The banking and financial services segment is in a robust condition in the UAE today. It has more than bounced back after the financial turmoil of a few years ago; after the global economic slowdown of 2008, banks in the UAE suffered from a string of bad debts. Today, however, the situation has resolved itself and the sector is in a vigorous state.
Lower interest rates in the UAE
Today, banks are armed with better credit policies regarding loans. This has increased their control over risk while augmenting their revenue reserves. In a bid to widen its customer base, banks have adopted a low interest policy on loans. This has worked very well thus far – with borrowing costs reduced, banks are able to show profits even with lower .
personal loan rates
To cadge customers’ interest in their personal loans, banks and financial institutions are also showing higher flexibility while lending. A big driving force in this respect has been the tractability shown in defining the eligibility criteria for personal loans. Lending institutions have traditionally been rigid about upholding the eligibility criteria for loans, but many applications are increasingly being considered on a case-basis.
How should you view this situation?
With lower personal loan rates, it is a good time to take personal loans in the UAE. But the basic consideration of whether you should take a loan still remain unchanged, whatever the interest rate offered. Your repayment capacity, whether or not you have a steady income and how much your monthly income is will all determine your loan eligibility.
Also, lower interest rates are not offered to all and sundry: the lower your salary, the higher will be the interest rate offered to you. The interest rate will go up also if your income is erratic. Also, you must find out how you benefit by choosing fixed vs floating personal loan rates.