Personal Loan Interest Rate

The pandemic has ruined normal life and affected the personal finances of the general people. This has been a very hard time for employers as well as employees. Those borrowers who have obtained personal loans for which they have to make payment of EMIs are going through financial issues during this COVID-19 pandemic. This pain is deeper still for those people who have non-salaried jobs or do not have a stable income source. But, those individuals who earn are all facing salary cuts, deferred salaries, unpaid leaves, loss of business revenue, and unemployment.

Hence, in case you are in search of a simple and convenient alternative for boosting your cash flow during this tough time, you can apply for a personal loan in the UAE. Most of the financial institutions and banks are offering low personal loan interest rate to their customers in order to assist them in surviving the temporary cash flow issues due to this pandemic.

Not just that, a lot of financial institutions and banks have also provided measures for financial relief during such tough times for reducing the financial stress on their existing as well as potential customers. For those borrowers of personal loans who have been affected financially by the outbreak of this virus, banks have provided some type of relaxation from repayments.

In case you are an existing borrower of personal loans, you have the option to defer the repayment of the loan for up to 3 months. The financial institutions and banks won’t charge any rate of interest or any type of fee for this particular repayment holiday.

Which banks offered deferrals for the repayment of personal loans?

In the Emirate of Dubai, Emirates NBD (amongst the largest bank in Dubai by asset), Dubai Islamic Bank, Emirates Islamic Bank, Mashreq Bank, and Commercial Bank of Dubai announced measures for financial relief for reducing the financial stress of their customers.

In the Emirate of Abu Dhabi, First Abu Dhabi Bank, Abu Dhabi Islamic Bank, and Abu Dhabi Commercial Bank provided huge financial help to their network of potential customers.

In the rest of the Emirates, Commercial Bank International, Sharjah Islamic Bank, and RAKBANK also took one step ahead for helping businesses and individuals in such critical situations.

Personal Loan Interest Rate

Many of the leading financial institutions and banks have been offering personal loans at low rates of interest in the UAE during the coronavirus pandemic. The personal loan interest rate has reduced significantly as compared to normal days due to the pandemic just for offering financial relief to the customers.

Eligibility Criteria to Apply for a Personal Loan

Currently, a personal loan at a low rate of interest in the UAE is only available for those existing customers who hold a salary account and a stable job or the ones who have a decent credit Score. However, personal loans still will not be offered to people who do not have good credentials or decent credit history.

What is the need for personal loans these days?

As of now, there are two kinds of people- the first are the ones whose finances have been impacted badly due to the COVID-19 situation because of pay-cuts, salary deferrals, unpaid leaves, unemployment, revenue loss in the business, and more. Second, are those individuals whose financial condition is still somewhat on track.

And, actually, it is the people from the first category who are really in need of financial help during these difficult times. In the case of individuals in the second category, it should be said that since the personal loan is available at a lower personal loan interest rate in the Emirates doesn’t mean that they have to really opt for it. After all, a loan is debt at the end of the day. You will be borrowing funds and the rate of interest will have to be paid on the amount of loan that you borrow.

The Bottom Line!

In case you are taking into consideration a personal loan at a low rate of interest in the UAE at the time of coronavirus for meeting your financial needs, make sure you are very specific and also keep in mind that the issues we all are facing are temporary. Therefore, go for a personal loan when really require it because it does not make sense in adding up more debts during such tragic times.

You should visit the websites of the banks or make use of the phone banking option for applying for a personal loan. You will have to submit a duly filled application form online and also submit additional documents to apply for a personal loan in the UAE. If you meet all the requirements of the bank, then they will approve your loan request.