{"id":1372,"date":"2020-12-08T07:23:31","date_gmt":"2020-12-08T03:23:31","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=1372"},"modified":"2020-12-08T07:55:53","modified_gmt":"2020-12-08T03:55:53","slug":"all-loans-in-uae","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/","title":{"rendered":"All about the loans in UAE"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In this article, we aim to tell you all about the loans in UAE. We will go ahead and tell you what a loan is and all about how you can find the loan that is best for you and your credit score.<\/span><\/p>\n<h1><span class=\"ez-toc-section\" id=\"Introduction_to_taking_a_loan_in_UAE\"><\/span><strong>Introduction to taking a loan in UAE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2b5fedc357b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2b5fedc357b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Introduction_to_taking_a_loan_in_UAE\" >Introduction to taking a loan in UAE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Types_of_loans_in_UAE\" >Types of loans in UAE<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Open-ended_and_closed-ended_loans\" >Open-ended and closed-ended loans<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#1_Open-ended_loans\" >1. Open-ended loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#2_Closed-ended_loans\" >2. Closed-ended loans<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Conventional_loans_and_Islamic_finance\" >Conventional loans and Islamic finance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#1_Conventional_loans\" >1. Conventional loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#2_Islamic_finance\" >2. Islamic finance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Secured_and_unsecured_loans\" >Secured and unsecured loans<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#1_Secured_loans\" >1. Secured loans<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Vehicle_Loans\" >Vehicle Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Car_Loans\" >Car Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Mortgage_Loans\" >Mortgage Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Home_Loans\" >Home Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Loan_Against_Rental_Income\" >Loan Against Rental Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Loan_Against_Shares_Investments\" >Loan Against Shares &amp; Investments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Asset-backed_Trade_Finance\" >Asset-backed Trade Finance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#2_Unsecured_loans\" >2. Unsecured loans<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/moneymall.ae\/credit-blog\/all-loans-in-uae\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-571\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2020\/06\/Untitled-sheikh-loan.jpg\" alt=\"Personal Loans VS Business Loans in UAE\" width=\"964\" height=\"633\" \/><\/p>\n<p><span style=\"font-weight: 400;\">When you take a loan from a bank or a similar financial institution, you have to be a party to an ironclad loan contract. This contract specifies all the attributes of the loan that you are trying to get from this financial institution. It contains the period in which you will have to repay the amount, the exact borrowed amount, the rate of interest that will be levied, and the collaterals (if there are any).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence, the rate of interest is the surcharge that the bank charges on top of the money that it lends to you. Once you pay back the entire principal to the bank, you also have to pay back an interest so that the bank profits by it. The borrower also needs to agree to a specific period in which the entire sum will be returned to the bank or financial institution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lenders are usually known for equating their loans to the bank by means of an EMI. This means that the borrower has to pay a fixed amount to the lender every month for a fixed amount of months or years. At the end of this period, the entire principal and the interest will be paid off.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Hence, there are a lot of people in the world who take loans to make their wishes come true. There are different types of loans. They are home loans, car loans, credit cards, and business loans. In the UAE, there are two major types of banks: conventional banks and Islamic banks. While the conventional banks follow internationally-accepted procedures while lending money, Islamic banks work as per the Sharia-law.<\/span><\/p>\n<h1><span class=\"ez-toc-section\" id=\"Types_of_loans_in_UAE\"><\/span><strong>Types of loans in UAE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Since a loan is a very complicated matter due to so many variables, both in the numbers and in the particulars, experts have divided these loans into different types and categories. We have listed some categories of loans in the UAE for you to facilitate better understanding:<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Open-ended_and_closed-ended_loans\"><\/span><strong>Open-ended and closed-ended loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Open-ended_loans\"><\/span><span style=\"font-weight: 400;\">1. <strong>Open-ended loans<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Open-ended loans are the ones that can be taken up by the borrower over and over again. Some instances of these pans are credit cards, bank overdrafts, and others. In this kind of loan, you have an upper limit for your borrows. Under no circumstances can you exceed the limit (unless you have the permission of the bank or your credit card company).<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Closed-ended_loans\"><\/span><span style=\"font-weight: 400;\">2. <strong>Closed-ended loans<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Closed-ended loans are the ones that cannot be used time and again once they are repaid in full. The principal that is borrowed at the beginning cannot be made bigger either.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conventional_loans_and_Islamic_finance\"><\/span><strong>Conventional loans and Islamic finance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Conventional_loans\"><\/span><span style=\"font-weight: 400;\">1. <strong>Conventional loans<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These loans are offered by conventional banks that are established using procedures and laws followed by the Western or internationally-accepted laws of commerce and accounting. These conventional banks operate on a standard protocol of charging interest on the loan, depending on the principal borrowed and the time in which the money will be paid back.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Islamic_finance\"><\/span><span style=\"font-weight: 400;\">2. <strong>Islamic finance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These Sharia-law following financial institutions charge a \u2018profit\u2019 instead of an interest. These institutions follow the fundamental laws of Islam and are strictly against charging an interest from the borrower.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Secured_and_unsecured_loans\"><\/span><strong>Secured and unsecured loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Secured_loans\"><\/span><span style=\"font-weight: 400;\">1. <strong>Secured loans<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Secured loans have some collateral. These collaterals may be a guarantor or an asset. In case the money is not paid back to the lender, he\/she\/it may liquidate the collateral to retrieve the money that was lent.<\/span><\/p>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Vehicle_Loans\"><\/span>Vehicle Loans<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Car_Loans\"><\/span>Car Loans<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Mortgage_Loans\"><\/span>Mortgage Loans<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Home_Loans\"><\/span>Home Loans<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Loan_Against_Rental_Income\"><\/span>Loan Against Rental Income<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Loan_Against_Shares_Investments\"><\/span>Loan Against Shares &amp; Investments<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Asset-backed_Trade_Finance\"><\/span>Asset-backed Trade Finance<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2_Unsecured_loans\"><\/span><span style=\"font-weight: 400;\">2. <strong>Unsecured loans<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Unsecured loans are the ones that do not have single collateral or an asset that is held in escrow. All the financial institution or entity lender has in exchange of the lent money is the borrower\u2019s guarantee or word.<\/span><\/p>\n<ol>\n<li>Credit Card Loans<\/li>\n<li>Personal loans<\/li>\n<li>Business Cash loans with collaterals<\/li>\n<\/ol>\n<h1><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Here is everything you need to know about loans in the UAE. Please use this information carefully before you decide to take a loan for yourself in the UAE. Now that you are aware of the hard facts of taking a loan in Dubai, you are equipped to search out the best options for yourself in the vast market out there. We wish you the best of luck!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article, we aim to tell you all about the loans in UAE. We will go ahead and tell [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1373,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9,3],"tags":[],"class_list":["post-1372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans","category-personal-loans"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/1372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=1372"}],"version-history":[{"count":2,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/1372\/revisions"}],"predecessor-version":[{"id":1954,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/1372\/revisions\/1954"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/1373"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=1372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=1372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=1372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}