Personal Loan for Govt. Employees in UAE

All govt. employees in the UAE gets numerous benefits. One of the major benefits is that such individuals get a personal loan more easily from the banks and other financial institutions. The lenders have a specialized program of providing personal loans to UAE govt. employees. Getting loan approval is also easier if the applicant has a good history of employment. Emirates Loan gives more options for personal loans to government employees without the strict criteria of eligibility. Before finalizing the loan, read all the terms and make sure the cost of repaying the debt amount with interest is not higher.    

What are Personal Loans? 

Personal loan is one of the most famous kinds of loans available in the UAE. This loan is repaid in the form of monthly installments in a specific duration of repayments. For government employees, the personal loans are also designed by the lender. Therefore, every employee of government can easily solve any kind of their financial issue.    

Maximum Limit of a Personal Loan: 

Just like other loans, it is also with a maximum limit of debt amount. And no one can avail a debt higher than this limit. The lenders consider the monthly salary of the applicants and then approve the application. You will get an amount of twenty times more than of your per month salary. Then, the lenders get surety that the repaying of the amount is convenient for you. There is no demand of collateral because of its unsecured type of debt.  

Loan Term: 

Generally, these loans are with the short-term of repaying. But still the maximum repayment duration is up to 48 months. The major factor affect on the repayment period is the total debt amount. 

Monthly Installments: 

The criterion of monthly installments is that it should not higher than fifty percent of the monthly income. It means that you have to consider the debt-to-income ratio. This ratio must lower than 50. All those applicants with higher ratio of it cannot get the debt. So, the lower ratio is compulsory to avail a fund from the lender.  

Factors that Affect the Personal Loan’s Terms  

The maximum debt amount, repayment period, etc. all are regulated by the UAE Central Bank. Every lender follows the guidelines of this bank. There are many factors that have direct affect on the personal loan’s terms. You need to check these factors in order to apply for a loan with full confidence that there will no chance of application rejection.   

Credit Score: 

The major motive of checking the credit score is that the financial institution easily knows the applicants’ capability of the paying back the debt. This factor is also a part of your credit report. You can get your report from the credit bureau. It is essential for you to take the report, so you will know what exact your credit score is. The details include in the credit report are paying history of bills, monthly payments, etc. The credit bureau collects all this information of clients monthly. After your submission of loan application, the lender will look the credit report and then give approval.   

Effective Ways to Improve Your Credit Score

Monthly Salary: 

This loan is a sort of non-collateral debt, thus there is no need to provide the collateral. But the financial institutions always check the applicants’ monthly salary. There is a criterion of maximum salary per month. If your salary is higher than this limit, you will easily get the debt. The government employees easily attach the details of their proof of monthly income source. As a result, there are higher chance of approval of loan.    

Existing Debt Burden Ratio: 

Sometimes, the borrowers have existing loans and they repay the monthly installments every month. Therefore, the lenders check the existing debt burden ratio. They will know how much you pay every month from the salary. This ratio is lower than 50%. But if it is higher, then the lender will not approve the personal debt application. Before applying a new loan, you should pay down all your existing debts. Thus, you will easily pay off the monthly installments of a new debt.  

Considerations When Apply for a Personal Loan 

There is a specialized personal loan program for the employees of government. Before selecting of any loan offer by the lender, you must compare the different options. The comparison between the loans is much important to select the best one that give you best financially help. The things that you must consider: 

Maximum Borrow Amount:  

Always consider that the higher debt amount will give you more financial stress when you repay the debt amount. You should apply for a loan that is low in cost of overall monthly installments within the tenure. Make your financial budget and then apply for a debt.  

Repayment Period: 

Every month you will repay the installments. The installments are with the amount of interest. If this period is longer, it means you will pay higher interest in all over tenor. On the other hand, the shorter repayment period is with lower interest but you have to pay higher payments every month. So, you have to decide which repayment period is suitable with your financial budget. 

Processing Time:

If the processing time of getting a personal debt is faster, you will easily manage your financial issue. The personal loan comes with easier processing of approval. It is most convenient debt to avail. All those applicants who need urgent finances should apply for it. The processing time of this loan by the financial company Emirates Loan is too shorter. 

Interest Rate: 

The interest rate of this debt is in both options of fixed & reducing. Both options have their pros and cons. You can check which interest type is beneficial for you when repay the debt. The fixed interest will remain same in the repayment period but the reducing interest will continuously decrease after paying off every monthly installment. Check the lender’s interest rate and then apply for the loan as per your financial need.