5 things to look for in your personal loan.
In a city like Dubai, people need to survive financially because it is way harder than they think. The lifestyle there is so lavish that keeping up with it becomes a hassle for most of the people. However, in this hard situation what they can do is turn towards personal loans that most of the credit card companies are willing to offer. But once you get a personal loan in Dubai, you need to take care of it as well, right? So, you have to make the return as easy as possible. For this, consider these 5 tips before agreeing on any kind of loan.
1. A personal loan should offer the best deal
Yes, consumers take personal loans for many reasons. One of the most popular one is using it to consolidate your debt. Then there is home improvement, a vacation or simply starting a business. So, first check if there are dedicated loans available for your purpose. You can go for line of credit or home equity loan rather than taking a personal loan for home improvement. Home equity loans are mostly secured but the personal loans are not. The interest rate involved is high.
2. Go for a suitable lender
Personal loans are usually offered by online lenders, credit unions or bands. Now every source offers this loan on different interest rates. It is recommended to go to a bank first to get your personal loan. However, Mawarid also offers personal loans on extremely low interest rate. The point is that do your homework before asking for a loan.
3. Read fine print thoroughly
Now before you agree on taking any kind of personal loan make sure you are reading the terms and agreements carefully. Ask them to disclose all the loan terms. These terms usually vary with the lender. One important thing that you need to notice is if they repayment term is suitable for you. If not, then you can always switch to another source.
4. Check if your credit score is fine
I bet you didn’t know that if your credit core is acceptable, then it can make a huge difference when you go out and ask for a personal loan. The interest rate is directly dependent on your credit score. Sometimes the interest rate is more than 20% when you have a bad credit history, however if it is good, then the interest rate can lower down to 8%. For this, you need to start being responsible about your credit score. Also, check with the lender if not returning the loan on time will affect your score.
5. Don’t borrow more than you can afford
Please check with your current financial situation before asking for any loan. Obviously you are broke that’s why you need a loan but consider if you can even repay it or not? That’s not completely your fault, even when you ask for personal loan in Dubai, the lenders might ply you with more than you made your mind for.