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

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RAKBANK Air Arabia Platinum Credit card

 

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

Benefits of RAKBANK Air Arabia Platinum Credit Card

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

1. 15,000 Air reward points bonus right away

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

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

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

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

2. Get Complimentary Flight Ticket every Year

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

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

3. Save money by redeeming air reward points

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

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

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

4. Earn complimentary travel benefits

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

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

Click here to know more about terms and conditions.

5. Extraordinary discounts

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

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

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

6. Save money on dining in more than 2000 restaurants

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

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

 Apply Now to Get a RAKBANK Air Arabia Platinum Credit Card

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

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

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Dubai Apartment

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

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

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

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

Related : Check Mortgage Rates Today

The price drop is visible in all property types

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

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

Locations and communities with higher price declines

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

Why Dubai properties?

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

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

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

Also Read : Dubai Mortgage Complete Guide

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

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

5 Money Saving Tips For Small Businesses

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

1. Cutting shipping costs

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

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

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

2.Rewarding customers and employees

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

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

3. Using open-source software

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

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

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

4. Cutting maintenance costs

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

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

5. Taking on entry-level recruits 

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

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

6. Outsourcing where applicable

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

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

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

7. Bulk purchases

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

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

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 Calculator

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Mortgage mistakes first time home buyers should avoid

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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 2021 (Updated) – Compare4Benefit

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Personal Loan UAE 2019

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.