The best way to obtain funds quickly to meet a variety of financial requirements is to opt for a personal loan. Whether it’s a medical emergency, child’s higher education, dream wedding, international trip, or debt consolidation, a personal loan helps you to meet the need of the hour. You can avail the funds quickly in just a few minutes or hours and repay the loan over some time either months or years in equated monthly installments.
In a nutshell, a personal loan can help you to meet any kind of financial requirement either for emergencies or otherwise.
But, the main concern is that there are numerous personal loan providers in the UAE so how do you determine which one is the best?
Below we have mentioned 5 pointers that you can use in order to evaluate the best personal loan providers in the UAE.
1. Compare Personal Loan Interest Rates
Before you apply for a personal loan, it is imperative that you opt for a personal loan that suits your needs. Lenders which include traditional banks and financial institutions, all of them levy different personal loan interest rates.
Just keep one thing in mind that every personal loan application, your credit score takes a significant hit. Hence, your loan application should be the final step. First of all, comparetop personal loan providers based on their interest rate and some other features and seek all the important information to zero down the best deal as per your convenience. Alternatively, you can use personal loan calculator to calculate your monthly installments before procuring a personal loan. It will assist you in knowing an exact monthly installments amount which you’ll pay over the desired loan amount.
2. Check the Amount of Loan
Based on your requirements, you might or might not know that how much money you require in total. Select a bank or lender who offers a substantial personal loan amount that can easily cover your expenditures. However, you can also select a lender that provides you the more flexibility in terms of the loan amount. As there are some of the best personal loan providers that offer a personal loan where you are allowed to withdraw the loan amount in some partial amounts as & when you have fund requirements.
3. Go Through the Fine Print
Each lender will have a legal document that dictates the terms & conditions of a personal loan. Be sure, you go through the fine print carefully & understand your obligation transparently. Also, keep one thing in mind that you must be aware of and agree to all the terms & conditions that have been mentioned in the legal document of a personal loan. If, in case, you have any kind of doubt, you can contact the bank or lender and clarify all of your doubts. This document is legally binding, be sure you are agreed with all the terms it includes.
4. Look for Processing Fees
Personal loan lenders generally levy a processing fee of 0 to 3%. However, it varies from lenders to lenders. The processing fee is deducted from the amount of loan that you will get. So, search for the best personal loan providers and find out which lender is charging you to process your loan and then find out its affordability before applying for it. Also, do not forget to check all other associated fees as well.
5. Prepayment Charges
It is advisable to utilize any surplus income for making part prepayments of your loan. This will eventually assist you in paying low interest rate charges. However, some of the banks and financial institutions in the UAE have very strict rules regarding personal loan prepayment accompanied by huge charges. So, find out what these are and the minimum loan prepayment amount allowed. This will ultimately help you realize if you will clear the loan quickly or not.
6. Tenure of the Loan
While choosing the best personal loan, one of the most important things you must consider as a borrower is the loan tenure. The best personal loan from your point of view is the one that suits your time requirement whether you want to procure a loan for just a few months or some years. And the amount of equated monthly installments that you will pay depend on the loan tenure. A longer loan tenure will simply mean lower monthly installments towards your loan but higher interest payouts. Thankfully, there are some of the best personal loan providers in the UAE that offer flexible tenure options. You can compare different lenders online and select a bank that enables you to flexible about loan tenures.
Use the aforementioned points to screen all thebest personal loan providers in the UAE. This will certainly help you get the right deal on a personal loan as per your needs. Also, make sure you use the personal loan EMI calculator to know the exact EMI amount which you will pay towards your personal loan.