UAE residents have several financial options like personal loans,& cards available at their disposal, However, if you are on a tight budget, use a personal loan to improve your life, a personal loan might be the way to go. Personal loans are usually disbursed quickly and have short tenors.
One more important aspect of such loans is that they are unsecured. This means that you do not need collateral for the loan.
All these benefits make personal loans the ideal financing choice for all your needs. In this article, we shall discuss the various uses of a personal loan that will promote the growth of your career along with a number of tips and tricks to help you opt for the best one…
How can you use a personal loan to improve life?
Given below are the various ways in which you can invest in your career by taking a personal loan.
Learn a New Skill
– Invest in yourself, Taking up funds in order to learn a new skill, to take a course, or to pursue higher studies are the best ways to use a loan, take a certification or vocational courses which can improve or update your skillset.
Take a break
– If you wanted to go on a holiday or take a break for a long time, you can borrow funds at an affordable personal loan interest rate without much thought, a much-needed break can give a refreshing restart to your career.
Invest in tools
– You can easily opt for a personal loan in order to invest in upgraded tools and technology that can help you grow.
Start a stream of passive income
– You can take up funds at a cost-effective personal loan interest rate and invest it wisely in order to generate a passive source of income. majority of UAE population is expatriate, it can be a good idea to keep looking for an opportunity to invest back home, i.e. small business family or friend business or a High-Interest Fixed Deposit in your home country
Attend seminars and conferences
– Make new connections at every opportunity you get, in UAE you will get many chances to attend various international conferences and world trade fair on a regular basis. attend those, if there are quite some costs involved in attending any seminar or conference in your field, you can consider opting for a quick personal loan on your credit card that has quick disbursal and can reach you in a matter of few hours.
What are the advantages of a personal loan?
Personal loans are often preferred by many borrowers because of an easier overall process. Some of its major advantages are as follows:
Easier approval –
You might have an easier time getting approved for a personal loan, especially if you haven’t been in business for very long.
No collateral required –
The best personal loans are unsecured, meaning you don’t have to put up any collateral to withdraw a loan. On the other hand, many business loans do require you to put up assets in order to secure the loan, especially those with favourable interest rates.
Fast process –
Personal loans tend to require far less paperwork and documentation, so the approval process is shorter and you get your funds more quickly.
How can you choose the best personal loan in UAE for yourself?
Choosing the right personal loan and lender can be difficult, with many options available in the market. With a number of both internationally recognized as well as domestic banks operating in UAE, it is extremely important to opt for a lender that is trustworthy and offers you a great borrowing experience. Here are some tips that will help you make the right choice:
Compare various personal loans on MoneyMall
The interest rates of banks in UAE vary greatly. Loans also differ by the factor that they are offered both with a salary transfer and without one. Therefore, always compare a number of personal loans and then fix one. The best place to refer to compare loans is MoneyMall. The one-stop place to do your research prior to signing up.
Check Your Credit Score and Monitor your credit history
Most of the banks in UAE, as of this day, base their interest rates on the borrower’s credit score or credit history. The credit history that you maintain eventually determines your credit score and a high credit score would mean a lower interest rate. It represents your credit-worthiness that reflects how much risk lenders perceive when giving you the money. So if your credit score is poor, you will be paying a higher interest rate. Generally, a credit score above 750 to 900 is considered a good score, and anything below 500 is considered negative.
Opt for a loan with a salary transfer
Personal loans without salary transfer are offered on a higher interest rate than the ones with a salary transfer. It is always wise to take a loan with a salary transfer as the interest rates are always lower. However, you will have to also check with your HR if they are fine with transferring your salary to the bank of your choice. A salary transfer loan would need a letter from your HR in the format as specified by the bank. A personal loan without a salary transfer is only recommended as a second loan when someone is not eligible for a top-up loan on their current salary transfer loan.
Read the fine prints
The interest rate cannot be your only criterion for selection. You need to carefully consider the terms and conditions of the loan as well. For instance, you may want to pay off the loan before tenor. You should know if there any prepayment charges for the same. Look out for any other hidden charges that might actually increase your cost of borrowing, like arrangement fees, handling charges, and many more. All these charges actually add up to your interest rate.
Fix your Personal Loan Interest Rate
Before choosing a personal loan, you should know if your loan interest rate is fixed or variable. Some lenders do offer variable rates only linked with EIBOR. The rates might come down but also can go up during the tenor. As personal loans are for a relatively shorter period, it is best time to opt for fixed interest rates. In this way, you can fix your monthly payment. Moreover, you can also budget your expenditure easily.
Among the almost infinite number of people who have taken a personal loan for a variety of reasons, there is barely anyone you would find to be ambitious enough to opt for such a loan for their career growth. When you ponder upon growing your career, you definitely do not have personal loans or credit lines coming to your mind. However, using a loan to invest in your skills and resources can be a good investment for what is to come in the future for you. It might just end up paying for itself.