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Commercial Property Mortgage in UAE 2022

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Commercial-property-UAE

The UAE has been the hub of attraction for many commercial centers. Every day one or the other business pops up in the country. Several businesses established in the country reach new heights of success.

The diverse population of the UAE is one leading contributor behind the bountiful business opportunities.

Apart from favorable demographic factors, the country’s financial regulations are also perfect for a business to thrive. Both new and established businesses in the country are blessed with an ideal environment for entrepreneurship.

A major benefit for businesses in the UAE includes the ease with which commercial property mortgage loans can be acquired in the country.

What is a Commercial Mortgage?

A commercial mortgage is any mortgage for commercial property, including office buildings, retail spaces, industrial buildings, hotels, and more. Commercial mortgages usually have higher interest rates compared to residential mortgages and take more time to process due to the complexity of appraising the underlying property.

Commercial Property Mortgage Loans Dubai 2022

Commercial property mortgages for a business can help in covering a significant amount of the cost of a commercial real estate property. A business can also purchase commercial assets with such loans, which could not have been possible to purchase otherwise.

Even if a business can afford to purchase its commercial property, a commercial property mortgage loan can help businesses retain the cash for future use.

Commercial property mortgage loans can offer numerous other benefits. The benefits will depend upon industry, business opportunities, and situation. But every business can gain something or the other from a commercial property mortgage loan.

Steps To Apply For A Commercial Mortgage Loan

You need to follow a few steps before applying for a commercial mortgage loan. The steps are as follows:

1. Assess Your Financial Status

Can you repay all your monthly installments? Before applying for a commercial mortgage loan, you need to show evidence.

A lender needs to know that your business will be capable of repaying the loan. You have to show that your financial status can deal with commercial mortgage payments. You need to have a practical idea about your finances before applying for a commercial mortgage loan. You need to check the maximum payment your business can afford to pay every month. 

2. Find A Property

You have to find a property before you can apply for a commercial mortgage loan. You should begin by creating a list of requirements in terms of location. It will help in narrowing down your search for the perfect business location. The major leasehold commercial properties like labor camps and warehouses are located in Free Zones. Some of the other major industrial areas in the UAE include the following:

  • Dubai Investment Park
  • JAFZA
  • National Industries Park
  • Dubai Production City
  • Dubai Industries Park
  • Al Hamra Industrial Zone 
  • KIZAD
  • Al Ghail Industrial Area
  • Al Jerf Industrial Area
  • SAIF Zone

Your industry and business activity will play a key role in detecting the perfect location for you. Free Zone areas can be perfect for businesses dealing with export, import, and warehousing. Such companies will be able to have full business ownership and tax exemptions in the Free Zone areas. 

Businesses dealing with manufacturing, trading, engineering, or transportation can benefit from commercial properties at Mussafah in Abu Dhabi and Al Awir, Jebel Ali Industrial areas, and Al Qoz in Dubai. The Sharjah Industrial area would also be a perfect commercial location for such businesses. 

You should engage with a real estate agent to begin your search for the ideal property. A real estate agent can help you get on platforms where property owners have made their listings. But you need to be careful while finding a reputable real estate agent to help with your search.

3. Find A Trusted Lender

You can approach various lenders in the country for your commercial property mortgage loan. You can go to a reputed bank to get your commercial property mortgage loan. For instance, RAKBANK can offer you a low interest rate of 2.69%. You can get twenty five years of repayment tenor if you opt for this loan. You can also ask your acquaintances to recommend lenders appropriate for your business.

Remember, commercial property will be the heart of your business. Therefore, choose a lender who will be able to understand your company and its business operations. Your lender should become a partner in the growth of your business.

4. Draft A Business Plan

When you approach a lender, they might ask for an elaborate business plan. You have to provide them with a clear idea about your business plan. You need to show them your plans to make your business venture more profitable.

Your business plans and projections need to be as detailed as possible to earn the trust of the lender. If the lenders feel confident about your business, they will be more likely to lend you a commercial property loan. The lenders will be eager to know how the new commercial property will impact your business and lead to future growth.

5. Think About Other Fees And Costs

Apart from paying the mortgage rate, you will have to think about the other costs associated with taking out a commercial property mortgage loan. You have to focus on the valuation fees and processing fees. Some other costs include legal fees and property insurance fees. You also need to think about the redemption fee in case you pay off your mortgage early. 

Commercial Mortgage Loan For A Startup

A startup often struggles with arranging its finances. A commercial mortgage loan can help in obtaining fixed assets while repaying the loan easily. A startup will be able to increase its equity while maintaining its liquidity for more productive purposes. 

Commercial Mortgage Loan For An Established Business

An established business will have more financial prowess than a startup. But a commercial mortgage loan can become beneficial for an established business if it wishes to expand. An established business can also obtain a higher loan amount which will ensure the stability of the business in the long run. 

Buying a commercial property in the UAE is quite straightforward and can be done without much hassle. You only need to follow the right steps and get in touch with a trustworthy financial partner and property advisor.  

Final Thoughts

Buying a commercial property in the UAE is quite straightforward and can be done without much hassle. You only need to follow the right steps and get in touch with a trustworthy financial partner and property advisor.  

 

UAE’s property buyers will have some adjusting to do on their mortgage bills in 2022

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Have you been planning to take a mortgage to purchase a property in the UAE? You might have to make some changes to your plans. The low home financing rates in the country will see a rise in the year 2022.

According to reports from a Reuters survey, the price of residential properties in Dubai will see an increase of 5% in 2022. It was initially predicted that the rise would be around 2.5%. 

A lot of property investors had already made their minds before the year 2022 kicked in with a rise in home financing rates. It is quite evident from the rise of mortgage-backed home sales in the second half of 2021. In the last six months of 2021, mortgage-backed home sales made up half of the overall property sales. Homeowners did not fail to take advantage of the low mortgage rates at around 3% to 3.5%. 

The value of properties in the UAE marked a sharp rise in the period between 2014 and 2015. But property values at most locations in the country were available at way below the peak rates in 2014 and 2015. However, the low value of properties will cease to exist from this new year.

The prices of properties at varied locations are showing a steady rise. The surge is expected to continue at around 3% even in the year 2023. 

Some of the long-term rental areas include Al Nahda, Bur Dubai, Dubai Silicon Oasis, and Jumeirah Village Circle. On the other hand, some particular locations for luxury units include Palm Jumeirah, JBR, Downtown Dubai, and Dubai Marina.

The two prime end-user locations, Dubai Marina and Downtown Dubai, are in particular likely to witness the rise in property prices. The jacked-up home finance costs will be accompanied by more than one rate hike in terms of mortgage rates.

But mortgage rates will see an increase for another leading reason. The UAE Central Bank has announced a closer watch on the local banks. All lending’s related to real estate, including mortgages, will be under the supervision of the UAE Central Bank. Due to the scrutiny of a higher regulator, the banks are likely to turn more conservative. All types of financing related to real estate will become more complicated than earlier. 

What Can A First-Time Property Buyer In The UAE Do In This Scenario?

Experts have suggested that opting for a long-term fixed rate will be more beneficial for first-time buyers. The most prudent choice will be mortgaging between three and five years linked to a low follow-on rate. It will ensure that first-time buyers can budget for the longest possible term. It will also help in mitigating risks in the case of changing circumstances. 

First-time buyers can be saved from unexpected bills by settling for long-term fixed rates. Sometimes variable rates seem appealing to first-time buyers. But a first-time property buyer in the UAE needs to remember that this is a period of low-interest rates.

It can only be estimated that the interest rate will be on the rise in the upcoming days. Therefore, sticking with fixed rates would be a cautious step to take in the current scenario.

Why Should You Choose Fixed Rates Over Variable Rates?

The current market trend shows that an increasing number of people are settling for fixed rates over variable rates.  

Fixed rates offer a lot more security than variable rates in the current scenario. People looking forward to a budget for a specific period of time should choose fixed rates without second thoughts. In fact, even lenders favor fixed rates over variable rates in the present circumstances. Banks offer more options in terms of fixed rates than variable deals.

The fixed rates can be for one year or for as long as fifteen years. But the mid-term options from three years to five years are more convenient. It enables people to assess their plans at the end of the fixed rate deal period. People looking forward to refinancing their current home loan should not let go of this opportunity. They can switch to a cheaper deal if their current rates are higher than market rates.

Choose The Best Mortgage Rate

ADCB is currently advertising their mortgage rates below 3%. On the other hand, Emirates NBD has pegged their rate around 4.5% to 5%. Some other leading local lenders have kept their rate around the 3.5% mark.

Some lenders try to counter the low rates with the help of a floor rate. It indicates that the mortgage rate will not fall under the floor rate irrespective of market conditions. It creates a huge sense of security for lenders. 

Wrapping Up

Homebuyers need to focus on some factors beyond the interest rate. The factors include fee finance, offset accounts, and overpayment allowance.  

How Do I Get Pre-Approved For A Mortgage In Dubai?

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With every passing day, the United Arab Emirates is becoming a popular destination in commerciality. Places like Dubai and Abu Dhabi face rapid and extensive growth because of their ever-growing and flourishing businesses across the globe.

In an endorsement of this happening vogue, you will find that the mortgage market in the UAE is extremely well acclaimed. All the international banks, along with the local banks of Emirati, are providing mortgage financing to all individuals (both immigrants and UAE nationals) seeking to buy a property(s) for themselves in the nation.

However, are you aware of how you can buy a property for yourself in Dubai, and what are the conditions to entail? If not, there is nothing to worry about as you are just in the right place.

In this article, we will discuss how you can receive a pre-approval for a mortgage in Dubai and all other things that are associated with it.

Property In Dubai: How Can You Buy?

It has been long prevalent that you can buy property in Dubai in two distinctive ways – either on a mortgage or liquid cash.

When you purchase a property through cash, you will find yourself beneficial as the cash transaction will be extremely cost-effective. On the other hand, if you purchase your property on a mortgage, you will be bestowed with greater flexibility to manage your finances.

So to attain greater flexibility, you might be planning to purchase your property on a mortgage.

For the same reason, you need to understand how you can avail yourself of home loans in the United Arab Emirates and what you need to do to be granted one. Continue reading this article to learn more about it.

Mortgage In Dubai: Who Is Eligible?

If you are planning to purchase a home, villa, or even an apartment in Dubai, you must have planned it very well indeed! You can easily secure a home loan for the same purpose only if you meet the given eligibility criteria. Some of the criteria for qualifying for a mortgage in Dubai are:

  • You should be between 21 and 65 years of age.
  • It would be best if you were a United Arab Emirates national resident.
  • Your regularity in the source of monthly income should be AED 25,000 for self-employment and AED 15,000 for salaried professionals.

However, it would be best to note that the minimum salary requirement for home loans could vary from bank to bank as per their guidelines. You will also find that certain banks have initiated additional eligibility requirements.

Nevertheless, you must clearly understand all the guidelines of the various bank policies and apply them accordingly.

Is A Non-Resident Eligible For Mortgage In Dubai?

Indeed, non-residents can distinctively explore the mortgage options in Dubai, but they are extremely limited. There are probably one or two banks in the Emirati that deal with and bestow home loans to non-residents for buying property there.

Since the options are very limited, it is always advisable to become a UAE citizen and then explore the mortgage options to buy a property for yourself.

Home Loan In Dubai – Documents Required:

Before purchasing a property on a mortgage in Dubai, you need to apply for it only if you meet the eligibility criteria guidelines as per the bank of your choice.

The interest rates for home loans in Dubai are as low as 2.02% per annum. Like any other procedure, a mortgage also involves a lot of paperwork. Some of the essential documents that you need to provide your money lender before filling in a mortgage application are:

  • A photocopy of your Emirates ID
  • A photocopy of your Passport and Visa
  • A photocopy of a salary certificate will act as proof of employment
  • Photocopies of bank statements and pay slips for the last six months from the day of applying.
  • A photocopy of residential proof – either a DEWA bill or a tenancy contract.
  • A photocopy of the latest statements of your credit card(s).

As a non-resident of Dubai, you only need to have – 

  • A photocopy of your passport.
  • A photocopy of all your bank statements for the last three months.

Mortgage In Dubai: How To Get Pre-Approved By Your Lender?

If you have already decided to purchase a property in Dubai through financing, you will be required to go through a series of procedures only to get pre-approved by your lender. You need to follow these steps one after another to get approved for acquiring a mortgage and a property for yourself. The steps are:

  • Find Yourself A Lender

You will find that home mortgages in Dubai are acquired through financial institutions like banks associated and legally registered with the Dubai Land Department or the DLD. You can hire yourself a potential broker who will obtain the best mortgage loan on your behalf, or you can directly approach a bank that is feasible for you.

Nevertheless, you must remember that mortgage brokers have accurate knowledge and indispensable insight about the current scenario of the home loans available in the local market. So with the help and suggestions of the rightful broker, you can streamline your focus on finding the right property for yourself and not spend much of your energy and time on the whole mortgage process.

  • Select The Right Mortgage

When you are about to apply for a mortgage in Dubai, you will find several types of mortgages available. These mortgages significantly fall into the categories of variable-rate and fixed-rate mortgages. However, before you choose the right mortgage for yourself, you need to look out for several factors that will help you decide which type of mortgage will suit you the best as per your occurrences. Some of the factors that you need to look out for are:

    • The kind of property you are looking forward to buying
    • The type of your lifestyle
    • The amount of cash deposit you are capable of paying
    • The amount of mortgage or home loan you require to purchase your property.
  • Obtain A Letter For Pre-Approval

The ideal and the primary step to acquiring a mortgage in Dubai is through the pre-approval letter. This letter is usually granted as an official document by the financial institution or bank that has approved you as an eligible client to purchase property(s) financing.

This letter of pre-approval also delivers an outline that shows the limit of how much you can borrow for purchasing your rightful property in Dubai. When you apply for a mortgage from any banking institution, your pre-approval letter will be delivered to you within three to five working days significantly.

  • Choose The Right Property

Once you have been pre-approved for a mortgage in Dubai, you must be well acquainted with your budget and everything related to it. With these things right in their proper place, it is ideal for you to look out for the rightful property as per your taste. You will get adequate time to choose the right and perfect property for yourself as the pre-approval letter holds a validity from 60 days up to 90 days, as per the choice of your lender.

  • Finalize And Secure Your Property

Once you have found the perfect match for you, you need to reach out to your bank to finalize the agreement for financing. The bank might take the help of a property evaluator to measure your desirable property, thereby offering you a fair amount for financing.

In the end, when you and your seller agree on an offered price, you can clear your deposit and fix some other date for the completion of other transactions as per requirement. 

Once you are done with everything mentioned above, the seller will transfer your property to you on the final day after completing the entire procedure. On this day, your lender bank will propagate the mortgage amount to the seller from whom you are purchasing the property. And this way, you will have a property of your own in the United Arab Emirates.

Mortgage In Dubai: What Are The Rates?

The mortgage rates of the United Arab Emirates widely differ from financial institution to institution on various factors like – property, lender, and the financial condition of the borrower, that is you. After considering all these things, you can get a clear idea of all the prevailing mortgage financing rates.

As per the rates of 2020, the fixed rates of mortgage commenced at 2.75% for one year, 3.89% for three years, 3.99% for five years, respectively. In the last few years, the mortgage market of the UAE has considerably slowed down for various reasons. However, the mortgage rates of the UAE can greatly vary with the nation’s oil prices and economic conditions.

To Conclude

While you are thinking of buying a property in Dubai with the help of financing, you need to get some of your documents handy and then file in for an application. Once approved, you can easily purchase a property of your own.

Best Air Miles Credit Cards in UAE 2022 | Compare4Benefit

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Best Air Miles Credit Cards UAE

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 For February 2022

 

  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.

How can I benefit from a personal loan

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Personal Loan Benefit

A personal loan is an unsecured credit provided by any financial institution based on employment history, repayment capacity, income level, profession, and credit history. 

It acts as a multi-purpose loan that can fulfill a person’s instant financial needs. It does not require any collateral. The processing time of a personal loan is also very quick. Let us learn more about the benefits that one can obtain from a personal loan. 

Advantages Of A Personal Loan

Applying for a personal loan is similar to applying for a credit card. You need to give all necessary information about yourself to the financial institution issuing the loan.

Personal loans offer more benefits than any other type of loan. A few advantages of availing personal loan are as follows:

  • Flexibility And Versatility Of Personal Loan

Personal loans are popular for their flexibility and versatility. They can be used to pay off the balances of credit cards, establish small businesses, implement home repairs, refinance student loans, funding vacations, or any other form of large expenses. These expenditures are both necessary and discretionary.

Some types of loans are fixed for certain purposes. For example, a home loan can only finance the funds related to purchasing a home. On the contrary, personal loans can be used for multiple purposes.

A personal loan can be the best-suited option to finance a major purchase without denting the bank balance. You should always check on approved uses of the loan with the lender before you apply for the same.

  • No Collateral Requirements

Personal loans are secured forms of loan that do not require any collateral to get approved. This means that you don’t have to set up any asset like a car or home in the form of a guarantee to ensure repayments of the funds.

If you have a good credit history and a strong source of income, your long-term relationship with the bank goes on a good term.

There is no need for a high guarantee or security to be given to the bank as a guarantee. Applying for a personal loan without security grabs the attention of many people who want to make big purchases but take a step down as they do not want to undergo a situation of financial instability. You might want to consider that.

  • Easily Manageable

Many people have multiple credit cards. Sometimes they fail to pay back the balances of the credit cards. Personal loans in such situations help in consolidating the debt of credit cards. A personal loan with a fixed rate of monthly payment is way easier to manage than multiple credit cards with a variety of Interest rates. 

The personal loans also have a fixed monthly rate which helps the borrowers easily manage the due date. Many borrowers become eligible for a personal loan with an interest rate lower than the rate of credit cards. This can help them streamline their monthly expenditure and save money in the process. 

  • Lower Rates Of Interest And Higher Borrowing Limits. 

Personal loans are much cheaper in Dubai than in India. They also have easy availability, fast processing, and lower rates of interest. For example- CBD Loan is a type of personal loan in the UAE which provides a loan amount of AED 750,000 at a 3.03% flat interest rate.

Customers who have an excellent credit history can qualify for personal loans with these great interest rates. Not only for natives but ex-pats in UAE, the interest rate is comparatively lesser. Noor Bank Personal loan is a personal loan for expats in the UAE which offers a loan amount equivalent to 20 times the applicant’s salary. The interest rate of this loan is also 3.49%. 

  • Minimal Paperwork Requirement

When applying for a personal loan, the documents required are very basic. Documents required for a self-employed person are as follows:

  • Loan application form
  • Trading license proof 
  • Power of Attorney
  • Memorandum of Association
  • Certificate of salary or any salary transfer-proof
  • Bank statement between 3 to 6 months 
  • Passport copy 
  • UAE identity card.

The eligibility criteria required for loan approval are as follows:

  • Healthy credit score
  • Details of annual sales turnover
  • Minimum salary slip 
  • Length of business commencement 
  • Rapid Disbursals

Demand for personal loans in the UAE is exceptionally high. Nearly 50% of the population borrowed money last year. Banks with unique selling propositions tend to attract customers for personal loan applications. The principles for disbursement are very simple. They also determine the recovery of expenses that amounts to disbursement. 

The time taken to process the loan amount in UAE is comparatively lesser than in India. With the availability of online services, the processing time becomes shorter. The amount is transferred to the bank account within 24 hours after the application is submitted to the issuer.

This quick disbursal helps manage the immediate large finances like medical or educational. 

How To Get A Personal Loan In UAE 2022?

Personal loans in the UAE do not exceed 20 times the applicant’s salary value or the total income. The banks and other financial institutions that issue personal loans take specific notice that the limit is not exceeded. According to the Central of the UAE, an individual can apply for a personal loan secured by the borrower’s salary.

Personal loan repayment tenure does not exceed 48 months. Also, the repayment is made against a monthly deduction of not more than half of the borrower’s salary. If the repayment period exceeds the retirement age, the financial institution issuing the loan deducts only 30% of the income or pension salary of the borrower. 

The banks and financial institutions issuing the loan in the UAE only take several post-dated cheques from the borrower. These cheques cover the installment and do not cross 120% of the loan value. Before approving the loan, the financial institution calculates and declares the rate of interest to be charged. The rate of interest is determined to reduce the balance of the loan on an annual basis. 

Personal Loan Interest Rate in UAE

The interest rate on a personal loan in UAE is the additional charge levied from the borrower on the principal loan amount. Financial institutions in the UAE offer two interest rates on personal loans. These are as follows:

  • Flat interest rate

A flat interest rate is a charge on the total amount of the loan which remains fixed throughout the tenure of the loan- the personal loan lowest interest rate in Dubai and the rest of UAE range from 2.63% to 22.22%. 

  • Reducing Interest Rate

Reducing interest rate is contrary to the flat interest rate. This type of interest rate reduces every time the borrower pays the installment of the loan. In UAE, the reducing interest rate on a personal loan is charged on the outstanding principal amount of the loan. Reducing interest rates can range between 5.24% to 39.99%. It is advisable to compare the interest on personal loans online before applying. 

Best Personal Loans In UAE

Listed below are the top 10 best personal loans in UAE as of 2021:

  • ADCB Personal Loan with a flat interest rate of 4.75% and reducing interest rate of 8.86%.
  • RAKBANK Personal Loan with a flat interest rate of 3.99% and a reducing interest rate of 5.99%.
  • Dubai Islamic Bank Personal Loan with a flat interest rate of 6% and reducing interest rate of 11%.
  • Emirates NBD Personal Loan with a flat interest rate of 8.39% and a reducing interest rate of 14.99%.
  • FAB Personal Loan with a flat interest rate of 4.99% and reducing interest rate of 9.99%.
  • Mashreq Bank Personal Loan with a flat interest rate of 3.43% and a reducing interest rate of 6.49%.
  • Noor Personal Loan with a flat interest rate of 3.33% and reducing interest rate of 6.29%.
  • Deem Finance Personal Loan with a flat interest rate of 7.72% and reducing interest rate of 14%.
  • Finance House Personal Loan with a flat interest rate of 5.45% and reducing interest rate of 9.99%.
  • ADIB Personal Loan with a flat interest rate of 4.27% and a reducing interest rate of 7.75%.

The Bottom Line

Applying for personal loans can be beneficial. It can also help stabilize your financial requirements if you use them wisely. Large chunks of purchases can be done with personal loans without denting bank balance. So, it is also easy for the borrower to apply for a personal loan with low-interest rates.

It is very easy to manage personal loans rather than managing multiple credit cards. With the lowest interest rates in UAE and minimal paperwork, it is easy to access personal loans for the natives. The disbursal rate of a personal loan is also very quick, with less time for the loan processing.

 

Islamic Mortgage vs Conventional Mortgage Explained

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There is a general belief that Islamic mortgages are better than conventional mortgages as there isn’t any interest rate. This is what makes even the non-Muslims interested in this system.

But before you go ahead and apply for Islamic mortgage, here is a bit of insight to help you understand this mortgage and its points of difference from conventional mortgage. 

Defining conventional mortgages 

In the case of conventional mortgages, financial institutions like banks lend money for buying new homes and they charge a certain interest on that loan. Conventional mortgages are made of the amount borrowed (the principal) and the interest charged.

As with most mortgages, the interest and principal get paid off monthly within twenty-five years, which is the reason why they’re termed as repayment mortgages. 

At the start, most of the payments made by a borrower are focused at paying the interest, while a small part goes in reducing that principal amount. When the term end comes near, this process switches such that more amount gets paid off from the actual loan every month. 

Related : Best Mortgage Rates in UAE 2022

Defining Islamic mortgages 

Islamic home loans work in a different manner as an Islamic financial institution is prohibited to charge interest. A number of Muslim financing models exist, though Ijarah and Murabaha are the key models utilized for home loans. 

Understanding Riba free 

As per the legal jurisprudence of Islam, lending money to earn profits from an investment activity, such as real estate financing isn’t an acceptable way of commerce. In simple words, interest (or Riba) is completely prohibited. 

An obvious cause is that, a loan in Islam is supposed to be a kind of charity – a chance for a person to aid another who is facing a tough situation. The lender can only expect to receive the amount they lend out. Loans aren’t the way to earn money. 

Islam also prohibits buying or selling anything that has zero intrinsic value. Loans with interests are basically paying for money using more money. Since money contains zero intrinsic value, it cannot be bought. 

Murabaha model of financing 

In this case, the bank buys a property on the customer’s behalf and resells that to them again at a profit. The buyer uses monthly installments to pay the money back to the bank. 

Muslim banks require collateral for protecting themselves against their buyers failing to make repayments. Thus, the property remains bank-registered until the mortgage payments are fulfilled, though there are a handful of banks that include the name of the tenant on the title deed. 

Islamic mortgages have an advantage that borrowers need to pay no additional interests for late payments, although banks might charge fixed fees.  

Ijarah model of financing 

The Ijarah model of Islamic finance is basically a purchase and lease-back arrangement. The model is helpful when you are purchasing a property off plans because no payments have to be made until a property gets completed. 

The endnote 

Hopefully, this clears up the differences between Islamic mortgages and conventional mortgages. You now have the basic idea to decide which path to choose. 

 

6 secrets of handling multiple credit cards

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A credit card is issued by a financial institution that lets you borrow money from a pre-approved limit to pay your purchases or any other expenditure. It looks like a rectangular piece of plastic or a metal card. The issue of credit cards depends on the credit score and the history of the customer. 

People often get confused between a debit card and a credit card. The basic difference between the two is, when you swipe a debit card, the amount is deducted directly from the bank account. On the other hand, the amount is deducted from the pre-approved limit when you swipe a credit card. Maintaining a good credit score is important, and the higher the credit score, the higher the limit.

A credit card is also used to pay for essentials or make online transactions. After applying for a credit card and borrowing money, make sure you repay the borrowed amount within the stipulated period. But while all that is understandable, what most people fail to deal with is multiple credit cards. That is why we will share about the same in this article below. Keep reading for more.

6 Secrets Of Managing Multiple Credit Cards in UAE

The list of advantages of possessing a credit card is endless, and many people keep extra credit cards to increase their credit score or get more benefits. Mentioned below are some quick tips that shall help you handle multiple credit cards easily and efficiently.

  1. Restrict Carrying A Balance

When handling multiple credit cards, avoid carrying forwarding of balance from the billing cycle to the next. The reward cards have high-interest rates and can come back as a nightmare if you forget to pay bills on time. Any interest you pay can offset the value of rewards you have earned with your credit card. 

Repayments of credit bills on time is necessarily important to avoid falling into a debt trap. Carrying a balance on a credit card can put you in a position where your credit score might get damaged.

Credit card utilisation makes up 30 % of your FICO score, and experts suggest keeping the utilisation below 30% to avoid damaging your credit score. 

2. Skip Cards Which Have Annual Fees

Running an expenditure with a credit card with annual fees can make things difficult down the line. Payment of annual fees means that you will be paying more than you would have paid for your purchases if you used cash. The user is considered a wise credit card user if they opt for no charge on annual fee cards in the UAE.

Credit cards without annual fees are known as free for life credit cards. In case you find a credit card that is perfectly suitable for you but has an annual fee, you can ask your credit card company to waive it off for you. Some famous free-for-life credit cards in the UAE are ADIB Value Card and ADCB SimplyLife Cash Back Card.

3. Select The Right Card For Your Purchase

Maximizing the reward points is one of the most tedious tasks of having multiple credit cards. It is essential to pay attention to each credit card’s features. The features include fraud protection warranty for travel insurance and many.

More. You can enjoy these features when you make a major purchase with your credit card.

Starting from travelling to shopping, different credit cards suit the needs of different people.

In the UAE, different types of credit cards are available like air miles credit cards, cash back credit cards, airport lounge access credit cards, travel credit cards, cinema offers credit cards and balance transfer credit cards.

4. Keep A Record On Your Purchases

Having a record of where you are spending your credit money is important, and it shall help you pay off your credit balance. To avoid penalty charges and be able to pay off your short term loan, reduce expenditure, and keep track of your monthly statement. If you do these, it will help you ensure the correct amount of transactions and gain bonus rewards offered by your credit card company.

The best way to keep track of your money while using a credit card is by building a monthly budget separating the expenses, creating space for savings, including the credit card’s payment in the next month’s budget, and tracking credit card statements every month. Use online banking to make your repayments on time hassle-free. Payment through a mobile application is also a good way of repaying.

5. Consider The Effect On Your Credit Score

It would help if you overlooked the impact of your credit score on your credit life. Your credit score and credit history are the most important factors to check when the lender approves the loan, and having a low credit score may make you ineligible for the loans. 

A higher CIBIL score indicates good credit history and responsible repayment behaviour. A healthy credit score can get you instant loan approvals, low-interest rates, home loans, car loans and higher credit limits. 750 and above is considered as an ideal CIBIL score.

6. Repay Your Balances On Time 

Paying off balances each month is essential, but along with that, monthly payments before the due date is also important. An online bill payment system can be ideal for you if you are forgetful, and this can make your payment easier, and you will cross your deadline. By any chance, if you miss your payment, you can ask your credit card issuer to waive off the fee. 

The credit card company is often obliged since it is your first late payment or a new card. Repaying balances on time can help you avoid penalty charges, which often affect your credit score. 

Advantages Of Having A Credit Card

A credit card is an indispensable part of life. It is convenient and has got multiple pay-back options. Credit cards provide unmatched discounts and deals for the user. A user can fall into the debt trap cycle if they do not use the credit card wisely. 

If you are a new user of a credit card, mentioned below is the list of advantages associated with the advantages of the credit card. 

1. Easy Access To Credit

One of the main advantages of possessing a credit card is accessing a borrowed fund easily. They run on a deferred payment basis, which means you can use the card now and pay later. When a credit card is swiped, the money is deducted from the pre-approved limit, preventing denting of your bank balance.

2. Construction Of Line Of Credit   

A credit card can be very important for any future loans you expect. The financial institution issuer checks the usage of credit cards based on its creditworthiness and approves loans to potential users. The banks also keep the check on the credit history based on card repayments and use of credit cards. 

3. Facility Of EMI

People often think of buying a great product that might eat up their savings. In such cases, credit cards can be used to defer the payment. There is also an option of paying off in monthly installments. Paying for expensive products like television or refrigerator can be cheaper through EMI than partying through a personal loan.

4. Amazing Offers And Deals

The credit cards are jam-packed with amazing discounts, offers and deals. They come in cashback, reward collection through points and much more. These can be redeemed only once when you swipe within the valid period. You can also get free flight tickets, vacations on any large purchases by vendors through credit card payment. 

How Does A Credit Card Work?

A credit card is a short term loan. When you use a credit card, you tend to use the credit card company’s money. The repayment of the loan depends on the timings issued. The company sets a pre-approved limit for the borrower to spend, and this limit is set depending on your credit score, income and account history.

When you make payments against your balance, the credit card is freely available to you again. The concerned company sends a detailed statement of your activity, balance, minimum payment and due date every month. 

The Bottom Line 

Possession of multiple credit cards can be of ultimate benefit to the people in today’s world. Large purchases credit cards are best suited to meet up with instant expenditures. Instead of applying for a personal loan to buy expensive products, payment to credit cards can be used. The facility of EMI has taken the credit card users on a roll. Plus, it is way cheaper than any other system.

Try to pay off the credit balances on time to maintain a healthy credit score. To enjoy the maximum benefits of a credit card, make sure the card is suitable for you. The UAE banks have multiple types of credit cards to suit the different needs of the people.  Also, do not forget to take a look at the above mentioned content for more details. 

How to get best personal loan rates

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A personal loan is an unsecured loan, which means it does not require collateral or a guarantor. An individual obtains a personal loan in the United Arab Emirates to meet a variety of personal financial demands, including weddings, higher education, overseas travel, starting a new business, and even debt consolidation.

Prior to applying for a personal finance loan, it is critical to research different rates of personal loans in different banks.

The highest personal finance loan amount is 20 times the monthly earning, with a 48-month repayment period. 

Personal Loan Eligibility Criteria

Every bank that offers personal financing in Dubai has different requirements for personal loans. However, the following are some of the most typical prerequisites for the finest personal loan in UAE:

  • Age Restriction

In order to qualify for a personal loan in the UAE, you must be at least 21 years old and between the ages of 60 and 65 years old.

  • Personal Loan Minimum Salary in UAE

To qualify for a personal loan, applicants must also meet minimum wage criteria, which vary from lender to lender in the UAE. You can apply for a personal loan in the UAE with a salary of 3000 Dirhams. The required minimum wage ranges from AED 2,500 to 4,000 and up. 

The income of a borrower is important in deciding the rate of interest. This is in relation to the one that will be applied to their loan. Such a thing is crucial as those with a higher salary are more likely to repay their loan in full than people with a lower salary. 

Another reason that pay is so significant is that most banks have a minimum salary requirement. For example, most banks in the UAE offer personal loans to those with an income of at least 5,000 Dirhams. Banks use this method to ensure that borrowers have a set minimum income that permits them to repay the loan on time.

  • Work Experience

You can’t get a personal loan if you don’t have a job. To obtain a personal loan in the UAE, several banks need applicants to be employed by UAE employers or to have completed at least a few months of service.

  • Residency in the UAE

Only UAE residents are eligible to apply for a personal loan in Dubai or any other UAE Emirate. However, some banks, such as ADIB, provide personal loans to expats. They have varying interest rates on personal loans in the UAE, as well as other restrictions.

  • Transfer of Salary

Banks in the UAE offer personal loans without or with a salary transfer. Some banks also allow applicants to make transfers to a bank of their choice, giving them the option of an easy personal loan in the UAE.

Personal Finance Loan Interest Rates (Jan 2022)

Personal Finance Loan Interest rate in the United Arab Emirates is a supplementary charge that is added to the principal loan amount. There are two types of interest rates that apply to personal loans in the UAE. They are Flat Interest and Reducing Interest.

  • Flat Interest

The overall loan amount is charged a flat interest rate that remains constant during the loan term. The lowest personal loan interest rate in Dubai and the rest of the UAE is 2.63 percent are with rates ranging from 2.63 percent to 22.22 percent. 

  • Reducing Interest

Unlike a flat interest rate, this rate of interest decreases with each installment paid by the loan borrower. The interest rate on a personal loan in the UAE is levied only on the outstanding principal amount of the loan, which can range from 5.24 percent to 39.99 percent. To receive the best personal loan, you should always compare personal loans online.

The personal loan interest rate and amount in the UAE are determined by factors such as the applicant’s source of income, credit history, age, and job status.

Personal Loan In UAE 2022

The United Arab Emirates has seen a massive increase in financial lending over the previous decade. In the United Arab Emirates, the advent of many banks and lenders has resulted in the introduction of competitive personal loan interest rates. The characteristics and advantages of these loans are listed below.

  • Unsecured Loans: These loans do not demand any type of collateral.
  • Loans to supplement your income: Borrowers can get top-up loans if they make regular payments on their existing loans.
  • Salary Transfer vs. Non-Salary Transfer: Borrowers can get large sums of money at cheap interest rates by transferring their salaries.
  • Interest Rates: There are two sorts of interest rates for UAE bank loans: reducing and flat.
  • Debit and Credit Cards: Some personal loans on the market come with free debit and credit cards.
  • Insurance or Takaful: An insurance or Takaful benefit covers outstanding loan payments in the case of a loss of income due to an unanticipated incident.
  • Cancellation of the loan: The best personal loans in Dubai and the other UAE Emirates allows you to cancel your loan within the grace period.
  • Cashback and Statement Credit: Some banks in the UAE reward the borrowers with incentives like cash back or a statement credit in a personal loan.

How To Get The Best Personal Loan Rates

The first step in obtaining a suitable loan with the lowest interest rate for a personal loan in the UAE is to shop around at various lenders to compare loans in the UAE before selecting the one that best matches your needs.

Borrowers can use an interest calculator to compute the interest amount they will be paying.

Use the formula- (interest rate/ number of payments) * principal amount = interest.

It can be difficult to obtain a personal loan in the UAE. Here are some pointers on how to get the best personal loan rates:

  • Maintain a Good Credit Score

Banks are always quick to accept a personal loan for those with a solid credit history. A good credit score increases the chances of acquiring a personal loan with favourable terms. Check your credit score, which is supplied by the AI Etihad Credit Bureau, before applying for a personal loan.

Banks favour people with credit scores of 700 or higher, so it’s only a matter of keeping your credit score there.

  • Utilize Seasonal Offers

 Banks occasionally provide lower interest rates to compete with the competitive corporate rates offered by rival banks. These schemes are especially popular during the holiday season and are only available for a limited time. Taking out a personal loan during these times can be quite advantageous and can help you save money on your loan.

  • Maintain A Strong Payback Track

 As you may be aware, banks use credit reports to assess your creditworthiness before giving a loan. This means they look at your payment history for other credit cards. So, if you want to get the best rate on your loan, it’s critical to have a good long-term credit history. You’ll be in a better position to negotiate interest rates if you have a good long-term credit history.

  • Checking and Reviewing the Types of Rate of Interest 

You should understand how your interest is calculated before applying for a personal loan. It’s not enough to look for loans with cheap interest rates. Although the stated rate may be the lowest, the computation does not take into account the gradual repayment of principal and interest.

  • Select A Personal Loan With A Shorter Repayment Period

The lower the interest rate, the sooner you repay the debt. This indicates that for short-term loans, banks or financial institutions will provide their best personal loan rates. The period of a short personal loan is three to five years or less.

If you take out a short personal loan, your monthly EMI would progressively rise. As a result, think again before making a decision. If you want to acquire the best personal loan rates, go for the shortest loan period possible. Keep in mind that it’s critical to keep your monthly payments under control.

Things to Remember When You Apply For A Personal Loan

  • Don’t submit a resume with a questionable work history.
  • To acquire the best personal loan in the UAE, thoroughly review the insurance terms.
  • Don’t speed through the application process. A single mistake can result in a loan being denied.
  • Try sustaining a lower debt-to-income ratio.
  • Don’t diminish your credit score because it will have a negative influence
  • Don’t miss a single episode.
  • Don’t apply for a new loan until the previous one has been paid off.
  • Don’t overlook eligibility requirements such as age, minimum wage, transfer, and so on.

A little reduction in your interest rate will enable you to save a significant amount of money and increase your savings. As a result, never pass up an opportunity to put the above-mentioned guidelines into practice, as they will assist you in obtaining the finest personal loan rates.

Check and compare personal loan providers in the UAE, including their requirements and advantages, to make the best option based on your personal loan needs and apply for the best personal loans at the lowest interest rate in just a few steps.

Best Rewards Credit Cards in UAE 2022 | Compare4Benefit

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Best Rewards Cards UAE 2021

Isn’t it just amazing if your credit card earns you some rewards?

Rewards credit cards are beneficiary cards that offer you extra benefits every time you spend money through your credit card. The main attraction of such cards is that they offer multiple rewards.

Living in UAE? Rewards credit cards are trending here too and many banks offer you rewards credit cards. Before you apply for a rewards credit card, read this article to know more about rewards credit cards and the best rewards credit cards in UAE 2022.

NOTE

  • Rewards cards improve your credit score.
  • The more you use a credit card the more is rewards.
  • Rewards follow certain terms and conditions.
  • Rewards are usually time-bound.

Rewards credit cards are more useful to people who pay using credit cards while shopping and dining. You must make sure that you have a good credit score for the approval of your rewards credit card application.

People who travel a lot are more likely to benefit through rewards credit cards.

REWARDS INCLUDE

  • Reward points
  • Amazon gift cards
  • Free / Discounts on movie tickets
  • Free access to airport lounges
  • Off on dining
  • Buy 1 Get 1 offers
  • Discounts on air tickets
  • Access to health and fitness centers.
  • Air miles
  • Cashback

To apply for a rewards credit card you must be 21 years old or above. You should have a minimum income of AED 5000. The necessary documents required areID proof, valid Emirates ID, or residential proof.

COMPARE REWARDS CREDIT CARDS IN UAE

  1. CITI REWARDS CREDIT CARD

Citibank Rewards Card

  • Minimum Income – AED 8000/month
  • Annual Fee – AED 0
  • Rate – 3.25%

Citi Rewards Credit Card is a good choice to earn rewards while shopping. The rewards can be redeemed on purchases ranging from Apple products to Amazon products.

 Key Benefits of Citibank Rewards Card

  • Thank You reward points [$1 = 1 Thank You points (local spend)/ $1 = 1.5 Thank You points (international spend)]
  • VoucherSkout credits
  • Free 12- month Amazon Premium membership
  • Free access to 1000+ airport lounges
  • Dining offers
  • Travel insurances
  • Discounts on movie tickets
  • Supplementary cards for family members
  • Access to Citi World Privileges
  • Balance transfer

Apart from gaining such rewards, this credit card allows you to pay with points online or through SMS. Offering you easy installment plans makes this card more valuable. Citi Rewards Credit Cards also allow you to avail cash loans easily.

  1. FIRST ABU DHABI BANK TITANIUM CARD

FAB-Rewards-Credit Car

  • Minimum Income – AED 5000/month
  • Annual Fee – AED 0
  • Rate – 3.50%

First Abu Dhabi Bank Titanium Card allows you to earn luxurious rewards. This card offers you exclusive benefits like chances to win an Audi Q5 or a trip to different parts of the world and many more.

It also offers you travel and lifestyle benefits.

Key Benefits of FAB Titanium Credit Card

  • Annual chances to win Audi Q5 (1 winner)
  • Semi-annual chances to win a trip (2 winners)
  • Monthly chances to win shopping worth AED 1000 (10 winners)
  • Access to airport lounges across the Middle East
  • Shop smart
  • Offers on movie tickets
  • Roadside assistance
  • Offers on dining
  • Air miles
  • Balance transfer

There are more rewards than these. But you should keep in mind that cashback categories have maximum caps and also to get rewards a minimum amount of expenditure every month is necessary.

  1. RAKBANK AIR ARABIA PLATINUM CREDIT CARD
  • Minimum Income – AED 5000/monthRAK-Titanium-Credit-Card
  • Annual Fee – AED 400
  • Rate – 3.45%

RAKBANK Air Arabia Platinum Credit Card is a good choice for you if you travel a lot. This card helps you earn a lot of rewards points.

Other than this it also provides great dining benefits, 0% easy payment plans, travel offers and insurances, exclusive offers on electronic products, furnishing, jewelry, and many more.

Key Benefits of RAKBANK Air Arabia Platinum Credit Card

  • Air rewards points
  • An annual fee will be relinquished from the second year upon meeting certain criteria
  • Privileges on dining and shopping
  • Discounts on Avis car rentals
  • Privileges in Air Arabia flights
  • Access to almost 10 airport VIP lounges in select countries
  • Free pickup and drop off (6 chances per year)
  • 3% of the minimum monthly payment
  • Privileges on Reebonz online shopping
  • Benefits on MyUS premium

These are the main benefits of the Air Arabia Platinum Credit Card. You get 15000 AirRewards points as a joining bonus. But this is possible only on retail transactions. And you must also be aware of the terms and conditions regarding each reward.

  1. HSBC ADVANCE CREDIT CARD

HSBC ADVANCE CREDIT CARD

  • Minimum Income – AED 15000/month
  • Annual Fee – AED 0
  • Rate – 3.45%

HSBC Advance Credit Card offers you a good amount of travel and lifestyle benefits.

If you have an advance account you can apply for this credit card.  The Air Miles reward is the major attraction of this card. You get 1 Air Miles for every spent AED 1.

Key Benefits of HSBC ADVANCE CREDIT CARD

  • Access to airport lounges
  • Privileges for dining programs
  • Discounts on travel
  • Complimentary valet parking
  • Complimentary HSBC ENTERTAINER app
  • Privileges on cinema
  • Balance transfers
  • Installment plans at low-interest rates
  • Protection benefits: card fraud and purchase protection

So before applying for this credit card make sure that you have an Advance Account. It is also important to know that there is a criterion of minimum expenditure for free valet parking and the Air Miles are valid only up to 3 years.

  1. EMIRATES NBD SKYWARDS SIGNATURE CREDIT CARD
  • Minimum Income – AED 15000/month
  • Annual Fee – AED 700Emirates NBD Signature Credit Card
  • Rate – 3.25%

Emirates NBD Skywards Signature Credit Card as the name suggests earns you Skywards Miles. If offers you a maximum 1.5 Skywards Miles per AED. You can redeem this Skywards Miles for different services like flight tickets, hotel accommodation, and other lifestyle needs.

Key Benefits of Emirates NBD Skywards Signature Credit Card

  • Skywards Miles
  • Free access to airport lounges
  • Free valet parking
  • Golf offers
  • Concierge service
  • Offers on dining
  • Cinema ticket discounts
  • Exclusive offers on Emirates Air Lines
  • Free car service registration and free pickup and delivery
  • Discounts on hotel booking

This card thus offers a wide range of travel and ground rewards. Along with such rewards this card also provides you with good banking services like easy installment plans and instant cash facilities.

  1. CITI EMIRATES WORLD CARD

Emirates Citi Rewards Card

  • Minimum Income – AED 12000/month
  • Annual Fee – AED 0
  • Rate – 3.25%

Citi Emirates World card along with earning you Skywards Miles gives you special Citi World privileges. These privileges are applicable across 95 countries and thus become an attraction to those who travel worldwide continuously.

Key Benefits of Citi Emirates World Credit Card

  • Skywards Miles
  • Access to airport lounges worldwide
  • Complimentary movies
  • VoucherSkout credits
  • Meet and greet services once a year
  • Free 12- month Amazon Premium membership
  • Careem chauffer benefits
  • Discounts on MyUS online shopping
  • Discounts on Avis car rentals
  • Travel insurance

Citi emirates world card also provides you with easy installment plans and instant cash loans. You must also be aware that even it waivers annual fee in the first year there is an annual fee of AED 400 from the second year.

  1. CBD TITANIUM MASTERCARD

CBD Titanium Credit Card

  • Minimum Income – AED 5000/month
  • Annual Fee – AED 0
  • Rate – 3.45%

CBD Titanium Mastercard is the best choice if you are looking for cards accepted worldwide and earns you rewards at the same time. The most important thing about this card is that it has no annual fees forever. Chip and pin technology incorporated makes it one of the favorites among rewards credit cards.

Key Benefits of CBD Titanium Credit Card

  • Earns you CBD Points Rewards
  • Discounts on Avis car rentals
  • Offers for dining
  • Cashback on Booking.com
  • Access to VIP lounges in select countries
  • Discounts on rentalcars.com
  • Offers on entertainment and leisure
  • Discounts on Careem rides
  • Access to MasterCard Priceless Specials
  • 24-hour client service

If you are planning to apply for a rewards credit card, go through the above information and choose the best one for you based on your salary, the purposes you use credit cards for, and the benefits these cards offer you.

So don’t miss your opportunity to earn rewards for every AED you spend.

FREQUENTLY ASKED QUESTIONS

  1. What are Rewards Credit Cards?

Rewards credit cards are beneficiary credit cards that offer you extra benefits every time you spend money through your credit card. You get some kind of rewards which you can make use to achieve financial benefits.

  1. What are the major rewards that Rewards Credit Cards offer?

Rewards can be of different kinds. They can be:

  • Reward points
  • Cashback offers
  • Discounts on select categories
  • Miles
  • Access to expensive services
  1. What is a joining offer?

Joining offer or welcome offer is the bonus rewards the banks give to their clients for opting for their products. These are usually chances to win a lot of win gifts like reward points or miles based on the joining fee or any retail transactions you make within a specific period. These can be redeemed to purchase things or to pay bills.

  1. What is annual fee?

The annual fee is the amount that the bank charges from a card holder every year to maintain your account. More the annual fees more are the benefits.

  1. How do I redeem reward points?

To redeem your reward points you should connect with your bank’s reward portal. They might provide you with options for travel tickets, vouchers, gift cards, or merchandise.

 

 

Best Personal Loans in UAE December 2021 (Updated) – Compare4Benefit

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Best Personal loans UAE 2021

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

Looking for some little extra money?

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

If you are in search of 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  2021

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 for December 2021

 

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 a 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 the 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, the 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 center (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 has 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 a 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 the 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.

Frequently Asked Questions on Personal Loan

  1. What documents do I need to apply for a personal loan in UAE?

You will need to have the following documents to apply for a personal loan in UAE :

  • Emirates id Copy
  • Passport copy
  • Salary certificate
  • Emirates ID copy
  • Salary transfer letter
  • Bank statements from 3 to 6 months.

2. Can a personal loan in UAE help me improve my credit score?

Yes. if you manage to build a strong payment history you can improve your credit score.

3. What is the benefit of a personal loan over a credit card?

The main benefit of getting a personal loan in the UAE is that interest rates would be lower compared to a credit card. A personal loan restricts how much you can spend, preventing you from going further into debt.

4. How much you can borrow with a personal loan? 

The exact loan amount available often depends on your salary, bank, and credit score.

5. Can I take a personal loan from two different banks in UAE? 

Yes. You should have a good credit score and your DBR should be less than 50%.