COVID 19 - Impact on Personal Loan Interest Rate in UAE

We all are living in unprecedented times where curfews might have experienced by the majority of the people but the complete closure of industries and businesses for more than 40-50 days is something that has been witnessed by the people for the first time in their lifetime.

Everybody is badly affected by the nationwide lockdown due to coronavirus pandemic. The ongoing pandemic has derailed normal life and impacted the personal finances of the common people. It is a very difficult time for employees as well as employers. The borrowers who have opted for personal loans for which they have to pay EMI every month are experiencing financial crises during this coronavirus pandemic. The pain is even deeper for the people who are non-salaried or don’t have a steady source of income. However, earning individuals are facing a pay cut, unpaid leaves, deferred salaries, unemployment, and loss of revenue in business.

So, if you are looking for an easy and convenient option to boost your cash flow in this difficult time, you can opt for a personal loan in UAE.  As some of the leading banks and financial institutions are offering consumer finances at the low personal loan interest rate in UAE which mainly aims to assist their existing customers to survive temporary cash flow problems because of the coronavirus pandemic.

Not only this, several banks and financial institutions have also offered financial relief measures at such difficult times in order to reduce the financial burden of their potential customers. For the personal loan borrowers who have been financially impacted by this coronavirus outbreak, banks have offered some kind of relief from repayments. Yes, you read it right. If you are an existing personal loan borrower, you can have your loan repayments deferred for a maximum of 3 months. Banks and financial institutions will not levy any interest rate or any kind of fees for this specific repayment holiday.

Which Banks Are Offering Personal Loan Repayment Deferrals?

In Dubai, Emirates NBD (which is the biggest bank by assets in Dubai), Emirates Islamic, Dubai Islamic Bank, Commercial Bank of Dubai, and Mashreq announced financial relief measures in order to reduce the financial burden.

In Abu Dhabi, Abu Dhabi Commercial bank, Abu Dhabi Islamic Bank, and First Abu Dhabi Bank are offering great financial support to their potential customers.

Elsewhere across the United Arab Emirates, RAKBANK, Commercial Bank International, Sharjah Islamic Bank have also take a one step ahead to help individuals and businesses in these critical times.

Personal Loan Interest Rate

Some of the leading banks and financial institutions are offering consumer finances at the low personal loan interest rate in UAE during COVID-19. The rate of interest has significantly reduced when compared to regular days during this coronavirus pandemic just to give a financial relief to the potential customers.

Personal Loan Eligibility Criteria

As of now, consumer finances at the low personal loan interest rate in UAE are only available to existing customers who have a salary account with a stable job or those who have a good credit score. But personal loans would still not be offered to those people who don’t have a good credit history or good credentials.

To read more: Personal loan Eligibility requirements  

The Need for Personal Loan

Currently, there are two types of people. First one is those whose finances are badly impacted because of the coronavirus pandemic due to salary deferrals, pay-cuts, unpaid leave, unemployment, loss of revenues for the business, and the like. And the second one are those people whose financial situation is still more or less on track somehow.

And it is actually the people of the first category who really need financial support in this critical time. For people who belong to the second category, it must be said that consumer finance is available at the low personal loan interest rate in UAE doesn’t mean that they should really procure it. After all, the loan would be a loan. You are borrowing money and the interest rate has to paid on the loan amount that being borrowed.

Summing it Up

If you are considering a consumer loan even at the low personal loan interest rate in UAE during COVID-19 in order to meet your financial requirements, be very specific and also remember that the problem we all are witnessing is temporary. So, opt for it when you really need it because there is no point in adding more debts in such tragic times.