What is a Personal Loan? Can expatriates get Personal loans in UAE?

Well, baking systems anywhere in the world is able and responsible to provide personal loan to their customers according to their terms and conditions. Personal loans in UAE are the most suitable way to established in UAE and today are the preferred means of short term credit. Most of the expatriates or even people residing in the region prefer to take personal loans to use their credit cards for large expenditures. When we talk about expenses it may be related to traveling, purchasing large business assets, meeting within family-like weddings, college tuition, or children settlement, etc.
Banks in UAE are highly professional and provide personal loan for expatriates on the basis of two types of interest rates:
1. Flat interest rates
2. Reducing interest rates
The Flat interest rate on a Personal Loan
Now one thing is clear that expatriates living in the UAE can get any kind of loan from a bank by providing required stuff. Come towards the interest rate on a loan amount. If you are using a flat rate of interest on a loan it refers to the time when the interest and sum payable is calculated at the start of the repayment schedule. This kind of interest rate is not negotiable and does not change until the loan has been paid off with a complete amount.
We can take an example like a loan of AED 15,000 taken for a period of 12 months, which means payments of AED 1,400 every month and keep one thing this amount would be without interest. If someone wants to take the flat interest rate option, add to this interest at 5%, which equals AED 1,050 per month with interest, for 12 months. When we conclude this whole amount adds up to a total interest payment of AED600.
Reducing the interest rate on a Personal Loan
Now moving towards the reducing rate of interest on a loan with the same amount taken from a bank or any other lending institution. Now here the point will be different and takes into consideration that after each installment, the total amount of loan which can be called the principal amount reduces according to the payment option. The interest percentage which remains the same is charged on the reduced amount, every month. This means if you go with the reduced rate interest then you will be able to cut down your interest rate. This situation of type of interest rate will results in different installment amounts each month.
Where to get the best personal Loan?
Are you expatriates and looking for a personal loan? We would suggest you to approach Mashreq bank as it would be the most suitable choice for such customers and services. This bank can provide you different types of loans up to 1 million Dirhams with a 24-hour loan disbursal. You can also take the option of a savings account to cover your loan burden or other expenses.