{"id":569,"date":"2020-06-19T22:14:00","date_gmt":"2020-06-19T18:14:00","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=569"},"modified":"2020-06-19T22:14:54","modified_gmt":"2020-06-19T18:14:54","slug":"personal-loan-vs-business-loan-in-uae","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/","title":{"rendered":"Personal Loans VS Business Loans in UAE"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">There are numerous financing options available to grow one\u2019s business in UAE, the most popular ones being credit cards and loans but amidst <a href=\"https:\/\/moneymall.ae\/credit-blog\/a-beginners-guide-to-personal-loans-in-uae\/\"><strong>personal loan<\/strong><\/a> and business loan, which one can be utilized better? Well, two of the best and most used options for work\/ business expansion are business loans and personal loans. If you are struggling to figure out which one of the two might be the most suitable for you, read further&#8230;<\/span><\/p>\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-6a2328d804e82\" 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-6a2328d804e82\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#What_can_you_use_a_Personal_Loan_for\" >What can you use a Personal Loan for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#What_can_you_use_a_Business_Loan_for\" >What can you use a Business Loan for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#What_are_the_advantages_of_Personal_Loans\" >What are the advantages of Personal 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\/personal-loan-vs-business-loan-in-uae\/#Easier_approval_%E2%80%93\" >Easier approval &#8211;<\/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\/personal-loan-vs-business-loan-in-uae\/#No_collateral_required_%E2%80%93\" >No collateral required &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#Quicker_process_%E2%80%93\" >Quicker process &#8211;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#What_are_the_advantages_of_Business_Loans\" >What are the advantages of Business Loans?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#Larger_loan_amounts_%E2%80%93\" >Larger loan amounts &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#Separate_finances_%E2%80%93\" >Separate finances &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#Lower_interest_rates_%E2%80%93\" >Lower interest rates &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#Limited_liability_%E2%80%93\" >Limited liability &#8211;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/moneymall.ae\/credit-blog\/personal-loan-vs-business-loan-in-uae\/#How_to_choose_which_is_right_for_you_%E2%80%93_a_Personal_Loan_or_Business_Loan\" >How to choose which is right for you &#8211; a Personal Loan or Business Loan?<\/a><\/li><\/ul><\/nav><\/div>\n\n<p style=\"text-align: center;\"><strong><em>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/a-beginners-guide-to-personal-loans-in-uae\/\">A Beginner\u2019s Guide To Personal Loans in UAE<\/a><\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_can_you_use_a_Personal_Loan_for\"><\/span><b>What can you use a Personal Loan for?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Personal loans can typically be used for anything.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Even though lenders in UAE may ask the reason for your application, in most cases, borrowers don\u2019t agree to spend your loan funds on anything specific when taking out a personal loan.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Some lenders do have restrictions on what their personal loans can be used for, so make sure to read the fine print before applying for a loan.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Most personal loans can also be used to pay off existing debt.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Some lenders will restrict you from using personal loans for college tuition and expenses.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_can_you_use_a_Business_Loan_for\"><\/span><b>What can you use a Business Loan for?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Business loans may come with more restrictions in regards to what they can be used for, such as the condition that you use the funds for business-related purchases.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Business purchases in UAE can include updating technology and equipment, purchasing new inventory, paying for rent on a commercial space, hiring new employees, marketing your business, and even covering your everyday business expenses.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In the end, your business loan should be used for purchases that will generate additional revenue &#8212; ideally, enough to offset the cost of interest.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Some lenders will also allow you to use business loans to refinance or pay off existing debt.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><strong><em>Read More:-\u00a0\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/a-beginners-guide-to-mortgages-in-uae\/\">A Beginner&#8217;s Guide to Mortgages in UAE<\/a><\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_advantages_of_Personal_Loans\"><\/span><b>What are the advantages of Personal Loans?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Personal loans are often preferred by many borrowers because of an easier overall process. Some of its major advantages are as follows:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Easier_approval_%E2%80%93\"><\/span><b>Easier approval &#8211;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You might have an easier time getting approved for a personal loan, especially if you haven\u2019t been in business for very long.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"No_collateral_required_%E2%80%93\"><\/span><b>No collateral required &#8211;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The best personal loans are unsecured, meaning you don\u2019t 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 favorable interest rates.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Quicker_process_%E2%80%93\"><\/span><b>Quicker process &#8211;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Personal loans tend to require far less paperwork and documentation, so the approval process is shorter and you get your funds more quickly.<\/span><\/p>\n<p style=\"text-align: center;\"><strong><em>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-check-your-personal-loan-status\/\">How To Check Your Personal Loan Status In UAE?<\/a><\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_advantages_of_Business_Loans\"><\/span><b>What are the advantages of Business Loans?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Even though you need excellent credit to qualify for a small business loan, once it gets approved, you can be subject to numerous advantages. Here are some of them:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Larger_loan_amounts_%E2%80%93\"><\/span><b>Larger loan amounts &#8211;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you need a larger loan, you\u2019ll want to consider business loans. Personal loans rarely exceed $50,000, and even that amount can be difficult to qualify for.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Separate_finances_%E2%80%93\"><\/span><b>Separate finances &#8211;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s crucial to separate your personal and business finances, and taking out a business loan helps you do this. Not only will this save you a lot of time come tax season, but it could also save you a lot of money in the form of tax deductions.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Lower_interest_rates_%E2%80%93\"><\/span><b>Lower interest rates &#8211;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you qualify for the best business loans, you\u2019ll probably get a lower interest rate than you would on a personal loan. The interest rates for business loans from traditional lenders range from 2% to 13%, while personal loan interest rates range from 6% to 36%.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Limited_liability_%E2%80%93\"><\/span><b>Limited liability &#8211;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Depending on your legal structure and the type of business loan you take out, your liability may be more limited than it would with a personal loan in case of default or inability to pay.<\/span><\/p>\n<p style=\"text-align: center;\"><strong><em>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/manage-credit-card-debt-during-covid-19\/\">10 Tips to Manage Your Credit Card Debt During COVID-19 Pandemic.<\/a><\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_choose_which_is_right_for_you_%E2%80%93_a_Personal_Loan_or_Business_Loan\"><\/span><b>How to choose which is right for you &#8211; a Personal Loan or Business Loan?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Deciding between personal and small business loans and choosing which lenders to borrow from comes down to your business history, your credit, and your business goals. If you need to borrow a lot of money, a business loan will likely be a better option, as lending limits are significantly higher on a business loan vs personal loan. However, If you need money quickly, some personal loan lenders can offer funding within one business day, while you may have to wait for weeks or months for some business loans.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Though one might think a business loan is the most appropriate choice when you need financing for your business, personal loans remain a popular and viable option for this purpose. As with any business decision, there are pros and cons to both methods. Before you dive in, it\u2019s important to weigh your business and personal needs and examine the potential outcomes and repercussions. We hope that this article brought you one step closer to your decision of choosing between a personal loan and a business loan.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are numerous financing options available to grow one\u2019s business in UAE, the most popular ones being credit cards and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":571,"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":[6,3],"tags":[102,40,30,32,86,101],"class_list":["post-569","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-finance","category-personal-loans","tag-guide-for-personal-loans-in-uae","tag-loan-deferment","tag-loans-credit-repayments","tag-personal-loans","tag-personal-loans-for-good-credit","tag-personal-loans-in-uae"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/569","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=569"}],"version-history":[{"count":4,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/569\/revisions"}],"predecessor-version":[{"id":624,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/569\/revisions\/624"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/571"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}