United Arab Emirates has become a global hub for businesses and industries. Therefore, many foreign businessmen and professionals are moving to Dubai to explore better growth opportunities in 2024. One of there initial actions is to get personal loan in Dubai to settle in the marvel of the UAE.

Financial companies who give personal loans

Which finance institutions provide personal loans?

These are the lenders who issue personal loans in the UAE.

Now, we briefly discuss these options to borrow personal loans.

Banks

Globally, banks are the number one choice of people for taking personal loans. However, banking policies differ in giving loan to the people. Some banks care for their customers and allow loan at very low interest rates for long term relationship with them.

Whereas, some banks keep their risk level low by satisfying their policies like full documentation of the clients. Almost all banks in Dubai provide personal loans. The loan amount and interest depend on individual’s current financial status like salary, credit history, current financial liabilities, etc.

You can go through different banks like Emirates NBD, Bank of Sharjah, First Abu Dhabi Bank, etc. Islamic banks like Emirates Islamic Bank, DIB, SIB, ADIB, Ajman Bank, and Al Hilal Bank are other options. Somehow, they have better pre-payment terms and solution plans.

Money lending companies

Several non-traditional money lenders have come to the fore to ease the people coming new to Dubai. They give personal loans to people, rather their investing in some bank directly. They directly give small loans as a win-win scheme to both company and customers.

Eligibility criteria for personal loan

Who is eligible for personal loan?

Here is the eligibility criteria for personal loan in the UAE.

Terms for personal loans and repayments

What are the terms for personal loans and repayments in Dubai?

Here are the terms that lenders and borrowers have to follow for personal loans in the UAE and their repayments.

Types of loans

Which are the types of loans?

We can classify loans for individual or business use into two categories.

Now, we take a look on the types of loans.

Secured loan

A secured loan is the one that you avail if you have some credit background, and handsome asset to show. As you must have a proof of paying back to that institute in limited time period. Business loan is an example of it.

Unsecured loan

An unsecured loan is the one in which you don’t possess any asset like house, property, credit profile, car, etc. So, financial services companies are at a risk of not getting their money back due to absence of guarantee. Personal loan is an example of it.

Defining the personal loan

What is a personal loan?

In essence, personal loan is a type of loan taken usually when you move to a new country for employment. It is an ideal option for any individual who wants to relocate in any new region having minimum resources. Accordingly, it helps expatriates in managing their individual expenses.

Personal loan is basically unsecured loan. It doesn’t require collateral such as your home, car, or other personal property. You can take personal loan in Dubai for many purposes.

Kinds of personal loans

Which are the kinds of personal loans?

Normally, there are three kinds of personal loan in Dubai.

Next, we look upon the kinds of personal loans.

Installment loan

When you take installment loan, you have to pay it back in the form of regular partial payments. You cannot exceed the specified timelines, otherwise your interest rate increases to some percent. Or you get extra charges on that loaned amount.

Signature loan

You take the signature loan, by signing on the policy form of the financial services company. In this case, bank value or trust their customers. Normally, you promise to give the borrowed amount back to the bank as a one-time payment.

Peer to peer loan

People who want to stay away from traditional lender such as a bank, can opt for peer to peer loan. Subsequently, they can borrow money from individuals. Peer to peer loans include these traits.

Conclusion

Mostly people are not aware of the ways to get the loan on low interest rates. Also, they don’t know the loan procedures or the way to get quick access to the money. All you need is find some business professional to apply the loan on your behalf.

They connect you not only with the banks, but also to the Local sponsor in UAE. Furthermore, business advisors take care of their customers in all aspects. For more information about personal loans in Dubai, contact KWS Middle East now.

Dubai known as the land of gold is highly recommended to try your luck here. People come here in search of jobs, some as tourists and many as investors. Dubai is an ideal business setup location due to its geographical ease to connect many international markets but the question is what one should do if you have great business ideas but no capital to execute your business plan or some sometimes investors only have investment to kick start the business and no finance to grow it. In this case, Dubai financial institutions are established to help newcomers and even existing businesses. They evaluate the annual performance of the businesses and then grant them loans as per their requirements. Obtaining additional funding from banks are stepping stone towards growing a business in Dubai and ensuring its successful establishment in a long run.

Factors Considered while applying for a business loan:  

If you are looking to apply for a business loan, you must keep in mind, the following factors that can prove fruitful to pay off this loan by knowing the exact       details about your loan:

This is the key to your business to choose which loan best suits your business needs and the amount you require for your business is permissible in which category of loan, whether you are an SME, sole proprietor, or enterprise.

It depends on your company profile, your credit history, annual revenue generated, and the number of loans you already engaged in. Usually, the interest rate on a loan is standard with little variation as per business.

Dubai financial institutes account for the repayment of loans within the period of 2 to 5 years depending on the instalment plan which is determined by the amount of cash taken from the bank. 

Having an account is a must-have for registering a company in Dubai. To grant the loan, banks investigate through the company’s functional bank account. They look into the details of the transaction, and the revenue generated in the previous year to analyse the company’s performance and then decide whether a loan can be granted or not.  

Types of Business Loan:

There are various types of business loans. Below are mentioned 5 key types of business loans: 

1. Standard Business Loan: This type of loan demands fixed or variable rate monthly payments over an allocated time while the amount of the loan can be negotiated with interest rates accordingly.

2. Islamic Loan: This loan is entirely under Shariya Law and the interest rate is not permitted in Islamic loans instead the applicant has to give a share to the bank in his profits. Looking at the Islamic perspective this loan seems fulfilling the ethical and moral demands of business

3. Friends and Family Loan: This loan is taken from family and friends. As it is a non-financial institution loan with no involvement of the government, so no interest rate is levied on it. You simply agreed on the payment terms. It is a highly flexible way but relationships can be at risk over repayments. 

4. Credit Card Loan: If you are having a functional bank account, you can take an advance loan on behalf of your credit card but it charges a very high-interest rate in return.

5. Small Business Association (SBA) Backed Loan: SBA is solely a UAE government-owned and supported entity. In case your bank loan application is rejected then you can go for this option. 

Eligibility Criteria for applying for a business loan in Dubai:

Getting loan approval from a lending institute is a bit puzzling as the banks are quite particular about loan procedures in Dubai. Businesses that meet the eligibility criteria are welcome for a business loan in the UAE. However, all banks have these minimum requirements:

Documents required for a business loan:

Here is the list of documents necessary to be submitted to banks to obtain a bank loan:

How KWS Can Help You?

Most people are not aware of the ways to get a loan at their ease, low-interest rates, not knowing of loan procedures, or the way to get an instant loan from the banks. All you need is someone to prepare your documents and reduce the chances of loan rejection on your behalf and here we come:

KWSME takes care of its customers, we approach you not only for business account opening in UAE but also to find the most suitable banks and loan installments for your business plan and prepare the necessary documents required by the chosen bank for a loan in Dubai.