Advantage and Disadvantage of Personal Loan in Dubai

Buying Personal loan in Dubai, UAE is a common now-a-days. Personal loan has many advantages and disadvantages. Hence, be careful before going in for the same and choose the best as per your requirements –

Advantages:

1. Personal loan is an assurance that means there is money in times of immediate actions like paying bills, travel expenses, credit card bills, business expenditure etc.

2. The purpose of loan is not required to be mentioned in this loan.

3. This loan is processed faster than other loans because less paper work involved in this process.

4. Mostly personal loans in Dubai are usually unsecured which means you do not have to need security, collateral or guarantor.

5. Once the loan is approved then it takes only 3-4 days to process the loan amount to the loan seeker’s account.

Disadvantages:

1. It is relatively difficult to obtain due to non-availability of a security in return. Hence, sometimes the qualifying criteria also become tougher as banks need to verify the reliability of the loan seeker according to their pre-approved categories.

2. The personal loan interest rates charged are very high; it may reach up to 25% for self-employed depending upon various parameters like the income, loan amount and other reliability criteria.

3. If the person fails to repay, they have to pay a huge penalty for the same and sometimes even the jail sentence and lose of all their assets.

4. Poor credit history people, frequently changed address or self-employee customer find it difficult to apply for this loan.

5. Always read the fine prints because banks tend to keep a lot of hidden costs for personal loan.

Hence, Personal loan in UAE, is essential for many but you need to consider advantages and disadvantages of it before going for the same.




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