Due to the advantageous tax system and economic stability, in recent years the United Arab Emirates are of increasing interest to businessmen from around the world. Moreover, many highly qualified specialists come to this country to find a lucrative job.
Thus, the question may arise how to take a loan in the UAE: for the opening of business, for the purchase of housing, cars, etc. In this article we will tell you 5 interesting facts you should know about loans.
The most important point to know about loans in the UAE is that they are given only to local residents, i.e. those who have a residence visa and permanently live in the United Arab Emirates.
It is almost impossible to obtain a personal loan in the UAE without having a residence visa.
The terms of lending to residents the terms are quite attractive:
If you want to take a loan for doing business in the UAE, the main requirement is that the company must be in the UAE for at least three years. However, some banks may still agree to give you credit under the condition of providing additional collateral (and the conditions for it will be different).
Credit conditions in different banks can vary significantly, so before taking a loan carefully review the following points:
The UAE banks offer special loan programs for certain categories of needs. For example, to pay for the treatment or education you can count on more favourable terms. The same relates to loans for consumer needs. Interest rates are significantly lower than for non-purpose loans. However, in this case you need to confirm the target use of credit funds, for example, provide a receipt for the purchase of household appliances or furniture.
Loans on real estate are issued by many banks in the United Arab Emirates. In this case it is better to contact the bank beforehand and discuss the terms and the amount of the loan. As a rule, the processing with a mortgage requires about 2 to 4 weeks.
Motor vehicle loan is the most common type of loans in the UAE. It differs from other forms of credit by its loyal requirements. However, it is worth considering that a car is in pledge at the bank till the moment of repayment of the loan, which means you will not be able to sell the car or take it abroad until you pay the entire loan amount.
As you can see, it is quite possible to take loans in the UAE for business or personal needs.
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