The personal loan being an unsecured loan meaning there is no guarantor or collateral needed to avail it, is a kind of loan in Dubai that is procured by customers from financial institutions or banks so as to meet their financial requirements. The needs for the procurement of personal loan may include higher education, wedding, beginning a new business, international trip, and even for consolidation of debt. In Dubai the maximum loan amount that one can get needs to be twenty times equivalent to his monthly salary, however the repayment tenure is usually 48 months. Basis the factors such as source of income, credit score, credit history, age, status of employment, etc, the personal loan’s interest rate and loan amount is decided.

The rate of interest offered by top private lenders in Dubai on a personal loan is referred to as an added charge which is levied on the principal loan amount. Here there are basically two kinds of rate of interest applied by the financial institutions and banks - namely they are Reducing Interest Rate and Flat Interest Rate.

Reducing Interest Rate on Personal Loan

Contrary to the flat rate of interest, the rate for this interest rate gets lowered each time the borrower pays his loan installment. The reducing interest rate usually is charged on outstanding principal sum which ranges between 5.24% and 39.99%.

Flat Interest Rate on Personal Loan

A flat rate of interest on personal loans is usually charged on the entire loan amount, which usually remains constant throughout the tenure. In comparison to the reducing interest rate structure, this type of structure is costlier since the interest rate is charged on the whole loan amount. Here the interest rate usually ranges between 2.63% and 22.22%.

Contact MoneyDila, one of the top private lenders in Dubai for all your financial requirements and enjoy the benefits.

Address:
2507, Burlington Tower, Al Abraj Street,
Opposite Oberoi Hotel, Business Bay,
Post Box number - 28173
Dubai - United Arab Emirates

website- https://www.moneydila.com/

Phone: +971 4 332 0030