Jul 28, 2022
Whether covering medical emergencies, home renovations, vacations, dream weddings, or debt consolidation, financial requirements can arise unexpectedly. This is where a personal loan becomes a feasible solution as it can be used for any financial purpose. They are unsecured loans, implying that there is no collateral backing the loan. Regardless of your reason, personal loans are an excellent choice for consumers because they are often less expensive than credit cards and provide funding faster than home equity loans or HELOCs.
Furthermore, because there is often no collateral linked to a personal loan, it is a less risky type of financing than secured loans such as home equity products. If you default, your home, vehicle, or savings account is not instantly at risk.
Understanding how a personal loan works
Most lenders will calculate your interest rate depending on your creditworthiness and other aspects. Once approved for a personal loan, the funds will be deposited in a lump sum into your bank account. Depending on the lender, the transfer could take just a few weeks. You must start making monthly payments once the loan is disbursed.
Let us look at a few circumstances where a personal loan would be ideal.
Consolidation of existing debts
When you are simultaneously paying and managing the EMIs of several small loans, the total amount of all the EMIs you would be paying per month is likely to be high. In addition to this, managing multiple EMIs and keeping track of the remaining principal amounts is a difficult task. In such a case, obtaining a personal loan is an excellent way to consolidate your debt and pay a single interest rate with a fixed monthly EMI. This will simplify your monthly finances, and give your budget a sense of stability and predictability.
Home remodelling
You can use a personal loan to upgrade your home or fix necessary repairs, such as plumbing repairs or electrical wiring upgrades. Those who do not wish to take a home equity line of credit (HELOC) or a home equity loan may benefit from a personal loan. A personal loan is a good alternative as you can avoid the risk of losing your precious home, in case you fall behind in making payments.
Boost your credit score
An individual's credit score is calculated based on promptness in loan and credit cards repayment. When you apply for a personal loan, you repay it in installments. Timely payments will contribute to your credit history and boost your credit score.
Higher education
Higher education may be costly, especially at a foreign university. However, it is also an opportunity that can be a tremendous learning experience and greatly enhance one's career options. If you are uncertain about covering higher education expenses, a personal loan can be your solution. A personal loan is always a better option because there are no requirements for obtaining one.
Meet medical emergencies
Medical emergencies necessitate immediate financial assistance. A life-saving surgery may require you to make the payment within 24 hours. When there is an emergency, applying for a personal loan and receiving disbursement can be completed within hours. Other benefits, such as pre-approved offers, instant approval, and a lower EMI, make this loan suitable for dealing with such emergencies.
Vehicle financing
Auto loans are available if you want to buy or lease a car, but so are personal loans. Auto loans typically have lower interest rates than personal loans, but they have secured loans that use the collateral of your vehicle. If you are concerned about missing payments and having your car repossessed, a personal loan may be a better option for you.
A personal loan allows you to divide expenses into smaller, more affordable payments. By being mindful of your financial requirements, you will be able to meet your necessities with the help of a personal loan. At BanqMart, you can find the best loans in UAE that fits your financial needs. With our competitive loans, you can take control of your financial affairs with no hassles.
Having a good credit score is essential for obtaining financial services in the UAE. It is a three-digit value assigned to individuals based on their financial activities, such as debt repayment schedule, number of active loans, and on-time or delayed bill payments. A good credit score can help you get loans and credit cards at reasonable interest rates and with a higher credit limit.
Mar 27, 2023To mark International Women's Day, here are five financial empowerment tips for women, as well as some credit card offers available in the UAE that can help them reach their financial goals.
Mar 9, 2023Are you tired of spending money without getting anything in return? With the right credit card, you can start earning cashback on all of your purchases. Cashback credit cards are all the rage in UAE and have become a budgeting essential for UAE customers. These credit cards not only offer you money back on every purchase, but they also provide additional benefits such as loyalty points, discounts, coupons, etc.
Feb 28, 2023The debt-to-burden ratio assesses the proportion of your monthly income that goes towards paying your expenses (including loans and credit card installments). Banks use this measure to determine your loan and credit card eligibility based on your current obligations and ability to repay them.
Feb 23, 2023There's no better place to celebrate Valentine's Day than in Dubai, where you can express your love in some of the most romantic and unique ways.
Feb 13, 2023UAE is a bustling country that never sleeps, and having a car can be a game-changer when it comes to getting around. With the high cost of living in UAE, not everyone can afford to purchase a car outright, and this is where car loans come in handy. Car loans are a popular option in UAE as they provide an easy and convenient way to finance your dream car. In this comprehensive guide, we'll take a closer look at car loans in the UAE, including the types, processes, and tips for choosing the right one for you.
May 24, 2023A personal loan in the UAE is a type of unsecured loan that can be obtained without any collateral or guarantor requirement. It is a popular financing option for individuals who need funds for various personal reasons such as weddings, higher education, international trips, starting a new business, and debt consolidation.
May 11, 2023Are you struggling to decide between renting and buying a property in the UAE? Do you find it challenging to determine which path is right for your financial future? Well, you're not alone! Many people face the same problem when it comes to making this decision. The UAE is an expensive country, and property prices can be sky-high. Moreover, the rental market is incredibly competitive, making it tough to find affordable housing. As a result, many people find themselves in a bind, unable to determine which path is best for them.
May 5, 2023Have you ever wondered why some people always seem to have enough money while others struggle to make ends meet? The answer lies in how they manage their expenses. Learning how to manage expenses is crucial, especially if you are living in the UAE, one of the most expensive countries in the world. In this blog post, we will discuss why it is important to learn how to manage expenses in the UAE and how you can do it.
Apr 28, 2023Credit cards have become an integral part of our daily lives, especially in the UAE, where cashless transactions are widely accepted. They offer various benefits, including reward points, cashback offers, discounts on shopping, and easy access to credit. However, applying for a credit card can be a daunting task, especially for first-time users. In this blog post, we will provide a complete guide to successfully applying for a credit card and receiving approval in the UAE.
Mar 30, 2023Having a good credit score is essential for obtaining financial services in the UAE. It is a three-digit value assigned to individuals based on their financial activities, such as debt repayment schedule, number of active loans, and on-time or delayed bill payments. A good credit score can help you get loans and credit cards at reasonable interest rates and with a higher credit limit.
Mar 27, 2023To mark International Women's Day, here are five financial empowerment tips for women, as well as some credit card offers available in the UAE that can help them reach their financial goals.
Mar 9, 2023Are you tired of spending money without getting anything in return? With the right credit card, you can start earning cashback on all of your purchases. Cashback credit cards are all the rage in UAE and have become a budgeting essential for UAE customers. These credit cards not only offer you money back on every purchase, but they also provide additional benefits such as loyalty points, discounts, coupons, etc.
Feb 28, 2023The debt-to-burden ratio assesses the proportion of your monthly income that goes towards paying your expenses (including loans and credit card installments). Banks use this measure to determine your loan and credit card eligibility based on your current obligations and ability to repay them.
Feb 23, 2023There's no better place to celebrate Valentine's Day than in Dubai, where you can express your love in some of the most romantic and unique ways.
Feb 13, 2023UAE is a bustling country that never sleeps, and having a car can be a game-changer when it comes to getting around. With the high cost of living in UAE, not everyone can afford to purchase a car outright, and this is where car loans come in handy. Car loans are a popular option in UAE as they provide an easy and convenient way to finance your dream car. In this comprehensive guide, we'll take a closer look at car loans in the UAE, including the types, processes, and tips for choosing the right one for you.
May 24, 2023A personal loan in the UAE is a type of unsecured loan that can be obtained without any collateral or guarantor requirement. It is a popular financing option for individuals who need funds for various personal reasons such as weddings, higher education, international trips, starting a new business, and debt consolidation.
May 11, 2023Are you struggling to decide between renting and buying a property in the UAE? Do you find it challenging to determine which path is right for your financial future? Well, you're not alone! Many people face the same problem when it comes to making this decision. The UAE is an expensive country, and property prices can be sky-high. Moreover, the rental market is incredibly competitive, making it tough to find affordable housing. As a result, many people find themselves in a bind, unable to determine which path is best for them.
May 5, 2023Have you ever wondered why some people always seem to have enough money while others struggle to make ends meet? The answer lies in how they manage their expenses. Learning how to manage expenses is crucial, especially if you are living in the UAE, one of the most expensive countries in the world. In this blog post, we will discuss why it is important to learn how to manage expenses in the UAE and how you can do it.
Apr 28, 2023Credit cards have become an integral part of our daily lives, especially in the UAE, where cashless transactions are widely accepted. They offer various benefits, including reward points, cashback offers, discounts on shopping, and easy access to credit. However, applying for a credit card can be a daunting task, especially for first-time users. In this blog post, we will provide a complete guide to successfully applying for a credit card and receiving approval in the UAE.
Mar 30, 2023