The loan granted for consumer for the purpose of personal, medical emergencies, family support, child education, to enjoy vacations or for the house hold expenses or consumer durables like (Extension, Repairs, purchase of Air conditioner, Computer, Refrigerator etc.) which oppose to business or commercial use basically these loans are either unsecured or secured by the asset purchased or by a guarantor.
Unsecured loans are signature loans which are advanced on the basis of the borrower’s credit history and ability to repay the loan from his regular personal income on fixed term. So basically personal loan is an unsecured installment loan. That means it’s a loan for a fixed amount of money to be paid back in equal installments over a period of month or years. And, there is no collateral securing the lender’s risk, like a car or a home, so there’s nothing to repossess if you default on the loan. And, loan amounts can be as high as an impressive AED 50,000 to AED 20,00,000 and the tenure for repaying the loan varies from 1 to 5 years. These loans are very handy and caters to all your needs.
There are number of banks which are offering Personal loans. The news about these loans isn’t all good. But be sure that you apply for the right one. Salary transfer loans for expatriates is a very good option which gives you a lower interest rate. But in case of salary transfer loan you must have a decent credit score to qualify. And, if you think you are going to borrow a good amount of money for that you have an impressive income also. Some of the post date cheques (PDC) loans are very good which are also offered by number of banks. These loans are having little higher interest rate compare to salary transfer loans but in case of PDC loans you must have to go through the following thing mention below:-