Al Hilal Personal Loan Interest Rate

Al Hilal Bank is one of the leading Islamic financial institutions in the UAE. Founded in 2007, it has grown to become a prominent player in the country's banking sector, with a focus on providing Sharia-compliant financial solutions to individuals, businesses, and government entities.

The bank offers a comprehensive range of products and services related to personal banking, corporate banking, wealth management, investments, and loans. In this article, we will focus on the last part, specifically on Al Hilal personal loans.

With Al Hilal personal loans, you can easily get funds to fulfil your personal requirements without much waiting. However, to find whether these loans are feasible as per your budget, it’s crucial to be aware of the Al Hilal personal loan interest rates.

Let’s read on to know more about Al Hilal personal loan interest rates in the UAE.

AI Hilal Personal Loan Interest Rate

The flat rates for Al Hilal personal loans are as follows -

1. For UAE Nationals

Salary in AED	Profit Rate
5,000 - 59,900	3%
60,000 and above	2.9%

2. For UAE Expatriates

Salary in AED	Profit Rate
5,000 - 39,900	4.65%
40,000 - 79,900	3.90%
80,000 and above	3.40%

3. One Year Financing Option

Salary in AED	UAE Nationals	UAE Expatriates
5,000 - 39,900	3%	3.25%
40,000 and above	2.90%	3.05%

Features of Al Hilal Personal Loans

Al Hilal Bank offers personal loans across multiple categories. Note that all the available financing options are Sharia-compliant products. Discussed below are all the major ones and their key features:

1. Sukuk Finance

• You can avail of the Sukuk Finance option to purchase National Bond saving certificates as per your requirements.
• The minimum monthly salary required to obtain this type of loan is AED 5,000.

2. Travel Finance

• The minimum salary required to avail of this loan is AED 5,000.
• You have a flexible repayment tenure of 1 year.
• The bank offers you competitive profit rates.
• You can opt for high financing amounts.

3. Medical Finance

• You must possess a minimum monthly salary of AED 5,000 to apply for the loan product.
• Al Hilal offers you a period of 1 year to repay the entire loan amount.
• You can borrow high financing amounts from the bank.
• Profit rates offered on your loan are competitive.

4. Rent Finance

• The minimum salary required to avail of this loan is AED 5,000.
• You have a flexible repayment tenure of 1 year.
• The bank offers the product at competitive profit rates.
• You can opt for high financing amounts.

5. Education Finance

• You must have a minimum monthly income of AED 5,000 to avail of this loan.
• The financial institution offers a flexible tenure of 1 year to repay the loan.
• You can get competitive profit rates on your finance.
• The bank provides you with a high financing option.

6. Wedding Finance

• The minimum salary required to avail of this loan is AED 5,000.
• You have a flexible repayment tenure of 1 year.
• This finance product is available at competitive profit rates.
• You can opt for high financing amounts.

7. Service Finance

• You can get financing options for multiple goods and services, such as:
  • Home Rent
  • Education and Training
  • Hajj and Umrah
  • Air Tickets/ Holiday Package
  • Other Legitimate Goods

8. Goods Finance

• You must have a minimum monthly income of AED 5,000 to avail of this product.
• You can opt for this type of finance for the following:
  • Home Appliances
  • Computers and Accessories
  • Electronics
  • Furniture
  • Other Legitimate Goods

9. Settlement of Liabilities

• You must have a salary of at least AED 5,000 to avail of this loan.
• You can consolidate and settle your liabilities with other financial institutions in the Emirates.

Factors Affecting Al Hilal Personal Loan Interest Rates

Discussed below are some of the primary aspects that influence the Al Hilal personal loan interest rates in the UAE -

• Income - Your monthly income directly affects the interest rate that you are likely to receive. If you earn a high income, banks consider you as a borrower with lower risk and, consequently, may offer lower interest rates. On the other hand, if you have a low income, you may have to pay a higher interest rate because of the higher risk associated with the loan. 
• Credit Score - Your credit score is a numerical summary of your credit history, which is used by lenders to assess the risk of lending you money. It's one of the primary factors that banks consider when reviewing a loan or credit card application. If your credit score is high, banks perceive you as a lower-risk borrower, and you may be offered a lower interest rate. However, if your credit score is low, you are more likely to be charged a higher interest rate due to the increased risk associated with loan repayment. 
• Loan Tenure - The duration of your loan tenure is a significant factor that affects the interest rate of your personal loan. In general, if you opt for a longer tenure, the lender may charge a higher interest rate because of the increased risk involved over a more extended repayment period. On the contrary, if you choose a shorter tenure, although the instalment amount may be higher, you could get a lower interest rate as the lender can recover the loan amount more quickly. 
• Debt-to-Income Ratio - Maintaining a low debt-to-income ratio is crucial for securing a lower interest rate on a personal loan. This ratio represents the percentage of your income that is allocated towards debt payments. Possessing a high debt-burden ratio suggests that a significant portion of your income is already being utilised to service existing loans and debts. If your debt-to-income ratio is high, the bank may perceive you as a higher-risk borrower who may struggle to repay the personal loan amount. This, as you may expect, leads to an increase in the interest rate to offset the loan repayment risk. 
• Relationship with the Bank - Building and maintaining a positive relationship with your concerned financial institution can be beneficial when applying for a personal loan. Banks appreciate customers who exhibit a dependable financial track record and typically offer them a lower interest rate on their loans. By managing your finances responsibly and having a pre-existing account or credit with the bank, you can establish a good rapport and potentially negotiate a lower interest rate on your loans.

Al Hilal Personal Loan - Fees and Charges

To know the Al Hilal personal loan-related fees and charges, refer to the table below -

Type of Fee	Charges
Issuance of Letter of Guarantee	Free
File Opening and Agency Fee/ Processing and Documentation Fee	1.05% of the Finance Amount (Minimum AED 525 and Maximum AED 2,625)
Liability Letter	AED 63
Application Cancellation Fee (Before Signing Agreement)	Free
Life Takaful Fee (Per Month)	0.013755% of the Outstanding Finance Amount
Instalment Postponement Administrative Fees	AED 105
Early Settlement (Non-Waived Profit)	1% of the Outstanding Murabaha Cost (Up to AED 10,000)
Partial Payments	Free
No Liability Certificate	Free
Advance Payments of Instalments	Free
Late Payment Amount - Each Missed Instalment (Payable to Charity)	AED 200
Replacement of Existing Post Dated Cheques OR Standing Instructions with UAE Direct Debit Authority- DDA	Free

How to Calculate Al Hilal Bank Personal Loan Monthly Instalments?

Follow these steps to use the Al Hilal personal loan calculator -

1. Visit the official website of Al Hilal Bank.
2. Click ‘Menu’ and select ‘Personal Finance’.
3. Choose a desired personal loan product.
4. Once directed to the next page, scroll to the bottom of the page.
5. Locate the calculator and provide the required information.
6. The result will be auto-generated automatically.

An online personal loan calculator is a powerful tool that can help you make informed financial decisions when obtaining a personal loan. With such a tool, you can get an accurate estimate of monthly repayments, including interest, fees, and other charges. This information is of great help in understanding the financial commitment of taking out a personal loan and planning accordingly. Apart from this, you can compare different loan options and the respective instalments from different lenders with this tool.

When it comes to an online personal loan calculator, it indeed saves time as you can easily calculate your loan repayment options without having to visit multiple banks or other financial institutions. In addition to this, by knowing the estimated monthly repayment amount, you can determine if you can afford to take out a personal loan and make adjustments to your monthly expenses accordingly.

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