Where to find the best bank loans
Finding the right loan is a job in itself. You want to make sure you get the best deal possible, with the most agreeable terms, your preferred repayment plan and the lowest interest rates. However, with a host of banks offering loans in the UAE – particularly since lending has been predicted to increase in the region by 6 per cent over the next year – where do you start?
The UAE enjoyed a boost to lending in 2013, helped mainly by its improved operating environment, a better economy thanks to trade and hospitality expansion and a recovery of the property market; so retail and consumer lending is a strong area for growth for UAE banks in the year ahead.
But every bank has a different set of terms, and so it is worth checking these out as you do your research into finding the best loan. Other things to consider along with their conditions includes the amount of loan required for your needs, the repayment options (in terms of the amount payable against the length of time you wish to pack it back over), the interest rate – but most importantly of all; the bank’s requirements from you in order to secure a loan.
If you are to succeed in securing a loan, you need to ask yourself. What’s the best loan for me? Then you need to meet the criteria and go on to provide proof of identity and of your finances too – so be ready with household bills, bank statements, wage slips and photo ID.
Then you will need to consider just exactly how much money you need for your purposes. Ensure to remember that whatever you borrow will impact on your monthly repayments, so be careful not to overstretch yourself – as whatever you commit to borrowing, you need to be confident that you are in a position to comfortably pay it back each month without living beyond your means.
It has been reported that it’s the best time ever for lowest rates on personal loans, as banks are competing for customers and so offering new products and pushing their rates further and further down – resulting in a drop from 7.5pc to 4.5pc; the best interest rates customers have seen for 15 years.
However, there have been reports of a catch, with many applicants being rejected in their application (allegedly 90% of applicants applying for the best deals, according to The Telegraph). Therefore, with each unsuccessful application, the customer is causing damage to their credit rating.
So it is worth bearing in mind that although there are some great deals on offer at the moment, you may not realistically get the extreme interest rates at the lower end of the scale – but there are still some great deals to be had, just in a more sensible bracket with the usual rate of interest and repayment options.
Using a loan calculator is the best course of action in the first instance to give you an overall idea of what you’ll be paying back. These are a great way of getting your loan application on track.