In a previous blog, we have discussed the loan opportunities for Expat in UAE. In this article, we will explore the different types of loans in UAE. You can find different interest rates of different banks of UAE at Emirates loan
Following are the types considered as main in the finance industry
Personal Loan in Dubai UAE is the type of unsecured loan in which you don’t have to provide any type of loan guarantee to your lender unlike Mortgage loan or home loan where the borrower has to show some assets as their loan guarantee. The personal loan is suitable for a salaried person. Companies or any organization is not eligible to apply for personal loan, you can get a personal loan in no time.
A credit card is issued by a bank to the borrower which allows you to make purchases from the credit card. The credit card has its own benefits and some disadvantages as well if you pay your bills according to your time period you will manage to avoid high debt otherwise you will get caught under high debt and interest rate.
This type of loan is more suitable for business persons seeking business loan associated with Real Estate business, to avail mortgage loan you bound to provide or show your assets as your loan guarantee .process of getting the mortgage loan is time-consuming and tricky.
To avail the business loan in UAE you must provide at least 6 months statement of your business. In UAE banks are providing a loan to small setups and large scale business setups with attractive interest rate and facilities to entertain business men’s in UAE
If you are planning to get auto finance than you should have to pay 20% down payment to whichever bank you choose to take car loan but criteria can be different from every bank in UAE. Used car loan considered as a good option as compared to the new car.
These are the loans that can be more than one time if you repay the loan you can borrow again. The credit card is the best example of the open-ended loan. When a borrower use credit card to make purchases amount limit of credit card is reduced, to use the credit card again user hast repay the payments.
Close-ended loans are those once they paid cannot be used again. Personal loans are the best example of the close-ended loan.