Debt Consolidation Loans in UAE: Combining Multiple Debts

Managing of monthly payments of numerous loans at the same time is a hectic task. That’s why the lenders suggest the way of debt consolidation to pay off all the debts instantly. As a result, you will pay only one payment per month of this new debt instead of numerous payments in a month.

All your debts will consolidate into one and then you will get relief from paying higher debt payments. Debt Consolidation Loans in the UAE are common but you need to apply for it after comparison between numerous lenders. In particular, the financial help of debt consolidation is easily availed by the Emirates Loan. This company gives this loan with lower rates as well as lower monthly installments. Without any processing fee, its process will be complete and you will quickly get the approval.      

What Is Debt Consolidation?

One of the best strategies for the management of numerous debts is debt consolidation. It is a way of combining multiple debts into a newer loan. This new loan comes with a payment schedule of your choice. And, the good point is that the interest rate is lower. When you pay the monthly installments of numerous debts, the amount of these installments is higher due to the high-interest rate.

However, the consolidation of debts gives you the option of paying a single monthly payment with low rates. Any kind of different loans can combine in this debt such as personal, mortgage, car loans, etc. The lenders also offer consolidation loans to applicants with bad credit. This loan is different from a loan restructuring loan because it merges all loans into a new one with a low monthly payment.    

Debt Consolidation’s Process in UAE 

The continuous paying of monthly repayments of numerous loans disturbs your financial budget. In UAE, the borrowers face difficulty in paying higher installments per month. Therefore, they opt for loan consolidation. This process will combine all other debts and then you will pay only one repayment.

Paying down one repayment is a convenient option for the borrowers as compared to multiple repayments. All financial institutions in this country offer this loan such as Emirates Loan. When you sign its agreement, you will be able to choose the terms of your choice. Always decide the tenure with the consideration of your budget of finances.  

Reasons to Choose a Debt Consolidation 

Due to so many reasons, we can say that the consolidation of debts is an ideal choice for every borrower who is under the burden of financial crisis because of higher monthly payments. Check these following reasons, then you will know how much worth this loan is:  

Fast approval: Now, private lenders in uae are also working digitally. They provide both ways of applying such as offline and online. The online application process is very quick. After submitting the application, the approval time is also short only if you are an eligible applicant. 

Flexible interest rate: Interest rates are very flexible. It means that every applicant will get a loan with a specific different interest rate. The lenders decide the interest rates on the basis of applicants’ credit scores. A higher credit score means the availing of a new loan with a low-interest amount. Furthermore, the longer tenure also does not come with a higher repaying amount. 

Easy processing: Its entire process is user-friendly. Even, if you are applying for it for the first time, you will easily do it with full confidence. The financial institutions are with tech-enabled systems which means that you will instantly get the approval. 

Quick loan process: Overall process is quick because the requirement of attachment of documents is not tough. The application form requires the proper filling of your information and details. Basic documents are required in this loan’s paperwork.  

Features of Debt Consolidation Loan: 

There are a variety of features of consolidation of debts that all borrowers should know to manage their financial life more easily. As we said the interest rate is low. But if your earning per month is higher now, you will avail of an option of paying off lower monthly payments. Just because of reduced payments, you will efficiently manage the repaying of the debt amount.

In addition, the lender also provides the service of postponing monthly repayments for a specific time. During this period, the borrowers will financially relax for a shorter time. And, after this period, you will effectively be paying the installments per month.    

Know the Criteria for Eligibility  

When you will know the criteria of eligibility, you will easily meet them. Then it becomes possible to qualify for the consolidation of loans. The criteria are: 

• Copies of passports, visas, and Emirates ID
• Your salary must be more than the lender’s criterion of minimum limit of monthly income. To prove it, you will need a salary transfer certificate to submit. 
• The bank statements must be from the past 3-6 months. You can also provide your salary slips instead of these statements. 

Insolvency Law of UAE

According to the recent Insolvency Law of UAE, all those borrowers get more time to repay the debt if they are facing financial issues. This repayment schedule is for three years. The lenders will not charge any additional fee if you do not pay the debt within tenure. Moreover, the borrowers also do not face the consequence of legal case because the UAE’s government help such borrowers in settling their debts.