Deem Finance Personal Loan Interest Rate

Deem Finance is a financial services company based in the UAE that offers a range of consumer financial products including personal loans. Deem Finance personal loans are designed to help individuals meet their financial requirements with ease and flexibility.

With a simple and streamlined application process, competitive interest rates, and easy repayment options, Deem Finance personal loan is a popular choice for those seeking quick and convenient access to funds. In this article, we will discuss the Deem Finance Personal Loan interest rate and other details associated with it.

Deem Finance Personal Loan Interest Rate

Here is an overview of the personal loan interest rates from Deem Finance -

• The Deem Finance Personal Loan interest rate ranges between 15.99% and 34.99% per annum.
• The interest rates depend on the applicant’s eligibility.
• The financial institution calculates the interest rate on a reducing balance basis and a 365-day per year basis. Simply put, as the borrower repays the monthly instalment, the interest component adjusted from the monthly instalment progressively reduces, and the corresponding principal component increases through the loan duration.

Key Features of Deem Finance Personal Loan in the UAE

Are you considering taking out your personal loan via Deem Finance? Here are the major features of the loan product to take note of -

• You need a minimum monthly income of AED 5,000 to avail of the loan.
• The personal loan application process is swift and convenient, with the provider taking only a few seconds to notify you whether you have qualified for the loan.
• You don’t need to transfer your salary to a Deem Finance account.
• You have a flexible repayment tenure of 1,2,3, or 4 years to repay your loan amount.
• Avail of the Deem Credit Life Plus feature to protect your loan’s outstanding at unfortunate death or terminal illness.

Factors Affecting Deem Finance Personal Loan Interest Rate

Deem Finance takes several aspects into consideration while deciding the interest rate on a personal loan. Discussed below are some of the major factors for the same -

1. Monthly Salary

Personal loan interest rates are significantly impacted by your monthly income. Lenders usually prefer borrowers with a higher monthly income as it indicates that they would be able to repay the loan while adjusting their monthly requirements and other debts (if any). This, in turn, minimises the risk of loan default and renders them more suitable for receiving lower interest rates.

On the other hand, if the borrower's monthly income is lower, they may be considered at a higher risk of default and may be required to pay a higher interest rate to offset the additional risk.

For these reasons, having a higher monthly income can help you secure a lower interest rate for your personal loan.

2. Credit Score

When it comes to determining loan interest rates, credit score certainly plays an important role. Financial institutions rely on credit scores to evaluate your creditworthiness and assess the likelihood of loan repayment. 

A higher credit score reflects better financial management skills, which generally prompts lenders to offer lower interest rates to such individuals. Conversely, borrowers with a low credit score may be viewed as higher risk and may have to bear a higher interest rate due to the elevated risk. 

3. Debt Burden Ratio

Fundamentally, the debt-to-income ratio is the ratio of your total monthly debt payments to your monthly income. Financial institutions view individuals with a lower debt burden ratio as less risky since it implies good financial management and that the borrower would be able to pay their loans on time.

While a lower DTI may result in a lower interest rate, a higher DTI may prompt lenders to charge a higher interest rate to offset the increased risk. Thus, it's pretty crucial to maintain a low DTI when applying for a personal loan to enhance the chances of obtaining a lower interest rate.

4. Relationship with Deem Finance

Having a positive banking relationship, such as holding a savings account or a credit card with a bank, can influence the interest rate on a personal loan. Financial institutions may consider a borrower's loyalty and financial history while evaluating the risk of lending money, resulting in a lower interest rate.

Moreover, borrowers with an established banking relationship may qualify for special offers and discounts on interest rates, further reducing the cost of the loan. Maintaining a positive rapport with a financial institution can benefit borrowers seeking personal loans by enabling them to secure favourable interest rates and save money in the long run.

5. Loan Tenure

The duration of a loan is another key factor that banks take into account to decide the interest rate. Typically, a longer loan tenure attracts a higher interest rate. It is because lending institutions are at risk of lending money over an extended period. On the contrary, a shorter loan tenure decreases the perceived risk and may lead to a lower interest rate.

Another thing to observe here is that a longer loan tenure, while resulting in lower instalments, also means that you, as the borrower, would have to pay more interest over the loan's entire duration. Hence, it's crucial to carefully explore your options regarding loan tenure when seeking a personal loan to secure the best possible interest rate.

Deem Finance Personal Loan: Fees and Charges

Here is the complete list of fees and charges associated with the Deem Finance Personal Loan in the Emirates -

Type of Fee	Charges
Processing Fee	1% of the loan amount - at least AED 500 and up to AED 2,500 (Equivalent to 0.95% of loan amount + 5% VAT, minimum AED 500, maximum AED 2,500)
Early Settlement of Loan	1.05% of the remaining balance up to AED 10,000 (Equivalent to 1% of remaining balance + 5% VAT, maximum AED 10,000)
No Liability Certificate	AED 63 (Equivalent to AED 60 + 5% VAT)
Liability Letter	AED 63 (Equivalent to AED 60 + 5% VAT)
Loan Rescheduling Fee	AED 105 (AED 100 + 5% VAT)
Partial Payment Charges	1.05% of the partial payment up to AED 10,000 (1% of the partial payment + 5% VAT, maximum AED 10,000)
Delayed Payment Penal Interest Charges	2.1% of the delayed amount - minimum AED 52.50 and maximum AED 210 (Equivalent to 2% of the delayed amount, minimum AED 50, maximum AED 200, + 5% VAT)
Loan Cancellation Fee	AED 105 (AED 100 + 5% VAT)
Loan Top-Up	1% of the loan amount, minimum AED 500, maximum AED 2,500 (Equivalent to 0.95% of loan amount + 5% VAT, minimum AED 500, maximum AED 2,500)
Deem Credit Life Plus	AED 22.05 (Equivalent to AED 21 + 5% VAT)

How to Calculate Deem Finance Personal Loan Monthly Instalment?

If you plan to take up a personal loan through Deem Finance, you should be aware of the instalment that you would be paying. Here’s how you can use the financial institution’s online personal loan calculator for the same -

• Open Deem Finance’s official website.
• Click on the ‘Get Help’ drop-down menu.
• Move to the ‘Financial Calculator’ section.
• Click ‘Calculate’ and follow the on-screen prompted instructions.
• Provide all the required details and get your results instantly.

A personal loan calculator is an online tool that assists in predicting the monthly instalment of a loan even before applying for it. This tool considers several factors, including the loan amount, interest rate, and loan tenure, to generate the final estimation of the monthly instalment.

By utilising this calculator, you can compare multiple loan products to determine a repayment plan that aligns with your financial requirements. This calculator is an invaluable tool if you are a potential borrower, as it can save time and money with its automatic calculations.  This way, you can make well-informed decisions about the affordability of a loan and take on debt that you won’t have trouble repaying.

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