Whether you’re considering taking out a personal loan to pay off your credit card debt, manage unexpected expenses, or make a large investment, the process can seem quite challenging at first.
If you’re not equipped with the right resources and information, you could potentially end up with a not-so-favorable personal loan with terms that blindside you. In some cases, failure to take the right measures can also lower your chances of getting approved for a personal loan.
If you’re unsure about how to get started, we’ve rounded up five key steps to facilitate the process so you can breathe a big sigh of relief.
1. Check Your Credit Score
In most cases, lenders will check your credit score beforehand to determine your ability to adequately pay off the loan. Simply put, personal loans depend on your creditworthiness.
We suggest checking your credit score by obtaining a copy of your updated credit report from the Al Etihad Credit Bureau. This document contains a comprehensive overview of your credit account history, payment patterns, credit inquiries, and public records.
If you’ve defaulted on any payments in the past, this information will be detailed on your credit report. In addition, the report displays your full name and Emirates ID.
Checking your credit score is a soft inquiry so you don’t have to worry about ending up with a lower score. Make sure you have a good credit score (>700) so you can steer clear of a high-interest rate.
Checking your credit report will also help you identify and correct any unexpected discrepancies that could affect your chances of getting a low-interest rate. If you have a bad credit score, take some time to improve it before you apply for a personal loan.
2. Compare the Best Personal Loan Offers in the UAE
Many people tend to ask their friends and family for the best personal loan offers and simply rely on that information. If you’re considering skipping the research phase, think again. Word-of-mouth will leave you unexposed to a wide range of extremely favorable personal loan offers.
Take the reins of the research process by finding a comprehensive database that lists the best options available.
At Money Gulf Emirates, we make things much easier by listing personal loans based on:
- Applicable Interest Rates
- Tenures
- Loan Amounts
- Arrangement Fees
- Early Settlement Charges
- Additional Applicable Loan Terms
Compare personal loans by the leading providers in the UAE to shortlist your options and opt for a plan with the lowest interest rate.
We also suggest finalizing the right type of loan based on your needs.
Here are some options you should look into:
- Debt Consolidation Loans
- Salary Transfer Loans
- Smart/Quick Loans
- Buyout Loans
- Business Loans
- Car Loans
- Home Loans
3. Tempted to Submit Several Loan Queries? Don’t!
Submitting several loan queries is one of the biggest faux pas of the personal loan application process.
While it may sound tempting, you could end up with hard inquiries on your credit report. The outcome? A lower credit score.
We suggest opting for 2–3 lenders at a given time.
4. Familiarize Yourself With Additional Details You May Have Overlooked
Once you’ve finalized your personal loan plan, take some time to get up to speed with additional information that you may have initially skipped over. Examine the fine print to look out for prepayment penalties, additional fees, automatic withdrawals, processing charges, and similar information.
Keeping abreast of these details will go a long way in ensuring you agree with the clauses and can comfortably pay off the loan. Feel free to reach out to your lender and request more information so you don’t miss out on anything.
5. Provide the Required Documentation
Once you’ve finalized your personal loan, it’s time to get the documentation ready.
You’ll be required to provide the following documents:
- Filled Application Form
- Copy of Passport
- Copy of Emirates ID
- Salary Slips
- Salary Certificate
- Passport Size Photograph
- Bank Statements
We recommend gathering the required paperwork beforehand to give yourself a head start. The sooner you submit the documents, the faster you’ll receive a loan!
Depending on your loan provider and credit situation, you may be required to submit additional documents, which you can get hold of as the process continues.
Read the terms and conditions assiduously before you accept the loan offer. Once you’re done, accept the loan and you’re all set!
If you’re ready to take out a personal loan, we can help you get started. Use our updated database to compare the best personal loans in UAE by the leading local providers.
We can help you find the right option based on your preferences! Whether you’re looking for a business loan, auto loan, debt consolidation, salary transfer loan, or credit card settlement in UAE options, we’ll connect you with the best providers in Dubai, Sharjah, Abu Dhabi, and Ajman.
Call (+971) 528-651530 for more information and we’ll take it from there!