A personal loan can help you achieve your financial goals. But a number of factors determine how to go about picking the right loan.
If you’re looking to consolidate high-interest debt or are faced with a large expense such as home improvement project, you might be thinking of taking out a personal loan in the UAE. Such financial option typically comes without the need for collateral, but eligibility varies according to your monthly income and your expense record.
Personal loans in the UAE are generally approved and disbursed within 3-7 working days.
But how do you go about choosing the best type of loan in the UAE? It’s worth asking a few questions before agreeing to a loan – diligence at the start saves trouble later.
Why are you taking out a personal loan?
Responsible money management means being aware of your financial situation at all times. The most important thing to ask yourself is why you’re taking out the loan – and what financial goal this cash injection will help you achieve. A vague desire to ease general constraints could leave you with a similar cash crunch further down the road. With clarity of purpose, you’ll be better equipped to decide how much money you need and what kind of loan to look for.
Is a personal loan right for you?
Once you have decided why you want a personal loan, you will need to figure out whether you want to transfer your salary to the bank or not. You may already have a salary-linked loan on your home or your car and may just want a little extra cash to tide you over a short-term dip. It is worth considering a personal loan in such cases because such loans typically do not require salary transfers.