Bank loans are also highly available in Dubai, as one of the most successful source of profit for banks. There are several types of bank loans for which Dubai banks offer different possibilities depending on whether they are national, international or Islamic. Let’s see what type of bank loans we can go for in Dubai:
Personal Bank Loans:
Personal loans are somehow the easiest to get in Dubai. When it comes to personal loans, you have the options to get 10-24 times your monthly salary. The credit cards are much more expensive than the personal loans. For getting a personal loan, you will need to have a bank account at the bank where your salary arrives. Also you will need your passport, residence visa copies, your company contract and all the other papers the bank may request for the personal bank loans. Watch out as most banks have a list of their approved companies to the workers of which they give bank loans and if you are not on this list you will have some harder time to get the good amount of personal loan. So it’s always good to have the account at the same bank as the company. The maximum repayment period for personal loans is 4 years; the processing fee is between 1-5% the early loan settling fee tends to be high around 5% of the remaining amount.
Car Bank Loans:
When talking about car related bank loans, those are much easier to get as in form of the car the bank will get a sure guarantee of you repaying the money this or the other way. This means, because of the good guarantee, you will not even need to have a bank account at the bank which is dealing with the car bank loans. In terms of car loans, minimum 20% of the total value must be financed by the buyer of the car so the bank gives loan up to 80% of the total amount. In terms of car loans, the repayment period is maximum 5 years. For getting a car loan, you will need your passport and residence visa, your bank statements of the last 6 moths and a salary certificate. You will also need to show proof that you can drive car in the area of the United Arab Emirates.
Mortgage Bank Loans:
Many banks have fears of implementing mortgages but most Dubai banks offer mortgage loans as well. Take care because this can cost you a lot of money. Always ask who is the evaluator as the evaluations of Cluttons or Colliers cost AED 3000 which is close to USD 800. Banks have different requirements and non-residents can only get mortgages in a few banks.
Lately Dubai banks are suffering from the post effects of the financial crisis, which means that more and more international banks either pull out or dramatically reduce their services, especially in connection with corporate bank loans for businesses and for individuals. Especially the pulling out of the French Crédit Agricole was a dramatic hit on the financial standing of Dubai. So, except some rougher terms and conditions when it comes to getting bigger bank loans in Dubai.