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Dubai Loans

Middle-East : Dubai : Life in Dubai : Dubai Finance


Naturally, as in every country, there are loans in Dubai as well. There are diverse loans in Dubai to go for, provided by different UAE banks. The main Dubai loans are either the corporate loans or the individual loans. The main banks providing loans in the United Arab Emirates are the HSBC, the Citibank, the Arab Bank, the Dubai Islamic Bank, the Bank of Baroda and the Doha Bank as the main institutes.


The main types of Dubai loans:

Personal loan: These have generally the same conditions as in most countries in Europe or in the United States. The general conditions are workplace, which needed to be proved with a 12-month of personal account and the amount to be borrowed ranges from AED 20,000 to AED 200,000. The loans are supplied within 4 to 10 days. The payment ranges from 12 to 48 months. The interest rate is high, around 25% yearly. Anyone can get personal loan online as well. The other condition is, to be clear of any debts or credits.


Home loan: This is like mortgage loans offered by a couple of financial institutions and offer different types of mortgages with different conditions. The mortgages are party dependent on the Islamic Shariah law. The other types include the fixed rate, the balloon and the adjustable mortgages.


Car loan: Anyone can opt for a car loan who has a minimum amount of AED 6000 as a monthly salary (out of which you can see that its quite limited) and the loan can last from 5 up to 8 years with an interest rate of or around 9-11 percent yearly. You can apply for a car loan online too. 


Loan against property: This type of loan is very similar to mortgage but it’s offered according to the cash flow of a business or salary of a person and not according to the value of the property. It can be up to 6 times your yearly salary. The processing takes around 2-3 weeks and can last between 5 to 15 years. The interest rate is 7.5-9.5 % yearly.


Salary transfer loan: This is a very similar type of loan to the personal loan; the sum is up to the applicant’s salary. However, it is preferred to the personal loan because its interest rate is much lower and all the rest of conditions are the same.


Business loan: These types of loans can only be arranged strictly for business reasons. Most banks in Dubai offer a so-called small business loan for small to medium size companies. The exact amount is somewhere in-between 150,000-750,000 and these loans are managed by the business banking departments. The loans are processed in about one or two weeks. The repayment time varies between 12 and 48 months with an interest rate between 18-24% interests yearly. If you opt for large business loan instead, the time of repayment can be enlarged with a smaller interest rate. Everything goes here, in accordance with the income ands the credentials of a company. In addition, your company should be operating for a minimum of 2 years, they will ask a 12-month bank statement of both business and personal accounts and needless to mention the clear history, meaning the company or person is not being in another credit by the time of application. 

 
Of course, loans are never easy to get, neither in Dubai as they are quite a risky business, that is why the conditions are so high, so that the banks can guarantee, that the money goes to the person who is able to repay it. Ask for more information on loans at biggest Dubai banks.