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Credit facilities is convenient tool for obtaining required finances for business development, purchasing goods, payment of tuition fees, traveling, etc. Credit facilities in the UAE are available for each person living in the country permanently. Residents can enjoy quite favorable credit facility terms. It may include mortgage financing or, for instance, credit for purchase of a vehicle.
It should be noted that in order to receive a credit / loan in the United Arab Emirates, you should have resident visa. If you would like to obtain credit for expansion of your business, your company shall be deemed eligible if it has operated in the country for at least three years. Credit facility terms will depend on security provided and financials of your business.
In essence, terms of provision of credit facilities in the UAE, general or target consumer oriented, are not much different from practices of other countries. It should be noted that interest paid on credits arranged in shopping centers and alike will be slightly higher than interest charged directly by banking institutions. In addition, you can take advantage of current special offers in the United Arab Emirates. For example, credits for medical treatment or education are provided on more favorable conditions.
Credit terms and conditions and interest rates to be paid thereon vary, subject to each banking institution. Consumer crediting is characterized by relatively low interest rate, but you are required to submit appropriate documentation to the bank confirming the purpose of your credit. This may include the purchase of consumer electronics or furniture.
If you plan to take a credit, you must understand that the choice of banking institution will affect your chances of saving money in future when making repayment. It is important to comply with credit repayment terms and conditions. Your positive credit record will ensure loyalty on the side of banks and credit institutions.
Bank institutions in the UAE set forth the following set of documents to be submitted for obtaining credit:
In addition to standard set of documents, banks and credit institutions may require additional documents and fulfillment of particular conditions. One of the credit provision conditions may entail insurance of purchased property, etc.
Some of the most popular credit instruments in the UAE include credits for personal needs and for purchase of vehicle. Consumer credits are characterized by simplified credit provision procedure. Here, one of the principal conditions is that, for example, purchased car shall be held in bank or credit institution pledge until full repayment of credit. Unless the credit is repaid you may not sell or move from the purchased asset from the Emirates.
Any bank or credit institution, before providing any money, will carefully review your credit standing and submitted documents. Please note that any breach of credit agreement may lead to undesired consequences. Therefore, before applying for a credit, you should consider your credit standing and comply with credit payments and maturity terms.
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