How to Pay The Home Loan EMIs in UAE

Home loans are very common in the UAE. Because of their significant value, they often result in fixed long-term obligations in the form of EMIs. It’s no hidden fact that the Covid-19 pandemic has caused havoc in the country. Many individuals even lost their jobs due to the shutting down of their companies. In such cases, home loan repayment becomes a big question.

So, what can be done in such situations? How to repay a home loan in UAE if you lost your job? Let’s find out!

Ways to Repay Home Loan EMIs After Losing Your Job in UAE

Following are some ways in which you can handle mortgage loan repayment if you’re unemployed:

1. Inform lenders about your situation 

The very first thing you should do after losing your job is to inform your lenders about your situation and describe to them why you're unable to pay your home loan EMIs. If you've been paying multiple EMIs to the same lender promptly, they might help you deal with the situation. Based on your previous records and EMI history, your lender may offer some relaxation till you secure a new job. They might also increase your tenure or offer a reduction in interest rates. 

2. Utilise your savings

Recurring and fixed deposits are the most common forms of savings in the UAE. If you've also made investments in such instruments, then you can utilise them to pay your home loan in UAE. 

3. Consider using your severance

Many companies had to shut down their operations during the COVID-19 pandemic. If you were asked to quit by your company, then you might have been offered a couple of months' salary as severance. Most companies in the UAE provide severance as compensation for job termination. You can use this amount to clear your home loan EMIs while looking for new job opportunities. 

4. Liquidate your existing assets

In countries like the UAE, having assets like gold, silver and automobiles is very common. If you also have gold or silver, you can consider selling it and using this amount to pay your home loan EMIs. Alternatively, you can also consider taking a gold loan for the same purpose. But note, that gold loans often come with higher interest rates. Moreover, you can also consider selling any vehicle or gadget that you no longer use to collect some funds for paying EMIs of home loan. 

5. Take a loan against your life insurance

Another great way to pay the home loan EMIs in UAE is by taking a loan against your insurance policy. Generally, the interest rates on life insurance are much less than the interest levied on personal loans. Host our website now to get a loan on your life insurance policy. 

6. Utilise your pension fund

Pension fund schemes are provided by most employers in the UAE. If you've been working for a long time, then you might have gathered a significant amount of funds. If your scheme allows, you can withdraw this fund to pay your home loan EMIs. 

7. Take help from family or friends

The last option you're left with is asking for financial help from your family and friends. They will surely help you out in this critical phase. This will not only prevent you from becoming a defaulter but will also save you from paying extra interest rates. Once you get a new job, you can repay them.

So, these are how you can pay your home loan EMIs in UAE after losing a job due to Covid-19. If you're looking for the best home loan providers in UAE with the lowest interest rates, visit us today!