.

You can use Mortgage Calculator to determine your monthly finance repayments as well as the additional fees which is required to buy property and take mortgage in UAE.

This is the reason why you have to understand all the required pre-approval information. Then, get your credit score analysed before applying for a mortgage.

3. Applying for a too big of a mortgage

Banks are ready to offer the maximum mortgage amount, for which, you qualify. But, do you actually need that maximum amount?! This is the question smart home buyers ask in order to avoid a big mistake.

Big mortgage means a longer repayment period, which can impact your life in a big way. You need to think about the future plans and necessary phases of your life.

While banks evaluate the maximum amount of mortgage you can get. You should evaluate the minimum mortgage amount required.

Sit with your financial adviser to understand your daily, monthly and annual budget. Then, use the conclusions to align with the repayment method of a mortgage.

4. Not looking at house acquisition additional expenses

When buying a new house, you don’t just pay the asked price for the selected property. The acquisition process includes several additional costs.

Generally, you have to spend money as a valuation fee, land department fee, property registration fee, mortgage registration fee, processing fee for the mortgage and others.

These additional expenses can boost your payable amount up to 31 percent.

No need to say, you can’t afford to ignore these expenses. Otherwise, it will delay the mortgage acquisition and restrict you from getting your home.

See Also : How to Buy a Home in Dubai with a monthly salary of 10000 Dirhams?

5. Ignoring the annual home maintenance cost

When selecting your mortgage, you can’t only focus on the payment you give back for that mortgage. You are buying a house, which also puts pressure on your financial state.

If it is a big house, you will be spending money every year for its maintenance. Repair and other costs are factors that people forget when looking at their mortgage payments. You shouldn’t make this mistake.

Why make mistakes when you can prepare to perfection! You can strategize your mortgage for a new house by avoiding the mistakes mentioned above.

Do this and you will find yourself relaxing in your dream home soon. That too, without worrying stressing over the mortgage you have acquired.

Suggested Article : Dubai Mortgage for Non Residents in UAE

Car Registration in Dubai and UAE – A Short Guide | Compare4Benefit

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Car registration Dubai

Thinking of renewing your car registration? Here is a simple guide to car registration in Dubai.

In Dubai and other cities of the UAE, you are required to register your car every year.

In the case, you have freshly purchased a car; the car dealer will handle the complete registration process in the first year.

But, from the second year, car owners must complete the procedure themselves.

The car owner in Dubai needs to spend approx. Dh 500 for car testing and renewal of registration.

car insurance UAE

It can be done by the owner himself through online means or taking the help of any other agency.  

Since April 2018, new toll gates set up on roads across Abu Dhabi have been scanning cars which pass by for checking whether they are registered.

Related : Looking for Online Car Insurance? Get Best deals on Car Insurance from Compare4benefit.

Thus, annual registration of your car is mandatory by law. The good news is that authorities in the UAE have made the process of renewal simple and seamless.

The car owners are given a 30-day grace period for renewing expired registration. This permits car owners to conduct necessary repairs on their car if it fails the inspection procedure. This is why car insurance policies are 13 months long.

Formerly car owners had to pay Dh 10 for every month that they failed to renew the car registration after the 30-day grace period.

But, since April 2018, the fine has increased to Dh 500 and four black points while they pass via new toll gates in Abu Dhabi. Such cars can be impounded for 7 days, and in some cases, the drivers have lost their licenses.

Car Registration in Dubai Renewal Process

  • Documents required:

Firstly, pay up all bills related to the car like unpaid traffic fines.

You must also resolve any black points with the Dubai or Abu Dhabi police.  

For renewing registration, you require your Emirates driving license and Emirates ID as well as 3 important documents: car test certificate (car must pass the exam), old registration card and renewed motor vehicle insurance.

  • Getting the car tested

In their first two years, new cars are exempt from testing.

After this, you will need to visit one of the RTA or ADNOC vehicle testing centres to have your car assessed and earn the ‘passed’ certificate.

This is to ensure that the car is roadworthy and its tyres, suspension, steering, braking systems as well as chassis are in good condition.

Based on the vehicle category, you must also display your fire extinguisher, spare wheel, and safety triangle.

The test costs around Dh 170, takes 20 to 40 minutes, based on customer volumes and is valid for 30 days.

In the case, validity lapses or car fails test; it must be subject to a re-test which needs fees to be paid again.

Where To Go?

When you buy a car freshly from a dealer, he will take care of renewing registration in the first year.

But in the second year, you must do the renewal yourself. The UAE authorities have several conveniently located centres to complete renewal.

How to Renew Car Registration in Dubai

You have two options:

  • In person

Wait in the registration center; pay the renewal fees and pick-up the renewed registration card.

You will be handed with a new registration sticker with a fresh expiry date. Place the new number plate on the old one.

  • Online

Try the online route by heading over to the RTA website or e-service portal of the Abu Dhabi police.

Simply select your vehicle, submit relevant documents and confirm delivery method (pick up or courier). Your application will be processed in 5 days.

  • Outside agency

In the case, you don’t have time for the above; you can use “Personal Appearance Service” of the RTA.

A pin will be provided after submitting registration details at the RTA centre. You can then use any other person to do the renewal process on your behalf using this pin.

This pin expires with one visit by your representative and must be renewed for further visits.

This is the process of car registration in Dubai and the rest of the UAE.  

Best Personal Loans in UAE 2019 (Updated) – Compare4Benefit

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Personal Loan UAE 2019
Find the Best Personal in UAE
Find Personal Loans from a wide range of banks in UAE that best suits your needs. 

This post contains all the relevant information regarding Personal loans in UAE.

Looking for a some little extra money?

If this situation sounds familiar, you may want to consider a personal loan.

If you are in the search for a personal loan, you must ensure that you have the ability to pay back the amount you borrow.

Personal loan UAE - No Salary Transfer

Save your valuable money by paying off the loan at the earliest, if you can afford to. So plan things accordingly.

Your next big choice is going to be where to get your personal loan.

Infographic Uae Personal loan

We rounded up the most trusted and reputable personal loan companies, so you can count on getting the best rate and deal possible.

Find the best personal loans in UAE and compare rates and features and choose a loan based on your circumstances.

Popular Personal Loans in UAE  2019

Personal LoanInterest RateProcessing FeeSalary Required
RAK Bank Personal Loan3.18%1% of outstanding amount5000 AED
Citi Bank Salary Transfer Loan3.73% 1% of the finance amount8000 AED
Emirates NBD Personal Loan2.69% 1% of the finance amount5000 AED
Emirates Islamic Personal Loan3.99% 1% of the finance amount5000 AED
United Arab Bank Personal Loan2.87%1% of the finance amount7500 AED
Commercial Bank of Dubai Personal Loan5.50% reducing per annum1% of the finance amount10,000 AED
Standard Chartered Bank Personal Loan3.55%1% of the finance amount30,000 AED

Compare Personal Loans in UAE 2019

 

1. RAK Bank Personal Loan

 

RakBank Personal loan UAE

For people who need a large loan, RAK Bank Personal loan can be an ideal choice as they provide loans Up to 20 times of your salary.

This effective interest rate of 3.18% is easily one of the lowest in the market for 4 year loans.

Furthermore, RAK Bank personal loans may be a good fit for low-income borrowers, as they provide loans to individuals with salaries of at least 5000 AED, which is much lower than other banks.

Summary of Rak Bank Personal Loan Features

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

                      Click Here to Apply for RAK BANK Personal Loan                     

 


 

2. Citi Bank Salary Transfer Loan

 

Citi Personal loan UAE

Citi Bank Salary Transfer Loan is likely one of the best options in the market for those who are looking for a High Finance personal loan in UAE and expect to be able to pay it off within 3 years.

 

They provide loans to salaried people without much obstacles and company listing is not a big factor unlike competitors.

For loans of 1–4 years, Citi banks’s effective flat interest rate is 3.73%. Citi bank also provide personal loan in uae without salary transfer.

Summary of Citi Bank Salary Transfer Loan Features

▣ Minimum Salary Requirement is 8000 AED

    ▣ Optional Insurance.
    ▣ Flat Interest rate is 3.73%
    ▣ Fast Approvals is the major advantage of this loan.
    ▣ 1 % of the loan amount is charged as the processing fee.

                Click Here to Apply for Citi Bank Salary Transfer Loan                        


 

3. Emirates NBD Personal Loan

 

ENBD personal loan transfer

Expats working in UAE consider applying for personal loans through Emirates NBD which offers the lowest income requirement for expats, 5000 AED of any bank in our review.This loan comes up with an exclusive loan return option.

Summary of Emirates NBD Personal loan Features

▣ Minimum salary requirement is 5000 AED.

▣ Great for Free bank account with no minimum balance required.

▣ Emirates NBD provides loan deferment option(can skip two non consecutive installments).

▣ Processing Fee is 1% of the loan amount.

▣ An Insurance Fee is charged on the Loan Amount.

▣ Insurance normally comes up with a double credit life coverage.

▣ Flat Interest rate is 2.69%.

                  Click Here to Apply for Emirates NBD Personal Loan                        


 

4. Emirates Islamic Personal Loan

 

EIB Personal Loan

Emirates Islamic Personal Loan is an Islamic Finance which offers finance amount of Up to 2 Million AED to customers.

 

They charge a lower profit rate and there is no over limit fee or any additional charges involved. The profit rate starts from 3.99%.

Summary of Emirates Islamic Personal loan Features

▣ Minimum Salary Required is 5000 AED for Salary transfer Loans and 10,000 AED for Non      Salary Transfer Loan.

▣ No Annual Fee Credit card for the first year.

▣ Fast and Simple Documentation, Approvals in 1 day.

▣ Processing Fee is 2.50% of the finance amount.

▣ Early settlement fee is 1% of the remaining principal amount to date.

▣ Islamic Financing Structure is followed.

▣ There is a Takaful fee involved in this loan which is 0.75% of the Finance Amount.

             Click Here to Apply for Emirates Islamic Personal Loan                     


 

5. United Arab Bank Personal Loan

 

United Arab Loan

If you don’t fall within the income bracket of 8000 AED  and above, United Arab Bank will be your best option with the flat interest rate of 2.87% per annum.

Buy out facility is available from other banks. This loan offers an option to postpone two installments in a year.

Summary of United Arab Bank Personal Loan

▣ Minimum Salary Required is 7500 AED.

▣ Top Up Loan Facility is offered by United Arab Bank.

▣ Loans up to AED 2 Million.

▣ Free credit card for the first year.

▣ Processing Fee is 1% of the loan amount.

▣ Early settlement fee is 1% of the remaining principal amount to date.

▣  Loan repayment up to 4 years.

                  Click Here to Apply For United Arab Personal Loan                         


 

6. Commercial Bank of Dubai Personal Loan

 

Cbd Personal LoanCommercial Bank of Dubai allows you to borrow up to 20 times of your salary. They also provide free life insurance to cover outstanding loan.

Competitive interest rates starting from 5.50% reducing per annum.

Summary of Commercial Bank of Dubai Personal Loan

▣ Minimum Salary Required is 10,000 AED.

▣ Huge Finance Amount to Expats and UAE Nationals.

▣ Free Life Insurance to cover outstanding loan amount.

▣ Processing Fee is 1% of the Finance amount.

▣ Personal Loan buy out is possible with or without topping up the loan amount.

▣ CBD offers deferment options to their customers.

     Click Here to Apply for Commercial Bank of Dubai Personal Loan     


 

7. Standard Chartered Bank Personal Loan

When you really really need a quick source of fund, Standard Chartered Bank offers fast approval personal loan.

 

You can get up to AED 2,500 cashback* post disbursal when you apply online. Interest rates starting from 3.55%.

Summary of Standard Chartered Bank Personal Loan

▣ Minimum Salary Required is 30,000 AED.

▣ 1% of the the finance amount is  charged as the processing fee.

▣ Maximum Finance Amount is 1 Million.

▣ Loan take over facility is available.

▣ Offers Installment Deferment Option( Twice in a year).

▣ Minimum balance requirement is waived during the loan period.

▣ Top up loan facility is available.

        Click Here to Apply for Standard Chartered Bank Personal Loan            


Basic Documents required for Personal Loan in UAE

Personal loans require basic documents like:

  • Copy of ID card issued by Govt. or Labour Card.
  • Passport copy
  • Salary certificate
  • Emirates ID copy
  • Salary transfer letter
  • Bank statements from 3 to 6 months.

For self-employed:

In the case of personal loans for the self-employed, banks will ask for a minimum turnover or will check the average balance in your account for the last 6 to 12 months. Another factor is the length of your business. You will also need additional documents like:

  • Memorandum of association
  • Trade license
  • Audited Financials
  • Power of attorney of expat, clearly indicating borrowing clause (for the sole proprietor)

                    Tips for Seeking Personal Loans in UAE

personal-loan-uae-dubai

Obtaining a personal loan may seem like a tedious process featuring many potential pitfalls. Banks are experts in disguising harmful terms in fine print. Here are some tips for helping you secure the right loan:

  • Shop around

The first step is to shop around at various banks for the ideal interest rate and loan.

Often, your regular bank will not offer you good terms as they are interested in selling expensive products to their current client base.

Hence, by shopping around, you can gain the upper hand in finding the cheapest loan in the market.

  • Watch out for interest rate

There are two kinds of interest rates offered by UAE banks. These are flat rate and reducing rate.

A flat interest rate implies that the amount of interest paid is fixed at the time of issuing the loan.

It does not reduce with the passage of time. This is an unconventional method used by banks to make interest rate seem lower than the reality.

With reducing interest rates, the amount of interest gets reduced every month, based on principal repaid.

  • Compare and review terms and conditions

The terms and conditions of the personal loan are as crucial as the interest rate. Certain terms and conditions include hidden penalties and fees. So Compare Personal Loans before applying.

It is also vital to note the terms at which the loan can be repaid early.

It is a fact that most bank customers for personal loans have no clue about the interest they are paying, when the repayment will take place and what the terms of the bank are for early repayment.

  • Be aware of additional products

Some of the banks register you automatically for payment or credit protection insurance as soon as you borrow funds.

You must review the terms of the insurance to help identify whether you should stay with it or seek your own insurance policy.


Rules about Personal Loans in UAE from the UAE Central Bank     

                      

The UAE Central bank has stipulated some rules with regard to personal loans as follows:

  • Limit

The maximum quantum of personal loans has been set as twenty times the monthly salary or total income of the borrower.

This implies that your complete personal loan eligibility is 20 times your monthly gross salary.

For instance, if your monthly salary is AED 10,000, then you are eligible for AED 200,000 of personal loans.

  • Repayment period

The repayment period of personal loans must not exceed 48 months.

  • DBR (Debt Burden Ratio)

Deductions from regular income or salary of any borrower for all kinds of loans issued by banks or finance companies must not exceed 50% of gross salary and regular income from a specific or defined source at a time.

This rule applies to private housing and car loans, credit cards and overdraft facilities and also personal loans. DBR for retirees is fixed at 30% of pension salaries.

  • Security check

Finance companies and banks may only take from the customer, the number of post-dated cheques covering the installment and value not exceeding 120% of the value of loan or debit balance.

  • Loans to self-employed

Loans extended to companies and sole proprietorship, secured by salaries of owners of partners will be treated in the same way personal loans are treated and will be subject to the same terms and conditions.

  • Loans for Armed Forces

DBR is fixed at 50%. In case banks do not adhere to such rules, the Armed Forces may transfer salary to any other bank, without referring to the bank which extended the loan.

  • Application forms

Personal loans can be extended as per application by the customer to be approved by the finance company or bank with a standard agreement.

  • Processing fee

This fee on personal loans cannot exceed AED 2500.


Processing of Personal Loan in UAE

UAE Personal Loan Process

The process of taking a personal loan is straightforward:

  1. You get in touch with a bank or finance company via any medium like a branch office, sales team, online service, etc. and express your desire to apply for a personal loan.

2. Bank will ask for following documents: Duly filled form of application, valid copy of              passport, valid copy of visa, copy of Emirates ID, Labour Card and Company ID,                bank statement of 3 to 6 months, original letter of salary transfer.

3. After all this information has been verified by bank representatives, it is entered into          the  loan system and documents are passed onto the processing centre (Physically or          electronically).

4. The officials at the processing center verify details and conduct credit checks like Etihad      Credit Bureau checks, internal system checks, Central bank system checks etc.

5. After this, the application is forwarded to the underwriter who declines or accepts the          application after considering different aspects like if you fit in the internal policies of the      bank, rules of the central bank, etc.

6. After this, the bank may place call verification at the office of your employer.

7. When the verification have been completed, your application is sent for issuing your            loan.

8. You will be notified about loan approval and money will be credited to your account.


Why are Personal Loans rejected?

You have applied for a personal loan, but it is rejected. Some of the reasons for this are:

  • High DBR: If Your DBR exceeds 50%, you are refused loan as per Central Bank rules.
  • Poor credit history: Banks can access your credit history via Etihad Credit Bureau. If you have not repaid other loans on time, your fresh loan will be rejected.
  • Irregular transactions in banks: In case your bank account exhibits irregular transactions such as full withdrawal of amount after crediting of salary, your personal loan request may be rejected.

In sum, to get positive approval of personal loans in UAE, you must keep up a healthy credit profile, a good bank statement and not apply for loans in more than one bank. Because of consolidation of records of all UAE banks at Etihad Credit Bureau, banks will now have access to your credit profile and your current outstanding applications.

Get up to 100% discount on Dubai traffic fines – Money Clinic

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Dubai New Traffic Fines

Dubai Police has taken an initiative in the Year of Tolerance with 100% traffic fine discount. Motorists are offered a chance to remove all their current traffic fines.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has directed the launch of this initiative.

car insurance UAE
During the press conference organized at the headquarters of Dubai Police, the initiative was discussed by the Commander-in-Chief of the department of Dubai Police.

According to the Commander-in-Chief Major General Abdullah Khalifa Al Marri, motorists don’t need to pay their existing traffic fines, as per the specified rates.

However, this is possible if they keep on following the traffic rules this whole year.
Assistant Commander-in-Chief, Major General Mohammed Saif Al Zafeen explained that this initiative is applicable to all Dubai registered vehicles.

The condition is that a driver has to follow all traffic regulations and laws without committing any traffic rule violation throughout this year, right from the month of February 2019.

The idea behind this initiative is to increase customer happiness and satisfaction living in the UAE. It also aligns with the initiative of the Year of Tolerance.

Though the drivers can obtain a 100% discount, the discount depends on the number of months a driver spends without any traffic rule violation:

1. Following the traffic rules for at least 3 months- 25% discount
2. Following the traffic rules for at least 6 months- 50% discount
3. Following the traffic rules for at least 9 months- 75% discount
4. Following the traffic rules for 1 year- 100% discount

Are you looking for discounts on Car Insurance too?  Get Discounts on Car Insurance 

Al Zafeen also explained that this discount initiative is only for the vehicles that are privately owned. All vehicles registered with companies, rental offices or businesses don’t come under this initiative. This includes both private as well as public transport companies.

Car Insurance Cost in UAE

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Car Insurance cost UAE

Deciding on the car for yourself is easier but determining the insurance type you need and the cost of the insurance covered is tedious. The car insurance cost in Dubai is low when compared to other countries, but let me ask you something how many of you know the reasons for your car insurance cost?

You need to know about the various factors that produced a significant impact on your car premium namely the car type, age, etc. Sort out different option you have when choosing a policy and calculate the car insurance cost as per your budget and other requirements reliably. Today we will check on the value of your car insurance and additional related information in depth.

Related: Get VAT Free Car Insurance in UAE

Car Insurance Cost – Getting Started:

There was a revision in the car insurance cost by the UAE Insurance Authorities in the name of Revised Insurance Rates, which indicated a considerable hike in the price.

Everyone might have known about the “ballpark” figure and their different types of caps (Minimum and maximum) number of car insurance caps. The real fact is that the overall rate of your premium car insurance is affected by certain other vital factors (can or cannot controlled ones).

We have listed down few details which will provide a quick look on the variables that affect your car insurance rates in UAE as well as the process of your premium calculation in a detailed way. Apart from the estimates and cost they also will help you in choosing the best price for your new brand cars.

Related: Apply for Auto Insurance in UAE

Proceed below to check out some essential factors that are being the main reasons for making your final premium car insurances.

Drivers driving experience and Age:

Everyone in Dubai knows the fact that Age plays an essential role in the calculation of premium car insurance rates. A new and expensive car need proper care and protection, and therefore it’s necessary you get Comprehensive coverage’s for your vehicle without fail.

A new car will be expensive to replace or repair when there are any damages to them. In this case getting a comprehensive coverage means you are not needed for paying anything from your pocket, this does not mean that you are asked for higher premium rates for a newly brought car as human beings tend to be more careful when they drive a new vehicle.

There is third party liability cover with minimal properties to protect your second hand or older cars, and therefore this makes your premium lighter.

Related: Car Insurance Rates by Age.

Your Car Feature and Type

Whether you have the older car or else adapted to the latest roadster, the car features and type you have chosen brings a significant role on the premium car insurance rates in UAE. Sports, Luxury or any other related expensive cars will lead to an inexorable price when you repair or replace them as they are found to be rare and have high rates for their spare parts.

The faster acceleration in new and higher performing cars can lead to severe accidents and provide a high-cost premium insurance rates. Apart from that insurance agents will take car ratings, safety features of the vehicles, models and other car specifications to calculate your premium car insurance rates.

Related: 21 Cool for buying and Maintaining your car

Deductible or Excess

The amount of money that you agree to spend from your pocket during any accidents that are caused by you is considered to be the deductible or excess part. If you are ready to pay the excess price, then your premium rates will be lower, in some cases excess means the fixed amount in whatever damage or situation.

Agency or Non-Agency Repairs

If your car dealership does the repairs then its derived as the Agency repairs whereas if an external garage mechanic does the repairs, then its referred to as the non agency repairs, this can be accredited by your insurance company. Agency repairs can be included in your existing policy or else can be added to your insurance policy, but you will be asked to pay the additional cost for them.

Other Optional Features

For other optional benefits or add-ons, you will have to add your existing policy, and you will be charged a certain fixed amount for each of the add-ons or features like the international cover, off-road cover, car hire, roadside existence, etc. You need to be very careful to consider all of the above features when picking your insurance policy from the insurers, and they may vary depending on your lifestyle.

How to Estimate your Car Insurance Costs?

Here are some of the basic formula to calculate your car insurance rates in UAE.

● Value of your car < AED 100,000 – Base starting rate is 3.25%.

● Value of your vehicle is less than AED 3000,000 and greater than AED 100,000 – Base starting rate is 3%.

● Value of your car > AED 300,000 and less than a million – Base starting rate is 2.75%

Now apply a few surcharges or discounts as indicated below.

● Age between 23 and 25 – add 25%

● Age between 25 and 30 – add 15%

● Age more than 30 and less than 60 – Subtract 10%

● Drivers License less than a year old – add 25%

● Your car is SUV or any 4 Wheel drive – Subtract 10%

● You have a new brand car – subtract 10%

● Your car is a sports or couple car – add 20%

● Your vehicle is registered in the Northern Emirates or Abu Dubai instead of Dubai – add 5%

● Do you need to get the cover for the personal accident for the driver – add AED 120

● Do you need to get the cover for the personal accident for the Passenger – add AED 30 per person

● Your car > 3 and five years old along with your wish to have an agency repair – add 30%

● For Rental Car Benefit – Add AED 150.

 You are claims free and if you need to prove it then subtract

● One year no claims certificate – 5%

● Two years no claims certificate – 10%

● Three years no claims certificate – 15%

● Four years no claims certificate – 20%

● Five years no claims certificate – 25%

Related: A Complete Guide to Car Insurance in UAE

Dubai Mortgage for Non Residents in UAE

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Dubai Mortgage for non residents
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Find The Best Mortgage, Home Loan In Just A Few Simple Steps!

This blog is a complete guide on Dubai Mortgage for Non Residents in UAE.

Are you a Non-resident searching for the best property to purchase in UAE? If so, this guide will let you know about the things you need to know before you explore the search.

The number of non- residents people across the world have started investing in buying villas and apartments in the UAE, some of the people prefer tax free capital gains, some others looking for lifestyle investments and few other needs tax free rental yields that can reach about 10% primarily on the smaller apartments.

UAE Market have seen both ups and downs in the real estates, there was a recent change occurred in the UAE regulations and this has made non-residents people to overseas purchasers and has brought a significant impact on their industry.

Banner Mortgage UAE

What places can Non-Residents Purchase in the UAE?

They can be classified into three regions namely Abu Dhabi, Dubai, and The Northern Emirates.

Abu Dhabi:

Non-GCC National people means the one who is not from Kuwait, Bahrain, UAE, Oman, Qatar and Kingdom of Saudi Arabia is capable of getting freehold and leasehold property in specific investment zones around the Abu Dhabi which includes Reem island, Yas Island, Al Reef Village, Raha Beach, Saadiyat Island and much more.

Dubai:

If you are a foreigner and not a person who currently lives in UAE, then Dubai law states that you are capable of purchasing a freehold property in any of the twenty-three freehold areas namely Emirates Hills, Al Barsha South, Dubai Marina, Sheikh Zayed Road, Palm Jebel Ali, Palm Jumeirah and much more. You can also get from any of the leasehold properties.

The Northern Emirates:

Non-residents can purchase both leasehold and freehold properties in Umm al Quwain, Sharjah, Ras Al Khaimah, and Ajman, and you can buy most of the property as the leasehold basis.

Is it possible to get a Mortgage to buy UAE Property as a UAE Non-Resident?

Yes but with restriction! Non-UAE residents are provided rights to buy a mortgage from the UAE lenders with few limits, the UAE Mortgage Cap law needs the Non-UAE people to have down payment cash of 25% of the property value added to the cost of purchase, this is 20% of UAE nationals.

The price may increase to 35% added to the property cost if it goes above AED 5 million, whereas it’s 30% for the nationals of UAE. In the case of getting a second or third property then you need 40% as a down payment cost added to the value of the property.

Related: How to Buy a Home in Dubai with a monthly salary of 10,000 Dirhams.

Down Payment Cost Requirements for Non-Resident and Expats (Non-UAE Nationals)

● If your purchase type is first property and the purchase price is below AED 5 million, then your minimum down payment is 20%, and maximum loan to value ratio (LTV) is 75%.

● If your purchase type is first property and the purchase price is over AED 5 million, then your minimum down payment is 35%, and maximum loan to value ratio (LTV) is 65%.

● If your purchase type is second or third property and the purchase price is any cost, then your minimum down payment is 40%, and maximum loan to value ratio (LTV) is 60%.

● If your purchase type is under construction or off plan and the purchase price is any cost, then your minimum down payment is 50%, and maximum loan to value ratio (LTV) is 50%.

Few steps Non-resident can follow while purchasing a Property in UAE.

Follow the below steps before you purchase a property in UAE as an expat or foreigner.

● Explore what property type you are going to purchase, apartment or villa, commercial space or land or a plot.

● Research in-depth for the available properties online.

● Contact a developer directly or real estate agent or familiar person to know the details of the properties thoroughly.

● Make sure whether nonresident people have the right to purchase the land, you need to have a steady salary as well as should be legal to live in the UAE.

● Choose the right property after checking every document wholly and then pay your deposit.

● You can purchase a home loan or mortgage from any famous, reputed or trustworthy financial institution.

● Transfer deeds and pay the land registry tax correctly.

Related: Compare and Apply for Mortgages in UAE

Fees and Taxes you need to pay

● Abu Dhabi Transfer Fee – 1% to 2%.
● Dubai Land Department Transfer Fee – 4% added to the 540 AED administrative fee.
● Registration Fees – 2000 AED added to the property below 500,000 AED.
● Mortgage Registration Fee- 0.25% of loan + AED 10 fee.
● Registration Fees Cont – AED 4,000 for property above AED 500,000.
● Mortgage Processing Fee- Up to 1% of loan amount.
● Valuation Fee – AED 2,500 to AED 3,500.
● Conveyancing fees (where appropriate) – AED 6,000 to AED 10000.
● Estate Agency Fee – 2% of purchase fee.
● Downpayment – 25% of property cost.
● Oqood fee, for off-plan properties – 4% of purchase price.

Documents needed for getting a Mortgage in the UAE

Most banks will ask for the credit reports from the resident country, liabilities details including loans, credit cards, one-year bank statements and an entire heap of documents.

You require a scanned copy of passport, last three months bank statements justifying that you are working in the present company. There are no requirements for credit check documentation, no liability letters or employment proof.

You also need to attend mortgage offer letter in Dubai at some specific stage of the process, and this cannot be neglected as its mandatory at the final step of purchasing at the DLD (Dubai Land Department).

It would be better if you also made sure about the additional cost included in the transaction of property such as the realtors commission, property valuation free, registering fees, the land department transfer fee and much more.

Are you interested in buying a property in UAE? To live yourself or whether as an investment or need any guidance on the UAE Mortgages? If so, you can request a free consultation with us.

You can use our contact form from our website and then submit your complete details, once we receive the request we will provide a team member from our side to give the consultation with you at some time and date.