For those with outstanding borrowing or a big one off payment to make the structured payments of personal loans can make a lot of sense. With rates as low as 6.75% many in the UAE are using them for home improvements through to securing the best possible deal on their apartment / villa rental and then spreading the cost across the rest of the year.
Personal loans in the UAE typically let you borrow up to 250,000 AED (although some go as high as 750,000 AED). While this is a higher amount than most credit limits via credit cards, cards can be a cheaper way to borrow.
Borrowing a small amount over a short time frame?
Borrowing via balance transfer on credit cards is usually cheaper but requires discipline and usually offers a maximum of 6 months before you either clear the balance or move it to a different deal. Read the credit card guide for more information, or see the credit card comparison here for the current best deals.
Borrowing for a specific purchase / a lump sum?
This is where personal loans really come into their own. Many in the UAE have used personal loans to fund one cheque payment on their home rental to secure the best possible rate and then split the loan payments over the next 12 months. The savings this represents can make it worthwhile.
Most banks now insist on a salary transfer to secure a personal loan, this is not always the case so keep an eye on our comparison table for the latest best deals. Sometimes it is worth moving banks to secure the best rate in the market.
One of the best deals at the moment is ADCB’s personal loan at just 6.75% for those earning over 20,000 AED per month. Salary transfer is necessary and a 1% processing fee required.