What is a Personal Loan ?

Personal Loan is the money borrowed from a bank and paid back in fixed monthly payments/installments typically over 2 to 6 years. Most personal loans are “Unsecured loans “not supported by a collateral.

How do I get a Loan in UAE ?

There are various banks across UAE offering the Personal Loan facility for expatriates and UAE national’s .personal loan eligibility criteria varies from one bank to another .For more details Please visit our personal loans page and search for bank loan features.

What is EMI?

EMI is Equated Monthly Installment defined as “A fixed amount you have to pay to the bank on a fixed date every month. EMI includes both the interest and principle amount.

What is EMI deferment?

A deferment is a temporary arrangement which allows you to postpone your EMI payments by a certain period of time agreed between you and the lender. There is generally a service fee for availing this facility.

What is Credit Bureau or AECB?

AECB is AL Etihad Credit Bureau – it is a company that collects credit information from banks & financial institutions and provides it to the banks, and customers in the form of a credit report. It is used by banks and financial institutions to evaluate the credit history of the loan applicant.

What is a Credit Report?

A credit report is a document Issued by the Credit Bureau agency which provides details of the credit facilities, loans, credit cards, defaults in payment, cheque bounce cases.

What are the documents required to avail a loan?

i. Identity Documents – Passport/ Emirates ID/ Visa / Family Book for UAE Nationalsi.
ii. Income Documents – Salary Certificates/ Bank Statement/ Audited financials (for self-employed).

What is DBR?

Both buy to let mortgage, as well as a residential mortgage, is being offered to the expats in the UAE. The loan criteria, however, may differ from lender to lender and borrower to borrower.

What is the difference between Flat Rate vs Reducing Rate?

Flat interest rate is an interest rate charged on the full loan amount for the whole tenure.Under reducing interest Rate, interest is charged every month on the outstanding loan amount.

What is early settlement of Loan?

Most banks will give an option of paying back the loan amount before the scheduled time. Penalty fee will be changed by the bank for the early settlement of loan.

What is Credit Life Insurance (CLI)?

This is generally a onetime insurance fee that is paid on the loan amount .This will pay off the outstanding debt if the borrower dies.